Research Articles (Auditing)

Permanent URI for this collectionhttp://hdl.handle.net/2263/2879

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A red flag checklist for cryptocurrency Ponzi schemes
(Emerald, 2024-04) Heyman, Christiaan Ernst (Riaan)
PURPOSE – This study aims to, firstly, develop a red flag checklist for cryptocurrency Ponzi schemes and, secondly, to test this red flag checklist against publicly available marketing material for Mirror Trading International (MTI). The red flag checklist test seeks to establish if MTI’s marketing material posted on YouTubeVR (in the form of a live video presentation) exhibits any of the red flags from the checklist. DESIGN/METHODOLOGY/APPROACH – The study uses a structured literature review and qualitative analysis of red flags for Ponzi and cryptocurrency Ponzi schemes. FINDINGS – A research lacuna was discovered with regard to cryptocurrency Ponzi scheme red flags. By means of a structured literature review, journal papers were identified that listed and discussed Ponzi scheme red flags. The red flags from the identified journal papers were subsequently used in a qualitative analysis. The analyses and syntheses resulted in the development of a red flag checklist for cryptocurrency Ponzi schemes, with five red flag categories, containing 18 associated red flags. The red flag checklist was then tested against MTI’s marketing material (a transcription of a live YouTube presentation). The test resulted in MTI’s marketing material exhibiting 88% of the red flags contained within the checklist. RESEARCH LIMITATIONS/IMPLICATIONS – The inherent limitations in the design of using a structured literature review and the lack of research regarding the cryptocurrency Ponzi scheme red flags. PRACTICAL IMPLICATIONS – The study provides a red flag checklist for cryptocurrency Ponzi schemes. The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags. SOCIAL IMPLICATIONS – The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags. ORIGINALITY/VALUE – The study provides a red flag checklist for cryptocurrency Ponzi schemes.
Auditing students’ perceptions of online assessments and e-proctoring systems
(Discover, 2024) Terblanche, Alet; Van Rooyen, Annelien A.; Enwereji, Prince Chukwuneme; alet.terblanche@up.ac.za
The COVID-19 pandemic accelerated the implementation of online assessments at an unprecedented pace. The pandemic required most higher education institutions worldwide to implement online assessments almost overnight. The study aimed to gain an understanding of auditing students’ perceptions of online assessments and e-proctoring systems during the pandemic. A web-based questionnaire was administered to postgraduate auditing students who had taken part in remote online assessments at an open distance and e-learning university in South Africa, invigilated via e-proctoring software, which was introduced in the 2020 academic year. A total of 238 students participated in the study. Factor analysis, using principal component factor analysis, was performed to identify the factors or components that possibly caused the variation in these auditing students’ perceptions of online assessments and e-proctoring. Varimax with Kaiser normalisation was used as a rotation method. This process revealed five main components that explained variations in participants’ perceptions, namely: Component 1—emotions (assessments), appropriateness (assessments), fairness (assessments), monetary aspects, and time; Component 2—practical IT matters, academic integrity (e-proctoring) and cheating (e-proctoring); Component 3—practical IT matters (e-proctoring) and emotions (e-proctoring); Component 4—practical IT matters (assessments) and time (assessments); and Component 5—cheating (assessments). Implications of the findings for educators are offered, along with recommendations for future research.
