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Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper examines the effect of adopting the International Standard on Auditing (ISA) 570 on going concern (GC) disclosures in the audit report in a European environment characterized by low litigation and reputation risk. We exploit a natural experiment in Belgium, where the global GC standard ISA 570 replaced the local GC standard. We examine whether this shift in standards changed the accuracy of auditors' GC disclosures. Using a sample of 30,339 stressed private companies with audited financial statements for periods ending on or after 15 December 2012 till 14 December 2016, our findings suggest that the adoption of the ISA 570 improves the accuracy of auditors' GC disclosures. Specifically, we find that the implementation of the ISA 570 is associated with an 8 percent decrease in false positive misclassifications (GC opinion without subsequent bankruptcy), while the rate of false negative misclassifications (bankruptcy without prior GC opinion) remains unchanged. [ABSTRACT FROM AUTHOR]

Using a unique hand-collected dataset of purchase obligations, we find that customers' financial reporting quality is positively associated with future supply contracts, indicating that suppliers are more willing to contract with customers who provide them with better information. Further, the association between customers' financial reporting quality and future supply contracts is stronger for customers with strong bargaining power, which is consistent with suppliers relying more on financial reports when they have less access to customers' private information. Collectively, our results suggest that customers' financial reporting quality plays an important role in influencing suppliers' decisions to contract with customers for the future supply of goods and services. Data Availability: Data for dependent variable are manually collected and data for all other variables are available from public sources cited in the text. JEL Classifications: D80; M41. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine the timing of corporate disclosure in the context of Georgia, an emerging market where a recent reform of corporate financial transparency mandated about 80,000 private sector entities to publicly disclose their annual financial statements. Design/methodology/approach: The main analysis covers more than 4,000 large, medium, small and micro private sector entities, for which the data is obtained from the Ministry of Finance of Georgia. This paper builds an empirical model of logit/probit regression, with industry fixed and random effects to investigate the drivers of the corporate disclosure timing. Findings: Findings suggest that the mean reporting time lag is 279 days after the fiscal year-end, that is nine days after the statutory deadline. Almost one-third (30%) of the entities miss the nine-month statutory deadline, while the timely filers almost unexceptionally file immediately before the deadline. Multivariate tests reveal that voluntarily filing entities completed the process significantly faster than those mandated to do so; audited financial statements take more time to be filed, whereas those with unqualified audit opinion or audited by large/international audit firms are filed faster than their counterparts. The author concludes that despite the overall high filing rates, the timing of corporate disclosure is not (yet) efficiently enforced in practice (but is progressing over time), whereas regulatory incentives prevail over market incentives among the timely filers. Originality/value: To the best of the author's knowledge, this is the first study that explores corporate disclosure timing incentives in the context of Georgia. This study extends prior literature on the timing of financial information from an emerging country's private sector perspective, with juxtaposed market and regulatory incentives. [ABSTRACT FROM AUTHOR]

This study aims to examine the effect of tax risk and leverage on firm value, with corporate governance acting as a moderating variable. The research focuses on manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the period of 2017 to 2021. By using a purposive sampling method, the study selects companies based on specific criteria, including those that have consistently published audited financial statements in Rupiah. The independent variables in this study are tax risk and leverage, while corporate governance serves as the moderating variable. The dependent variable, firm value, is measured using Tobin’s Q, a widely accepted indicator. The analysis is conducted through panel data regression, with the Fixed Effect Model used to estimate the relationships among the variables. The results reveal that tax risk positively affects firm value, suggesting that effective tax management can enhance firm value by stabilizing cash flow and reducing tax penalties. However, leverage has a negative effect on firm value, as high debt levels increase financial risk, which may deter investors. Corporate governance significantly moderates the relationships, enhancing the positive effect of tax risk and reducing the negative impact of leverage on firm value. These findings underscore the importance of sound corporate governance practices in maintaining firm value by managing financial and tax-related risks. The study provides valuable insights for policymakers and corporate management on improving governance structures to optimize firm value. [ABSTRACT FROM AUTHOR]

