How can we explain internal auditing? The inadequacy of agency theory and a labor process alternative

This paper draws on labor process theory (LPT) to explain how capitalism creates conditions that give rise to a demand for internal auditing. Internal auditing developed from the metamorphosis of capitalism during the twentieth century, when capital gradually succeeded in institutionalizing structural control of labor processes to address the problem of control in inherently antagonistic capital-labor relationships. In this control context employees, management, and the board of directors are responsible for achieving the required rate of return on capital. With the premise that the literature has not adequately theorized the role of internal auditing in this context, this paper proposes an initial theorization of the role of internal auditing as a mechanism employed by management and the board of directors to control the labor process in the generation and realization of surplus value. Internal audit's assurance services to execute business activities according to management's conceptions, and its advisory services to enhance efficiency and effectiveness, are interpreted within the firm's overarching goal of maximizing the rate of return on capital employed. Future research agenda and methodological considerations are discussed

Reliance of external auditors on internal audit work : a corporate governance perspective

The literature suggests an increasing need for interactions among board of directors, management, internal audit and external audit as the four components of corporate governance and presents internal audit as a resource for the other components. External auditing standards that originated in the Western world, which are also being applied in developing countries, recommend external auditor’s reliance on internal audit to achieve audit efficiency. Nevertheless, whether this efficiency motive explains such reliance in corporate governance settings that differ from the West has not been sufficiently explored as yet. This study examines external auditor reliance on internal audit work using questionnaire survey of 119 external auditors in Ethiopia. Mann-Whitney U test results suggest that external auditors’ reliance on internal audit work is not significantly associated with the competitiveness of external audit sub-markets in Ethiopia. Results of multiple discriminant analysis indicate internal audit work performance is the most important factor that determines the extent of external auditors’ reliance on internal audit work. Overall, findings suggest that organizations can enhance corporate governance effectiveness by strengthening internal audit and fostering internal-external auditor coordination

The perceived scope of internal audit function in libyan public enterprises

Purpose - The aim of this exploratory study is to examine the perceptions of stakeholders regarding the scope of internal audit (IA) work in Libyan state-owned enterprises. Design/methodology/approach - Data were gathered through semi-structured interviews with chief executive officers, IA directors, administrative affairs managers, financial affairs managers and external auditors, which were supplemented with a review of relevant documentary evidence. Findings - The results of the study show that the scope of IA in Libyan organizations may not be sufficiently wide ranging to be considered as a value-adding service. The scope of the IA function may need to be expanded to cover a broader range of organizational functions if internal auditors are to offer value-adding services to their stakeholders. Practical implications - The IA profession has received scant attention in the literature, especially in the context of developing countries such as Libya. Therefore, such settings offer the potential to enhance the understanding of IA practices. As a study on a developing economy, it enhances understanding of the IA profession’s global configuration beyond the predominantly market-driven, industrialized Western economies. Originality/value - In contrast to most previous studies, this study covers a broad range of IA stakeholders’ views on the role of internal auditors. This coverage enabled an in-depth investigation of the factors affecting IA scope and understanding of stakeholder perceptions on the IA function

Multiple informal imperial connections and the transfer of accountancy to Ethiopia (1905 to 2011)

The accounting history literature expounds the role of imperial connection on the transfer of Western accountancy concepts and practices to developing countries. An emerging theme within this literature is the shift in imperial power from Britain to USA over the last century and the ramifications of this shift on accountancy globally. Using a framework developed by prior research for investigating the transfer of accountancy across countries, this study examines historical developments of accounting practice, education and professional training in Ethiopia (from 1905 to 2011) in the light of the country’s interactions with Britain and the USA. These interactions facilitated Ethiopia’s continued importation of British accountancy practice and professional training contemporaneously with importation of accounting education from the USA. Over the past two decades, Ethiopia has been undertaking accounting reforms as part of economic policy reforms in pursuit of neo-liberal economic ideals. In response to shifting priorities of transnational actors, Ethiopia continued trialling policy initiatives that are yet to yield a stable equilibrium with coherent links of accounting education, practice and professional training

In memoriam Amsalu Aklilu (1929–2013)

 Obituary 

Poultry Production System, Reproductive Performance, Opportunities and Associated Challenges in Fogera district, South Gondar Zone, Amhara Ethiopia