Corporate reporting by cooperatives : mapping the landscape and identifying determinants
(Elsevier, 2024-12) Fouche, Karel; Polo-Garrido, Fernando; karel.fouche@up.ac.za
Cooperatives conform to a model that is different to what is normally understood to be an enterprise, with distinctive interpretations of property rights, governance, and values. A unique characteristic of cooperatives’ corporate reporting is it essentially addresses member-owners, and not shareholders. Despite this, most research has been performed from the perspective of investor-owned firms. The aim of this study is to obtain an understanding of the nature and extent of the adoption of corporate reporting conventions, and to identify the determinants of such adoptions by cooperatives, by means of ordinal regression and binary logistic models on a sample drawn from the Global Top 300 cooperatives. Despite the expectations implicit in the differences in the users of financial reports (cooperative members), there was a lack of cooperative-specific reporting in that the most common categories of published corporate reports are still annual reports and annual financial statements. Approximately half of the cooperatives publish environmental and social reports, governance reports and/or management reports, while only a miniscule number publish integrated reports. Results also suggest the stakeholder, legitimacy, institutional, transaction cost and agency theories help to explain the determinants for the of adoption of corporate reporting. We have identified common determinants (market, country and institutional factors) for the adoption of cooperative reporting, as well as idiosyncratic determinants that are unique to cooperative entities. We found that cooperatives with external shareholders are more likely to adopt environmental and social, management and governance reporting. Idiosyncratic determinants indicated that cooperatives who more assertively draw their attention to their identity are more likely to adopt annual reporting. Cooperatives who limit the distribution of profits to members only are also more likely to adopt management reporting.
South Africans’ susceptibility to phishing attacks
(Southern African Institute of Government Auditors, 2023-11) Wannenburg, Mariska C.; Nieman, Annamart; Steyn, Blanche; Wannenburg, Daniel G.
PURPOSE : The purpose of the study is to assess the phishing susceptibility of individuals in South Africa, across industries related to financial services, education, legal services, and fraud- and forensic businesses. DESIGN/METHODOLOGY/APPROACH : This was an empirical, quantitative research study that collected anonymised data on simulated phishing attacks, using a survey. The results were statistically analysed to identify factors that were significantly related to the phishing score generated. FINDINGS : This was the first South African study to develop a phishing susceptibility score. The following demographic categories demonstrated a higher likelihood of phishing susceptibility: the legal industry; Gen Z and Alpha; females; and participants with matric as the highest educational level. The only two variables that were found to be significantly related to the phishing susceptibility score were gender (with females more susceptible) and the variable relating to prior reporting of phishing attacks (rendering such reporters less susceptible). RESEARCH LIMITATIONS/IMPLICATIONS : The data collected from the online survey represents the perceptions of the individual respondents. The results of this research are valuable, not only to the participants in this study but also to organisations within other industries, as it highlights phishing susceptibility risks. ORIGINALITY/VALUE : This study provides insight into factors influencing phishing susceptibility. For future research purposes, this study could be replicated within other industries in South Africa.
Exploring students’ perceptions on effective online tutoring at a distance education institution
(Academic Publishing Limited, 2023-09) Enwereji, Prince Chukwuneme; Van Rooyen, Annelien; Terblanche, Alet; alet.terblanche@up.ac.za
Online or e-tutoring is a component of e-learning that involves teaching in an online setting where the e-tutor provides support to a small group of students, which can increase confidence, improve topic comprehension and develop critical learning skills. To enhance e-tutoring in the Department of Financial Accounting at the University of South Africa, this study examined student perspectives or evaluations on the effectiveness of e-tutoring in a distance learning environment, as well as the challenges encountered during its implementation. The study adopted a quantitative design where online questionnaires were used as data collecting instruments. A total of 3,837 questionnaires were completed by students who indicated their willingness to participate in the study. Statistical Package for Social Sciences (SPSS) was used to analyse the data. The major findings revealed that e-tutoring has enhanced students’ learning options in financial accounting modules, through the provision of assistance and the promotion of interactive classrooms. The study revealed that students expressed a need for increased training for e-tutors to enhance their abilities in supporting academic goals, while technological challenges such as bad internet and internet cost were identified as significant barriers to successful e-tutoring. Recommendations include promoting e-tutoring in higher education institutions to support students’ academic endeavours, providing regular training for e-tutors to handle technical content and overcome technological challenges, and establishing effective communication channels to facilitate student-tutor interactions. These measures aim to improve teaching and learning in the online environment, fostering a supportive and engaging experience for students.
