The International Journal of Accounting and Business Society

Crowe's Fraud Pentagon Theory Review Of Fraudulent Financial Statements With Audit Committee Moderation

Wulan Retnowati — 2024-04-01

Purpose—This study aims to analyze the Pentagon fraud theory for detecting fraud in financial statements, with the audit committee as a moderating variable.

Design/methodology/approach — This study's population is manufacturing companies listed on the Indonesia Stock Exchange in 2018-2020. The research sample is 198, comprising 66 company annual reports for three years. The analysis technique used in this study is multiple linear regression and uses the MRA (Moderating Regression Analysis) method through IBM SPSS version 26 software.

Findings—The results showed that the variables of pressure and arrogance influenced fraud in financial statements, while the variables of opportunity, rationalization, and competence did not. The pressure and opportunity variables affect fraud in financial statements after being moderated by the audit committee variable, while the rationalization, competency, and arrogance variables have no effect.

Practical implications — Practical benefits for stakeholders as a source of information regarding factors that can be detected as a cause of fraud in financial statements. That is expected to avoid or minimize fraud and fraudulent financial statements, which can later develop and harm many parties, especially business people.

Originality/value — The difference between this study and previous research lies in using variables, research objects, research periods, and measurements that previous researchers have not carried out.

Paper type — Research paper

The Effect of Service Quality and System Quality on Online Registration Aplication on User Satisfaction with Usage Frequency as An Intervening Variable

Erlan Anugrah Pratama — 2024-04-20

Purpose — This research aims to investigate the impact of system quality and service quality on user satisfaction, specifically examining the mediating role of usage frequency in an online registration information system for hospital queues.

Design/methodology/approach — This research used an analytic observational design with a cross-sectional approach. Data were collected from 96 patients attending a Private Hospital in Malang City from May to July 2022. The data were analyzed using multiple linear regression and path analysis, including the Sobel test and causal step.

Findings — The results of this research indicate that neither service quality (t-test statistic = -1.458, t-stat < 1.96) nor system quality (t-test statistic = -0.448, t-stat < 1.96) directly affected user satisfaction through usage frequency. This suggests that usage frequency does not mediate the relationship between service quality, system quality, and user satisfaction.

Practical implications — This research highlight the importance of service quality and system quality in online registration application services. Improving these aspects could enhance user satisfaction, even though usage frequency may not directly mediate this relationship.

Originality/value — This research contributes to the understanding of factors influencing user satisfaction in online registration systems for healthcare services. The findings suggest that service providers should focus on improving system quality and service quality to enhance user satisfaction, independent of usage frequency.

A Model of Quality Assurance and Audit Quality Based on International Standards for Internal Auditing

Maher A. Al-Shmam — 2024-04-20

Purpose — This study aimed to address the concept of internal audit quality and how to enhance and improve the quality of internal audit units in hospitals by identifying and designing a proposed new model based on the International Auditing Standard 1300 to ensure quality assurance and improve transparency and accountability.

Design/methodology/approach — This study aims to achieve these objectives. Qualitative methods and semi-structured interviews using an inductive approach were adopted to cover the theoretical aspect of research and the deductive approach to develop a new model for a quality assurance and transparency program in hospitals in Iraq Mosul City.

Findings —The findings of this internal audit division do not cover all hospital activities. In addition, it is not possible to apply standardized audit programs to the various units. Rather, the type of activities carried out by these units should be considered, whether service, economic, commercial, or agricultural. Thus, many factors improve the quality of internal auditing related to work procedures in the unit. Among the most important recommendations is implementing a quality assurance and transparency program in these hospitals to raise the quality of internal auditing and carry out its activities efficiently and effectively.

Practical implications —This proposal can serve as a guide for later use by those authorities as they evaluate and determine the strength of the internal audit of any establishment, company, or governmental institution. Therefore, hospitals must apply the paragraphs that are not included in the program, and there should be greater interest in the paragraphs that are applied in a weak way to reach real integration of the quality assurance and improvement program, which enhances the quality of internal auditing on all hospital activities.

Originality/value —This paper describes a quality assurance and transparency program in these hospitals to improve internal audits and efficiency.

Prophetic Tax Based on Kuntowijoyo's Thought

Umaimah Umaimah — 2024-05-20

Purpose —. This research aims to formulate a tax concept based on Kuntowijo's thought.

Design/methodology/approach —. This research is critical research using Kuntowijoyo's critical thinking, namely the prophetic mission of Islam; humanization, liberation, and transcendence based on Al Quran Surah Ali Imron verse 110

Findings — Humanization, liberation and transcendence do not yet exist in the modern tax concept. Taxes should be a sincere gift from the people to the State based on justice within the framework of faith in God Almighty and spent on the interests of the people from the weakest groups.

Practical implications — It is hoped that this article can be used as material for consideration for the government, especially the Directorate General of Taxes, to reformulate the concept of tax in Indonesia.

Originality/value — This article presents a tax concept that combines Religion with human thought.

Role of Product Quality, Need for Variety, Customer Satisfaction, and Switching Cost on Switching Behavior on Male Skincare Product

suluk waseso segoro — 2024-04-20

Purpose — This study examines and analyses the influence of product quality, need for variety, customer satisfaction, and switching costs on customer switching intention in the men's skincare industry.

Design/methodology/approach—Descriptive associative research was utilized to test the hypotheses. Data were collected via an online survey, where samples were chosen using a purposive technique involving male skin care and grooming product customers in various major cities in Indonesia. A valid 418 responses were analyzed using PLS-SEM.

Findings — This study validated the significant effect of the need for variety, product quality, and customer satisfaction on customers switching intention. However, switching costs failed to moderate the relationship between customer satisfaction and switching intention.

Practical implications—Producers of men’s skincare products must satisfy their target customers by offering more product variety, ensuring their products meet customers’ requirements, and maintaining their product quality. They must also keep innovating to produce new products, as customers tend to switch to other brands offering a new variety of products.

Originality/value — It is one of a few studies focusing on the purchasing behaviour of men, particularly in emerging economies, despite the growing concerns of men about their appearance.

Paper type — Research Paper

Analyzing the Impact of Economic Performance on the Interplay between Financial Management Strategies and Profitability in the Iraqi Context

Hisham Noori Hussain AL-Hashimy — 2024-06-24

Purpose - This study examines how economic performance affects financial management approaches and profitability in Iraq's construction business. This research examines how financial management strategies affect profitability and economic success.

Design/Methodology/Approach—Construction project and site managers in Iraq were surveyed online for the study. Given the scope and magnitude of the research, this study's 85.3% response rate is impressive. In-depth statistical analysis was performed using Partial Least Squares Structural Equation Modelling (PLS-SEM), which examined economic performance, financial management, and profitability.

Findings - The instance indicates that the lack of organization-wide integrated systems, common across enterprises, contributes to this problem. The major issue is that the organization's information systems strategy never expressly prioritizes KM-enabling schemes.

Practical Implications—The study's conclusions have major practical ramifications. Iraqi enterprises should prioritize resource optimization, cost control, and strategic financial planning to improve economic performance. In addition, governments should promote building projects through incentives, subsidies, and tax policies that boost economic productivity and profitability. These policies are available here.

Originality/Value—This study adds to the literature by stressing economic performance as a mediator between financial management methods and profitability in Iraq's construction sector. It examines the dynamics of this link in Iraq's building sector. With the new data, firms may improve financial performance by making informed judgments and using efficient financial management procedures.