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on Accounting and Auditing |
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Issue of 2023‒04‒17
five papers chosen by |
| By: | Fatiha Id ahmad (UMVR - Université Mohammed V de Rabat); Omar Hniche (UMVR - Université Mohammed V de Rabat); Badre Eddine Chegri (UMVR - Université Mohammed V de Rabat) |
| Abstract: | An audit quality is a major governance mechanism at the service of shareholders and all stakeholders of a company. However, the quality of audit is very complex to assess, which has led to the development of several approaches intending to measure the audit quality. This article aims to present, through a literature review, the determinants of audit quality by presenting the two approaches of research that have been distinguished in this field: the first relates to the indirect approach which is based on indicators linked to the auditor and to the institutional framework of the service of audit, and the second one focuses on the technical audit process and its environment. It comes out that the audit quality is multidimensional and that several models have been proposed to assess the quality of this service. These models are of two types, uni-variable or multi-variable and are based on the characteristics of the auditor and his team, those of the auditee and the audit process and the characteristics related to the audit environment. |
| Abstract: | Un audit de qualité est un mécanisme de gouvernance important au service des actionnaires et de toutes les parties prenantes de l'entreprise. Toutefois, la qualité de cette prestation est très complexe à évaluer, ce qui a été à l'origine du développement de plusieurs approches de mesure de la qualité de l'audit. Cet article vise à présenter, sur la base d'une revue de littérature, les déterminants de la qualité de l'audit à travers la présentation des deux courants de recherche qui se sont distingués dans ce cadre : le courant relatif à l'approche indirecte de mesure de la qualité de l'audit qui est basée sur des indicateurs liés à l'auditeur et au cadre institutionnel régissant la prestation d'audit et le deuxième courant axé sur le processus technique de l'audit et son environnement. Il en ressort que la qualité de l'audit est multidimensionnelle et que plusieurs modèles ont été proposés pour évaluer la qualité de cette prestation. Ces modèles sont de deux types, uni-variable ou multi-variables et se basent sur les caractéristiques de l'auditeur et de son équipe, celles de l'audité et du processus de l'audit ainsi que les caractéristiques liées à l'environnement de l'audit. |
| Keywords: | Audit, quality, direct measurement, indirect measurement, qualité, mesure directe, mesure indirecte |
| Date: | 2023–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03956881&r=acc |
| By: | Rasid, Abdu |
| Abstract: | Introduction: This study aims to determine the impact of corporate governance structures on external fees in sharia stocks that are consistently listed in JII in 2013-2018. Methods: The number of samples in this study recorded 12 consistent sharia stocks listed in the years 2013-2018. This study uses a quantitative approach with panel data analysis method. Results: The results show that the average size of the board of commissioners is six to seven people, the average size of the board of directors is seven to eight people, the average size of the audit committees is three to four people, and the average size of the internal audit is fifteen to sixteen people. The hypothesis test shows that variables which have a significant impact on the audit fee are the size of the board of commissioners and the internal audit. Meanwhile, the size of the board of directors and the audit committees do not have a positive impact on audit fees. Conclusion and suggestion: Companies use more funding from debt than their own capital. Judging from the liquidity ratio, it shows that the company is in a liquid state, which is very capable of fulfilling obligations or debts that must be immediately paid by the company. |
| Date: | 2023–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:q6kmz&r=acc |
| By: | Fatouh, Mahmoud (Bank of England); Giansante, Simone (University of Palermo) |
| Abstract: | We model the evolution of stylised bank loan portfolios to assess the impact of IFRS 9 and US GAAP expected loss model (ECL) on the cyclicality of loan write-off losses, loan loss provisions (LLPs) and capital ratios of banks, relative to the incurred loss model of IAS 39. We focus on the interaction between the changes in LLPs' charges (the flow channel) and stocks (the stock channel) under ECL. Our results show that, when GDP growth does not demonstrate high volatility, ECL model smooths the impact of credit losses on profits and capital resources, reducing the procyclicality of capital and leverage ratios, especially under US GAAP. However, when GDP growth is highly volatile, the large differences in lifetime probabilities of defaults (PDs) between booms and busts cause sharp increases in LLPs in deep downturns, as seen for US banks during the Covid-19 crisis. Volatile GDP growth makes capital and leverage ratios more procyclical, with sharper falls in both ratios in deep downturns under US GAAP, compared to IAS 39. IFRS 9 ECL demonstrates less sensitivity to lifetime PDs fluctuations due to the existence of loan stages, and hence can reduce the procyclicality of capital and leverage ratios, even when GDP is highly volatile. |
| Keywords: | IFRS 9; IAS 39; US GAAP; expected credit loss model; loan loss provisions; cyclicality of bank profits; leverage ratio; risk-weighted assets |
| JEL: | D92 G21 G28 G31 L51 |
| Date: | 2023–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:boe:boeewp:1013&r=acc |
| By: | Alejandro Esteller-Moré (Universitat de Barcelona & IEB); Umberto Galmarini (Università dell’Insubria & IEB) |
| Abstract: | In a two-country model, the citizens of a ‘big home country’ can either fictitiously move residence to a ‘small foreign country’ where residence-based taxes are lower (external tax avoidance), or under-report the tax base at home (internal tax avoidance). Tax setting is the result of Cournot-Nash competition between revenue maximizing governments, with the home government also setting two types of administration policies, one for each form of tax avoidance. We show that although it is optimal to employ both types of administration policies, which in themselves are both effective at tackling the targeted form of tax avoidance, the optimum is characterized by a tradeoff in terms of policy outcomes: either internal avoidance increases and external avoidance decreases, or the opposite, depending on the characteristics of the fiscal environment. |
| Keywords: | Personal taxation; Residence principle; Tax avoidance; Tax competition; Tax administration; Tax havens; Taxation of the rich; Leviathan governments |
| JEL: | H21 H24 H26 H73 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2023-03&r=acc |
| By: | Niels Johannesen; Daniel Reck; Max Risch; Joel Slemrod; John Guyton; Patrick Langetieg |
| Abstract: | This paper uses account-level information, reported to the IRS by foreign financial institutions under the Foreign Account Tax Compliance Act (FATCA), to produce new evidence on the foreign financial wealth of U.S. households. We find that U.S. taxpayers hold around $4 trillion in foreign accounts, almost half in jurisdictions usually considered tax havens. Combining the FATCA reports with other administrative tax data and tracing account ownership through partnerships, we document a steep income gradient in the propensity to hold assets in foreign financial institutions. Specifically, more than 60% of the individuals in the top 0.01% of the income distribution own foreign accounts, the vast majority in tax havens and more than half through a partnership. We discuss the likely implications of these findings for the overall impact of FATCA on tax compliance and government revenue. |
| JEL: | H24 H26 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31055&r=acc |