nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2023‒10‒16
six papers chosen by

  1. Regulation and legal audit quality:Between international standards and the reality of moroccan context By Slimane Bari; Hassane Boujettou
  2. Corporate Tax Transparency Issues and Concerns in Bangladesh By Khondaker Golam Moazzem; Shah Md Ahsan Habib; Chowdhury Fariha
  3. Probability of Default modelling with L\'evy-driven Ornstein-Uhlenbeck processes and applications in credit risk under the IFRS 9 By Kyriakos Georgiou; Athanasios N. Yannacopoulos
  4. Improved Fiscal Data in Bangladesh for a Transparent and Accountable Public Sector By Debapriya Bhattacharya; Towfiqul Islam Khan; Muntaseer Kamal; Rakshanda Khan
  5. The silence of the auditor under Tunisian law By Racem Gassara
  6. Data Privacy for Digital Asset Systems By Jillian Mascelli

  1. By: Slimane Bari (ENCGT - Ecole Nationale de Commerce et de Gestion de Tanger - UAE - Université Abdelmalek Essaâdi); Hassane Boujettou (ENCGT - Ecole Nationale de Commerce et de Gestion de Tanger - UAE - Université Abdelmalek Essaâdi)
    Abstract: Compared with other contexts, such as Europe or the Anglo-Saxon area, studies on audit quality remain limited and relatively unexplored in Morocco. This fact encouraged me to explore this field of research, with the aim of understanding the various aspects of statutory audit quality through an approach that reconciles international standards with the reality of Moroccan practice.This exploration is carried out by adopting a conceptual approach and drawing on a review of existing literature. This article examines different dimensions of audit quality, exploring the agency theories, signaling and contingency. While providing perspectives for understanding the determinants and implications of audit quality, these theories present both points of convergence and divergence. Although they all recognize the importance of auditor independence and the communication of quality signals, they differ in the way they approach these issues.In conclusion, this theoretical article makes a significant contribution by shedding light on the statutory auditing in Morocco. However, it is crucial to emphasize that empirical research is needed to support and enhance the theoretical findings, and to compensate for the lack of specific data in the Moroccan context. This research thus opens up new perspectives for a better understanding and applicationof statutory audit quality in Morocco.
    Abstract: Comparéesà d'autrescontextestelsque l'Europe ou le monde anglo-saxon, les études portant sur la qualité de l'audit légal demeurent rares et relativement peu explorées au Maroc. Ce constat m'a encouragé à explorer cette piste de recherchedont la finalité est de comprendre les divers aspects de la qualité de l'audit légal à travers une approche de conciliation entre les dispositifs inscrits à l'échelle internationale et la réalité de la pratique du pays. Cette exploration est réalisée en adoptant une approche conceptuelle et en s'appuyant sur une revue de la littérature existante. L'article examine différentes dimensions de la qualité de l'audit en explorant les théories de l'agence, de la signalisation et de la contingence. Offrant des perspectives pour comprendre les déterminants et les implications de la qualité de l'audit, ces théories présentent à la fois des points de convergence et de divergence. Elles reconnaissent toutes l'importance de l'indépendance de l'auditeur et de la communication de signaux de qualité, bien que leurs approches diffèrent dans la manière dont elles les abordent. En conclusion, cet article théorique se positionne comme une contribution significative en mettant en lumière les spécificités de l'audit légal au Maroc. Cependant, il est crucial de souligner que des recherches empiriques sont nécessaires pour étayer et enrichir les résultats théoriques, et pour combler le manque de données spécifiques au contexte marocain. Ce travail de recherche ouvre ainsi de nouvelles perspectives pour une meilleure compréhension et application de la qualité de l'audit légal dans le contexte marocain.
    Keywords: Audit légal contexte marocain qualité de l'audit dispositif international d'audit Classification JEL : M42 M49 Type du papier : Article théorique Legal auditing Moroccan context audit quality international audit standards JEL Classification: M42 M49 Paper type: Theoretical Research, Audit légal, contexte marocain, qualité de l'audit, dispositif international d'audit Classification JEL : M42, M49 Type du papier : Article théorique Legal auditing, Moroccan context, audit quality, international audit standards JEL Classification: M42, M49 Paper type: Theoretical Research
    Date: 2023
  2. By: Khondaker Golam Moazzem; Shah Md Ahsan Habib; Chowdhury Fariha
    Abstract: Corporate taxation’s transparency concerns have drawn regulatory bodies’ and policymakers’ attention. Global corporate income tax remains a key revenue source, shaping economic behaviour and resource distribution. However, profit-shifting practices have led to tax evasion, avoidance, and money laundering, impacting government revenues and development goals. Developing countries like Bangladesh face severe socio-economic consequences from these practices. In Bangladesh, the magnitude of tax loss reaches a staggering BDT 842 billion, representing a substantial 30.2 per cent of the total economy. Tax evasion is responsible for a tax loss ranging from BDT 418 billion (15 per cent estimate) to a staggering BDT 2, 230 billion (80 per cent estimate).
    Keywords: Corporate Tax, Tax Transparency, Income tax, Tax evasion, Money laundering, Tax avoidance, Bangladesh
    Date: 2023–08
  3. By: Kyriakos Georgiou; Athanasios N. Yannacopoulos
