The Department of Accounting and Auditing conducts research and provides courses in the disciplines of Management Accounting, external accounts and auditing. The Department aims to be recognised as a research institution providing research-based study programmes at the highest level, presenting research results and acting as a recognised partner in a national and international context.

Highlights of 2004

· On 5-6 May, the Department organised the fourth national auditing research conference, which was attended by the greater part of the Danish auditing research community and a few researchers from other countries. The conference was held at Klitgården in Skagen and provided a forum for the participants to present and discuss their research in a local context

· From 9-11 September, the Department hosted an international conference in cooperation with EIASM and with the participation of 50 international auditing researchers. The conference was held in the CBS building at Solbjerg Plads, giving the participants a needed opportunity to present research at an earlier stage than otherwise typical for conferences

· As a result of the Department's research and development collaboration with the business community and as part of its efforts to incorporate the latest research results in courses in a business context, Nordea Investment Management was in charge of an elective progression course under the MSc. programme in Finance and Accounting. The courses and exams were planned by specialists from Nordea in collaboration with and under the supervision of the Department with the participation of CBS examiners.

Academic profile

A number of different theories contribute elements explaining the development in the three Department disciplines, i.e. management accounting, financial accounting and auditing. These theories range from economic theory and derived agent theory and information theory approaches to institutional theory and corporate management theories as well as sociological and political science theories on human and organisational behaviour.

Management accounting

Management accounting deals with issues concerning the development and use of registration and management systems in various types of enterprises, including measuring and noise problems in connection with the registration and use of financial and non-financial key figures. Department research in management accounting concentrates mainly on management control and business formats, new management control tools and IT-based management information systems.

Financial accounting

The Department deals with financial accounting theories, models and methods concerning external financial reporting, application of accounting information by users and financial markets, national and international accounting regulation and accounting practices. Research in financial accounting primarily concentrates on theoretic development of new models, concepts, types of reporting etc., stock market-based accounting research and analytical descriptive studies of Danish accounting conventions, mainly in listed companies, and Danish and international accounting regulation. Recent Department research includes the study of the correlation between corporate governance and accounting, e.g. in relation to accounting-based remuneration and financial reporting, including new accounting procedures.

Auditing research includes various aspects in connection with the role of auditing in society, especially (1) auditor regulation, (2) changes in the auditor profession, and (3) the role of auditors in connection with corporate governance, particularly when evaluating internal control.

Research strategy

The overall objective of the Department is to develop and sustain selected profiles to appear as the obvious national centre of research within its three disciplines. This is expressed as follows:

(1) International publication and research collaboration

Through publication in internationally recognised journals, anthologies etc., the Department wishes to appear as a recognised research institution in the areas of management accounting, financial accounting and auditing. Furthermore, the Department wishes to consolidate and develop its competence to a level, which makes it a visible and interesting partner in international contexts.

(2) National publication and presentation

The Department aims to strike a balance between international and national publication by also giving the latter high priority. Thus, the Department wishes to influence the academic debate in Denmark by presenting both international research and its own results in a Danish context through articles, textbooks, committee work etc.

Research results

Figure 1 shows Department publication from 2000-2004. In 2004, the Department had 11 permanent scientific staff with a 34% research obligation. The Department's Nordic-language production was fair and is of great relevance to the Danish business community, public authorities etc. Its internationalisation strategy, including the ongoing generational change, has not yet been fully implemented in terms of international production. Realising that this is a long and tough process, the Department is maintaining its strategy, as the ongoing generational change (and the establishment of formal research groups) is expected to result in increased international publication in the future.

Research relations to practice

It is a Department tradition and policy to play an important part in Denmark in order to promote the dialogue between theory and practice, thereby influencing Danish financial and management accounting practices, accounting legislation, the release of new accounting and auditing guidelines etc. Therefore, the Department is represented on the Accounts Council under the Danish Commerce and Companies Agency; on the Accounts Panel under the Danish Institute of State Authorized Public Accountants; and on the panel of judges for the annual accounting award (academic representative). As a result of their research projects, almost all members of the academic staff keep close contact with the Danish business community, and their research results are presented in relevant journals and through lectures and educational activities aimed at practice.