nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2024‒02‒12
four papers chosen by

  1. "Factors Affecting Audit Quality: Evidence from Jordan " By Khaled Aburisheh
  2. Securitization and IFRS Standards: In-Depth Analysis of Concepts, Regulation, and Impact on Accountinge By Samir Othmane; Maimoun Ahmed
  3. National Accounts of Portugal in 2018. Measurement of institutional interrelations in distributive transactions. By Susana Santos
  4. The impact of Basel III implementation on bank lending in South Africa By Xolani Sibande; Alistair Milne

  1. By: Khaled Aburisheh ("Department of Accounting and Accounting Information System, Amman University College, Al-Balqa Applied University, Jordan" Author-2-Name: Salih Nofal Author-2-Workplace-Name: "Department of Accounting and Accounting Information System, Amman University College, Al-Balqa Applied University, Jordan" Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - This study explores the factors influencing audit quality in Jordan, focusing on professional competence, auditor qualifications, availability and independence, professional experience, awareness of audit importance, and audit fees. Methodology/Technique - Drawing from a sample of 454 Jordanian legal auditors, the research employs a questionnaire-based methodology. Findings - Results indicate a significant impact of the studied factors on audit quality, with audit fees being the most influential, followed by auditor objectivity and independence. Professional competence, academic qualifications, professional experience, and awareness of the importance of audits also contribute to audit quality. These findings underscore the importance of fair fee structures, maintaining auditor independence, and emphasizing professional competence to enhance audit quality and public trust. Novelty - The study recommends setting fees aligned with task complexity and upholding auditor independence for meaningful audit opinions. Type of Paper - Empirical"
    Keywords: Audit Quality, Professionalism, Availability, Professional Experience, Audit Fees.
    JEL: M41 M42 M48
    Date: 2023–12–31
  2. By: Samir Othmane (Université Hassan 1er [Settat]); Maimoun Ahmed (Université Hassan 1er [Settat])
    Abstract: This article explores the complex relationship between securitization, International Financial Reporting Standards (IFRS), and financial results management. Securitization involves bundling financial assets like loans or mortgages to turn them into negotiable securities in the financial markets. This process enables banks to improve their liquidity and regulatory ratios by removing these assets from their balance sheet. However, this practice also creates incentives for companies to manipulate their accounts to present a more favorable financial situation. The IFRS standards have gradually evolved to better govern the accounting for securitization, particularly with IFRS 9 concerning the classification and valuation of financial assets, and IFRS 10 on consolidation. The aim is to enhance the transparency and reliability of the published financial information. Nevertheless, some studies indicate that certain companies have resorted to securitization practices to artificially smooth or inflate their results through methods like overvaluing assets or overly optimistic adjustments of accounting estimates. While securitization remains a useful tool for financial institutions, it requires a high level of transparency to avoid any accounting manipulation. The new IFRS standards bring more clarity to the accounting treatment, but questions remain about their ability to fully prevent such manipulations. Therefore, this article aims to critically analyze how the IFRS standards address this complex issue in connection with the challenges of securitization, results management, and financial transparency.
    Abstract: Cet article étudie la relation complexe entre la titrisation, les normes comptables internationales IFRS et la gestion des résultats financiers.La titrisation consiste à regrouper des actifs financiers comme des crédits ou hypothèques pour les transformer en titres négociables sur les marchés financiers. Ceci permet aux banques d'améliorer leur liquidité et leurs ratios réglementaires en sortant ces actifs de leur bilan. Cependant, cette pratique crée également des incitations pour les entreprises à manipuler leurs comptes afin de présenter une situation financière plus favorable.Les normes IFRS se sont progressivement développées pour mieux encadrer la comptabilisation de la titrisation, notamment avec les normes IFRS 9 sur la classification et l'évaluation des actifs financiers, et IFRS 10 sur la consolidation. L'objectif est de renforcer la transparence et la fiabilité des informations financières publiées.Néanmoins, certaines études montrent que certaines entreprises ont eu recours à des pratiques de titrisation pour lisser ou gonfler artificiellement leurs résultats au travers de méthodes telles que la surévaluation d'actifs ou des ajustements trop optimistes d'estimations comptables.Bien que la titrisation reste un outil utile pour les institutions financières, elle nécessite un haut niveau de transparence afin d'éviter toute manipulation comptable. Les nouvelles normes IFRS apportent plus de clarté dans le traitement comptable mais des questions subsistent sur leur capacité à totalement prévenir de telles manipulations.Cet article a donc pour objectif d'analyser de manière critique la façon dont les normes IFRS traitent cette problématique complexe en lien avec les enjeux de titrisation, de gestion des résultats et de transparence financière .
    Keywords: Results Management, Accounting Manipulation, Financial Information, Securitization, IFRS Standards, Titrisation ; Normes IFRS ; Gestion des résultats ; Manipulation comptable ; Information financière., African Scientific Journal, Titrisation, Normes IFRS, Gestion des résultats, Manipulation comptable, Information financière
    Date: 2023–12–20
  3. By: Susana Santos
    Abstract: Complementing the working paper with the same title - National Accounts of Portugal in 2018 - and subtitle “Integrated economic accounts, matrix representations and extensions” (Santos, 2022), the measurement of institutional interrelations in distributive transactions is now explored in more detail, with a view to facilitating and improving the construction and extension of matrix representations. For the six groups of institutional sectors, identified by the System of National Accounts, starting from the published totals of the current and capital accounts, organized in the form of integrated economic accounts, the nine categories of distributive transactions (disaggregated at the second level) are analysed individually and the possibilities of filling in from-whom-to-whom matrices are explored. Since the resources of some are the uses of others, it will be shown as information about the origin of the resources (from-whom) or the destination of the uses (to-whom) can complete the filling of those matrices. Like the supply and use tables for industry interrelations in transactions in products, tables with the origin of the resources or the destination of the uses of distributive transactions can have a relevant contribution to the measurement of institutional interrelations. This would take another step towards the possibility of having more credible disaggregation of matrices derived from national accounts (for example, national/social accounting matrices), of undeniable utility in measuring and modelling countries' economic activity.
    Keywords: National Accounts; Social Accounting Matrix
    JEL: E01 E16
    Date: 2023–12
  4. By: Xolani Sibande; Alistair Milne
    Abstract: This study investigates the impact of the Basel III capital requirement on the supply of bank credit in South Africa. The literature offers greatly varying estimates of the impact of bank capital requirements on loan supply. Using a specification closely modelled on a related study of Peru by Fang et al. (2020), we report panel regressions using monthly balance sheet data for the four biggest banks in South Africa. We distinguish between three different categories of bank lending for household and corporate borrowers and report complementary local projection estimates to capture dynamic impacts. We find little evidence that the introduction of higher capital requirements under Basel III has reduced the supply of bank credit in South Africa. We surmise that this is mainly due to the large banks being well capitalised and operating with capital buffers that are larger than regulatory minimum requirements.
    Date: 2024–01–29

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.