The effect of COVID-19 on the accounting practice in Zambia.
Date
2024
Authors
Zulu, Temwani
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
The COVID-19 pandemic has been one of the most brutal pandemic in human kind history. Its impact has been immense, affecting numerous sectors across the global economy including the Accounting Practice (AP). Consequently, the purpose of the study was to determine the effect of COVID-19 on the AP in Zambia. The collection of data was done through quantitative methods. Questionnaires in 5 point Likert scale were sent electronically to the ZiCA subscribed members
through the ZiCA database, using purposive sampling. The collection of data comprised of 152 Accountants across the country. Data was analyzed through SPSS 26, Pairwise and Spearman’s RHO tests were used. The results indicate a significant relationship on remote inventory valuation both during and before COVID-19, indicating discrepancies on how inventory valuation was conducted, before and during the COVID-19 pandemic. Significant relationships between sector and challenges with inventory valuation during COVID-19; sector and evaluation of going concern in relation to COVID 19; sector and disclosure of accounting estimates and liabilities in relation to COVID-19; sector and adoption of cloud accounting, artificial intelligence, data analytics & forecasting and block chain during COVID-19; Job level and conducting of meeting using video conference, zoom, google meet during COVID-19; age and challenges faced for remote working during COVID-19 were tested. Insignificant relationships were tested between sector and inclusion of income tax cuts and subsidies in financial statements, education level and assessment of the Effect of COVID-19 related instability on revenue recognition and allowance for bad debts; sector
and enhancement of accounting technology following COVID-19; job level and increase of cyber security levels following COVID-19. The results concluded that COVID-19 has drastically affected inventory valuation, during the pandemic and how companies disclose and report all financial elements impacted by COVID-19. The study also concludes that COVID-19 has enabled the advancement of accounting technology, in the AP resulting in increase in cyber security levels.
Companies and regulatory bodies should not ignore the impact of COVID-19 to the AP as the effects are long lasting and will continue in the long run post COVID-19.
Description
Thesis of Master of Science in Accounting and Finance.