nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2022‒03‒28
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. The impacts of the use of data analytics and the performance of consulting activities on perceived internal audit quality Abstract: Purpose: This research investigates the effects of the internal auditor use of data analytics and the performance of consulting activities on perceived internal audit quality. Design/methodology/approach: We conducted a 2x2 between-subjects experiment among upper and middle managers where the use of data analytics and the performance of consulting activities by internal auditors were manipulated. Findings: Results indicate that managers perceive internal auditors as more competent when they use data analytics and that managers perceive that the quality of their relationship with internal auditors is higher when internal auditors perform consulting activities. They also perceive that internal auditors’ recommendations are more relevant when they perform consulting activities. In addition, findings show an interaction effect where the use of data analytics with the performance of consulting activities strengthens the perceived quality of the relationship between internal auditors and management. Research limitations/implications: From a theoretical perspective, this research builds on the internal audit quality framework by considering digitalization as a contextual factor. This research focused on one major stakeholder of the internal audit function: senior management. Future research can investigate the perceptions of other stakeholders. Practical implications: From a managerial perspective, the implications of this research indicate that internal auditors should prioritize the development of the consulting role in their function and develop their digital expertise, especially regarding data analytics. Originality: This research tests the impacts of the use of data analytics and the performance of consulting activities on perceived internal audit quality holistically, by testing Trotman and Duncan (2018)’s framework through an experiment. By Joy Gray
  2. Profit smoothing of European banks under IFRS 9 By Oľga Jakubíková
  3. Evolution of fiscal systems: Convergence or divergence? By Paloma Péligry; Xavier Ragot
  4. Public disclosure of tax information. Compliance tool or social network? By Daniel Reck; Joel Slemrod; Trine Vattø
  5. Пруденциальные требования по ликвидности и риск-ориентированный подход // Prudential liquidity requirements and a risk-based approach By Джусангалиева Камилла // Jussangaliyeva Kamilla; Миллер Алия // Miller Aliya; Хакимжанов Сабит // Khakimzhanov Sabit

  1. The impacts of the use of data analytics and the performance of consulting activities on perceived internal audit quality Abstract: Purpose: This research investigates the effects of the internal auditor use of data analytics and the performance of consulting activities on perceived internal audit quality. Design/methodology/approach: We conducted a 2x2 between-subjects experiment among upper and middle managers where the use of data analytics and the performance of consulting activities by internal auditors were manipulated. Findings: Results indicate that managers perceive internal auditors as more competent when they use data analytics and that managers perceive that the quality of their relationship with internal auditors is higher when internal auditors perform consulting activities. They also perceive that internal auditors’ recommendations are more relevant when they perform consulting activities. In addition, findings show an interaction effect where the use of data analytics with the performance of consulting activities strengthens the perceived quality of the relationship between internal auditors and management. Research limitations/implications: From a theoretical perspective, this research builds on the internal audit quality framework by considering digitalization as a contextual factor. This research focused on one major stakeholder of the internal audit function: senior management. Future research can investigate the perceptions of other stakeholders. Practical implications: From a managerial perspective, the implications of this research indicate that internal auditors should prioritize the development of the consulting role in their function and develop their digital expertise, especially regarding data analytics. Originality: This research tests the impacts of the use of data analytics and the performance of consulting activities on perceived internal audit quality holistically, by testing Trotman and Duncan (2018)’s framework through an experiment.
    By: Joy Gray (Bentley University)
    Date: 2022–03
    URL: http://d.repec.org/n?u=RePEc:hcx:wpaper:2202&r=
  2. By: Oľga Jakubíková
    Abstract: The aim of this paper is to examine whether banks engage in profit smoothing using loan loss provisions under the new provisioning rules according to IFRS 9. Due to relatively loose definitions of provisioning principles and use of macroeconomic predictions under IFRS 9, there is certain managerial discretion expected allowing banks to reduce the variability of profits over time using loan loss provisions. The hypothesis that banks use loan loss provisions to smooth their profits under IFRS 9 was tested with panel regression analysis on the panel of 27 EU member countries for period 1Q2015 - 2Q2021. The evidence of profit smoothing was not confirmed neither in IFRS 9, nor in IAS 39 period, therefore, the hypothesis was rejected on 1% significance level.
