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on Accounting and Auditing |
| By: | Nasredine Fathelkhir (Université Hassan 1er [Settat]); Said Karam (Université Hassan 1er [Settat]); Othman Gaga (Université Hassan 1er [Settat]) |
| Abstract: | Abstract The research on external audit quality has attracted flourishing interest from several scholars following financial scandals and corporate failures, Nonetheless, results and empirical findings regarding the effect of audit quality on firm performance are still inconclusive. Our study is designed to investigate the impact of external audit quality on financial performance using both accounting and market-based performance indicators. Based on a sample of 38 listed firms in the Casablanca stock exchange, covering the period 2011-2021, this study employed a pooled OLS model to assess the effect of audit quality on accounting and market-based performance measures. For robustness check, we employed the Feasible Generalized Least Square (FGLS) estimator to account for potential issues of heteroskedasticity and autocorrelation. Our findings support the main hypothesis and the agency's theoretical foundations, indicating that audit brand name reputation and audit quality change exhibit significant positive impacts on financial performance and firm valuation. To the best of our knowledge, our study is the first to examine the effect of audit quality on firm performance and valuation in the Moroccan context and use audit quality change as a robustness proxy for audit quality. Nevertheless, our research suffers from some limitations, related to the methodological approach, possible omissions of some variables, econometric issues related to endogeneity concerns and external validity of our results due to the limited number of observations. |
| Keywords: | Corporate governance, External audit quality, Firm performance, Agency theory, Morocco |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04803149 |
| By: | Nacer Mahouat (ESTC - Ecole Supérieure de Technologie de Casablanca); Mehdi Gharrafi (The Sidi Bennour Higher School of Technology University of Chouaib Doukkali– Morocco,); El Idrissi Zineb (Polydisciplinary Faculty - Sultan Moulay Slimane University - Maroc - USMS - Université Sultan Moulay Slimane); Haoudi Wissa (University of Sidi Mohamed Ben Abdellah); Boumour Rachida (LGMSS URAC‑45 - University Chouaïb Doukkali, El Jadida); Boualam Abdelaziz (The Sidi Bennour Higher School of Technology University of Chouaib Doukkali– Morocco,); Mehdi Zaim (The Sidi Bennour Higher School of Technology University of Chouaib Doukkali– Morocco,) |
| Abstract: | The aim of this study was to examine the factors influencing (determining) the effectiveness of the internal audit function in Moroccan public companies. The research sample consisted of 137 respondents. The results of statistical tests showed that management independence, competence and support could increase the effectiveness of the internal audit function. However, this cooperative relationship did not moderate the impact of management competence and support on internal audit effectiveness. The practical implication of this study is that, in order to increase internal audit effectiveness, internal auditors must adopt an attitude of independence, objectivity and freedom from conflicts of interest in the exercise of their professional responsibilities. The practical value of this study also shows that to increase the effectiveness of internal auditing in the public sector, internal and external auditors need to strengthen their cooperation, particularly with regard to activities requiring collaboration between internal and external auditors, communication between internal and external auditors, and the sharing of working tools and documents between internal and external auditors. |
| Keywords: | internal audit public enterprise Efficiency Public sector PLS |
| Date: | 2024–10–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04763793 |
| By: | Karim Chana; Chana Karim (Université Ibn Zohr = Ibn Zohr University [Agadir]) |
| Abstract: | The internal audit profession is pivotal to organizational governance, ensuring process integrity and effective risk management. This role is underpinned by two essential pillars: deontology and ethics, which together guide auditors in their professional responsibilities. Deontology provides a normative framework for auditors, emphasizing independence, confidentiality, and integrity. These principles are vital for maintaining impartiality and trustworthiness. However, challenges such as conflicts of interest and organizational pressures demand vigilance and strict adherence to standards. Ethics serves as a moral compass, helping auditors navigate ambiguous and complex situations. Ethical principles emphasize transparency, fairness, and social responsibility, extending beyond formal rules. Emerging challenges include ethical dilemmas and the impact of technology, such as AI and data privacy concerns. Together, deontology and ethics form the foundation of credible and effective internal auditing, safeguarding stakeholder interests and fostering organizational accountability. To meet rising governance standards, auditors must embrace these principles while responsibly adopting technological innovations. |
| Keywords: | Déontologie, Éthique, Audit interne, Indépendance, Confidentialité, Intégrité, Gouvernance, Dilemmes éthiques, Conflits d’intérêts, Responsabilité sociale, Transparence, Innovation technologique, Intelligence artificielle, Protection des données, Normes professionnelles. |
