Issue #1 (Volume 7 2026)

Type of the article: Research Article

One of the most crucial factors in making decisions and offering feedback on a report is audit quality. Therefore, this study aims to present empirical evidence on the relationship between audit cost, audit human capital, audit processes, workload, and audit quality. To gather data for this study, 70 auditors from the government within the Principal Inspectorate of Indonesia’s Supreme Audit Institution who had been working in their profession for at least two years were given questionnaires using Google Form. The study adopted a quantitative approach using purposive sampling. Structural equation modelling with PLS version 3 was used to process the data. The study’s findings show that audit quality is significantly impacted by audit human capital. In contrast, audit quality is not significantly impacted by audit cost, audit procedures, and workload. In addition to providing auditors with information and understanding regarding the impact of information technology systems on audit activities, this is anticipated to further advance understanding of the skills and knowledge that can be acquired through audit experience or activities such as training and seminars related to public sector audits. This will help auditors implement audit procedures more effectively, expand the scope of audits, require fewer resources, and complete audits more quickly.

Type of the article: Research Article

The objective of adopting a new International Financial Reporting Standard (IFRS) is to enhance the value relevance of accounting information. Accounting information has value relevance when the market price of securities reacts to the financial statements. This study aims to analyze the effect of IFRS 9 adoption on the value relevance of financial statements and whether the delayed adoption of IFRS 9 in Indonesia increases the value relevance of accounting information compared to Malaysia, which implemented it immediately. Malaysian banks effectively adopted IFRS 9 in 2018 as required by the International Accounting Standard Board (IASB); meanwhile, Indonesian banks only began to implement it effectively on January 1, 2020. The data used come from conventional banks listed on the Indonesia Stock Exchange for the period 2015–2019 (pre-IFRS 9) and 2020–2024 (post-IFRS 9), and from Bursa Malaysia for the period 2013–2017 (pre-IFRS 9) and 2018–2022 (post-IFRS 9). The results revealed that IFRS 9 adoption increased the value relevance of banking financial statements in both countries. However, Malaysian banks showed a higher increase in the value relevance of financial statements than those of Indonesian banks. These findings indicate that the timing of the new accounting standards adoption has various impacts on investor behavior.

Type of the article: Research Article

The global business landscape increasingly demands transparent climate reporting, yet factors driving compliance quality remain unclear. This study examines the organizational and institutional determinants influencing IFRS-S2 compliance quality in Vietnamese enterprises, focusing on sustainability strategic orientation, climate data management capability, and market scrutiny. A quantitative research design was used, and a survey was distributed among managers in Vietnamese enterprises from March to June 2025. A total of 326 valid responses were analyzed using partial least squares structural equation modeling. The results prove that sustainability strategic orientation (β = 0.254, p < 0.001), climate data management capability (β = 0.285, p < 0.001), and market scrutiny (β = 0.209, p < 0.001) have a significant positive effect on IFRS-S2 compliance quality. The mediating role of climate data management capability is also strongly supported. However, the moderating role of market scrutiny was not statistically significant. The study highlights the need to align strategic commitment with data capabilities to enhance climate transparency in an emerging market and provides recommendations for managers and policymakers.

Acknowledgment
The authors would like to acknowledge the reviewers and the editor-in-chief for their assistance.

Type of the article: Research Article

Blockchain technology poses significant challenges for asset classification, valuation hierarchy, and disclosure under IFRS 9 and IFRS 13. Given that observable market prices are often unavailable, entities rely on Level 3 internal valuation models, which reduces comparability between companies. This study examines how the adoption of tokenized assets affects accounting discretion in fair value measurement under IFRS 9 and IFRS 13. The analysis uses panel data from 2,735 Peruvian companies (687 financial, 724 industrial, 658 commercial, and 666 service companies) selected from the database of the Superintendency of Securities Market using systematic exclusion criteria based on the explicit adoption of IFRS 9/13 and complete financial statements for 2020-2024. An ordinary least squares regression with robust standard errors and fixed effects was applied to test three hypotheses. The results show that tokenization significantly increases accounting discretion in fair value measurement (β = 0.284, p < 0.001, R² = 0.694), contradicting expectations that blockchain reduces discretion. Fair value measurement using the IFRS 13 Level 3 hierarchy also increases discretion (β = 0.219, p < 0.001), while greater disclosure is associated with greater discretion (β = 0.173, p < 0.01). Conversely, larger companies (β = −0.104, p < 0.001) and Big Four audits (β = −0.142, p < 0.01) are associated with lower discretion. All three hypotheses were confirmed across all sectors, and sensitivity analyses support their robustness. The results underscore the need for stronger regulatory guidance and greater oversight of audits in digital asset accounting under IFRS 9 and IFRS 13.

Type of the article: Research Article

Ukrainian transfer pricing legislation demonstrates a significantly higher level of regulatory complexity than international OECD standards, creating a disproportionate burden on the accounting and reporting system. The study aims to quantify the regulatory burden generated by the complexity of Ukrainian transfer pricing legislation through a computational linguistic analysis of its algorithmic characteristics in comparison with international OECD standards. The research methodology is based on Halstead metrics to calculate the algorithmic complexity of regulatory texts, considered as formal structures with the distribution of lexical units into operators and operands. The computational assessment reveals that Ukrainian transfer pricing regulations demonstrate algorithmic complexity 10 to 37 times higher than OECD standards, as the complexity index (L) for Article 39 of the Tax Code of Ukraine equals 2.742 percent versus 0.148 percent for OECD Transfer Pricing Guidelines, while Law of Ukraine No. 4536-IX (Verkhovna Rada of Ukraine, 2023) reaches 5.455 percent, exceeding international benchmarks by 37 times. This excessive complexity directly affects accounting practices, requiring additional resources for recordkeeping, increasing internal control requirements, and increasing the risk of financial reporting errors. The empirical findings demonstrate that excessive algorithmic density directly increases compliance costs for accounting departments, requiring additional resources for interpretation, documentation, and internal control. The study provides quantitative evidence supporting the necessity of systematic simplification of national transfer pricing regulations.

Type of the article: Research Article

The increased penetration of digital technologies has significant implications for the role of digital accounting practices in enhancing corporate governance, particularly in emerging markets where agency problems are more serious. This study aims to investigate the impact of digital accounting practices on agency costs management in emerging markets. Using the theoretical foundations of agency theory and institutional theory, the study investigates the role of the application of blockchain technology and artificial intelligence in the management of agency costs and the efficiency of financial reporting. The study used a balanced panel data set comprising 72 non-financial and financial firms listed on the Amman Stock Exchange from 2018 to 2023. To investigate the impact of applying digital accounting practices, the study used a multi-model approach by employing a fixed-effect regression model with a propensity score matching approach and a difference-in-differences approach. The study found that adopting digital accounting practices by firms is associated with a significant reduction in monitoring costs evidenced by a reduction in audit fees, a reduction in bonding costs captured by a reduction in the reliance on fixed management compensation, and a slight improvement in the efficiency of financial reporting. Industry-level analysis showed that financial sector firms are more inclined towards the application of digital accounting practices due to the regulatory environment, while the application of digital accounting practices by industrial sector firms is less pronounced resulting from capability constraints. The study provides empirical support that digital accounting practices can be used as a cost-efficient mechanism of corporate governance in the context of emerging markets.