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ANALISIS Jilid 10, Bil. 1. Jun 2003

A Review of Expertise in Auditing
Takiah Mohd. Iskandar
Faculty of Business Management
Universiti Kebangsaan Malaysia
Abstract Ɩ Full Text
This paper reviews past studies on audit expertise, and discusses some important issues relating to it. Earlier studies in this area had mainly focused on the effects of experience on auditors' performance. These experiences were measured in terms of consensus, cue weighting, self-insight, and stability of auditors' judgments. However, results were inconclusive. Further developments in the research on audit judgments showed the need to differentiate auditors' expertise according to ability and knowledge. Given that audit work requires an understanding and knowledge of specific industry, auditors' expertise is specified in terms of industry specific knowledge. Studies show that auditors develop industry-based knowledge structure. As suggested by past studies, industry specialisation is an important characteristic in auditing practice that develops into an important component of audit expertise.

Wage Differentials, Industrial and Skill Structures in Malaysian Manufactures, 1974-1996
Rusmawati Hj. Said & Zakariah Abdul Rashid
Economics Department
Universiti Putra Malaysia
Abstract Ɩ Full Text
The objective of the present paper is to measure the proportional changes in salaries and wages and the impact of changing industrial structure on the employment of skill workers in Malaysian manufactures during 1974-1996. By using 5-digit MIC, 30 major groups of industries are chosen out of 129 sub-industries. The proportional change in relative wage is ascribed to three distinct effects, namely distributional, differential and industrial ranking effects. The present paper found that during the overall period, there was a clear trend of skill widening ascribed mainly to distribution of skill among subindustries while skill differences within sub-industry seem to be unimportant. Among all the industries, electrical machine y industry seems to be the most important industry that caused major skill differentials.

Debts and a Solvency Model for Malaysia
Nor'aznin Abu Bakar
Faculty of Economics
Universiti Utara Malaysia
Abstract Ɩ Full Text
The Asian currency crisis, which was triggered by the floatation of the Thai baht in early July 1997, has once again brought up the debate on the causes of a currency crisis. Many have argued that the core of the crisis was the result of deteriorating market fundamentals. Others have argued that the cause is a self-fulfilling crisis or investor's herd behaviour. In this paper, the solvency index for Malaysia is calculated based on the price elasticity of demand and GDP supply. The cointegration analysis is employed in which the dynamic OLS is used to estimate the price elasticity. The solvency index for Malaysia was 0.74% and the amount that was actually paid was greater than a fraction needed to be considered "solvent" (9.0%). From the empirical findings, it is suggested that the crisis was a matter of short-term liquidity difficulties and panic rather than insolvency.

A Framework For Multi-Backpropagation
Wan Hussain Wan Ishak, Fadzilah Siraj & Abu Talib Othman
Faculty of Information Technology
Universiti Utara Malaysia
Abstract Ɩ Full Text
Backpropagation algorithm is one of the most popular learning algorithms in the Neural Network. It has been successfully implemented in many applications. However, training Neural Networks involve a large amount of data. Therefore, training the network is time consuming as each training session requires several epochs, which usually takes several seconds or even minutes. This paper proposes a multi-backpropagation approach to minimize the complexity of the network. The approach does not require an alteration of the algorithm. Instead, the large network is split into several smaller networks. An integrating network is then constructed to integrate the output from the
smaller networks.
Keywords: Neural Network, Backpropagation Network, Multi Backpropagation Network.

Bank Lending and Economic Growth in Malaysia: Revisited
Tuck Cheong Tang
School of Business
Monash University, Malaysia
Abstract Ɩ Full Text
The present study has re-investigated the role of bank financing on Malaysian economic development by using the bounds testing approach proposed in Pesaran, et al. (2001). This study had covered the annual periods from 1960 to 1998. The findings of the study are as follows. First, contra y to a previous study [Tang, 20001, it was found that there was no long run relationship between the volume of bank lending and the real Gross Domestic Product (GDP). Second, a long run relationship had been observed between real GDP, and volume of bank lending after including real exports variable into cointegration system. This finding clearly shows the potential bias of omission variables in bivariate specification. An interesting outcome of the study is the suggestion that bank financing is strongly led by a country's economic development in the long run. The estimated elasticity is 3.02. The study suggests that in order to support a sustainable economic growth in Malaysia, bank financing for the private sector will be necessary.
Keywords : bank lending; economic growth; long run relationship; unrestricted error correction model.

Measurement and Sources of Technical Inefficiency: Some Evidence from the Sudanese Islamic Banks
Naziruddin Abdullah & Abd Elrhman Elzahi Saaid
Kulliyyah of Economics and Management Sciences,
International Islamic University, Malaysia
Abstract Ɩ Full Text
The establishment of Islamic banks that started in many parts of the Muslim countries some years ago has become a fact. However, this phenomenon needs to be justified empirically. Sudan has adopted Islamic principles for its entire banking industry. This has put the spotlight on the performance of the Islamic banks in the Sudan. In this paper the stochastic cost frontier function with a time series of cross-section data on Sudanese Islamic banks is used. The error terms are decomposed into v and u, which represent random noise and technical inefficiency, respectively. The banks in the sample have been divided into three categories, namely national banks, private domestic banks, and foreign joint venture banks. The technical efficiency was measured and the sources of inefficiency were investigated. The results showed that all banks in these groups were technically inefficient. The results also reveal that the national banks and private domestic banks were more technically inefficient than the foreign joint venture banks. The sources of inefficiency are attributed to the ownership, lack of banking technologies, severe economic sanctions and the lack of managing the high risk of the Islamic financing modes. This result has very good policy implications for the recent Sudanese government privatization policy regarding its national banks.

