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on Accounting and Auditing |
| By: | Stasi, Federer; Pierro, Roberto; Shaturaev, Jakhongir |
| Abstract: | This paper examines the impact on audit effort of requiring the assurance of non-financial information. Specifically, we use a sample of large New Zealand not-for-profits (charities) newly required to report and have assured statements of service performance following accounting and auditing standards. We find an increase in audit fees of 14.5%, although there is no change in audit or filing lag. There is no difference based on auditing standard used, audit firm or whether an ‘other matter’ is expressed in the audit report. Overall, our results suggest that mandating the reporting and assurance of non-financial information should be viewed as having greater costs than adopting International Financial Reporting Standards. |
| Keywords: | Non-financial reporting; audit fees; assurance; IFRS; cost-benefit analysis |
| JEL: | G21 G24 N6 R5 |
| Date: | 2024–01–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121883 |
| By: | El-Mousawi, Hasan |
| Abstract: | Nowadays, Artificial Intelligence (AI) technology is developing very rapidly and is impacting every domain in the world from a simple transformation of humans to simulated human life. AI is the ability of a computer or computer-powered system to process information and produce results the way humans do in learning, solving problems and decision-making. Practitioners of accounting and auditing have taken part in the trend of automation, which would enhance efficacy of their work. This paper aims at determining the impact of artificial intelligence applications on the accounting and auditing profession and the challenges AI is facing from the Lebanese Certified Public Accountants’ (LCPAs) point of view. The researchers used the quantitative method conducting a questionnaire as a tool for the exploratory study, and it was distributed to 350 LCPA’s, of which 337 were retrieved and were valid for testing. The study rendered some important findings, mostly that using AI applications improve the level of reliability of financial data. Using AI applications contributes in finding solutions for complex accounting and auditing process. However, there are some challenges that face implementing AI application. |
| Keywords: | artificial intelligence, accounting and auditing, automation, audit risks, financial data |
| JEL: | M41 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122054 |
| By: | Gaelle Lenormand (UR - Université de Rennes); Hoang Nguyen (Huế University); Lionel Touchais (UR - Université de Rennes) |
| Abstract: | The discretionary nature of alternative performance measures raises the question of their information content, particularly in the European Union where, unlike the United States, there is no specific regulation but only a recommendation without coercive power. Based on hand-collected data in press releases of French and UK firms, we show that non-GAAP earnings measures are more informative compared with GAAP counterparts. However, the alternative performance measures may be used opportunistically when firms fall short of certain accounting earnings benchmarks. |
| Abstract: | L'objectif de l'article est d'analyser le contenu informationnel des indicateurs alternatifs de performance publiés dans le contexte européen au travers d'une analyse comparée de la France et du Royaume-Uni. À partir de données collectées manuellement dans les communiqués de presse, nous constatons que les mesures de résultat non-GAAP aboutissent à une information financière de meilleure qualité que les mesures comptables correspondantes. Ce résultat est plus prononcé pour les firmes britanniques que les entreprises françaises. Ces indicateurs alternatifs de performance peuvent toutefois être utilisés de manière opportuniste dans des situations à risque lorsque les groupes n'atteignent pas certains seuils de résultats comptables. |
| Keywords: | informativeness, alternative performance measures, accounting earnings benchmarks, non-GAAP earnings, indicateurs alternatifs de performance, contenu informationnel, seuils de résultats comptables, résultat non-GAAP |
| Date: | 2023–12–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04672673 |
| By: | Alejandro Fernández Cerezo (BANCO DE ESPAÑA); Borja Fernández-Rosillo San Isidro (BANCO DE ESPAÑA); Natividad Pérez Martín (BANCO DE ESPAÑA) |
| Abstract: | The availability of a firm-level database that is representative of the productive sector of an economy on an aggregate scale is increasingly important to analyse the heterogeneity of different economic variables at different levels of aggregation (for instance, by region, firm size or sector). This paper seeks, first, to evaluate the representativeness of the Banco de España’s Integrated Central Balance Sheet Database (Integrated CBSO database or CBI by its Spanish initials) for conducting regional analysis with firm-level data and, second, to analyse the differences in firm size distribution between the Spanish regions. |
| Keywords: | firm data, firm size distribution, financial reporting |
| JEL: | C81 D21 L11 R11 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:bde:opaper:2429e |
| By: | Demirtaş, Gül; Strenger, Christian; Tröger, Tobias |
| Abstract: | Not only institutional investors are increasingly demanding to know more about the sustainability skills of the boards they elect. These skills demonstrate a company's capability to navigate new regulations and meet self-imposed targets. Consequently, they also serve as a significant proxy for a firm's commitment to pursuing transition strategies, providing a bonding mechanism. In response to the growing demand for transparency, Germany has recently set itself apart with its German Corporate Governance Code (GCGC) recommendation that companies show their boards' sustainability expertise by disclosing a skills matrix. We analyze the board skills disclosures for the supervisory boards of the leading German listed companies for 2022, the first year after the adoption of the recommendation. We compare these disclosures with those of companies from France, a country that has long expressed sustainability-related expectations for company boards but has yet to make any recommendations for the disclosure of sustainability skills. We observe that German companies follow a more uniform approach to reporting directors' sustainability skills. However, the lack of a standardized definition of sustainability expertise in both countries has resulted in significant variations in how companies define this essential disclosure item, thereby reducing the comparability of the reported data. We recommend that policymakers specify skills disclosure rules for directors and director nominees more granularly, including a standardized definition of sustainability expertise, and that they support them with effective enforcement mechanisms, reinforced by external audits and government oversight. |
| Keywords: | coporate governance, corporate boards, sustainability skills, disclosure, ESG |
| JEL: | G34 G39 K2 M14 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:302568 |