nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2014‒08‒16
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. A justification for the role of audits?: adoption of International Financial Reporting Standards (IFRS) and jurisdictional analyses (Brazil, China,Japan and South Africa) By Ojo, Marianne
  2. Tax Principles and Tariff-Tax Reforms By Kenji Fujiwara
  3. La révision (1965) revisitée By Alain Mikol
  4. The effects of R&D intensity and tax incentives on firms’ growth - empirical evidence from world's top R&D spending firms between 2003 and 2012 By Tiago Soares; Samuel Pereira; Elísio Brandão

  1. By: Ojo, Marianne
    Abstract: As well as consolidating on the existing literature on fair value accounting, by way of reference to jurisdictional analyses which include a focus on China, Japan, Brazil, and South Africa, this paper not only highlights why there is need for a re-think of the use of fair values as the primary basis for the implementation of IFRS, but also accentuates the links between systemic risk and information asymmetries – hence the justification for greater focus on information channels as well as disclosure and financial reporting requirements. Audits, which serve as vital signalling mechanisms in capital markets, have limited roles in many emerging economies than is the case with industrial nations. In contributing to the extant literature on the topic, this paper also aims to address the vital and crucial question relating to whether certain emerging economies are justified in their reluctance to fully embrace audits – based on cost- benefit considerations, as well as other inadequacies relating to fair value measurements. Furthermore, it will be highlighted that whilst audits may appear to have more limited roles in certain jurisdictions, there appears to be greater willingness to embrace Basel III requirements – and in particular, the Basel III leverage ratios in jurisdictions such as China. Ultimately the paper also aims to investigate whether there are any justifications or rationales for a jurisdiction's willingness and pace to adopt IFRS, Basel III requirements, in relation to the existing role assumed by audits in such jurisdictions.
    Keywords: fair value accounting; Finance Theory; information asymmetries; risk; corporate governance; ownership structures; auditor; disclosure; principal; agent; regulation; moral hazard; IFRS; China; Japan; Brazil; South Africa
    JEL: D8 E3 G3 G38 K2
    Date: 2014–08–08
  2. By: Kenji Fujiwara (School of Economics, Kwansei Gakuin University)
    Abstract: This paper develops a two-country general equilibrium model to examine the welfare effect of tariff-tax reforms that fix the world price. We show that this reform improves welfare if an origin tax is adjusted, but that it reduces welfare if a destination tax is used. Moreover, this result is reversed in the export tax case. In short, whether the proposed policy reform improves welfare depends on which between imports and exports are taxed as well as tax principles.
    Keywords: destination principle, origin principle, tariff-tax reform
    JEL: F11 F13 H2
    Date: 2014–08
  3. By: Alain Mikol (ESCP Europe - ESCP Europe)
    Abstract: En 1965 l'Ordre des experts-comptables (France) publie La révision. Il s'agit du premier ouvrage expliquant comment mener un audit rédigé par un institut professionnel français exerçant une mission d'intérêt public. La présente recherche recourt à la méthode de l'analyse de texte et propose pour la première fois l'étude de cet ouvrage. Nous montrons que les fondamentaux de l'audit n'ont pas évolué en un demi siècle : les techniques de contrôle et la démarche d'audit exposées dans La révision sont toujours utilisées aujourd'hui.
    Keywords: Audit, révision comptable, commissariat aux comptes, 1965
    Date: 2013–05–31
  4. By: Tiago Soares (FEP-UP, School of Economics and Management, University of Porto); Samuel Pereira (FEP-UP, School of Economics and Management, University of Porto); Elísio Brandão (FEP-UP, School of Economics and Management, University of Porto)
    Abstract: R&D expenditures made by companies, and governmental policies oriented for the promotion of these expenditures in the private sector, are nowadays considered variables that have an impact on firms’ growth in the medium term. This study aims at understanding the simultaneous influence of R&D investment and R&D tax incentives on firms’ growth, for different technological and knowledge-intensity industries. For that, a panel data of 1127 firms belonging to 35 different industries from 21 OECD countries, during the period between 2003 and 2012, was used. The results of the econometric estimation confirm, as foreseen in the literature, the positive effect for firms’ net sales growth of their investment in R&D and of tax policies that benefit the firms which perform these types of activities, particularly in high-tech firms. The results also returned a positive effect of R&D intensity in firms’ growth in the period before crisis (2003 - 2007) and a negative and significant crossover effect of R&D tax credits and R&D intensity in firms’ growth for the period before crisis. The two factors remain insignificant in crisis period, suggesting that other factors gained a more powerful explanation of a firm’s growth in that period.
    Keywords: R&D investment, R&D tax credits, firm’s growth
    JEL: H20 H30 H81 O32
    Date: 2014–07
  5. By: Rana Zouari (GREGOR - Groupe de Recherche en Gestion des Organisations - Institut d'Administration des Entreprises (IAE) - Paris - Université Paris I - Panthéon-Sorbonne)
    Abstract: La révélation des faits délictueux est l'une des principales spécificités du métier de l'auditeur légal en France mais aussi en Tunisie. Cette obligation résulte d'une volonté des pouvoirs publics de protéger le marché contre tout risque de fraude et s'inscrit dans un souci de protection des entreprises et de leur environnement économique et social. Dans cette perspective, cette recherche tente à partir d'une étude qualitative menée sur le marché d'audit tunisien, d'analyser le comportement des auditeurs légaux face à cet aspect juridique de leur métier. Elle suggère que la révélation des faits délictueux par l'auditeur dépend de son indépendance vis-à-vis de son client mais aussi de son degré d'aversion face à un risque à double tranchant : un risque économique et un risque pénal.
    Keywords: Audit, révélation de la fraude, indépendance, risque
    Date: 2013–05–31

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