    Keywords: IFRS 9, loan loss provisions, profit smoothing
    JEL: G12 G21 G32
    Date: 2022–01–26
    URL: http://d.repec.org/n?u=RePEc:prg:jnlwps:v:4:y:2022:id:4.003&r=
  3. By: Paloma Péligry (CEPS - Centre d'Economie de l'ENS Paris-Saclay - Université Paris-Saclay - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay); Xavier Ragot (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po, CNRS - Centre National de la Recherche Scientifique)
    Abstract: The purpose of this article is to analyze, more than ten years after the financial crisis of 2007, the convergence or divergence of the diversity of capitalism, focusing on the fiscal systems. Studying 29 countries, we first analyse the evolution of the taxation of households, firms, labour, consumption and capital. Then we use recent statistical method to indentify three types of fiscal systems: liberal, intermediate, and social-democratic, which can be ranked in ascending order of tax rates, confirming known typologies in the diversity of capitalism literature. The first result of this analysis is that only the tax rate on corporate profits shows signs of downward convergence over the period. The other tax rates, on labour or capital tax on households, show rather signs of divergence. Second, we show the divergence of the liberal and social-democratic group over the period. The European countries are converging towards the social-democratic model, with the exception of Great Britain, which is moving towards the liberal model over the period. Hence, the analysis shows that the divergence of fiscal systems is compatible with the convergence of certain taxes on the most mobile factors during a strong period of trade internationalization. Thus, the financial crisis does not seem to contribute to the convergence, but to the divergence of fiscal systems.
    Keywords: fiscal systems,globalization,capital taxation
    Date: 2022–02–03
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03554224&r=
  4. By: Daniel Reck; Joel Slemrod; Trine Vattø (Statistics Norway)
    Abstract: We conduct the first-ever study of actual searches done in a public tax disclosure system, analyzing about one million searches done in 2014 and 2015 in Norway. We characterize the social network these searches comprise, including its degree of homophily and reciprocation, and the demographics of targets and searchers. About one-fourth of searches occur within identifiable household and employment networks. Most searchers target people similar to themselves—homophily in network parlance—but young, low-income searchers also target older, successful people and celebrities. A causal research design based on the timing of searches relative to tax filing uncovers no evidence that, upon discovering they were targeted, targets subsequently increase their reported income. The evidence suggests that social comparisons motivate the bulk of searches rather than tax compliance. However, public disclosure may deter evasion even when compliance-motivated searches are rare in equilibrium.
    Keywords: Public disclosure; social network; tax compliance
    JEL: H26 D83 D85
    Date: 2022–03
    URL: http://d.repec.org/n?u=RePEc:ssb:dispap:975&r=
  5. By: Джусангалиева Камилла // Jussangaliyeva Kamilla (National Bank of Kazakhstan); Миллер Алия // Miller Aliya (National Bank of Kazakhstan); Хакимжанов Сабит // Khakimzhanov Sabit (National Bank of Kazakhstan)
    Abstract: В этой статье анализируется казахстанская практика внедрения пруденциальных нормативов ликвидности (LCR и NSFR), рекомендованных Базельским комитетом по банковскому надзору (БКБН). В статье проводится анализ соответствия казахстанских нормативов стандартам Базеля, оценивается эффект альтернативных интерпретаций, обсуждается информативность и эффективность нормативов для отражения рисков фондирования и улучшения рыночных практик управления ликвидностью, их взаимодействие с другими нормативами и обусловленность регуляторной и конкурентной средой. // This paper analyzes Kazakhstan's practice of implementing prudential liquidity standards (LCR and NSFR) recommended by the Basel Committee on Banking Supervision (BCBS). The paper analyzes the compliance of Kazakhstan's standards with Basel standards, evaluates the effect of alternative interpretations, discusses the informativeness and effectiveness of standards to reflect funding risks and improve market liquidity management practices, their interaction with other standards and the conditionality of the regulatory and competitive environment.
    Keywords: риски ликвидности и фондирования, Базель III, показатели краткосрочной ликвидности и чистого стабильного финансирования (LCR, NSFR), liquidity and funding risks, Basel III, a liquidity coverage ratio and a net stable funding ratio, LCR, NSFR
    JEL: G01 G21 G28 G32
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:aob:wpaper:28&r=

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