nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2026–04–27
four papers chosen by
Alexander Harin


  1. Study of the relationship between the organization and the positioning of Internal Audit and its effectiveness By Khadija Qasimi; Fatiha Benamar
  2. A – Potentially Positive – Welfare Assessment of the Global Minimum Tax By Brun Lidia; Stoehlker Daniel; Pycroft Jonathan; Van't Riet Maarten
  3. A Theory of Covenant Accounting Adjustment By Pingyang Gao; Xu Jiang; Jinzhi Lu
  4. Optimal Taxation in the Automation Era By Nakatani, Ryota; Miyamoto, Hiroaki

  1. By: Khadija Qasimi (UIT - Université Ibn Tofaïl); Fatiha Benamar (UIT - Université Ibn Tofaïl)
    Abstract: Beyond the competence of the auditors, the effectiveness of the internal audit function is heavily dependent on several organizational factors. This article focuses on this topic by providing a structured narrative review of the scientific literature that has examined the link between the organization and positioning of Internal Audit and its effectiveness. This research is based on proven conceptual frameworks as well as recent and recognized academic work. It proposes to study three essential dimensions: the independence of the function, the contribution of the audit committee, and the support of senior management. This study highlights the notion of independence, considered by professional standards as an essential condition for achieving objectivity. One of the determining factors in the quality of internal audit is the functional and hierarchical reporting structure, which directly impacts the autonomy of the audit and influences the quality of its output. The audit committee also plays an important role in evaluating the work of internal audit, thus guaranteeing the relevance of its recommendations. Like the audit committee, the support of senior management ensures access to resources and strategic data. This support provides the audit function with a positive image and legitimacy in the eyes of those being audited and all stakeholders. By adopting a critical approach, the literature review indicates that the convergence of these three factors—namely, the independence of the function, its relationship with the audit committee, and the support of senior management—constitutes a major lever for improving the effectiveness, performance, and added value of internal audit.
    Abstract: Au-delà de la compétence des auditeurs, l'efficacité de la prestation de l'audit interne est fortement tributaire de plusieurs facteurs organisationnels. Le présent article met l'accent sur cette question en proposant une revue narrative structurée de la littérature scientifique ayant porté sur le lien entre l'organisation et le positionnement de l'Audit Interne et son efficacité. Ce travail de recherche s'appuie sur des cadres conceptuels éprouvés ainsi que des travaux académiques récents et reconnus. Il s'agit d'étudier trois dimensions essentielles à savoir : l'indépendance de la fonction, la contribution du comité d'audit et le soutien de la direction générale. Cette étude met en évidence la notion d'indépendance considérée par les normes professionnelles comme étant une condition incontournable pour atteindre l'objectivité. L'un des facteurs déterminants de la qualité de l'audit interne est le mode de rattachement fonctionnel et hiérarchique qui impacte directement l'autonomie de l'audit et exerce une influence sur la qualité de son rendu. Le comité d'audit joue également un rôle important dans l'appréciation des travaux de l'audit interne, garantissant ainsi la pertinence de ses recommandations. Tout comme le comité d'audit, l'appui de la direction générale garantit l'accès aux ressources et aux données stratégiques. Ce soutien procure à la fonction d'audit une image positive et une légitimité vis-à-vis des audités et de l'ensemble des parties prenantes. En adoptant une démarche critique, la revue de littérature indique que la convergence de ces trois facteurs à savoir : l'indépendance de la fonction, sa relation avec le comité d'audit et l'appui de la direction générale constitue un levier majeur d'amélioration de l'efficacité, de la performance et de la valeur ajoutée de l'audit interne.
    Keywords: Audit interne, Indépendance, efficacité, normes professionnelles, Comité d'audit, Direction générale. JEL Classification : M42 Type du papier : Recherche Théorique Internal Audit, Independence, Effectiveness, Audit Committee, Professional Standards, Top Management. Classification JEL : M42, Audit interne Indépendance efficacité normes professionnelles Comité d'audit Direction générale. JEL Classification : M42 Type du papier : Recherche Théorique Internal Audit Independence Effectiveness Audit Committee Professional Standards Audit Committee Top Management. Classification JEL : M42
    Date: 2025–12–08
    URL: https://d.repec.org/n?u=RePEc:hal:journl:hal-05406415
  2. By: Brun Lidia (European Commission - JRC); Stoehlker Daniel (European Commission - JRC); Pycroft Jonathan; Van't Riet Maarten
    Abstract: We assess the welfare implications of the Global Minimum Tax (GMT) on corporate income in a multi-country macroeconomic model. The objectives of the GMT are to mitigate harmful tax competition and to curb wasteful profit shifting. The theoretical literature suggests that the welfare effects of the GMT are ambiguous. It contributes positively to welfare by improving tax revenues and limiting profit shifting; however, it may also raise firms' capital costs, which dampens economic activity. Using our applied model, we combine all these effects to produce numerical results, creating what we believe is the first comprehensive welfare assessment of the GMT. We simulate the implementation of a GMT of 15 percent by all countries in our model, which are the 27 EU Member States, the US, the UK, Japan, and a tax haven. We estimate the welfare change in two scenarios. In the first, additional corporate income tax (CIT) revenues are redistributed as direct transfers to households. This produces mixed welfare results across countries, while the global welfare impact is slightly positive. In the second, additional CIT revenues are redistributed back to firms as lower CIT rates, provided that the rate remains at or above the GMT rate. Positive welfare outcomes are widely, though not universally, experienced, leading to a modest increase in global welfare. We find these results are robust to non-participation of the US. Finally, we investigate the impact of alternative GMT rates, finding that a 16 percent GMT rate yields the highest level of global welfare in our model.
    Date: 2026–03
    URL: https://d.repec.org/n?u=RePEc:ipt:taxref:202504-02
  3. By: Pingyang Gao; Xu Jiang; Jinzhi Lu
    Abstract: We develop an incomplete-contracting model with accounting-based covenants to study how covenant accounting adjustments are made and what properties they exhibit. Standard accounting rules (e.g., GAAP) can generate false-alarm errors or undue-optimism errors. The manager can exert costly effort to privately identify these errors and propose adjustments. If errors are not corrected, control rights may be inefficiently allocated, leading to costly renegotiation. We show that (1) adjustments always correct false-alarm errors, but correct undue-optimism errors only when their magnitude is small; and (2) the manager may expend socially wasteful effort to identify these errors. The model yields testable empirical predictions and policy implications.
    Date: 2026–04
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2604.15661
  4. By: Nakatani, Ryota; Miyamoto, Hiroaki
    Abstract: This paper studies the optimal tax-and-transfer policy when automation raises productivity but displaces unskilled workers. Using a general equilibrium model calibrated to the U.S. economy, we compute the steady-state social welfare-maximizing rate of each of four tax instruments: capital income taxation, unskilled wage taxation, taxation on automation capital (i.e., a robot tax), and consumption taxation. Following an increase in the productivity of automation-related capital, the welfare-maximizing capital income tax rate and robot tax rate are zero, as their long-run investment distortions outweigh their redistributive social benefits. In the baseline simulation, aggregate welfare is maximized by cutting the unskilled wage tax rate and, especially, the consumption tax rate. However, when unskilled labor and automation-related capital are highly substitutable, the optimal consumption tax rate increases, and the additional government revenue is redistributed to displaced unskilled workers.
    Keywords: Automation; Optimal Taxation; Capital Income Tax; Labor Income Tax; Consumption Tax; Robot Tax
    JEL: C68 E25 H21 H24 H25 O31 O40
    Date: 2026–03–19
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:128480

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