Preparing first-year students in higher education for ethical decision making : identifying and understanding personal values in a South African Ubuntu context
(Southern African Institute of Government Auditors, 2022) Papageorgiou, Elmarie; Fortuin, Gail; Shamsoodien, Sihaam; Mothelesi, Charles; Koza, Thandekile; Plant, Kato
ORIENTATION AND PURPOSE : Globally, business scandals and corruption are not new phenomena. Curriculum developers and professional bodies have re-visited the teaching of ethics in higher education, owing to repeated calls from the business world to increase the awareness of ethical behaviour. This study is a first large and across-university study at six universities in South Africa. The purpose of the study was to determine the personal values of students in their first year of study, that guide their ethical and professional behaviour, using an action-oriented teaching approach. METHODOLOGY : The research method was quantitative, where a lecture exercise and online questionnaire were used to determine students’ individual personal values. The sampling frame includes first-year accounting students (N=4120) at six South African universities, registered for accounting degrees. FINDINGS : The main findings indicated that, of the 51 value items, students selected their top ten values as family, authenticity, hardworking, integrity, balance, caring, economic security, faithfulness, successful and purpose. From the results, “family” was considered the most important value, which indicates a strong Ubuntu orientation. VALUE : The study provides insights and evidence on first-year accounting students’ personal values, that guide their ethical and professional behaviour. Insights into the personal values of students can assist ethics educators in relating these values to the business- and professional values addressed in accounting education. Furthermore, applying an action-oriented teaching approach with an increased focus on Ubuntu, as a moral theory, can contribute to developing students’ ethics competence.
The non-financial reporting practices of co-operative managed enterprises in South Africa
(AOSIS, 2023-08) Fouche, Karel Bodenstein; Uys, Meon; karel.fouche@up.ac.za
ORIENTATION : This paper reports on how co-operative managed enterprises in South Africa address non-financial reporting requirements. RESEARCH PURPOSE : The purpose of the study is to obtain a deeper understanding of the non-financial reporting practices followed by co-operatives in South Africa, from the perspective of stakeholders. MOTIVATION FOR THE STUDY : The benefits of co-operative enterprises can only be fully realised if the non-financial reporting is effective in describing whether the values and principles unique to this type of enterprise have been met. Although the non-financial reporting practices of co-operatives have been the subjects of many international studies, limited research has been performed from a South African perspective. RESEARCH, DESIGN, APPROACH AND METHOD : A case study approach was employed in which semi-structured interviews were conducted. Three co-operatives were selected as the case studies, and interviews were held with stakeholders, including management, employees and suppliers. A thematic analysis was performed by means of ATLAS.ti, where a codebook was developed and used to analyse interview data and to develop a findings framework. The findings were documented with reference to the framework. PRACTCIAL / MANAGERIAL IMPLICATIONS : The research demonstrates that the relevance, reliability, quality and completeness of non-financial information are influenced by the co-operative’s age, size, industry, level of stakeholder participation and the reporting guidance by the co-operative preferred. CONTRIBUTION / VALUE ADDED : This study illustrates how improving the quality of non-financial reporting of co-operatives in South Africa could enhance the achievement of their goals.
Signalling of internal audit effectiveness
(NISC Pty (Ltd) and Informa Limited (trading as Taylor & Francis Group), 2022) Pooe, Jabile Brenda; Barac, Karin; Plant, Kato; Steyn, Blanche
The internal audit function is increasingly recognised as an important internal governance mechanism and consequently factors that contribute to its effectiveness are now an area of great interest to researchers and practitioners. This study draws on signalling theory to fill a gap in the internal audit effectiveness (IAE) literature by investigating which IAE signals are sent by large South African companies in their company reports. Using a self-developed IAE signalling frame, a content analysis was performed on the integrated reports and other annual reports of the top 100 listed companies in South Africa over a five-year period. Thereafter a multiple correspondence analysis was used to extract IAE signals. The results revealed that IAE disclosure patterns of South African listed companies follow the normative dictates of the King Code and the Companies Act. The study also discovered a low average IAE disclosure rate linked to non-mandatory disclosure requirements. Disclosing more detail on IAE represents a missed opportunity to signal superiority through voluntary communication of the IAE signals especially on internal aspects such as management support for internal audit recommendations and the continuous professional development of internal auditors.