| Date: | 2024–11–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04800541 |
| By: | Marleen Willekens; Simon Dekeyser; Lars Van Cutsem; Victor S Zuiddam |
| Abstract: | This study examines whether audit firm differentiation signaled through the strength of its intellectual property (IP) portfolio softens price competition. Following the patent and trademark literature, we focus on the stock of these intellectual property rights as an indicator of audit firm differentiation capturing an audit firm’s brand strength and technological capabilities. We hypothesize that the audit fee charged by an audit firm is increasing in its IP portfolio strength, ceteris paribus. Employing data on intellectual property (IP) of U.S. audit firms, in terms of branding and technological capabilities, we identify all active trademarks and patents for the 50 largest U.S. audit firms between 2004 and 2022. Our results suggest that the strength of an audit firm’s portfolio of trademarks and patents is significantly positively associated with audit fees, suggesting that branding and technological capabilities are means for audit firms to soften price competition through IP differentiation. |
| Keywords: | G074819N#54967485 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ete:afiper:742971 |
| By: | Yusuf, Raji (UiS Business School [University of Stavanger] - University of Stavanger, Afe Babalola University); Muyiwa E., Dagunduro (Afe Babalola University) |
| Abstract: | Before the advent of big data, accounting operations were performed mainly using historical and structured data. The emergence, however, introduced the use of big data to enhance and complement functions in the accounting information system, which improves the real-time and effective management of accounting data for varying uses of stakeholders. This study examined the efficacy of big data on accountant's functions in the accounting information system in Nigeria. The study utilised survey research design method by administering structured Likert scaled questionnaire. This study was rooted in resource-based view theory and agency theory. The targeted population and the sample size was 283, which comprised accountants with experience in information systems. A purposive sampling technique was adopted to determine the respondent. The collected data were analysed using descriptive statistics and regression analysis. The empirical findings revealed that big data proxied with prescriptive analytics, predictive analytics, machine learning, and the Hadoop ecosystem had significant but negative effect on accountant's functions in accounting information systems in Nigeria. This suggests that although these technologies are relevant and influential, their integration may be challenging or counterproductive to accountants' traditional roles. The negative effect could be due to factors like complexity, the need for new skill sets, inefficiencies in system adaptation, or resistance to change, which may hinder the effectiveness of accountants in fully leveraging these technologies within their work processes. This study concluded that while big data has the potential to significantly enhance accounting information systems, its integration into the accounting profession in Nigeria has been problematic. It was recommended that organizations should invest in comprehensive training programs for accountants, focusing on developing the necessary skills to handle big data tools effectively. |
| Keywords: | Big data accountant's functions in accounting information systems prescriptive analytics predictive analytics machine learning Hadoop ecosystem, Big data, accountant's functions in accounting information systems, prescriptive analytics, predictive analytics, machine learning, Hadoop ecosystem |
| Date: | 2024–11–04 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04771985 |
| By: | Lars Van Cutsem; Simon Dekeyser; Marleen Willekens |
| Abstract: | Accounting information aims to provide reliable information to investors, aiding accurate assessment of the economic value of firms. The full-expensing accounting treatment of investments into innovation and R&D costs in some accounting standards, such as in U.S. GAAP, restricts investors in their ability to infer economic value in firms’ R&D investments. In contrast, IFRS mandates the capitalization of internally generated development costs, enhancing the informativeness of financial statement information for innovative companies. In this study, we examine the value relevance of IFRS-mandated capitalized development costs and how this information complements or substitutes one of the most common non-financial proxies that investors use to infer the economic value of firms’ innovations, i.e., patent portfolio characteristics. We show that both are value relevant, and that information on capitalized development costs is particularly relevant to investors in settings where firms own a moderate number of patents. In contrast, information contained in capitalized development costs appears substitutional to information contained in patent portfolio characteristics where firms own many patents and in R&D intensive settings. Both observations highlight the importance of capitalized development costs as a source of information to investors in their assessment of the economic value of firms’ R&D investments. Our findings are robust for various fixed effect controls, scaling approaches, and split sample analyses. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ete:afiper:742966 |
