Accounting and Auditing

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    The confusion of work and real life.
    (2023) Madibi, Zizipho.
    Society seems to think work is what makes a human being...........................
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    Identifying Risk Management Strategies of Small, Medium and Micro Enterprises in Retail and Manufacturing Industries in UMhlathuze Municipality
    (2022) Khambule Thandiwe Lungile
    Small, Medium and Micro Enterprises are usually seen as an important tool for improving living standard. Considering the importance of SMMEs to economic growth, job creation and poverty alleviation, there is a need to train small business owners and managers and to expose them to risk management strategies that will promote businesses and reduce high failure rate. SMMEs are lacking when it comes to risk management knowledge and skills, which contributes to their high failure rate. In addition, South African education system is lacking when it comes to educating and training SMMEs on how to run their businesses successfully, especially exposing small business to risk management strategies for them to be able to respond to different kinds of risks. Given this background, this study sought to identify risks management strategies for SMMEs in retail and manufacturing industry focusing on uMhlathuze Municipality. The researcher used primary data for this study. The study adopted a qualitative method approach where data was collected through semi-structured interviews. Purposive sampling was used to select 12 SMMEs of uMhlathuze Municipality: 6 from the manufacturing and 6 from the retail industry. Data collected from the participants was coded and analysed using themes and content analyses The results from the study showed that the risks faced by SMMEs negatively impact daily activities of small businesses and it also results in poor performance on SMMEs. Such risks include financial risk, resource risk, credit risk, reputation risk, inflation risk, and corona virus. Therefore, there is a need to assist SMMEs and improve their growth, as it was found that the strategies, they used to be inadequate in mitigating the identified risks. Whilst all SMMEs involved in this study reported to be faced with risks, not all of them had specific risk management strategies in place to deal with such. However, it was found that among the risk’s management strategies used by some SMMEs to fight risks are publicity and re-organizing. Use of private security, alerting customers about the price increase to ensure that they don’t get a shock or prices when purchases, insisting on deposit payments and sticking to cash transactions were some of the strategies used. Fewer SMMEs have insurance for their assets. Additionally, some of the selected SMMEs attribute their survival to getting sponsorship from government and private sector, and access to credit markets through short term loans. Sequel to the findings of the study, it is recommended that SMMEs should be given more assistance in education and training in terms of the different kinds of risks they are facing. 7 | P a g e Also, they need to be assisted with proper and quality strategies capable of keeping businesses protected and secured from risks, that will reduce risks.
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    Refining academic writing skills for the third year Bcom (accounting) students at a selected university in KwaZulu-Natal
    (University of Zululand, 2021) Khomo, Sphelele
    This study investigated the academic writing contests experienced by the third year BCom (Accounting) students at a selected university in KwaZulu-Natal, South Africa. Most of these students are second language users of English, and the language is used as a medium of instruction. This study was informed and guided by the following research questions that were drawn from the objectives of the study: (i.e. Why do the third year BCom (Accounting) students seem to have challenges with academic writing skills?; What are the perceptions of BCom (Accounting) lecturers in assisting the third-year BCom (Accounting) students to develop the academic writing skills?; and, Are the academic writing programmes effective and efficient to assist third year BCom (Accounting) students to develop academic writing skills?). The study used the qualitative research approach and interpretivism paradigm. The theory that underpinned this study is social constructivism. The participants comprised two groups of students and third year lecturers. Interview Focus Groups with both the students and the lecturers were conducted, analyses of tests and projects/programmes were employed as data collection instruments. Eighteen (18) students and six (6) lecturers were interviewed. Thirty-three (33) tests and fifteen (15) group projects were analysed by the University Writing Centre. The content data analysis was adopted, and it revealed the following: it is not easy to understand the content in a second language, the accounting students are not passionate about academic writing, the students are displaying linguistic challenges, some of the accounting lecturers need academic writing skills training for them to be able to train the students, the lecturers and the students are not using the writing format and are failing to follow the writing process. This study recommends the following: The Writing Centre should develop an academic writing skill programme at first- year level, and this should be embedded within and across different academic modules. This will enhance students’ academic writing skills; academics and the Writing Centre support-team could collaborate in assisting students.
