Buhalterinės apskaitos teorija ir praktika https://www.journals.vu.lt/BATP <p>Founded in 2007 and dedicated to publishing articles on accounting, audit, and analysis.</p> Vilnius University Press en-US Buhalterinės apskaitos teorija ir praktika 1822-8682 <p>Please read the Copyright Notice in&nbsp;<a href="http://www.journals.vu.lt/BATP/journalpolicy">Journal Policy</a>.&nbsp;</p> Identification of key qualitative characteristics used to assess the significance of misstatements identified in the financial statements https://www.journals.vu.lt/BATP/article/view/26647 <p>Financial statements may be misstated for quantitative reasons, such as mathematically incorrect reporting of assets, liabilities or other. Misstatements in the financial statements may also be qualitative. It is the qualitative characteristics of the misstatement that reflect the significance of the misstatement not for mathematical magnitude, but for other reasons, such as changes in profitability trends or illegal activities. To date, auditors have dedicated more attention to the quantitative characteristics of misstatements and the qualitative characteristics have not been adequately assessed. And although the problem is well known to scientists and practitioners, little action has been taken to date. The objective of the study reflected in this article is to identify the key qualitative characteristics that auditors should consider in deciding the significance of the misstatements identified in the financial statements. A list of fifteen key qualitative characteristics was compiled during the study and the completeness of the list was confirmed by an expert survey. The list of key qualitative characteristics will not only assist the auditors in deciding on the significance of the misstatements identified but may also be used in further research to deepen the scientific knowledge of the qualitative characteristics.</p> Audrius Masiulevičius Copyright (c) 2022 Audrius Masiulevičius https://creativecommons.org/licenses/by/4.0 2022-05-04 2022-05-04 25 2 2 10.15388/batp.2022.41 Undergraduate Business Students’ Perceptions of Accounting Practices and Profession https://www.journals.vu.lt/BATP/article/view/26238 <p>Attraction of advanced students interested in studying at HEIs for an accounting major degree internationally remains a constant challenge to the accounting profession since the 1990s. To meet the demands it faces, the profession needs to be attractive for students who have the potential to become both technically competent professionals with good analytical abilities and communicative team players, able to understand the expanding business environment and think creatively. Unfortunately, there is a risk that potential students may possess false perceptions of accounting practices and profession.&nbsp;<span lang="en-US">The aim of the research is to explore the perceptions of accounting of the students enrolled in the studies for non-accounting major degree of Professional Bachelor in Business Administration at Lithuanian HEIs. Foremost, the paper analyses the studied assessing approaches and tools used in the&nbsp;</span>notable prior research on the topic. This is followed by the revealed methodology and analysed findings for the research carried out. One of the more important discovers was that the female students assessed the accounting significantly as more definite, boring, precise, and compliance driven than male students. Even considering the abovementioned differences, the results of the perception factors’ analysis strongly suggest that the surveyed students despite their gender in the mass hold traditional stereotypical perceptions of accounting.&nbsp;<span lang="en-US">Due to sufficient number of the surveyed students, findings in overall are applicable to the target group of the research.&nbsp;</span>Finally, the paper provides conclusions, limitations and insights for feasible further research in the study area.</p> Aleksandra Pečiūrienė Copyright (c) 2022 Aleksandra Pečiūrienė https://creativecommons.org/licenses/by/4.0 2022-02-28 2022-02-28 25 1 1 10.15388/batp.2022.40 Can Creative Accounting be Equated with Creativity and Called Positive? https://www.journals.vu.lt/BATP/article/view/25428 <p><strong lang="en-GB">&nbsp;</strong><span lang="en-US">The advent of creative accounting in the middle of the 20th century sparked great interest among researchers and practitioners.&nbsp;</span><span lang="en">In the work of both foreign and Lithuanian scientists, this phenomenon is widely researched and defined as the ability to use the flexibility of legal acts in order to reflect subjective information in financial statements.&nbsp;</span><span lang="en-US">However, in contrast to foreign literature, linguistic interpretations of the term "creative accounting" appeared in Lithuanian literature, which gave this phenomenon a positive meaning, associated with creativity and identified as positive creative accounting. The article examines the concept of creativity, its relationship with accounting, assesses the compatibility of creativity with creative accounting. Based on the analysis of the literature, it is proposed to refuse to divide creative accounting into positive and manipulative, as such a division not only contradicts the concept of creativity, but also undermines the essence of accounting and its multiplicity</span><span lang="en-GB">.