This study was conducted to characterize and describe village chicken production system, reproductive performance, opportunities and associated challenges in Fogera distinct south Gonder zone of Ethiopia. for this study four kebeles from this district and 160 households from each kebele were selected using purposive sampling method a survey was conducted on 40 selected households to describe the village chicken production system reproductive performance and management practice. In majority of the households (80%) were male responsible for chicken rearing and 100% of the respondents in the study area mange chickens extensively. Night shelter was provided by all farmers mostly 92.5% on perch bamboo cage (5%) and purposely made house (2.5%). Almost all respondents (95%) provided feed supplement and 100% of the respondents provide water to their chicken. on average hens and cock reach at sexual maturity per month 4.8 and 4.45 months respectively. the average number of eggs per clutch per hen in the study area was 11 and the average number of eggs incubated per hen was 8.75. The average hatchability was 79.6%.  All the respondents (100%) in the study area obtained their initial chick stock by purchasing and 55% and 45% of the respondents in the study area obtained replacement stock by hatching and purchasing respectively. All respondents (100%) in the study area responded new castle disease outbreak. About 25% respondents used extension service in poultry production and 100% of the respondents had an interest to expand the production Keywords: - chicken, production, reproductive performance, opportunities challenge

Yield and Quality Response of Malt Barley (Hordium Dischiton L.) to Applied Levels of N Fertilizer and Seed Sources on Luvisol of Farta District South Gonder Zone, Ethiopia

Field and laboratory experiments were conducted to investigate the effect of seed sources and rate of nitrogen fertilizer on yield and quality of malt barley (Hordium dischiton L.) and to determine agronomically optimum level of nitrogen (N) and seed sources at Farta District. Factorial combination of four levels of N (0, 70, 110, and 150 kg N ha-1), and three seed sources seed from local farmer (LFM seed), seed from local seed business farmer (LSB) and seed from Amhara seed enterprise (ASE) were laid out in a Randomized Complete Block Design with three replications. Phenological traits, quality parameters and yield were taken as experimental variables and analyzed using SAS software. The result showed that 100-seed weight, straw yield, biomass yield and grain yield were significantly affected by different rates of N application (p≤0.005). As laboratory experiment indicates, there were significant effects in seed moisture content from the main and interaction effect of seed sources and nitrogen fertilizer rates (p≤0.001). The main effects of seed sources (LFM, LSB and ASE) had 11.6%, 11.59% and 12.5% of protein content respectively. Protein contents were significantly higher in higher nitrogen fertilizer rates than the control (p ≤ 0.05). Nitrogen fertilizer rates resulted in linear responses with mean protein contents of 9.15%, 11.6% and 12.14%, from 0, 70, 110 and 150 rates, respectively. Germination percentage was significantly affected by seed sources; rates of N fertilizer application and their interactions. In this study (2763.96, 6625 kg/ha) of grain and total above gowned yield respectively and quality of malting barley were significantly improved when using 150 kg of N rates. Overall, the use of ASE seed and 150 kg of N fertilizer rate may maintain satisfactory crop yield and protein content, reduce the costs of production, and therefore increase profitability and improve soil fertility. Keywords: seed, quality, protein content, sources, malt barley

Chicken Production System, Reproductive Performance, Opportunities and Associated Challenges in Fogera District, South Gondar Zone, Amhara Ethiopia

This study was conducted to characterize and describe village chicken production system, reproductive performance, opportunities and associated challenges in Fogera distinct south Gonder zone of Ethiopia. for this study four kebeles from this district and 160 households from each kebele were selected using purposive sampling method a survey was conducted on 40 selected households to describe the village chicken production system reproductive performance and management practice. In majority of the households (80%) were male responsible for chicken rearing and 100% of the respondents in the study area mange chickens extensively. Night shelter was provided by all farmers mostly 92.5% on perch bamboo cage (5%) and purposely made house (2.5%). Almost all respondents (95%) provided feed supplement and 100% of the respondents provide water to their chicken. on average hens and cock reach at sexual maturity per month 4.8 and 4.45 months respectively. the average number of eggs per clutch per hen in the study area was 11 and the average number of eggs incubated per hen was 8.75. The average hatchability was 79.6%.  All the respondents (100%) in the study area obtained their initial chick stock by purchasing and 55% and 45% of the respondents in the study area obtained replacement stock by hatching and purchasing respectively. All respondents (100%) in the study area responded new castle disease outbreak. About 25% respondents used extension service in poultry production and 100% of the respondents had an interest to expand the production Keywords: chicken, production, reproductive performance, opportunities challenge