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    Small and medium scale manufacturing enterprises in Kenya:a perspective on alternative sources of financing
    (University of Zululand, 2005) Migiro, Stephen, Oseko; Wallis, Malcolm
    Small and medium-scale enterprises (SMEs) form the majority of the enterprises in the Kenyan economy. They employ a large share of the labour force. The sector is perceived as an alternative employer. Recent studies show that SMEs are at least as important as large firms in the creation of gross and net new jobs. Notwithstanding their importance, most SMEs are unable to exploit the increased market opportunities due to a number of constraints. This is because of either low productivity, incapacity to face competition from imports or in export markets, constraints to adapt new technologies and or a lack of finance. Financing of the sectors' activities is always cited as one of the problems facing the sector. The literature review on SME's access to bank finance indicates that most SME operators have limited access to bank finance. SME access to the formal financial sector is constrained by high risks and transaction costs associated with commercial lending. To develop them and maintain their contribution, initiatives are required to enable them grow and flourish. The aim of this study was to provide a perspective on use of alternative finance by SMEs in Kenya. The study focused on three manufacturing sub-sectors, namely: Textile and Garment, Furniture and Wood products and Metal and Metal products. To achieve this aim, the study sought to identify factors influencing the financing structure of SMEs such as enterprise demographic factors, investigate alternative methods or models of SME financing; identify factors which limit SMEs access to credit from the formal financial market, main sources of SMEs finance, and suggest and recommend measures to improve SMEs finance in Kenya. The study employed survey research design methodology in which combinations of research methods were used. These included questionnaire survey, observation; face to-face interviews and literature review. Various enterprise finance theories making up the meta-theoretical framework used in the study and empirical studies of small enterprises' capital structure are discussed as aprelude to the empirical study. Empirical data was collected from 380 respondents to answer research questions and to test various hypotheses concerning the determinants of capital structure of the enterprises in the study. The aspects of capital structure covered in the analyses were alternative sources of finance [long-term and short-term and the demographic characteristics of the SME operators and their enterprises. Quantitative data from the survey was analyzed with the application of micro fit software and descriptive statistics. Content analysis was applied to qualitative data from open-ended questions and structured interview schedule on key informants. The findings indicates that the SME manufacturing activity is male dominated; majority of the manufacturing SME operators fell in the 30-49 age categories; had secondary education; do not to have any formal training in business management; have not changed accounts from one bank to the other; and majority of the enterprises in the survey are sole proprietorships. Further, empirical results indicate that interest rate and collateral requirement are the major factors influencing choice of finance. The overall results show that personal savings is used as the main source of enterprise financing. Specifically, there was general agreement amongst the operators that bank finance is least used and that alternative finance is least used and poorly understood or not understood at all. In addition, there was a very insignificant level of computer literacy among the SME operators in the study. The study notes that SME financing in Kenya; and in particular the use of alternative finance needs to be addressed. It is recommended that a Small Business policy division be established by the government of Kenya, responsible for promoting small business policy; establishment of a business portal to not only harmonise, but also facilitate provision of online support services to the maximum number of financial and other services; establishment of a central data bank on national business activities including those of small and medium-scale enterprises. The system to maintain comprehensive and objective data sets relating to the financing of SMEs, particularly on demand for and supply of financing; promote inter-firm linkages and provide information on availability of alternative sources of finance. The study further suggests a hybrid structure of SME financing between the micro-finance institutions (MFIs) and the formal financial institutions. The model suggests an introduction of micro and small business finance windows in commercial banks, developing linkages between micro financial institutions and commercial banks. In addition, the study proposes the establishment of a national SMEs development bank that will act as a revolving fund to boost the development of SMEs. The proposed bank to be linked to municipal/city council SMEs revolving funds. This will ensure that there is an all-round concerted effort at stimulating and monitoring SME activities. The strategy will help allocate limited national resources to target industrial activities that will jump-start the industrial process, using both local and foreign resources. It is further recommended that longitudinal studies be considered to meet data needs in the SME sector. Such studies will help identify real financing gaps among other gaps in the sector for the application of intervention measures. In conclusion, the study makes a distinct contribution to the theory and practice of financial management, specifically alternative financing in the small and medium-size organizations, not only in Kenya but for other countries in Africa as well. The study also presents a basis for educational, developmental and training parameters, which enlightened institutions can implement in formal training programmes. Finally, organisations that facilitate the financing of small and medium-size businesses are encouraged to maintain comprehensive and objective data sets relating specifically to the financing of SME's.
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    The impact of business ethics education on attitudes towards corporate ethics of B Com. Accounting students at the University of Zululand.
    (University of Zululand, 2011) Fourie, Sharon; Contogiannis, E.
    “We are conscious of the reality that corruption in many forms has deeply infected the fibre of our society. Precisely because we face the challenge of dealing with systematic corruption, we need a dispassionate and systematic approach to this question.” Nelson Mandela, at the opening of Parliament (February 17, 1995). It would appear that the integrity of leading organizations, and the ethical behavior of leaders in the workplace, can have a positive impact on the organization as a whole. Many such leaders are moulded and developed in our institutions of higher education. Is there then an onus on these institutions to attempt to instill such ethical values into tomorrow’s leaders? Business ethics courses have in recent years become prevalent worldwide, and more recently here in South Africa. The question that begs asking however is: Does teaching an ethics course to students influence their moral judgment, competence, and attitudes toward corporate ethics? Many believe that integrity, and hence ethical behaviour, is not something that can be acquired as an adult, but is dependent on your upbringing, social status and perhaps religion. These aspects of life may form a foundation for thinking, but as we are constantly growing and developing, especially in the formative years, they too can be developed. Based on the undisputed need for ethical leaders the following hypothesis was developed. Higher education institutions using a well-designed Ethics instruction programme can positively influence the undergraduate student’s moral judgment competence and attitude toward corporate ethics. A literary review was conducted including both local and international studies. Based on this a survey instrument was prepared, tested, and distributed. Solomon’s four group design was chosen as the most appropriate method of research. Although this research showed no statistical or practical improvement in students’ attitude toward business ethics, I believe the teaching thereof at least provides the student with an awareness of the situations she/he may encounter on entering the business world. It also provides methods for resolution of conflict both internal and external to which the student may later refer. In this study there were not found to be any significant demographics affecting students’ attitudes, however the sample did have demographic limitations. As significant resources are allocated to the teaching of ethics it would be prudent to conduct further research into the effectiveness of teaching business ethics. The purpose of further research would not be to justify no longer teaching ethics, but to develop a standard of best practice in this regard. We cannot change the world overnight and we possibly can not even change the views of an entire group, but if we can just create one ethical leader we have made a difference to the world.
University of Zululand