Using peer review to develop professional competencies : an Ubuntu perspective
(Routledge, 2021) Barac, Karin; Kirstein, Marina; Kunz, Rolien; karin.barac@up.ac.za
There is a paucity of literature investigating peer review as an aspect of accounting and auditing education. This study investigates students’ perceptions of peer review as a method to develop professional competencies. It reports on a peer review intervention, the so-called TUTBuddy, introduced in an undergraduate auditing course. A mixed method approach was followed that showed that students perceived the intervention as having positively influenced the development of their competence in nine areas. A positive relationship was found between the students’ perceived development of these competencies and their own academic performance. The study also draws attention to students’ interpersonal perspectives, and suggests Ubuntu dimensions that can be emphasised to promote interconnectedness between an individual student and their peers. The study contributes to the peer review literature by showing its application in the auditing discipline, and by suggesting that an interpersonal frame of reference be considered to strengthen peer review as a social process.
Audit practice : a straightforward trade or a complex system?
(Wiley, 2021-11) Barac, Karin; Plant, Kato; Kunz, Rolien; Kirstein, Marina; kato.plant@up.ac.za
Auditors' skills and ways of working must adapt to constantly changing conditions in the workplace, and the COVID-19 pandemic has brought further complexity. This paper uses a complexity theory lens to investigate changes in audit practice in recent years. A qualitative research method, using semi-structured interviews, was applied: first to investigate how audit practice (skillsets and ways of working) needs to be reformed and second to suggest implications for audit practice stemming from a disruptive macro-level event such as the current COVID-19 pandemic. It was found that audit firms are framed as complex adaptive systems and new skillsets and ways of working in audit practice are well known for their adaptation, co-evolution and emerging behaviours, which include virtual audits and remote working that have been brought about by the COVID-19 pandemic.
Generic skill profiles of future accountants and auditors – moving beyond attributes
(Emerald, 2021-08) Barac, Karin; Plant, Kato; Kunz, Rolien; Kirstein, Marina; kato.plant@up.ac.za
PURPOSE : This study investigates perceptions regarding generic skills future entry-level accountants and auditors will require. Such soft or pervasive skills are necessary to operate effectively in the future world of work. Prior research mainly explores generic skills from an attribute-based perspective, while this paper combines it with an activity-based perspective in generic skill profiles of accountants and auditors. DESIGN/METHODOLOGY/APPROACH : Following a mixed methods research approach through focus group discussions and a survey involving more than 3,000 professional accountants and/or auditors, the study uses data from the Southern African region (South Africa, Zimbabwe and Namibia) to determine views on the competency needs of future accountants and auditors. An exploratory factor analysis was conducted to determine whether categories of generic skills for future entry-level accountants and auditors differ. FINDINGS : Four generic skills factors emerged as essential for future entry-level chartered accountants (CAs): digital, decision-making, organisational and business acumens. Three generic skill factors emerged for future registered auditors (RAs): digital, practice and commercial acumens. The results show that generic skill profiles of CAs and RAs, who are members of an accounting body differ and that both the context, related to an activity-based perspective, and individual or internal abilities, related to an attribute-based perspective, matter. RESEARCH LIMITATION/IMPLICATIONS : The study extends generic skill theory by identifying broad categories of generic skills (referred to as acumens) for future accountants and auditors. PRACTICAL IMPLICATIONS : Insights from this paper facilitate a comprehensive understanding of the generic skill profile approach, combining attribute-based and activity-based perspectives, and this could assist accounting educators, practitioners and professional bodies to better prepare entry-level accounting and audit professionals for the workplace. ORIGINALITY/VALUE : The study identifies broad categories (digital, decision-making, organisational, business, practice and commercial acumens) within generic skill profiles of CAs and RAs and shows that generic skills do not operate independently and should be viewed as an interdependent set or constellation of competencies.