Copyright of Middle East Journal of Legal & Jurisprudence Studies / Mağallaẗ al-Šarq al-Awsaṭ li-l-ʿulūm al-Qānūniyyaẗ wa-al-Fiqhiyyaẗ is the property of Manar Elsharq for Studies & Research and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: The study examines the changes in audit market concentration, auditor choice and audit quality in Russia following International Financial Reporting Standards (IFRS) adoption. Scholars have called for further examination of the effects of IFRS adoption on auditors, with an emphasis on the importance of analyzing emerging markets that are characterized by enforcement challenges and lack of proper infrastructure. It focuses on a unique feature of Russian companies – dual audits under Russian Accounting Standards (RAS) and IFRS – and investigates changes in audit concentration and audit quality for the two audit markets. Design/methodology/approach: The authors rely on the audited financial statements of Russian public companies and perform pre-/post-IFRS adoption estimation using a logit regression to ascertain whether public firms change auditors from local firms with limited IFRS expertise to those with global reputation, namely Big 4 audit firms. Further, they examine whether the change in audit market concentration post-2012 affects audit quality as proxied by companies' propensity to receive a modified audit opinion and discretionary accruals. Auditor attributes were hand-collected from audited financial statements and matched with financial variables from Datastream. Findings: The IFRS audit market was dominated by the Big 4 audit firms prior to 2012, and there is strong evidence that audit market share (concentration) increases for IFRS reports but not for RAS reports. In addition, companies are more likely to choose a Big 4 audit firm for an RAS audit, conditional upon a Big 4 firm conducting the IFRS audit. The authors do not find evidence of decrease in the probability of audit firms issuing a modified audit opinion under either RAS or IFRS, indicating that, in the Russian setting, increased auditor concentration post-IFRS adoption does not lead to enhanced risk or decline in audit quality. Moreover, they find that discretionary accruals decline post-2012. Overall, the findings indicate that the concern of global regulators regarding audit market concentration is not justified. Research limitations/implications: The Russian reporting environment is unique and generally characterized by significant agency problems, and the study's estimation sample is not large, compared to prior studies conducted predominantly in Western jurisdictions. Nevertheless, the authors shed light on the audit concentration phenomenon within emerging markets, for which empirical evidence is scarce. Future research could explore the impact of other capital market events and exogenous shocks, not limited to IFRS adoption, on the characteristics of Russia's audit market. Practical implications: The IFRS reporting regime is commonly associated with enhanced reporting quality and improved information transparency among public companies. Yet, impairment of audit quality as a result of IFRS-driven increase in audit market share of Big 4 can potentially negate these capital market effects. This study shows that the concerns of global regulators are not valid and that audit quality does not change with increased share of Big 4 post-IFRS adoption. Originality/value: Dual audits, whereby companies must prepare two sets of financial statements per the IFRS mandate, are not unique to Russia, and the evidence of IFRS reporting on the structural changes in the audit market and implications for audit quality under a dual regime is scarce. Accordingly, the study's findings are important and timely and are expected to aid regulators of countries that have announced or are contemplating the adoption of IFRS for public reporting purposes. [ABSTRACT FROM AUTHOR]

Purpose: The main objective of this study is to analyze the mediating role of intellectual capital in the relationship between diversification, financial stability, and efficiency of the banking sector in Ethiopia. Design/methodology/approach: Secondary data for this study was obtained from audited financial statements of 17 Ethiopian commercial banks for a decade starting in 2013. A descriptive and explanatory research design with a quantitative research approach was employed. The seemingly unrelated Hierarchical regression analysis is used to estimate diversification's effect on banks' financial stability and efficiency, considering the interaction between diversification and intellectual capital as a mediating variable. Findings: The Mediation analysis reveals that asset diversification improves the financial stability of commercial banks when mediated by intellectual efficiency. Investment diversification negatively impacts risk-adjusted return on asset and Z score. Intellectual capital significantly enhances commercial banks' efficiency and financial stability in Ethiopia and mediates the relationship between geographic diversification, financial stability, and efficiency. The mediation analysis also indicates that intellectual capital significantly mediates the relationship between income diversification and efficiency. Practical implications: This study highlights the importance of intellectual capital and promotes its strategic allocation by management and regulatory bodies to enhance the financial stability and operational effectiveness of the banking industry in Ethiopia. Originality/value: To the best of the researcher's knowledge, this study is one of the rare attempts to investigate the mediating role of intellectual capital on the nexus between diversification, financial stability, and efficiency of commercial banks in Ethiopia. [ABSTRACT FROM AUTHOR]

This study examines how inline XBRL (iXBRL) mandatory adoption impacts audit fees. Although iXBRL can make financial reporting information accessible to a wide range of external stakeholders, the presentation format change should have no impact on audit pricing. However, audit firms note that presenting nonaudited XBRL metadata on top of audited financial statements could lead to an expectation gap where external stakeholders believe that the inline tags have been audited despite no procedures being required. We find that iXBRL adoption is associated with higher audit fees. Upon further examination, we find that the increase in audit fees reflects more of a risk premium being placed on iXBRL clients rather than increased audit effort, as audit quality does not necessarily improve following adoption. We provide timely information on how auditors respond to iXBRL adoption. JEL Classifications: M41; M42; O33. [ABSTRACT FROM AUTHOR]