| By: | Mengming Michael Dong; Theophanis C. Stratopoulos; Victor Xiaoqi Wang |
| Abstract: | This paper provides a review of recent publications and working papers on ChatGPT and related Large Language Models (LLMs) in accounting and finance. The aim is to understand the current state of research in these two areas and identify potential research opportunities for future inquiry. We identify three common themes from these earlier studies. The first theme focuses on applications of ChatGPT and LLMs in various fields of accounting and finance. The second theme utilizes ChatGPT and LLMs as a new research tool by leveraging their capabilities such as classification, summarization, and text generation. The third theme investigates implications of LLM adoption for accounting and finance professionals, as well as for various organizations and sectors. While these earlier studies provide valuable insights, they leave many important questions unanswered or partially addressed. We propose venues for further exploration and provide technical guidance for researchers seeking to employ ChatGPT and related LLMs as a tool for their research. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.05731 |
| By: | Nicolas Antheaume (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université); P de Clarens (Sans affiliation) |
| Abstract: | The question of company valuation is a very rich field, but one that has long been dominated by an allegiance to neo-liberal finance, and which, since the economy has become immaterial, is struggling to explain the amounts involved in mergers and acquisitions. Economists have understood the importance of intangibles in wealth creation, but managers, more attached to accounting principles, have only recently taken these dimensions into account. The first methods, however useful they may have been, are incomplete and unclear. They also need to be revisited to take account of societal changes over the last ten years. Most valuation proposals are made for listed companies, for which EBITDA multiples are readily available. These are not easily transposable to unlisted companies, where access to data is often limited. And even if data were accessible, how should it be used to estimate an EBITDA multiple? In order to do so, we propose a new, more open method, which takes into account the need to verify alignment between strategy, profitability and sustainability, which gives full importance to questions of risk and agility, and which proposes an innovative way of estimating an EBITDA multiple based on answers to non-financial questions. |
| Abstract: | La question de l'évaluation ou de la valorisation des entreprises est un champ très riche, mais qui a longtemps été dominé par une forme d'allégeance à la finance néo-libérale et qui, depuis que l'économie devient immatérielle, peine à expliquer les montants des fusions-acquisitions. Les économistes ont compris l'importance des immatériels dans la création de richesse, mais les gestionnaires, plus attachés aux principes comptables, n'ont pris en compte ces dimensions que récemment. Les premières méthodes, pour utiles qu'elles aient été, sont incomplètes et peu claires. Elles doivent de plus être revisitées pour prendre en compte les mutations sociétales depuis une dizaine d'années. De manière dominante les propositions de valorisation sont faites pour des entreprises cotées pour lesquelles on a facilement accès aux multiples d'EBITDA. Ces derniers ne sont pas facilement transposables aux entreprises non cotées dont l'accès aux données est souvent limité. Et quand bien même un accès à des données existerait comment les utiliser pour estimer un multiple d'EBITDA ? Pour ce faire, nous proposons une nouvelle méthode, plus ouverte, qui prend en compte la nécessité de vérifier l'alignement entre stratégie, rentabilité et soutenabilité, qui donne toute leur importance aux questions de risque et d'agilité, et qui propose une façon novatrice de reconstituer un multiple d'EBITDA à partir de réponses à des questions non financières. |
| Keywords: | valuation, agility, alignment, non-listed companies, évaluation, valorisation, agilité, alignement, goodwill, immatériels, sociétés non cotées notation, intangibles |
| Date: | 2024–05–29 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04824001 |
| By: | Mohamed Hanafi (UJML3 Droit - Université Jean Moulin Lyon 3 - Faculté de Droit - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon) |
| Abstract: | La gestion de fait est considérée par les deux règlementations financières algérienne et française comme une gestion financière irrégulière qui caractérise les opérations effectuées par un comptable non désigné par le ministre des finances.Cette gestion se distingue à cet effet, de la caisse noire qui est une caisse secrète réservée aux fonds maniés par les comptables de fait. En tant qu'irrégularité, cette gestion était à l'origine une construction jurisprudentielle résultant des seules communes 1 . |
| Keywords: | gestion de fait Cour des comptes juridictions financières françaises gestion irrégulière comptable de fait, gestion de fait, Cour des comptes, juridictions financières françaises, gestion irrégulière, comptable de fait |
| Date: | 2024–11–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04803734 |