Face-to-face soft skills for entry-level internal auditors : a practice perspective
(Sage, 2021-04) Coetzee, Philna; Du Plessis, Annelize
Practising internal auditors, including entry-level internal auditors, need face-to-face soft skills to effectively manage the increased complexity of their profession. Although many studies have highlighted the need for soft skills, none has identified the various categories of face-to-face soft skills required by entry-level internal auditors when interacting with stakeholders. The aim of this article is to determine the views of practising internal auditors on the face-to-face soft skills required by entry-level internal auditors. A convergent parallel mixed-methods design was used for the study. Two data collection methods were employed to address the research objective. First, a document analysis was conducted to compile a preliminary list of face-to-face soft skills categories. In this regard inductive thematic analysis was adopted. Second, a web-based survey, conducted among selected practising internal auditors in South Africa, confirmed the preliminary list of 21 face-to-face soft skills. Cronbach’s alpha statistics were calculated and interpreted for responses to all Likert-scale questions. The findings indicate that both practitioners and the Institute of Internal Auditors should augment the existing list of imprecise soft skills to include the identified 21 face-to-face soft skills. If this is done, entry-level internal auditors’ face-to-face soft skills will be enhanced.
Integrated reporting education and hegemonic domination
(Springer, 2020-10) Barac, Karin; Conradie, Pieter; De Klerk, Rene Louise
ORIENTATION : Conventional accounting education is presented from a business perspective that rationalises the prioritisation of shareholder interests. Such a paradigm, viewed as the hegemony of business, fails to deliver on the emancipatory intent of social and environmental justice. RESEARCH PURPOSE : To determine whether a postgraduate diploma in integrated reporting (PGDIR) (advancing the principles of social and environmental justice) offered participants an explicitly transformative experience. MOTIVATION FOR THE STUDY : As educators, first, the authors set out to determine whether graduates of the PGDIR achieved a critical awareness of the tension between sustainability and the hegemony of business, and second, they wanted to determine whether the PGDIR prepared students to deal with hegemonic domination in practice. RESEARCH APPROACH/DESIGN AND METHOD : In this qualitative study, the first 4 years PGDIR graduates were interviewed. Main findings: Postgraduate diploma in integrated reporting graduates, after critical self-reflection, expressed a sense of disillusionment arising from having attempted to implement the theory presented in the PGDIR. Whilst prior studies have identified critical thinking skills as necessary components of critical accounting education, this study suggests the need for emotional intelligence, and skills in consultation and negotiation as equally important tools to empower graduates to deal with hegemonic tension in practice. PRACTICAL/MANAGERIAL IMPLICATIONS : The findings of the study could inform accounting pedagogies, as it explains how integrated reporting, with its purpose of advancing the principles of social and environmental justice, was taught in the PGDIR. CONTRIBUTION/VALUE-ADD : The PGDIR, the object of the study, is based on the principles of social and environmental justice and provides insights into the way that these concepts can be taught in a progressive way.
Do board-level controls matter? - An agency perspective on socially responsible investment (SRI) company boards in South Africa
(NISC Pty (Ltd) and Informa Limited (trading as Taylor & Francis Group), 2020) Steyn, Blanche; Kwenda, Farai; Stainban, Lesley; blanche.steyn@up.ac.za
If board-level controls matter, the introduction of the 2008 Companies Act with its enhanced legislative requirements, should have a positive impact on firm performance. To assess board-level controls this study developed two unique control indexes to assess the boards of 84 companies over three years. The study focuses on companies on the SRI index as they have a greater focus on sustainability and transparent disclosure of board-level controls including separation of duties, monitoring, goal-aligned remuneration and oversight. The first index uses 23 board-level control indicators (CI) and the second 19 board-level direction indicators (DI). The two indexes were assessed using fixed effects estimation methods against current and negatively lagged firm performance proxies. Results show that board-level controls matter as both indexes were positively related to return on assets (RoA), however, only DI was highly significant. Both indexes changed to a negative relationship to next year’s return on assets (NYRoA), again highly significant for DI. The change to a negative relationship suggests a timing and information asymmetry problem. CI was positively related to the natural log of enterprise value per share (LEV) with a low level of significance while the positive relation continues to the next year’s natural log of enterprise value per share (LNYEV) that was highly significant. The latter suggests that the controlling role of the board are continued to be valued by the market.
