Course unit title

Current Issues in Financial Reporting and Auditing

Course unit code

AKA613

Type of course unit (compulsory, optional)

Compulsory

Level of course unit (according to

EQF: first cycle Bachelor, second cycle Master)

Second Cycle Master

Year of study when the course unit is delivered (if applicable)

2021–2022

Semester/trimester when the course unit is delivered

3rd semester

Number of ECTS credits allocated

4,8 ECTS

Name of lecturer(s)
  1. Dr. Zaenal Fanani
  2. Dr. Zahroh Naimah

Learning outcomes of the course unit

After taking this course, students are expected to understand well the theory and research of financial accounting and auditing; gain a significant understanding of the topic of financial accounting and auditing issues; understand how to apply accounting methods to financial research and auditing; know how to critically evaluate financial accounting and auditing research, and demonstrate newly acquired knowledge by developing appropriate financial accounting and auditing research proposals.

Mode of delivery (face-to-face, distance learning)

Face-To-Face and Distance Learning (using AULA UNAIR)

Prerequisites and co-requisites (if applicable)

-

Course content
  1. Introduction to Financial Accounting Research
  2. Disclosure
  3. Contagion 
  4. Earnings management
  5. Managerial incentives
  6. Consequences of low-quality accounting
  7. Internal controls
  8. Audit firms
  9. Accounting conservatism
  10. Corporate social responsibility
  11. Integrated reporting
  12. Earnings Management

Recommended or required

reading and other learning resources/tools
  1. Amel-Zadeh, A., Zhang, Y. 2015. The economic consequences of financial restatements: Evidence from the market for corporate control. The Accounting Review 90, 1-29. 
  2. Barth, M., Cahan, S., Chen, L., Venter, E. 2016. The economic consequences associated with integrated report quality: Early evidence from a mandatory setting. Working paper. Available at SSRN: http://ssrn.com/abstract=2699409. 
  3. Bartov, E., Mohanram, P. 2014. Does income statement placement matter to investors? The case of gains/losses from early debt extinguishment. The Accounting Review 89, 2021-2055. 
  4. Basu, S. 1997. The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics 24, 3-37. 
  5. Boone, J., Khurana, I., Raman, K. 2015. Did the 2007 PCAOB disciplinary order against Deloitte impose actual costs on the firm or improve its audit quality? The Accounting Review 90, 405-441. 
  6. Chiu, P.-C., Teoh, S., Tian, F. 2013. Board interlocks and earnings management contagion. The Accounting Review 88, 915-944. 
  7. Curtis, A., McVay, S., Whipple, B. 2014. The disclosure of non-GAAP earnings information in the presence of transitory gains. The Accounting Review 89, 933-958.
  8. DeFond, M. L., & Park, C. W. 1997. Smoothing income in anticipation of future earnings. Journal of accounting and economics, 23(2), 115-139. 
  9. Feng, M., Li, C., McVay, S., Skaife, H. 2015. Does ineffective internal control over financial reporting affect a firm’s operations? Evidence from firms’ inventory management. The Accounting Review 90, 529-557.
  10. Gao, F., Lisic, L., Zhang, I. 2014. Commitment to social good and insider trading. Journal of Accounting and Economics 57, 149-175.
  11. Hui, K., Matsunaga, S. 2015. Are CEOs and CFOs rewarded for disclosure quality? The Accounting Review 90, 1013-1047. 
  12. Jayaraman, S., Milbourn, T. 2015. CEO equity incentives and financial misreporting: The role of auditor expertise. The Accounting Review 90, 321-350.
  13. Kedia, S., Koh, K., Rajgopal, S. 2015. Evidence on contagion in earnings management. The Accounting Review 90, 2337-2373.
  14. Kim, Y., Park, M., Wier, B. 2012. Is earnings quality associated with CSR? The Accounting Review 87, 761-796. 
  15. Lawrence, A., Sloan, R., Sun, Y. 2013. Non-discretionary conservatism: Evidence and implications. Journal of Accounting and Economics 56, 112-133
  16. Li, V. 2016. Do false financial statements distort peer firms’ decisions? The Accounting Review 91, 251-278.
  17. Rice, S., Weber, D., Biyu, W. 2015. Does SOX 404 have teeth? Consequences of the failure to report existing internal control weaknesses. The Accounting Review 90, 1169-1200. 
  18. Roychowdhury, S. 2006. Earnings management through real activities manipulation. Journal of accounting and economics, 42(3), 335-370.
  19. Serafeim, G. 2015. Integrated reporting and investor clientele. Journal of Applied Corporate Finance 27, 34-51.
  20. Swanquist, Q., Whited, R. 2015. Do clients avoid ‘‘contaminated’’ offices? The economic consequences of low-quality audits. The Accounting Review 90, 2537-2570.

Planned learning activities and teaching methods
  1. Lectures
  2. Discussion
  3. Individual assignments

Language of instruction

Bahasa Indonesia

Assessment methods and criteria

Midterms 40%, Finals 60%