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This study looks at the effect of accounting flexibility on earnings quality in public companies listed on the Indonesia Stock Exchange during the period 2016 to 2019. This study uses two models to measure earnings quality, namely ERC and earnings persistence. The results showed that accounting flexibility, namely the limitations of companies to carry out accrual earnings management, can reduce earnings quality, as shown by the abnormal accrual model which shows a significant positive coefficient direction, and for the ERC model and earnings persistence which shows a negative and significant coefficient direction. The higher the level of accrual earnings management up to a certain limit point, the more incentive company managers will have to increase accounting flexibility and switch to real earnings management (Xu and Yang, 2013; Masri, 2018). Theoretical contributions show that the higher the level of accrual earnings management up to a certain limit point, the more incentive company managers will have to increase accounting flexibility and switch to real earnings management (Xu and Yang, 2013; Masri, 2018; Purba, Surya, Joshi & Tiagy, 2023). The Implications of this research show that accounting flexibility is carried out when abnormal accruals reach the highest limit point reflected in accounting choices in net operating assets in the balance sheet, so in this case it results in a low level of earnings informativeness and earnings persistence. 

The Republic of South Africa (RSA) adopted the move to accrual-based accounting in 1999, and the implementation of GRAP standards by the Municipalities has been affected since 2006. The expected benefits were improving transparency, accountability, quality, and efficiency of municipal financial reporting. The aim of this study is to investigate the impact of GRAP standards on the quality of financial reporting in RSA municipalities during the period of Pre-GRAP (2005/06 to 2009/10) compared to Post-GRAP (2010/11 to 2015/16).   This study employed a quantitative approach wherein secondary data was sourced online from the National Treasury database. A panel dataset split into two subpanels (pre and post), drawn from a sample of 125 municipalities, was used to test the study’s hypothesis.  The data were winsorized to eliminate outliers, and a multicollinearity test was conducted to identify and eliminate variables that could have resulted in model misspecification. A Hausman Test was used to select the study’s regression model, which was estimated using the STATA 15 software. The residuals of the regression model were used as a measure of accrual quality and, hence, financial reporting quality. A larger standard deviation of residuals indicates poorer accruals quality and financial reporting quality. The findings indicated a standard deviation of 0.061 (pre-GRAP) and 0.084 (post-GRAP) for the adoption periods, which indicates higher financial reporting quality. These relatively unchanged standard deviation results suggest that GRAP did not significantly improve the quality of financial reporting by municipalities after its adoption.

Small and Medium-sized Enterprises (SMEs) are essential to the South African economy.  The corporations Act of South Africa (71 of 2008) mandates that corporations adhere to either complete International Financial Reporting Standards (IFRS) or IFRS for Small and Medium-sized Entities (SMEs).  The International Accounting Standards Board (IASB) established IFRS for SMEs in 2009 as an alternative framework for qualifying firms, providing an option in lieu of the comprehensive IFRS standards.  Notwithstanding its deployment, the impact of IFRS for SMEs on financial reporting quality (FRQ) in South Africa has not been extensively examined.  The research involved a sample of twenty accounting firms, with five businesses chosen from each municipality to manage Annual Financial Statements (AFS) for five SMEs each, culminating in a total of 100 SMEs.  Due to the absence of a universally accepted metric for evaluating FRQ, the study utilised three previously established measures together with an aggregate measure.  The research employed Ordinary Least Squares (OLS) Regression analysis to investigate trends in FRQ over two time periods: 2010-2014 and 2015-2019.  Findings demonstrate no substantial enhancement in FRQ among Vhembe SMEs over time.  Discretionary accruals exhibited stability, indicating consistent reporting quality.  The results underscore the significance of accrual accounting and standardised methodologies, enhancing the quality and dependability of financial data for stakeholders.  This research offers essential insights for accountants, business proprietors, investors, and regulatory entities, highlighting the beneficial effects of IFRS for SMEs on the quality of financial reporting among South African SMEs.

This research investigates Computer-Assisted Audit Techniques (CAATTs) within the Internal Audit Unit at the City of Ekurhuleni Metropolitan Municipality (EMM). The study explores the extent to which CAATTs are utilized, the challenges faced in their implementation, and their impact on the efficiency and effectiveness of internal audits. Data was collected through a mixed-methods approach, including surveys and interviews with internal auditors. The findings reveal that while CAATTs, primarily TeamMate, are increasingly being used to automate audit processes, their adoption is hindered by limited access, insufficient training, and high costs. Despite these challenges, CAATTs have been shown to improve audit accuracy and efficiency, contributing to more timely and reliable audit outcomes. The study highlights the need for enhanced IT infrastructure, greater executive support, and comprehensive training to optimize the use of CAATTs. Based on these findings, the research provides several recommendations, including expanding the use of diverse CAATTs, investing in IT support, and fostering a culture of innovation to maximize the benefits of these technologies in internal auditing. This study contributes to the growing body of knowledge on CAATTs and offers practical insights for municipal internal audit units seeking to enhance their audit capabilities through technology.