    Abstract: In this paper we develop a framework for estimating Probability of Default (PD) based on stochastic models governing an appropriate asset value processes. In particular, we build upon a L\'evy-driven Ornstein-Uhlenbeck process and consider a generalized model that incorporates multiple latent variables affecting the evolution of the process. We obtain an Integral Equation (IE) formulation for the corresponding PD as a function of the initial position of the asset value process and the time until maturity, from which we then prove that the PD function satisfies an appropriate Partial Integro-Differential Equation (PIDE). These representations allow us to show that appropriate weak (viscosity) as well as strong solutions exist, and develop subsequent numerical schemes for the estimation of the PD function. Such a framework is necessary under the newly introduced International Financial Reporting Standards (IFRS) 9 regulation, which has imposed further requirements on the sophistication and rigor underlying credit modelling methodologies. We consider special cases of the generalized model that can be used for applications to credit risk modelling and provide examples specific to provisioning under IFRS 9, and more.
    Date: 2023–09
  4. By: Debapriya Bhattacharya; Towfiqul Islam Khan; Muntaseer Kamal; Rakshanda Khan
    Abstract: Fiscal transparency and accountability can help attain a number of macroeconomic objectives. It is essential for fostering better macroeconomic stability, improving credit ratings, lowering public debt and deficits, decreasing corruption levels and catalysing high levels of economic growth. These are essential prerequisites for establishing good governance. Indeed, transparency and dissemination of information are critical for different social groups to participate in the budgetary process. In fine, fiscal transparency, i.e., full disclosure and timely reporting of fiscal data, is key to maintaining budgetary integrity, effective financial monitoring, promoting participatory debates around fiscal policies, and endorsing accountability in macroeconomic management.
    Keywords: Fiscal Data, Fiscal transparency, Accountability, Public sector, Macroeconomy, Bangladesh
    Date: 2022–02
  5. By: Racem Gassara (ISAAS - Institut supérieur d'administration des affaires de Sfax - Université de Sfax - University of Sfax)
    Abstract: Custodian of essential information for the company, the auditor, when performing his duties, must exercise discretion to preserve the honor and dignity of his profession. He is sometimes bound by an obligation of confidentiality, the non-respect of which may engage his criminal liability for breach of professional secrecy, sometimes he is required to denounce the offenses of which he has become aware during the exercise of his functions. The silence of the auditor may engage his criminal liability for breaches of the duty to speak, as he may engage him for breach of the duty to remain silent.
    Abstract: Dépositaire d'informations essentielles pour la société, le commissaire aux comptes, pour préserver l'honneur et la dignité de sa profession, doit faire preuve de discrétion lors de l'exécution de ses missions. Il est tantôt tenu d'une obligation de confidentialité dont le non-respect peut engager sa responsabilité pénale pour violation du secret professionnel, tantôt tenu de dénoncer les infractions dont il a eu connaissance à l'occasion de l'exercice de ses fonctions. Le silence du commissaire aux comptes peut engager sa responsabilité pénale pour des infractions au devoir de dénoncer, comme il peut l'engager pour infraction au devoir de se taire.
    Keywords: Statutory Auditor, Criminal liability, Duty to disclose offenses, Obligation to professional secrecy, Commissaire aux comptes, Responsabilité pénale, Devoir de révélation des infractions, Obligation au secret professionnel.
    Date: 2023
  6. By: Jillian Mascelli
    Abstract: Data privacy in digital asset systems is of sustained importance to end users. However, there can be disconnect between an end users' expectations of privacy while using a digital asset payment system and the system's actual treatment of collected, stored, and used data. This paper provides foundational primer on data privacy alongside qualitative and technical assessments of various approaches to data privacy frameworks and strategies relevant to the early stages of a digital asset system's design. Analysis relies initially on an outlay of foundational data privacy concepts, including anonymity, confidentiality, and full disclosure, alongside three differing approaches to data privacy frameworks. Analysis finds that some concepts, such as a desire for cash-like anonymity are based on false underlying assumptions. The paper moves away from a likely unattainable standard of anonymity and instead focuses on a hybrid approach to data privacy, inclusive of Cavoukian's privacy-by-design and popular applications of privacy-by-policy. This hybrid approach is visualized with a technical comparison of privacy-enhancing technologies (PET) across architectural layers, detailing both popular and emerging PETs relevant to digital asset systems which prioritize a hybrid approach to confidentiality. The paper further finds that a particular combination of popular and emerging technologies may provide as-yet untested but novel benefits to maintaining strong confidentiality – and possibly end users' expectations of privacy - while data is under audit. A nuanced approach, rather than a reliance on a singular novel PET or dubious assurances of anonymity, may best facilitate strong confidentiality with sustainable end-user privacy protections for digital asset system users.
    Keywords: Computer privacy; Digital assets; Digital signatures; Distributed ledger technology; Privacy; Privacy-by-design; Technology planning
    Date: 2023–09–07

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.