How do auditors navigate conflicting logics in everyday practice?
(OsloMet, 2019) Barac, Karin; Gammie, Elizabeth; Howieson, Bryan; Van Staden, Marianne; karin.barac@up.ac.za
Historically professional logic has shaped accountancy, increasingly it has been shaped also by commercial logic. This study moves beyond these distinctions for a better and more nuanced analyses of how actors (Big 4 auditors) navigate conflicting logics in their everyday practice. The study follows a qualitative approach and is based on views of multiple role players in the audit process of complex companies in Australia, South Africa and the United Kingdom. The study examines auditors’ decision-making involving experts, rotating partners/firms and meeting regulatory inspection requirements. The study adds to the emerging debate around logic multiplicity at the institutional “coalface” by showing that auditors use balancing mechanisms (segmenting, assimilating, bridging and demarcating) to navigate and make sense of coexisting (professional, commercial and accountability) logics. Views of non-auditor role players, mostly overlooked in by institutional research at micro-levels, challenge the institutionalisation of connected logics and question the influence on audit quality.
A framework for the evaluation of the perceived value added by internal auditing
(Emerald, 2019-09) Botha, Lise Muriel; Wilkinson, Naomi
PURPOSE : The purpose of this study is to propose a framework for the evaluation of the perceived value internal audit functions add to their organisations. The framework is based on service quality measurement principles, specifically SERVPERF, which is applied to internal auditing. DESIGN/METHODOLOGY/APPROACH : Insights obtained from the literature on internal auditing and service quality disciplines were synthesised to identify and structure value-adding attributes of internal auditing. A thematic analysis of published profiles (by Protiviti) of various organisations’ internal audit functions were analysed and evaluated against those attributes identified in the literature to formulate an evaluation framework based on service quality measurement principles. FINDINGS : The identified value-adding attributes were categorised according to the dimensions of the SERVPERF service quality measurement instrument to formulate a framework for evaluation of the value added by internal audit functions. It was found that the SERVPERF dimensions appear to be relevant to internal auditing. The SERVPERF instrument was therefore adapted to evaluate the value added by internal auditing as a service. PRACTICAL IMPLICATIONS : This paper contributes to both the theory and practice of internal auditing by proposing formal dimensions of a value-adding internal audit service which can then serve as a reference point from which to evaluate the value added to an organisation. The framework can serve as a starting point for internal audit functions to develop their service offering and/or form the foundation of stakeholder satisfaction surveys. ORIGINALITY/VALUE : The study contributes to the literature by applying service quality principles to internal auditing. A holistic framework that can be used for the evaluation of the value added by internal audit functions based on stakeholder perceptions is proposed. The framework juxtaposes attributes of value-adding internal auditing with recognised service quality performance measures. The notion of value added is investigated to better understand the concept in the context of internal auditing services.
Differences in accounting students’ perceptions of their development of professional skills : a South African case
(Emerald, 2019-02) Kirstein, Marina; Coetzee, Stephen; Schmulian, Astrid; marina.kirstein@up.ac.za
PURPOSE : The purpose of this paper is to explore differences in South African accounting students’ perceptions of professional skills developed in an undergraduate accounting program. South Africa has a history of socio-economic inequality and racial injustice, leading to factors outside the classroom impacting educational outcomes. In particular, South African classes are heterogeneous, reflecting a diversity of race and language groups and students from differing schooling backgrounds. These differences necessitate differentiated instruction. DESIGN/METHODOLOGY/APPROACH : To explore for differences in perceptions, data were collected via questionnaires and differences between demographic variables such as school, race and language were considered, while controlling for gender. A focus group was also hosted to further explore findings. FINDINGS : Students from better quality schools agreed less strongly than those from poorer quality schools that the education program developed their professional skills. Students from better quality schools may have developed some of the professional skills during their schooling, requiring less to be developed at university. African students, though, agreed less strongly than white students from similar quality schools that they had developed professional skills. A focus group suggested that African students place less emphasis on professional skills development than on technical skills, given their lack of exposure to professional skills through mentors (parents, teachers, etc.) who never developed professional skills during their own compromised education under Apartheid. ORIGINALITY/VALUE : Understanding the differences in the perceptions of professional skill development in a heterogeneous classroom can assist instructors in adopting differentiated instruction approaches to enable all students to develop professional skills. It could also assist future employers of these graduates to differentiate their development strategies during workplace training.