The Republic of South Africa (RSA) adopted the move to accrual-based accounting in 1999, and the implementation of GRAP standards by the Municipalities has been affected since 2006. The expected benefits were improving transparency, accountability, quality, and efficiency of municipal financial reporting. The aim of this study is to investigate the impact of GRAP standards on the quality of financial reporting in RSA municipalities during the period of Pre-GRAP (2005/06 to 2009/10) compared to Post-GRAP (2010/11 to 2015/16).   This study employed a quantitative approach wherein secondary data was sourced online from the National Treasury database. A panel dataset split into two subpanels (pre and post), drawn from a sample of 125 municipalities, was used to test the study’s hypothesis.  The data were winsorized to eliminate outliers, and a multicollinearity test was conducted to identify and eliminate variables that could have resulted in model misspecification. A Hausman Test was used to select the study’s regression model, which was estimated using the STATA 15 software. The residuals of the regression model were used as a measure of accrual quality and, hence, financial reporting quality. A larger standard deviation of residuals indicates poorer accruals quality and financial reporting quality. The findings indicated a standard deviation of 0.061 (pre-GRAP) and 0.084 (post-GRAP) for the adoption periods, which indicates higher financial reporting quality. These relatively unchanged standard deviation results suggest that GRAP did not significantly improve the quality of financial reporting by municipalities after its adoption.

This study looks at the effect of accounting flexibility on earnings quality in public companies listed on the Indonesia Stock Exchange during the period 2016 to 2019. This study uses two models to measure earnings quality, namely ERC and earnings persistence. The results showed that accounting flexibility, namely the limitations of companies to carry out accrual earnings management, can reduce earnings quality, as shown by the abnormal accrual model which shows a significant positive coefficient direction, and for the ERC model and earnings persistence which shows a negative and significant coefficient direction. The higher the level of accrual earnings management up to a certain limit point, the more incentive company managers will have to increase accounting flexibility and switch to real earnings management (Xu and Yang, 2013; Masri, 2018). Theoretical contributions show that the higher the level of accrual earnings management up to a certain limit point, the more incentive company managers will have to increase accounting flexibility and switch to real earnings management (Xu and Yang, 2013; Masri, 2018; Purba, Surya, Joshi & Tiagy, 2023). The Implications of this research show that accounting flexibility is carried out when abnormal accruals reach the highest limit point reflected in accounting choices in net operating assets in the balance sheet, so in this case it results in a low level of earnings informativeness and earnings persistence. 

This research investigates Computer-Assisted Audit Techniques (CAATTs) within the Internal Audit Unit at the City of Ekurhuleni Metropolitan Municipality (EMM). The study explores the extent to which CAATTs are utilized, the challenges faced in their implementation, and their impact on the efficiency and effectiveness of internal audits. Data was collected through a mixed-methods approach, including surveys and interviews with internal auditors. The findings reveal that while CAATTs, primarily TeamMate, are increasingly being used to automate audit processes, their adoption is hindered by limited access, insufficient training, and high costs. Despite these challenges, CAATTs have been shown to improve audit accuracy and efficiency, contributing to more timely and reliable audit outcomes. The study highlights the need for enhanced IT infrastructure, greater executive support, and comprehensive training to optimize the use of CAATTs. Based on these findings, the research provides several recommendations, including expanding the use of diverse CAATTs, investing in IT support, and fostering a culture of innovation to maximize the benefits of these technologies in internal auditing. This study contributes to the growing body of knowledge on CAATTs and offers practical insights for municipal internal audit units seeking to enhance their audit capabilities through technology.

Small and Medium-sized Enterprises (SMEs) are essential to the South African economy.  The corporations Act of South Africa (71 of 2008) mandates that corporations adhere to either complete International Financial Reporting Standards (IFRS) or IFRS for Small and Medium-sized Entities (SMEs).  The International Accounting Standards Board (IASB) established IFRS for SMEs in 2009 as an alternative framework for qualifying firms, providing an option in lieu of the comprehensive IFRS standards.  Notwithstanding its deployment, the impact of IFRS for SMEs on financial reporting quality (FRQ) in South Africa has not been extensively examined.  The research involved a sample of twenty accounting firms, with five businesses chosen from each municipality to manage Annual Financial Statements (AFS) for five SMEs each, culminating in a total of 100 SMEs.  Due to the absence of a universally accepted metric for evaluating FRQ, the study utilised three previously established measures together with an aggregate measure.  The research employed Ordinary Least Squares (OLS) Regression analysis to investigate trends in FRQ over two time periods: 2010-2014 and 2015-2019.  Findings demonstrate no substantial enhancement in FRQ among Vhembe SMEs over time.  Discretionary accruals exhibited stability, indicating consistent reporting quality.  The results underscore the significance of accrual accounting and standardised methodologies, enhancing the quality and dependability of financial data for stakeholders.  This research offers essential insights for accountants, business proprietors, investors, and regulatory entities, highlighting the beneficial effects of IFRS for SMEs on the quality of financial reporting among South African SMEs.