This study examines the effect of changes to the 2015 UK charities accounting standards on financial reporting timeliness and audit fees. Utilising 62,785 observations (9351 charities) from 2010 to 2017, we report a significant decrease in financial reporting timeliness following the new accounting standards regime. The decrease is more pronounced in charities with audited financial statements because of their lengthier audit report lag. Audit fees are also substantially higher following the new accounting standards implementation. Sensitivity tests reveal charities are more likely to have an unusual reporting lag following the introduction of the new accounting standards. [ABSTRACT FROM AUTHOR]

In this study, we examine whether not-for-profit organizations actively manage their pension accounting assumptions and whether their assumptions are, as prior research suggests, more aggressive than those of for-profit organizations. Using a 17-year panel dataset collected from audited financial statements, we compare the accounting assumptions (the expected rate of return and the discount rate) of not-for-profit and for-profit firms. We also examine the not-for-profit sample alone to test for accounting bias motivated by various financial incentives. We model accounting assumptions as levels (between-firms) as well as changes over time (within-firms). Contrary to prior research, we find no evidence that not-for-profits use more aggressive assumptions than for-profits. Furthermore, we find that most of the accounting biases of not-for-profits are explained by between-firm variation rather than within-firm variation, suggesting that although not-for-profits use biased assumptions, they may not actively adjust them to target financial benchmarks. [ABSTRACT FROM AUTHOR]

This article explores the concept of audit quality and the challenges in defining and measuring it. It presents different perspectives on audit quality and argues that audit outcomes, such as audit reports and the quality of audited financial statements, are the most relevant basis for assessing audit quality. The article suggests that audit quality should be understood in terms of the quality of the audit report and the audited financial statements, rather than solely focusing on the audit process. It concludes that audit quality is a multi-dimensional concept with multiple attributes and proposes a more nuanced approach to assessing it. The article also highlights the importance of earnings quality in evaluating the quality of audited financial statements and suggests using financial statement quality as an indicator of auditor and audit report quality. It emphasizes the need for auditors to carefully review and constrain aggressive accounting choices, particularly in relation to accrual estimates. The article concludes by recommending the inclusion of additional information in audit reports that compares a client's accounting policies and estimates to industry norms. [Extracted from the article]

This study examines the relationship between risk management and performance based on the size of commercial banks in Tanzania. Specifically, the study aims to determine the effect of liquid asset/Total asset ratio on Return on asset (ROA). Data employed were extracted from audited financial statement report. The explanatory variables were liquid asset/Total asset ratio while the dependent variable was financial performance measured by return on asset. Panel data of 23 commercial banks for the period of five years (2017 to 2021) was employed. Fixed and random model was adopted in analyzing the data. Findings highlight that the impact of liquid asset/Total asset on performance varies among commercial banks, with large banks showing insignificant positive relationship, while medium and small banks exhibit weak but significant negative relationship. This implies that maintaining more liquid assets compared to total assets provides a certain level of risk management capability though it may lead to relatively small returns to small and medium commercial banks. As far as large banks are concerned the relationship does not lead low return Therefore, the study recommends that banks should establish optimal size of liquidity to maximize returns and invest excess liquidity in higher-yielding assets or where additional income can be generated without significantly increasing risk. Regulatory authorities may need to consider different liquidity risk management policies depending on the size of the bank, such as tailoring the policies to ensure that the proportion of liquid assets is appropriate and reflect size of the bank. Consequently, it may help small banks and medium avoid excessive liquid assets which can negatively impact their financial performance. [ABSTRACT FROM AUTHOR]

Against the backdrop of global challenges and unprecedented events, intellectual capital is seen as the key to opening doors for banks to achieve competitiveness. Inspired by this issue, the paper explores the relationship between intellectual capital and one of the most important functions of banks, namely financial intermediation. The study uses the balanced panel data of 26 Vietnamese commercial banks collected directly from their audited financial statements between 2006 and 2020, and employs various regression analyses such as OLS, Fixed-effect, and the GMM method, in which the VAIC model is utilised as the measure of the intellectual capital of banks. The consistent evidence demonstrates that intellectual capital plays a key role in fostering this function of banks. Also, when dividing VAIC into three components, the empirical result indicates that capital employed efficiency is the most effective resource to enhance financial intermediation compared to human capital efficiency and structure capital efficiency. Furthermore, these findings seem to be clearer in small banks than in large ones, and remain unchanged during both crisis and non-crisis periods. Besides, in the crisis period, the evidence suggests that banks should strengthen their human capital efficiency, and structure capital efficiency should be taken into consideration. Therefore, this study provides a deep insight into the influences of intellectual capital on banking operations in emerging countries, where the development and sustainability of banks could ensure economic growth. [ABSTRACT FROM AUTHOR]

