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While in real life organisations typically undertake in a holistic fashion the functions for which they were established, accounting for the ensuing activities of those functions traditionally proceeds on the basis of a sharp dichotomy between their external and internal aspects. As a consequence, there is a well‐established, worldwide tradition that only the external “wing” of accounting is subject to mandatory audit; this article explores the idea of extending this to the internal “wing”. Conceptually the idea does not seem preposterous but compelling. The two wings of accounting constitute not a dichotomy but a dialectic: each presupposes the other, so cannot validly be given different treatment. However, for an institution, a regulatory framework for internal matters may be incompatible with a socioeconomic regime founded on individual autonomy and the spirit of enterprise. India′s pioneering imposition of mandatory cost audit is reviewed and the deep institutional dilemma that surrounds the whole issue is discussed.

The discipline of Operational Research (OR) has always been important in the management field. It has a problem‐ solving/decision‐support focus; it guides the development of many management disciplines, such as management accounting, logistics management, and information systems design, to name a few. It is, in brief, a vital subject for guiding management practices and management development. Because of that, it can appear disturbing to note that contemporary OR has been facing a number of challenges and is obsessed with a number of theoretical/methodological concerns. Two recent examples illustrate this situation:

This study investigates the perceived suitability of the international accounting standards among the Jordanian preparers, users and auditors. Multivariate analysis and non‐parametric statistics are applied to test hypotheses. The t‐test was used to measure the suitability of IAS to the Jordanian environment. The results indicated that IASC is a neutral body and therefore is capable of producing neutral and relevant accounting standards that might be applied by developing countries. The ANOVA and the Chisquare tests were applied to test variation in the perceived suitability of IAS to the Jordanian environment. The results indicated that the type of audit firm, years of experience and type of experience affected the respondents’ views towards the suitability of IAS to Jordan. Descriptive statistics were used to determine the most influential factor affecting the adoption of IAS in Jordan. The results indicated that the local need for foreign investments and international audit firms were the most influential factors while local and foreign investors in addition to the international audit firms are the biggest beneficiaries of that adoption. Finally, this study found that no attempt had been made by the Jordanian regulators to benefit from the past experience of other developing countries. The respondents believed that in order to increase the reliability of Jordanian financial information IAS were quickly adopted without any discussion as to whether each IAS was suitable to the Jordanian context.

The resurgence of interest in public sector accounting has been evident in the significant growth of the literature concerning both developed and developing countries. Literature reviews in the area, however, have only focused on the former thus leaving a gap which has been overlooked for some time. This paper begins to respond to this lack in the literature by critically assessing research on public sector accounting and financial management in developing countries. The paper elaborates the various views expressed by writers in the field and also identifies omissions in terms of themes, methodologies, and methods. In particular, we argue that most of the mainly non‐empirical studies in the literature have been influenced to a very large extent by development economics thinking (including theories the relevance of which have been significantly questioned in that discipline). We conclude by offering some suggestions for future research in the area.

The purpose is to forward systems theory one more step towards social theory and integrate problem-solving and theory-building, and search for the integration and unity of science by revealing the nature and role of critical systems thinking (CST).

This article describes relations between systems theory and social theory in three parts. First, it examines the links of systems methodologies with three social science approaches as well as the role of CST. Second, the focus of theory and the form of explanation are discussed from critical social science (CSS) perspective. Third, the direction of theorizing of a CST-based systems theory is investigated.

First, CST is a hidden assumption of system dynamics (SD)/systems thinking (ST). Second, systems theory is positioned in CSS. Third, CST integrates traditional and soft systems methodologies (SSM), and connects systems science and social science. Fourth, this article reveals hidden links between systems approaches and three corresponding social science approaches. Fifth, the theoretical focus of a CST-based systems theory could be formal/structure theory and/or substantive/content theory. Sixth, the form of explanation could be structural/mechanismic explanation combining causal and interpretive explanations. Seventh, a CST-based systems theory may adopt abduction, which complements a defect in deduction and induction in a difficulty of nonlinearity.

It illustrates a graph of the competing approaches in systems science corresponding to paradigms in social science.