Food Security, Freer Agricultural Trade and Endogenous Policy Formation
Jamal Othman
Faculty of Economics
Universiti Kebangsaan Malaysia
Abstract Ɩ Full Text
In light of the ongoing policy debate on globalization issues, this paper illustrates the implication of interest group influence and national strategic interests on policy formation in the Malaysian rice sub-sector when the policymaker welfare criterion was used in drawing up policies. This paper suggests a domestic and international political-economic scenario where joint welfare maximization will be the desirable policy choice among trading countries.

Success Factor in the Implementation of TQM in Public Service Agencies
Mazanah Muhamad, Mazalan Kamis & Yakcob Hj. Jantan
Universiti Putra Malaysia
Abstract Ɩ Full Text
This study aims specifically to determine factors contributing to the success of TQM implementation in selected government agencies. A total of six government agencies nominated for the Prime Minister Quality Awards were studied. A qualitative method was employed in which data were collected through unstructured interviews. Documents pertaining to the implementation of TQM in the respective agencies were also used as a source of data. Data were analyzed inductively by developing categories, coding, and categorization. The findings reveal that factors contributing to the success of TQM implementation were: (1) good leadership, (2) involvement and commitment of all level of staff, (3) meeting customer satisfaction, (4) reward and recognition, (5) teamwork, (6) awareness, and (7) organizational climates. Although, TQM implementation in these selected government agencies were in line with the method suggested in the literature, there appear to be some uniqueness in the scope of training and the concerns of the organization towards their staff. The emphases on religious values and concerns for culture have played a pivotal role in shaping the implementation and the success of TQM in public service agencies.

Corporate Social Responsibility Disclosure in the Annual Reports of Malaysian Companies: A Longitudinal Study
Che Zurlana Muhammad Jamil, Kasumalinda Alwi & Rapiah Mohamed
Faculty of Accountancy
Universiti Utara Malaysia
Abstract Ɩ Full Text
Corporate social responsibility (CSR) has a long history in both practices and research in advanced countries, mostly in Europe and the United States. However, in Malaysia, very few empirical studies are available on CSR practices. This study investigates and examines the development of CSR practice in Malaysian companies. The trend of CSR disclosure in annual reports for a five-year period from 1995 to 1999 has been reviewed to find out whether there are any changes in themes, locations or form of disclosure throughout the interval. The results show that the disclosure levels in Malaysia is considered low whereby less than 30 percent of companies studied made the CSR disclosure every year. The results also show that Malaysian companies prefer to disclose CSR in the Chairman's Statement, Financial Statement and Director's Report in the form of narrative information. Human resources, community involvement and environment were identified as the most popular themes. The findings reveal that the hote1,finance and construction sectors provide a higher
percentage of CSR disclosure.
Keywords: Corporate Social Accounting; Corporate Social Responsibility, Corporate Social Disclosure.

Aplikasi Teknik Rangkaian Neural Dalam Capaian Teks
Fadhilah Mat Yamin, Fadzilah Siraj & Wan Rozaini Sheikh Osman
Fakulti Teknologi Maklumat
Universiti Utara Malaysia
Abstrak Ɩ Full Text
Capaian maklumat yang berkesan merupakan keperluan utama pengguna maklumat. Hal ini kerana limpahan maklumat menyebabkan enjin carian maklumat semasa sukar untuk mencapai dan menyaring maklumat yang relevan dengan keperluan pengguna. Oleh itu, kertas kerja ini membincangkan aplikasi kepintaran buatan dalam bidang capaian maklumat. Penggunaan teknik kepintaran buatan dalam capaian maklumat akan menghasilkan sistem capaian maklumat pintar yang dapat membantu dan memudahkan carian maklumat. Selain itu, model bagi sistem capaian maklumat pintar juga turut dibincangkan.
Kata Kunci: Kepintaran Buatan, Capaian Maklumat Pintar, Enjin Carian.

Testing the Lucas Critique in Malaysia: A Comment
Noor Azlan Ghazali & Izani Ibrahim
Department of Finance
Faculty of Business Management
Universiti Kebangsaan Malaysia
Abstract Ɩ Full Text
The advent of 'rational expectation hypothesis' (REH) in 1970's sparked intense debate on the effectiveness of discretionary aggregate demand policies in influencing real economic activities. In line with this, the Lucas Critique (Lucas, 1976), that embodies the REH, questions the effectiveness of policy rule that frequently adopted in the set up of monetary policy. This commentary revisited the foundations of Lucas Critique and empirical studies reported by Habibullah, Azali dan Baharumshah (2001) (in short, HAB) on the validity of the critique within the Malaysian economy. The Lucas Critique is explained in greater detail based on an economic model that incorporates the behaviours of economic agents that form their expectation rationally. Brief empirical analysis indicates that rejection of Lucas Critique as proposed by HAB requires further investigations before it can be a generalization.

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