</span></p> Diana Bachtijeva Copyright (c) 2022 Diana Bachtijeva https://creativecommons.org/licenses/by/4.0 2022-01-26 2022-01-26 25 3 3 10.15388/batp.2021.37 Developing a Unified Model for Indicators for the Financial Analysis of Public Sector Entities https://www.journals.vu.lt/BATP/article/view/25367 <p lang="en-GB">Financial analysis is an analysis of an entity’s financial performance and position to assess its achievements and prospects, as well as, to provide the financial managers with quality up-to-date information that will help them make the right decisions in the future. The financial analysis concerns the forecasting, accounting, planning and control of certain economic activities. However, financial analysis is mainly linked to private sector entities. The issues of financial analysis of public sector entities in scientific work are addressed in a fragmented way. There is still a lack of not only scientific but also practical work to analyse the issues of financial analysis in the public sector.</p> <p lang="en-GB">The article presents a modified model for the financial analysis system, the analysis indicators to be applied and their combinations. In addition to traditional indicators, the presented system includes indicators of public interest and development. The system may be used for analysing the state of public sector entities. Its results may be useful for different users of information in making appropriate decisions.</p> <p lang="en-GB">Research object: the financial analysis of public sector entities. The purpose of the research is to establish a unified and modified model of the system for conducting the financial analysis of the public sector entities. Tasks: to describe the logical sequence of financial analysis after analysing and summarising the theoretical and practical aspects of the analysis of the financial position of public sector entities; to identify and group indicators for analysing the financial position of the public sector. Research methods: analysis of scientific works, methods of information grouping, comparing, detailing, generalizing.</p> Irma Kamarauskienė Copyright (c) 2021 Irma Kamarauskienė https://creativecommons.org/licenses/by/4.0 2021-12-30 2021-12-30 25 5 5 10.15388/batp.2021.39 Barriers for big data integration to the financial statement audit procedures https://www.journals.vu.lt/BATP/article/view/25298 <p>An application of the most inovative technologies of the big data processing is the high challenge for financial statement auditors.&nbsp;<span lang="en-GB">The term “big data” refers to large amount of digital data that may be used to reveal issues, prospective and relations of human behaviour and actions. For instance, international and national audit companies are using big data analytics to identify risk and fraud during audits.</span></p> <p lang="en-GB">The purpose of the article is to identify barriers to the integration of big data into external financial audit procedures.</p> <p lang="en-GB">The object of the research is big data models and their components. Tasks formulated to achieve the goal: 1) after examining the concept of big data presented by various authors, to determine the role of big data in the audit of external financial statements; 2) to identify the factors that hinder the integration of big data into audit evidence collection procedures. Research methods used in the article include the content analysis of scientific literature.</p> Daiva Raziūnienė Karolis Čirba Copyright (c) 2021 Daiva Raziūnienė https://creativecommons.org/licenses/by/4.0 2021-12-30 2021-12-30 25 4 4 10.15388/batp.2021.38 The Impact of IFRS Changes on Companies’ Financial Indicators https://www.journals.vu.lt/BATP/article/view/25249 <p>The ever-changing economic environment changes the business conditions and performance and requires to reflect the changes on accounting information of legal entities. The development of International Financial Reporting Standards (IFRS) is a dynamic and complex process, which helps to provide fair and true information on legal entities. Although, it’s important to evaluate the changes of accounting standards by preparers of financial statements and the users of the information. The purpose of the research is to determine the impact of significant changes of international financial reporting standards on the financial indicators of the companies during 2017-2020 period. Research methods of comparative analysis of scientific literature and legal acts, content analysis, case analysis, grouping of information, systematization, comparative analysis and generalization were used. Main research results state that in 2017-2020 the key changes were related to three standards: IFRS 9 - Financial Instruments, IFRS 15 - Revenue from Contracts with Customers and IFRS 16 - Leases. The study of the impact of the application of the new standards on the financial indicators of 24 Lithuanian listed companies revealed that the new IFRS 16 had the greatest impact on the financial indicators of the companies. The first time, the application of IFRS 16 had a significant impact on 6 of the 24 companies analysed. There was a negative impact on liquidity and solvency ratios, working capital, return on assets and the turnover of assets.</p> Inga Liutkevičiūtė Ramunė Budrionytė Rasa Subačienė Copyright (c) 2021 Authors https://creativecommons.org/licenses/by/4.0 2021-12-22 2021-12-22 25 2 2 10.15388/batp.2021.36 Interaction Between Social Business Sustainability and Consumer PurchaseDecision: Conceptual Framework https://www.journals.vu.lt/BATP/article/view/24771 <p>Due to the lack of research in social business sustainability development, it is necessary to investigate this problem, seeking community wellbeing. The goal of this paper is to elucidate the importance of sustainability development in relation to its different dimensions and the relationship between consumer perception and sustainability development. A systematic scientific literature analysis was performed. The results show that although sustainability is one of the main aspirations of companies, it is still difficult to achieve for effective transformation. The framework also reflects that sustainability is a particular change that has to be implemented over time, involving not only the business itself but also the surrounding environment (other systems). Furthermore, to achieve sustainable development it is essential to define which sustainability indicators will be selected, how they will be measured, and how the results will be tracked. A sustainable social business model must not be considered in isolation from its surrounding environment. Moreover, it is relevant to identify the public opinion, i.e., potential consumers, regarding effective sustainability development in order to get a more efficient result.