TRANSFORMATIVE CAPABILITIES OF THE ACCOUNTING PROFESSION: STUDY OF NORWEGIAN SMALL AND MEDIUM ACCOUNTING PRACTICES (TRANSACT)

The TRANSACT project has addressed how small- and medium-sized accounting/auditing practices (AASMPs) in Norway can develop transformative capabilities to adapt proactively to a rapidly changing society. This adaptation is crucial for servicing the community of SMEs with updated, relevant, and timely information, fostering a fair and sustainable business environment. Because AASMPs often struggle to adopt innovations and new knowledge to improve their services, addressing the transformative capabilities of these practices is essential for ensuring the future survival and prosperity of the industry and society. This project was conducted in close cooperation between Nord University Business School (HHN), its national and international academic partners, and several national stakeholders. The project resulted in the publication of 13 peer-reviewed articles in high-quality cross-disciplinary academic journals and 13 book chapters, contributing significantly to the scientific debate on the transformation of small and medium-sized accounting practices (AASMPs) (https://www.nord.no/forskning/forskning-ved-fakultetene/forskning-ved-hhn/faggruppe-okonomisk-analyse-og-regnskap/transact). By recruiting new faculty and enhancing the skills of existing personnel, the project boosted the research capabilities of HHN, leading to increased publications and stronger international academic cooperation. Collaboration with industry and public sector partners improved HHN’s ability to design relevant questionnaires, collect data, and analyze results, fostering productive dialogue and dissemination of research findings. The project developed new foresight methods for analyzing societal trends and identifying the dynamic and transformative capabilities needed for the profession. The project refined existing courses and developed new education and training programs, including micro-credentials. Innovative education methods were introduced, such as scenario work methodology and foresight tools, enhancing students’ skills as curious and critical thinkers. Finally, the project will prepare policy briefs for international and national regulatory authorities, based on the final project book. These briefs aim to influence policy development and strengthen the regulatory framework for the accounting profession.

Outcomes of the TRANSACT research project: 1. Scientific Publications: The project produced 13 peer-reviewed journal articles and 13 book chapters, contributing significantly to the scientific debate on the transformation of small and medium-sized accounting practices (AASMPs). 2. Attracting New Scholars: By recruiting new faculty and developing existing personnel, the project enhanced the research capacity of Nord University Business School (HHN), leading to increased publications and stronger international academic cooperation. 3. Two-Way Communication: Collaboration with industry and public sector partners improved HHN’s ability to design relevant questionnaires, collect data, and analyze results, fostering productive dialogue and dissemination of research findings. 4. Reports to Authorities: The project can influence policy development by preparing two policy briefs for international and national regulatory authorities, based on the final project book. 5. New Education Platforms: The project led to the refinement of existing courses and the development of new education and training programs, including the introduction of micro-credentials and scenario work methodologies to enhance students’ professional skills. On the national student survey for 2024, students taking Master of Accounting and Auditing program at HHN report highest overall assessment of the program quality compared to programs at other universities. The TRANSACT research project can have a significant impact on several Sustainable Development Goals (SDGs): 1. SDG 4: Quality Education: The project enhanced educational platforms by refining existing courses and developing new training programs, including micro-credentials. This can improve the quality of education and equip students with relevant skills for the evolving accounting profession. 2. SDG 8: Decent Work and Economic Growth: By attracting new accounting scholars and improving the research capacity of HHN, the project can contribute to economic growth and the creation of decent work opportunities within the accounting sector. 3. SDG 9: Industry, Innovation, and Infrastructure: By fostering two-way communication between HHN and industry stakeholders, the project can lead to innovative approaches in accounting practices and the development of new theoretical models that address the challenges faced by small and medium-sized accounting practices. 4. SDG 16: Peace, Justice, and Strong Institutions: Through reports to authorities and policy briefs, the project can influence policy development and strengthen the regulatory framework for the accounting profession, promoting strong institutions and transparent practices.

This TRANSACT project addresses how the small- and medium-sized accounting/auditing practices (SMPs) in Norway can develop transformative capabilities in order to adapt proactively to a rapidly changing society by servicing the community of SMEs with updated, relevant and timely information allowing a fair and sustainable business society. Evidence show that SMPs struggle to adopt innovations and new knowledge to improve accounting and auditing services. Addressing the transformative capabilities of the accounting and auditing SMPs is therefore important to ensure future survival and prosperity for our industry and society. This project is a close cooperation between Nord University Business School (HHN), its national, international academic partners and several national stakeholders. It aims at high quality cross-disciplinary academic research combining accounting, auditing, foresight, entrepreneurship and innovation disciplines in one research project. The project develops new methods for analyzing societal trends, identifying the dynamic and transformative capabilities needed for the profession and translating these into improved accounting/auditing practices and the design of relevant education programs. Anchored in the institutional strategy, the project strengthens HHNs competencies and improves our ability to deliver relevant and future-oriented high quality education programs in the field of accounting and auditing. The project will contribute to: 1) improved education of future change agents in accounting and auditing, by introducing innovative education methods; 2) increased competitiveness of the accounting profession by providing actors with the necessary analytical tools for proactively shaping their future; 3) customers of the accounting profession in both the private and public sectors will be able to take better-informed decisions regarding their economic behavior, ensuring the future progress of our economy.