The document is a summary of the minutes of a meeting of the Executive Committee of the American Economic Association (AEA) held on January 4, 2024. The committee discussed various financial matters, including cost-reducing measures and the Association's current financial position. They also approved the 2024 budget. Other topics discussed include appointments and reappointments to the editorial boards of the AEA's journals, reports from various committees, and concerns about institutional diversity within the Association's leadership and activities. The meeting covered a wide range of topics related to the AEA's operations and initiatives. [Extracted from the article]

Copyright of Muhasebe ve Vergi Uygulamalari Dergisi (MUVU) / Journal of Accounting & Taxation Studies (JATS) is the property of Ankara Serbest Muhasebeci Mali Musavirler Odasi and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The purpose of this study is to examine how Dividend Income, Capital Structure, and Exchange Rate affect Stock Market Performance. The sample consisted of 12 companies trading on the Indonesia Stock Exchange (IDX) selected using the Purposive Sampling method, resulting in 63 observations for each variable. Data from audited financial statements, tax reports, and stock market prices are published by Bursa Indonesia (IDX). Data analysis was performed using regression analysis techniques. The results of this study show that the Exchange Rate, Dividend Payout Ratio (DPR), and Debt to Equity ratio (DER) all have a significant impact on stock prices. Individually, the Exchange Rate and DER have significant effects, with the Exchange Rate having a negative effect and DER having a positive effect, but the DPR having no significant effect. The coefficient of determination shows that 10.8% of the stock price variation can be explained by the three variables studied, while 89.2% can be explained by other factors not included in the study. [ABSTRACT FROM AUTHOR]

There is an ongoing debate among regulators and researchers about concerns that the provision of non‐audit services (NAS) to audit clients may impair audit quality by reduced independence. In this context, there can be different perspectives on audit quality. Given recent regulatory changes in the European Union (EU) aimed to improve investor confidence in audited financial statements, it is critical to understand the association of NAS and audit quality perceptions by investors before and after the regulation. We investigate whether NAS affect shareholder and lender perceptions of audit quality, measured by the cost of debt and equity capital. For a sample of German firms, we find significant positive associations of NAS with both cost of debt and cost of equity. Other assurance and consultancy services drive this effect. We do not find this effect in the pre‐regulation period, but in the transition period when the regulation was passed but NAS restriction did not yet apply. In the post‐regulation period, it only persists for lenders. Thus, the EU regulation may have increased (or inadequately created) independence concerns for shareholders and lenders and curbed these concerns for shareholders only. [ABSTRACT FROM AUTHOR]

This article aims to understand how access, equity and redress challenges are addressed at South Africa's public universities based on their current funding frameworks. Relying on a pragmatic research approach combining desk‐research literature review and secondary data analysis, government funding and tuition fees were found to be the primary sources of funding in most universities, while third stream income from universities' own commercial activities lagged far behind. Secondary data from the public universities' audited annual financial statements for the period 2015 to 2020 further revealed that investment source income superseded third‐stream income in most universities. There is consensus in literature on the pivotal role of equity‐based funding mechanisms such as the National Student Financial Aid Scheme (NSFAS) in providing tuition cover and living expenses for students from poor households. Based on the agency theory, government funding is used to influence public universities to pursue transformation goals. The general trends observed in various countries is the inclusion of equity‐based indicators in a funding model to ensure that students are not denied the opportunity for university education solely based on their poor backgrounds. It is argued in this paper that the NSFAS remains an appropriate vehicle to achieve South Africa's transformational goals in its public universities.Context and implicationsRationale for the study The rationale for this article is to provide exploratory evidence on the link between funding and transformation at public universities.Why the new findings matter The new findings matter because public universities cannot escape the imperative to address the challenges of transformation in developing countries with a history of unequal distribution of financial resources.Implications for policy makers, university management, funders and students Policy makers can use the findings from this article to inform how the National Student Financial Aid Scheme can be streamlined to ensure it continues to achieve its mandate. Based on the findings of this study, university management can develop more interventions to assist at‐risk students, particularly those from disadvantaged families succeed in their study. Funders can use the findings of this study to budget for and direct funding to academically deserving at‐risk students. Finally, students could benefit from these findings as the study identifies challenges to academic success as well as relevant interventions. [ABSTRACT FROM AUTHOR]

