Proceedings of the

International Conference on Accounting Studies (ICAS) 2016 15-18 August 2016, Langkawi, Kedah, Malaysia

Editors: Aidi Ahmi

Siti Zabedah Saidin Oluwatoyin Muse Johnson Popoola

Norfaiezah Sawandi Hasnah Shaari

06010 - UUM - Sintok - Kedah - Malaysia

December 2016

Institute for Strategic and Sustainable Accounting Development (ISSAD) Tunku Puteri Intan Safinaz School of Accountancy Universiti Utara Malaysia 06010 UUM Sintok Kedah, Malaysia Tel: +604-9287352 Fax: +604-9287216 E-mail: issad@uum.edu.my Website: www.issad.my © 2016 ISSAD First Published 2016 All right reserved. No part of this publication maybe reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher. Applications for the copyright holder’s written permission to produce any part of this publication should be addressed to the publisher. Perpustakaan Negara Malaysia Cataloguing-in-Publication Data Proceedings of the International Conference on Accounting Studies

(ICAS) 2016, 15-18 August 2016, Langkawi, Kedah Malaysia I Editors: Aidi Ahmi, Siti Zabedah Saidin, Oluwatoyin Muse Johnson Popoola, Norfaiezah Sawandi, Hasnah Shaari ISBN 978-967-0910-27-7 1. Accounting--Congresses. 2. Universiti Utara Malaysia--Institut Kajian Strategik dan Pembangunan Perakaunan Mampan. I. Aidi Ahmi. II. Siti Zabedah Saidin. III. Oluwatoyin Muse Johnson Popoola. IV. Hasnah Shaari. 657

Disclaimer: Every reasonable effort has been made to ensure that the material in this book is true, correct, complete, and appropriate at the time of writing. Nevertheless the publishers, the editors, and the authors do not accept responsibility for any omission or error, or for any injury, damage, lose, or financial consequences arising from the use of the book. The views expressed by contributors do not necessarily reflect those of the Institute for Strategic and Sustainable Accounting Development (ISSAD), Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia. Printed in Malaysia by UUM Press Universiti Utara Malaysia 06010 UUM Sintok Kedah, Malaysia