This paper uses content analysis to compare International Financial Reporting Standards (IFRS)1 with the Local Accounting Standards (LAS) of South Africa (SA), Mauritius and Tanzania. It begins by identifying the equivalence of the local accounting standards of these three countries with IFRS and follows with a content analysis of the definition of terms, accounting treatment and disclosure requirements in the standards. The contents of these three items in each of these countries’ standards are compared with those in the IFRS. A score card is used to record the level of harmony between the LAS and IFRS of each country and between the LAS of each country. The score is compared by running statistical test of significant difference using Wilcoxon Matched Paired test. The paper reports that, except for Tanzania, the local accounting standards of the two other countries are more or less similar to IFRS. As regards the level of harmony between the local accounting standards and IFRS, the score card reveals that the accounting standards of SA are more in harmony with IFRS, followed by Mauritius. A lead table is produced at the end.

Conflicting results have emerged from several past studies as to whether bankruptcy prediction models are able to forecast corporate failure more accurately than auditors’ going‐concern opinions. Nevertheless, the last decade has seen improved modelling of the path‐to‐failure of financially distressed firms over earlier static models of bankruptcy. In the light of the current crisis facing the auditing profession, this study evaluates the efficacy of auditors’ going‐concern opinions in comparison to two bankruptcy prediction models. Bankrupt firms in the U.S. service and trade industry sectors were used to compare model predictions against the auditors’ going‐concern opinion for two years prior to firm failure. The two models are the well‐known Altman (1968) Multiple Discriminant Analysis (MDA) model that includes only financial ratio variables in its formulation and the newer, temporal logit model of Cybinski (2000, 2003) that includes explicit factors of the business cycles in addition to variables internal to the firm. The results show overall better bankruptcy classification rates for the temporal model than for the Altman model or audit opinion.

This paper is an attempt to explore the relevance and usefulness of accounting education to development needs of LDCs; and to make constructive suggestions for educational change in any areas where relevance or usefulness seem to be very seriously deficient Identification of development needs is discussed first, then the present character of accounting education as exported to LDCs is discussed in the context of development needs. Finally strategic proposals are made to close the largest gaps between development need and the supply of accounting education.

Outlines the emergence of critical systems thinking and practice and the reasons why such a development in the systems approach was necessary. Considers the limitations of traditional systems thinking and the strengths and weaknesses of three alternatives to the traditional systems approach — soft systems thinking, organizational cybernetics and emancipatory systems thinking. Reflection on the relationship between these different strands of the systems approach gave impetus to the birth of critical systems thinking. Details the nature of critical systems thinking, as resting on five commitments, and describes a new methodology (“total systems intervention”) to operationalize this approach.

This paper adds to a focus of the social accounting literature (on perceptions and attitudes to social accounting) by seeking to offer insights into Syrian accountants' attitudes towards, and perceptions of, social accounting in Syria in the first decade of the twenty‐first century, with particular attention to its role, future development and implementation.

The paper takes the form of an analysis of interviews of Syrian accountants; contextual analysis (and an appreciation of the prior literature).

Syrian accountants' perceptions are shaped by developments in Syria's socio‐political and economic context, encompassing imperialism/colonialism, globalisation and cultural specificities, including Islam. Interviewees perceived a significant role for a social accounting – that would parallel the Western form of social accounting – in enhancing well‐being in the dynamic context. At the same time, they were reluctant to see the development and implementation of this accounting in Syria as an urgent issue, so that this social accounting might be left initially at least with an even more marginal part to play than in the West. The study suggests that a combination of forces – global developments, Western imperialism and Syria's colonial history – have had a substantively repressive rather than progressive impact on the development of social accounting in Syria vis‐à‐vis its more positive potential.

All limitations of interview research apply. This study focuses on Syria in a context when economic transition was a major issue. Further studies of economies in transition would be of interest.

An awareness of how the local and the global interact in debates over social accounting can provide insights for policy makers concerned with accounting regulation.

The focus on Syria, a non‐Western country, enriches the social accounting literature, which focuses mainly on Western developments.