Purpose: The research objective starts from the argument that small-scale multinational corporations' (SMNCs') managerial behavior toward auditing decisions is influenced by their personal value, especially when the auditing process is not mandatory. This study aims to examine how national culture-religiosity affects that decision. The authors further examine how foreign-owned MNCs might behave differently from local MNCs, although the host country's cultural-religiosity value might influence that decision. Design/methodology/approach: This study obtains the data from three sources: Hofstede Framework, Pew Research Center and World Bank Enterprise Survey in cross-sectional mode. The final sample consists of 8,590 SMNCs from 45 countries as the observations. This study uses robust regression analysis to test the effects of culture, religiosity and controlling shareholders on the audited financial statements decision. Findings: The regression results support the hypothesis, whereas cultural-religiosity values are associated with the audited financial report. The findings confirm stakeholder theory and institutional theory. Originality/value: This study fills a gap in the literature by providing empirical evidence on the cultural and religiosity effects on the accounting decision of SMNCs. The results can be used as the foundation for future research related to MNCs' managerial behavior toward accounting policies, especially with the psychosocial factors. [ABSTRACT FROM AUTHOR]

Working capital management is an important financial management decision for the profitability of commercial banks. The purpose of this study is to examine the impact of working capital management on commercial banks' profitability. The study used secondary data from audited financial statements of five private commercial banks in Ethiopia covering the period from 2011 to 2020. The banks were selected on a convenience basis. The financial information from the banks was analyzed to determine the impact of the current ratio, bank size, a current asset-to-total asset ratio, loans and advances to total asset ratio, and current liabilities-to-total assets ratios on profitability. The researchers applied descriptive statistics and inferential statistics. The data were analyzed using the Stata data processing package. An econometric model is applied to examine the impact of working capital management on the profitability of commercial banks. A random effect model was employed and the result revealed that bank size and loans and advances to total assets were found to have a significant impact on banks' profitability. The current ratio, a current asset-to-total asset ratio, and current liabilities-to-total assets ratios were found insignificant to influence banks' profitability. Since the profitability of the banks depends on working capital management, rigorous attention should be given to those factors that influence the profitability of commercial banks. [ABSTRACT FROM AUTHOR]

The article discusses the challenges faced by smaller municipalities in Alberta, Canada, due to economic and social trends that have led to population decline and job opportunities moving to larger cities. Unlike other provinces that have implemented sweeping reorganization measures, Alberta has chosen a case-by-case approach through viability reviews. The majority of small municipalities in Alberta are in good financial shape, but some have undergone viability reviews and voted to dissolve. However, dissolution is not a cure-all and can transfer problems to the entity that absorbs the municipality. The article suggests that ongoing support and enabling communities to improve their viability is necessary. The fiscal challenges faced by smaller municipalities include tight budgets, limited revenue, rising costs, and pushback from taxpayers. Non-payment of taxes also contributes to revenue shortages. The article proposes that keeping tax revenues within the municipality to fund infrastructure maintenance could be a potential solution to prevent dissolution. The viability review process in Alberta is commended as an effective way to monitor and address the struggles of individual municipalities, but improvements are recommended for the post-dissolution process. The article concludes by discussing the challenges faced by smaller municipalities in various jurisdictions and the responses of higher-level governments, such as changes in powers/responsibilities, redistribution approaches, and reorganization of local government. The experiences of Manitoba and New Brunswick in Canada are highlighted as examples of dramatic changes to municipal systems. The article emphasizes the need for further discussion and recommendations for improvement in addressing the viability of smaller municipalities. [Extracted from the article]

The exercise of audit judgment is essential because it is impractical to perform an audit on all types of evidence. These types of evidence are considered in forming an opinion on audited financial statements, making audit judgment a determinant of the audit's outcome. The objective of this research is to analyze the factors that affect an auditor's judgment and decision making (JDM) during an audit. This study used an exploratory research design, with the factor analysis approach as its methodology. However, the data were collected using the questionnaire method. The questionnaire was sent to all member auditors of the Lebanese Association of Certified Public Accountants (LACPA). A total of 310 completed questionnaires were collected and analyzed. The data analysis findings indicate that the auditor's JDM throughout the audit process is affected by three factors: personal, task, and environmental factors. The auditor's personal factor becomes the dominant factor because it has the largest eigenvalue of 7.949. These findings demonstrate the complex and diverse nature of auditor judgment, highlighting the significance of considering audit JDM factors. Therefore, auditors may improve their abilities to make informed and effective judgments throughout the audit process by acknowledging the importance of personal, task, and environmental factors. [ABSTRACT FROM AUTHOR]

This inquiry examined the moderating influence of board size, board independence, and board gender diversity on the association between corporate social responsibility (CSR) and firm performance (FP) in Ghana. It utilized data from audited financial statements of all 36 firms listed on the Ghana Stock Exchange, spanning 2010-2020. The study espoused system-GMM for the empirical estimation. Findings show that CSR demonstrated significantly positive relationship with FP, consistent with the stakeholder theory, which is aligned with Carroll's four-factor-pyramid theory but inconsistent with the agency cost theory. Again, findings depict that all three board structure elements moderated the relationship between CSR and FP. [ABSTRACT FROM AUTHOR]