</p> Aurelija Ulbinaitė Neringa Raštutytė Copyright (c) 2021 Aurelija Ulbinaitė | Neringa Raštutytė https://creativecommons.org/licenses/by/4.0 2021-10-18 2021-10-18 25 1 1 10.15388/batp.2021.35 Verification of regulatory activity reports in the heating sector: process and outcomes https://www.journals.vu.lt/BATP/article/view/24171 <p>The reports of the heating sector are one of the most important sources of heating data, accurate and reasonable pricing and is an essential objective of public interest. The verification of the reports on regulated activities is particularly important to regulate interpretation of the principles of companies’ operating cost and accounting separation systems. The purpose of the article is to identify the main elements of the regulatory activities report whereas have to be improved and needs more attention of auditors and regulators. There were examined 52 reports of Lithuanian heating sector companies using document (content) analysis approach. Misstatements were analysed using specific evaluation criteria to identify areas for improvement. The development of an appropriate methodology and the efficient functioning of the process should help to avoid errors or inaccuracies in determining, fair recognition, disclosure and valuation of fixed assets as an essential factor of heating prices.</p> Deimantė Morkūnaitė Daiva Raziūnienė Copyright (c) 2021 Daiva Raziūnienė | Deimantė Morkūnaitė https://creativecommons.org/licenses/by/4.0 2021-07-27 2021-07-27 25 6 6 10.15388/batp.2021.34 Assumptions, Types of Accounting Manipulations and Their Application https://www.journals.vu.lt/BATP/article/view/23089 <p><span lang="en">The article describes the bonus plan, debt/equity and political cost hypotheses, based on a positive accounting theory, with reference to opportunistic approach, explaining the reasons for choosing accounting methods. Research based on these hypotheses has revealed the main types of financial information manipulation - earnings management and creative accounting. After conducting the analysis of scientific sources, the article presents the definitions of earnings management and creative accounting of various authors, distinguishes the types of earnings management –&nbsp;</span><span lang="en-US">accrual-based earnings management&nbsp;</span><span lang="en">and real earnings management. After analyzing the manipulation methods indicated in the literature, a comprehensive list of profit management and creative accounting methods are presented. The methods are structured and classified according to their compliance with accounting standards, types of profit management and their impact on accounting areas. The provided list and classification of methods is useful in a scientific sense for further research on this phenomenon.</span></p> Diana Bachtijeva Copyright (c) 2021 Diana Bachtijeva https://creativecommons.org/licenses/by/4.0 2021-05-06 2021-05-06 25 5 5 10.15388/batp.2021.33 Application of Big Data in the Financial Audit Procedures https://www.journals.vu.lt/BATP/article/view/22728 <p lang="en-US"><strong>Annotation.&nbsp;</strong>Big Data (BD) is one of the most commonly used terms in the modern world of business and information technology. The main features of BD (quantity, speed, and variety) introduce to unique processing of large information amounts, regardless of their scale, storage and computational complexity, analytical and statistical correlation. The significant emergence and potential use of BD has affected business accounting and financial auditing by replacing the long-used mechanical data collection and completion processes with automatic ones, comparing and searching for correlations between different structure and nature data.</p> <p lang="en-US">According to analysis, the main advantages of applying the BDA in the audit process are related to faster and more efficient execution of procedures, obtaining more detailed results, grouping and comparing data according to selected criteria. In the meantime, cons of BD application are related to the additional professional supervision requirements and the proper data analysis in order for the correct results interpretation.</p> <p lang="en-US">The paper presents the conceptual model, which shows the relationships between BDA tools and financial audit procedures. In addition, the model shows factors and risks, which have impacts on internal and external environment of clients, the applicability of specific audit procedures. It was found that the application of the model in the procedures includes testing of 5 relationships, i. e. classification, clustering, regression and time series analyses, the method of association rules and text research, visualization tool.</p> <p lang="en-US"><strong>The Aim of the Study</strong>&nbsp;is to identify the application of DDA tools in financial audit procedures.</p> <p lang="en-US"><strong>Research Methods:</strong>&nbsp;comparative and systematic analysis of the literature; content analysis; statistical data analysis; graphical analysis.</p> <p lang="en-US"><strong>Keywords:&nbsp;</strong>Big data, Big data Analytics, Financial Audit, Financial Audit Procedures.</p> <p><strong lang="en-US">JEL Code:&nbsp;</strong>M15, M40, M42.</p> Kotryna Nagytė Lina Dagilienė Copyright (c) 2021 Kotryna Nagytė | Lina Dagilienė https://creativecommons.org/licenses/by/4.0 2021-03-30 2021-03-30 25 4 4 10.15388/batp.2021.32