Exploring the audit capabilities expectation-performance gap of newly employed first-year trainee accountants in Gauteng : audit managers at large firms’ perceptions
(NISC Pty (Ltd) and Informa Limited (trading as Taylor & Francis Group), 2019) Kunz, Rolien; De Jager, Herman; rolien.kunz@up.ac.za
The objective of this paper is to determine the relative size of the expectation-performance gap of technical auditing and assurance knowledge of newly employed first-year trainee accountants. In a study dealing with the expectation-performance gap in accounting education it was reported that according to practitioners, graduates were not able to demonstrate the expected practical accounting knowledge. This gives rise to the question: is the gap really as big as practitioners would like academic institutions to believe? As the relative extent of the gap will be determined in this study, the findings could assist audit and assurance academics in understanding accounting practitioners’ expectations of and concerns about newly employed first-year trainee accountants, which as a result could be addressed in their education practices. In addition, training at training offices at audit firms could be customised to focus on the areas in which the newly employed first-year trainee accountants are lacking. A questionnaire was used to determine audit managers’ perceptions regarding their expectations and their perceptions regarding the actual levels of capability demonstrated by newly employed first-year trainee accountants when performing technical audit and assurance tasks, after which the relative size of the expectation-performance gap was determined. The findings indicate that audit managers do not expect newly employed first-year trainee accountants to be capable of performing any of the identified technical audit and assurance tasks without, or with only limited supervision. However, despite this rather low expectation, it was evident that newly employed first-year trainee accountants do not meet audit managers’ expectations. The technical audit and assurance task with the largest expectation-performance gap was the ability of newly employed first-year trainee accountants to consider and document the need to use computer-assisted audit techniques to gather audit evidence, with an expectation-performance gap of 28.9%.
Performance of newly employed trainee accountants in Gauteng, South Africa, versus the skills expectations of employers : how big is the gap?
(Sage, 2019-10) Kunz, Rolien; De Jager, Herman; rolien.kunz@up.ac.za
The objective of this article is to determine whether the professional skills demonstrated by newly employed first-year trainee accountants (i.e. their performance) meet the expectations of audit managers and, if they do not, to determine the size of the expectation–performance gap. A questionnaire was used to determine the expectations and the perceptions of the actual capabilities of trainee accountants among South African audit managers at large audit firms in Gauteng. The findings revealed that newly employed first-year trainee accountants did not meet audit managers’ expectations, with their expectations always exceeding their perceptions of performance. The professional skill with the largest expectation–performance gap was the ability to take responsibility for one’s own development (37.9%) and that with the smallest gap was the ability to display honesty and integrity (9.4%).
Innovators to laggards – how South African students adopted and perceived technologically enhanced learning
(Routledge, 2018) Beukes, Bernice; Kirstein, Marina; Kunz, Rolien; Nagel, Lynette; bernice.beukes@up.ac.za
The purpose of this study is to determine whether the information and communication technology (ICT) adoption profiles of accounting students at a South African university influenced their perceptions of the usefulness of a technologically enhanced learning (TEL) opportunity. The findings suggest that the South African accounting students’ ICT adoption profiles differ from global profiles as their distribution curve is skewed to the left favouring ICT adoption. Statistically significant differences were noted between gender groups, but no culturally based digital divide emerged. Despite the differences noted, the majority of students, irrespective of ICT adoption profiles, their gender or population groups agreed that the learning value of an online simulation was more beneficial than traditional teaching methods. It can therefore be concluded that TEL opportunities, which add value to students’ learning experience, will be well received by students irrespective of their ICT adoption profiles.

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