Tax aggressiveness occurs when businesses apply various tax techniques to lower the amount of tax payable. This study aims to analyze the influence of such factors as leverage, liquidity, and firm size on the tax aggressiveness of companies in the building and construction industry. The level of tax aggressiveness is measured using the effective tax rate. The leverage indicator is presented by a debt-to-equity ratio, which shows the part of the total amount of funds used to pay the debt. The liquidity indicator is presented by a current ratio, which shows the company's ability to settle short-term obligations or debts that must be paid off when due. The firm size is defined as the natural logarithm of the company's total assets. The data for this study were obtained from the audited financial statements of the companies listed on the Indonesia Stock Exchange (IDX). The research sample covers 21 construction and building subsector companies. The research period lasted from 2020 to 2022, and 63 observation data were collected. For data analysis, the method used is Partial Least Square (PLS). The findings indicate that leverage and firm size do not significantly impact tax aggressiveness. Conversely, liquidity positively and significantly impacts tax aggressiveness. At the same time, the variables selected for this study explain only 15.5% of the variability of tax aggressiveness. This means that this study does not cover many other factors influencing a company's decision to optimize tax. Companies must conduct tax policy in compliance with legislation, which is one of the elements of the social responsibility of business. Although tax aggressiveness can provide short-term benefits, companies must consider potential reputational risks and long-term impacts. Transparency and compliance with tax regulations can also reduce the risk of conflict with tax authorities. [ABSTRACT FROM AUTHOR]

Assessing the risk of financial distress is an important component of effective management because it helps companies make right financial decisions, avoid potential risks and improve business operations. This study provides more empirical evidence on the role of the Z-Score model in predicting financial distress of companies in emerging markets like Vietnam. This research paper uses data from 30 companies that delisted on UPCOM due to financial distress and 30 companies with Z-score greater than 4.35 on Ho Chi Minh City Stock Exchange (HoSE) for 5 years from 2018 to 2022, corresponding to 300 observations. The selected companies have enough audited financial statement data during the research period which are collected from websites such as cafef.vn, vietstock.vn, and websites with data on companies' financial statements. The financial factors are taken from the balance sheet and income statement by the authors to calculate the Z-Score. The authors use the Independent-samples T-test with data collected delisted companies due to financial distress and stably listed firms on the Vietnam Stock Market to test whether there is a difference in Z-score and independent variables in the Z-score model between these two groups of companies. The research results show that, there is a significant difference in the Z-score and the factors in the Z-Score model between the group of listed companies and the group of delisted companies, and between companies with low level of financial distress and those with high level of financial distress. From the findings obtained, the authors have made suggestions and recommendations for relevant parties such as the State Securities Commission of Vietnam, users of financial statements, and companies in order to contribute to preventing and limiting the risk of corporate financial distress in the most effective way. [ABSTRACT FROM AUTHOR]

Background: Tunafasi is a community-based rehabilitation (CBR) programme for persons with disability, implemented by a local non-governmental organisation in Uvira, Democratic Republic of Congo, in partnership with government. To assess affordability and support discussions with the government about continued financing and implementation, Tunafasi representatives commissioned a cost-effectiveness study of the programme's health component. Objectives: This study aimed to estimate the programme's impacts, costs, cost per disability-adjusted life year (DALY) averted and affordability of the health component implemented from February 2019 to December 2021. Method: Health-related improvements were assessed for a sample of 511 persons with disability and converted to DALYs averted. Total expenditure during the period February 2019 to December 2021 was estimated from audited financial statements. The cost per DALY averted was estimated by dividing total programme expenditure by the sum of DALYs averted and compared against newly generated, country-specific thresholds to assess affordability. Results: The programme cost $55 729.00 to implement from February 2019 to December 2021 and averted 234 DALYs in 511 persons, at a cost per DALY averted of $224.00. This falls above the affordability threshold of $54.00 – $199.00. Conclusion: While the cost per DALY averted is higher than what thresholds consider affordable for Democratic Republic of Congo, improved engagement from CBR facilitators and greater possibilities for treatment in the post-pandemic era should improve results. Contribution: This new CBR implementation modality offers a possibly affordable solution to African governments struggling to operationalise disability commitments such as United Nations Convention on the Rights of Persons with Disabilities. [ABSTRACT FROM AUTHOR]

