No abstract

Purpose This study conducts an empirical examination of auditors’ interpretation of selected key uncertainty expressions, namely virtually certain, probable and unlikely, included in accounting standards. Design/methodology/approach This paper adopts a survey research method to examine the impact of gender difference on the interpretation of uncertainty expressions. Professional auditors in China were selected to examine whether gender difference influences the interpretation of uncertainty expressions. Findings The results show that female auditors are likely to interpret positive or negative uncertainty expressions more conservatively than male auditors. The extent of conservatism is higher when female auditors are interpreting in-context expressions. The results remain similar after controlling for additional variables, such as education and work experience, which possibly affect the interpretation of probability expressions. Originality/value The results of this study suggest that gender difference can affect the numerical thresholds that auditors’ assign to uncertainty expressions. This may lead to different application of professional judgments between male and female auditors. It also provides important implications to regulators and practitioners on the quality of financial reporting and auditing across organizations within and across countries.

Blockchain technology has the potential to reduce transaction errors and enhance the quality of reporting significantly. This article proposes a conceptual blockchain‐based protocol, labelled Smart Ledger, as a replacement for the traditional accounting information recording system. A smart ledger is a computerized algorithm that utilizes blockchain technology to perform accounting ledger functions. Its validity is based on two mechanisms within the blockchain architecture: Fractional Accounting Transactions (FAT) and Hierarchical Accounting Transaction Execution (HATE). As such, the smart ledger is a hybrid protocol that combines accounting information recording principles with the immutability of blockchain technology. If widely implemented, it could have a significant impact on accounting practices and the accounting profession.