Available online at

www.icas.my

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Contents

Foreword Aidi Ahmi, Siti Zabedah Saidin, Oluwatoyin Muse Johnson Popoola, Norfaiezah Sawandi, Hasnah Shaari .......................................................................................................................................................... vi E-Taxation: The Attitude and Intention to Use Technology in Malaysia Saliza Abdul Aziz, Kamil Md Idris ............................................................................................................ 1 Impact of Exchange Rate Volatility on Malaysian Natural Rubber Price Aye Aye Khin, Wong Hong Chau, Ung Leng Yean .................................................................................. 5 Control-ownership Patterns in Turkey-listed Firms Aree S Mustafa, Ayoib Che-Ahmad, Sitraselvi Chandren ......................................................................... 11 Tracing Awqaf Mutawalli’s Accountability: Some Preliminary Malaysian Evidence Nur Suriana Awaludin, Hairul Suhaimi Nahar, Nor Suhaily Bakara, Hisham Yaacob ............................. 17 Proposed Corporate Governance System for Nigeria: Market-Based vs. Institutionally-Based Model Robert W. Odewale, Hasnah Kamardin, Basariah Salim ........................................................................... 23 Impact of Board’s Characteristics, Audit Committee Characteristics Over Firm Performance Ali Thamer Nawafly, Ali Saleh Alarussi .................................................................................................... 29 Adoption of Computer-Assisted Audit Tools and Techniques (CAATTs): An Exploratory Study in Audit Firms Rusman Ghani, Noor Azizi Ismail, Siti Zabedah Saidin ............................................................................ 35 Information Technology Governance on Public Sector Audit Performance Farida Veerankutty, Noor Azman Ali ......................................................................................................... 41 Follow-up Audit as an Accountability Mechanism of Public Sector Performance Auditing Sarimah Umor, Zarina Zakaria, Nor Adwa Sulaiman ................................................................................. 49 Balanced Scorecard Adoption in an Institution of Higher Learning: A Survey Evidence Farrah Fawzia, Aliza Ramli ......................................................................................................................... 58 Company Characteristics and Corporate Social Responsibility Disclosure of Malaysian Listed Companies Mohamad Hafiz Rosli, Nuruu Ain Fauzi, Muhammad Fadhirul Anuar Mohd Azami, Farahwahida Mohd, Jamaliah Said.................................................................................................................................... 68 A Critical Review of the Intellectual Capital Measurement Approaches Arifatul Husna Mohd Ariff, Tony van Zijl, Ainul Islam ............................................................................. 76 Generic Strategies and Financial Performance Persistence: Study in Indonesia Banking Etikah Karyani, Hilda R. Rossieta ............................................................................................................... 81 The Effect of Corporate Social Responsibility on Financial Performance in Nigeria: A Multi-Dimensional Analysis Yusuf Ibrahim Karaye, Zuaini Ishak, Noriah Che-Adam............................................................................ 88 Directors’ Tenure and Their Independence: Capital Market Perspective Mazrah Malek, Saidatunur Fauzi Saidin, Mohamad Ali Abdul Hamid....................................................... 94 An Empirical Effect of Fraud Specific Problem Representation on Accountants’ Skills and Fraud Risk Assessment Oluwatoyin Muse Johnson Popoola, Ayoib Che Ahmad, Zaimah Abdullah, Kamil Md Idris, Fathiyyah Abu Bakar .................................................................................................................................................... 100 Strategic Management Accounting Practices and Value Creation: Towards Good Governance and Accountability in Government Linked Companies Nik Herda Nik Abdullah, Jamaliah Said ..................................................................................................... 107 A Proposed Framework of the Effect of Guided Discovery Approach on Secondary Students’ Achievement in Financial Accounting Umar Inuwa, Zarifah Abdullah, Haslinda Hassan ....................................................................................... 115 Internal Auditor’s Objectivity Threats: An Exploratory Study in Malaysia Fazlida Mohd Razali, Jamaliah Said, Razana Juhaida Johari ...................................................................... 121 Economic and Legal Accountability in Malaysian Unit Trust Industry Norfaiezah Sawandi ..................................................................................................................................... 128 Threat of Bankruptcy and the Integrity of Financial Statement Normah Omar, Zulaikha Amirah Johari, Suhaily Hasnan .......................................................................... 134 Corporate Social Responsibility (CSR) and Islamic Banks: A Synthesis of Literature Review Fatimah Noor Rashidah Mohd Sofian, Rusnah Muhamad ........................................................................ 143

Proceedings of the International Conference on Accounting Studies (ICAS) 2015 15-18 August 2016, Langkawi, Kedah, Malaysia