Risk management is a critical aspect of the performance and growth of insurance firms. This study examined the effects of the underwriting capacity of listed insurance companies on their financial performance in selected countries in the sub-Saharan African region. It is argued in the study that internally controlled factors (underwriting capacity) generate risks faced by the insurance firms. The study makes use of secondary data gathered from the annual audited financial statements of the studied insurance organizations. For the period of 2010 to 2019, data from eight (8) chosen sub-Saharan African nations and forty-five (45) insurance companies were used. With the help of dependent variables (ROA, ROE, and Tobin's Q), explanatory variables (shareholders fund, underwriting profit, reserves, earning asset ratio, gross premium, and the ratio of ceded reinsurance), and moderating variables (firm size, economic growth, and inflation rate), the data were analyzed using the system GMM estimation technique. The results from the study reveal that the pattern of effects of underwriting capacity variables differ in terms of the measurement used for performance indicator. In particular, the study found that shareholders' funds, underwriting profit, reserves, earning asset ratio and gross premium written exert significant effects on the performance of the insurance firms, although the effects vary depending on whether ROA, ROE, or Tobin's Q is used as a performance indicator. Underwriting profit was found to have unambiguous significant and positive effects on all the performance indicators while reserves had significant negative effects on all the performance indicators of insurance firms. The ratio of ceded reinsurance was however found to have no significant impact on the performance of listed insurance firms in the selected Sub-Saharan African countries. Optimal risk and shareholder's fund management strategies are therefore recommended in the study. [ABSTRACT FROM AUTHOR]

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Purpose: Auditors should realize misstatements and communicate to managers for adjustments. Managers usually modify the misstatements, but they have motivations, like earnings management, for not altering the misstatements. The auditor expects to identify the misstatements' earnings management, inform the managers and reduce earnings management by proposing adjustments. This study aims to determine whether identified and adjusted misstatements cause a decline in earnings management. Is the increase in the materiality of identified and adjusted misstatements associated with a reduction in earnings management? Design/methodology/approach: The identified and adjusted misstatements are obtained from the difference between nonaudited financial statements and audited ones. Earnings management is computed using the adjusted Jones model, and the quantitative materiality threshold has also been calculated based on the Iranian auditors' guidelines. These variables and other required information were gathered for 159 listed firms on the Tehran Stock Exchange during 2014–2019 and examined by the regression models. Findings: The results show a negative relationship between identified and modified misstatements of total assets and earnings management and a positive and significant relationship between identified and adjusted misstatements of total liabilities and earnings management. However, the positive relationship between identified and adjusted misstatements of net income with earnings management is not significant. Besides, the relationship between the materiality difference and an absolute value of identified and adjusted misstatements (materiality minus the absolute value of misstatements) of total assets and earnings management is positive and significant, but the negative association between materiality difference and the absolute value of identified and adjusted misstatements of total assets and earnings management is not significant. The relationship between materiality difference and the absolute value of identified and adjusted net income and earnings management misstatements is negative and significant. These results indicate that the more material the identified and adjusted misstatements, the less earnings management. Research limitations/implications: The difference between nonaudited and audited financial statements represents identified and adjusted misstatements (audit adjustments). The client probably made some adjustments, but separating these adjustments from the auditor's identified items was impossible with the available data. Practical implications: The results show that significant audit adjustments decline earnings management. Paying more attention to a high-quality audit performed by the audit firms, auditors, managers and users and, consequently, discovering misstatements and adjusting or reporting them would decline the earnings management's unfavorable impacts. Social implications: The unfavorable consequences of earnings management can cause the inappropriate transfer of wealth in the capital market and some investors' loss to others' benefit. These consequences can cause a loss of trust and leave unfavorable psychological effects on the capital market and society. Identifying and adjusting significant misstatements can lead to the decline of such impacts. Originality/value: The previous studies assessed the relationship between identified and adjusted misstatements (audit adjustments) and earnings quality or earnings management. However, this study focuses on audit adjustments' materiality to assess the impact of significant adjustments on earnings management. [ABSTRACT FROM AUTHOR]

The latest version of the revised International Standard on Auditing (ISA 700) recommends that independent financial auditors issue audit reports in long form. The purpose of this article is to examine the effect of expanding the international normative illustrations of the independent auditor's report on the readability of audit information. Also, this article discusses the impact of the characteristics of the financial reporting framework that is applied in the preparation of the audited financial statements. The empirical analyses contain several readability measures based on the formulas that are most commonly accepted in the linguistic literature. Descriptive analyses and advanced comparative examinations based on statistical tests are also included. The results show that the content expansion of the international normative illustrations in the independent auditor's report has not improved the readability of the audit information that is published to the users of the audited financial statements. The empirical analyses also show that the change in the accounting framework relating to the preparation of the financial statements does not cause a significant change in the readability of the long-form audit report. The article includes an original measurement of the readability of the international normative illustrations of the expanded audit report. This article also contains an advanced analysis of the readability gaps between empirically observed scores and desirable readability scores. It also tests the effects of the characteristics of the accounting standards that are used in the preparation of the audited financial statements. [ABSTRACT FROM AUTHOR]