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Analyzing the Worst Corporate Accounting Scandals: Theoretical Framework Perspective Ach Maulidi ................................................................................................................................................. 150 The Relationship between Aggregate Accounting Earnings, Capital Markets and GDP Philip Jehu, Mohammad Azhar Ibrahim .................................................................................................... 157 Revisiting the Public Ruling Relating to Withholding Tax for Better Compliance Hazlina Hussain, Nor Aziah Abdul Manaf ................................................................................................ 165 Determinants of Corporate Social Responsibility Disclosure of Banks in Yemen A. Sharem, Hafiz Majdi Ab Rashid, A.H. Fatima ....................................................................................... 170 The Interaction Effect of Institutional Ownership and Firm Size on the Relationship between Managerial Ownership and Earnings Management Vince Ratnawati, Mohamad Ali Abdul Hamid, Oluwatoyin Muse Johnson Popoola ................................ 177 The Effect of Stakeholder Pressure and Corporate Governance on the Quality of Sustainability Report Sylvia Veronica Siregar, Astrid Rudyanto .................................................................................................. 184 Audit Committee Characteristics on Family Firms Performance in Indonesia Robin X, Noor Afza Amran ........................................................................................................................ 190 Audit Committee Independence, Financial Expertise and Financial Restatements Rohami Shafie, Norhanim Mohamad Zainal .............................................................................................. 195 Timeliness of Financial Reporting: Evidence from UAE Mohammed Ali Hussein Al-Muzaiqer, Maslina Ahmad, Fatima Abdul Hamid ........................................ 201 Types of Institutional Investors and Financial Reporting Timeliness: Empirical Study in Malaysia Hasan Bamahros, Wan Nordin Wan-Hussin ............................................................................................... 207 The Moderating role of Capability Element of fraud on Internal Industry Factors and Fraud Prevention in Saudi Arabian Banking Sector Baz Rayaan, Rose Shamsiah Samsudin, Ayoib Che-Ahmed, Oluwatoyin Muse Johnson Popoola .......... 212 Board Gender, Company Performance, Board Size and Monitoring Mechanisms in Non-Financial Listed Companies Ayoib Che-Ahmad, Rachael Oluyemisi Arowolo ...................................................................................... 220 Public Expenditure and Economic Growth in Malaysia Wong Hong Chau, Aye Aye Khin, Alexander Tay Guan Meng ................................................................ 226 Performance Management for Effective Governance: The Case of a State Owned Enterprise Fung Jin Tjhai, Siti Nabiha Abdul Khalid, Dayana Jalaludin .................................................................... 232 Sustainability and Integrated Reporting: A Case Study of a Large Multinational Organisation Carina Janek, Federica Ricceri, Daniela Sangiorgia, James Guthrie ......................................................... 238 Equity Valuation Multiples and Stock Returns: Evidence from Malaysian Listed Firms Isah Shittu, Ayoib Che Ahmad, Zuaini Ishak ............................................................................................. 249 The Reversal of Impairment Losses, Future Firm Performance and Reporting Incentives: Evidence from Malaysia Hasnah Shaari, Ray Donnelly, Tongyu Cao ................................................................................................ 254 Integrated Thinking, Corporate Local Identity and Disclosure Choices of Italian Companies Carlotta D'Este, Anna Maria Fellegara, Davide Galli ................................................................................. 260 Applying Theory of Planned Behavior in Investigating Whistle-Blowing Intention: A Theoretical Discussion Zakiyah Sharif ............................................................................................................................................. 265 The Effectiveness of the Law Enforcement Agencies in Investigating Money Laundering Cases: An Evaluation of Mutual Evaluation Report of Malaysia and Australia. Sharifah Nazatul Faiza Syed Mustapha Nazri, Salwa Zolkaflil, Normah Omar ......................................... 270 Determinants of Internal Audit Task Performance in Nigerian Tertiary Institutions: A Conceptual Approach Oyewumi Hassan Kehinde, Ayoib B. Che-Ahmad, Oluwatoyin Muse Johnson Popoola .......................... 277 The Relationship between Malaysian Directors and Foreign Equity Ownership: An Institutional Approach Zaimah Abdullah, Amon Chizema, Sitraselvi Chandren ............................................................................ 283 A Contingency Model of the Association between Political Turbulence, Intensity of Competition and Balanced Scorecard: Impact on Firm Performance Khalis Hasan Yousif Al-Naser, Rapiah Mohamed ..................................................................................... 290 Financial Behaviour and Demographic Background: Students’ Perspective Nur Syakimah Mohd Subhi, Norhani Aripin .............................................................................................. 296 Ownership Structure and Firm Performance in Malaysia Hasnah Kamardin, Rohaida Abdul Latif, Kamarun Nisham Taufil Mohd.................................................. 304 IFRS Adoption and Earnings Management in Nigerian Non-Financial Quoted Companies Ahmed Bello, Salisu Abubakar, Tesleem Adeyemi .................................................................................... 309 Factors Minimizing Propensity to Create Budgetary Slack: Empirical Evidence in Indonesia Budi Hartono Kusuma ................................................................................................................................ 314

Proceedings of the International Conference on Accounting Studies (ICAS) 2015 15-18 August 2016, Langkawi, Kedah, Malaysia

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Development of Role Stressors Model towards Burnout: Empirical Study from Indonesia Lina ............................................................................................................................................................. 319 Dealing with Fraudulent Financial Statement in Business Organizations through Whistleblowing System and Staff Awareness of Fraud Ach Maulidi ................................................................................................................................................ 324 Developing Mandatory Disclosure Index (MDI) of Financial Statement in Malaysian Local Government Engku Ismail Engku Ali, Siti Zabedah Saidin ............................................................................................. 332 A Cost-Benefit Analysis of a New Product Development from Organic Broken-milled Rice in Thailand Chuenjit Aungvaravong, Phaibun Yanakittkul, Napaporn Likitwongkajon ............................................... 338 Internal Audit, Audit Committee and Independent Auditor and Its Effect on Internal Control Disclosure Amelia Setiawan, Hamfri Djajadikerta, Majidah ........................................................................................ 343 Cost Recovery Impact on National Budget (APBN) and Oil and Gas Shared Fund (DBH) Kasman Arifin ZA ...................................................................................................................................... 351