This paper aims to examine the financial performance of Bangladeshi listed commercial banks. The study analyzed the financial performances of banks categorized into three generations—first, second, and third—based on their year of commencement of operations in the country. The data of a total of 24 banks, 8 from each generation, listed in the Dhaka Stock Exchange (DSE), has been collected from audited financial statements for the time period of 13 years, from 2010 to 2022. Data has been analyzed using different ratios of profitability, liquidity, capital adequacy, operational efficiency, and credit risk. The ANOVA test also has been used to make a comparison of profitability—the return on assets (ROA), and return on equity (ROE) of the banks of different generations. According to the results, the average profitability ratios in terms of ROA, and ROE of the second-generation banks showed their credibility than banks of other generations; while first generation banks kept higher liquidity, and capital adequacy with higher credit risk than the banks of other generations. The first-generation banks also showed a lower cost-expense ratio, and a higher efficiency in terms of operation, than the banks in the second and third generations. The research also discovered that the profitability of banks of different generations significantly varies from one another. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to identify if fraud theory models suggested over the years are applicable to match-fixing and if so, whether the Krambia-Kapardis' (2016) holistic fraud and corruption prevention model can be used to reduce significantly match-fixing in football. Design/methodology/approach: An online survey was developed by the authors and was administered to football stakeholders in Cyprus, namely, players, referees, coaches and team management. Findings: The research questions, who are the initiators of match-fixing, why is match-fixing taking place and what is the best way to prevent or reduce match-fixing, have been answered, and these findings have enabled the authors to make policy recommendations. Research limitations/implications: The survey considered match-fixing in only one sport (football) while the number of respondent categories and the 335 usable questionnaires returned did not allow advanced statistical analysis of the data obtained. Practical implications: The findings point to the need both for ethics and moral values to be installed in all the stakeholders through training and continuing education. It is also suggested that teams/clubs and related associations acting as regulators ought to implement governance principles and ethical programs, including whistleblowing lines and appoint integrity officers to minimize the match-fixing phenomenon. Furthermore, society, as well as government, sport regulators and sponsors, ought to encourage and demand fair play and integrity in sport through improved measures of governance and accountability and the implementation of ethical audits and public disclosure of audited financial statements of teams. Finally, sports integrity ought to be embedded in school curriculum from a very young age. Originality/value: To the best of the authors' knowledge, this is an original contribution to knowledge that has impact on the future of sporting fairness and social legitimacy. [ABSTRACT FROM AUTHOR]

This study delves into auditors' perspectives regarding the catalysts and barriers that impact audit firms' responsiveness to users' needs for audited financial statements. The research adopts a thematic analysis approach, with the participants being partners from audit firms selected through snowball sampling. Data collection was carried out via semi-structured interviews and continued until reaching theoretical saturation. The point of theoretical saturation was reached after conducting 17 interviews. The findings of this study highlight nine factors that foster accountability within audit firms: active engagement of professional associations, the societal position of auditors, mimetic isomorphism, signaling mechanisms, a culture of embracing risk, stakeholder demand for accountability, a suitable legal foundation, structural factors, and proactive audit committee. Conversely, the study discovers six challenges that hinder the establishment of transparency and accountability in audit firms: legal claims, expanding expectations of stakeholders, insufficient financial resources, information leakage, audit quality, and differing perspectives from supervisory bodies. This research offers valuable insights contributing to the theoretical underpinning of accountability for stakeholders within audit firms. This can potentially assist the audit profession and standards-setting bodies in enhancing the legal framework to fortify oversight mechanisms. [ABSTRACT FROM AUTHOR]

This study was aims to examine the significant elements of the audit and board committee in predicting earnings management (EM) for the period of 2010–2021. The study population comprised total number of 775 listed firms on Bursa Malaysia's main market. The annual audited financial statements and reports of the listed firms, firm's websites, Bloomberg and the Bursa Malaysia website were used as method of data collection. The analytical method used in the current study was descriptive statistic and GLS methods of panel regression. The findings of this study suggested that firms with effective CG mechanisms such as, audit committee size (AUDSIZ), audit committee financial expertise (AUDFEXPT), remuneration and nomination committee (R&NC), supervisory board size (SBS), mitigates accrual, and REM. However, the findings also indicated that gender composition (CGEND) were found to be ineffective in predicting EM. [ABSTRACT FROM AUTHOR]

Using a sample of over 14,000 industry-diverse nonprofit organizations, this study documents the key characteristics and consequences of organizations providing better and more information to stakeholders, that is, more transparent charities. In particular, we find evidence consistent with organizations that have stronger governance, better performance, and more professional staff being associated with greater transparency. In addition, we find that organizations that are more reliant on contributions, and those located in states that require public disclosure of their audited financial statements are also more transparent. After controlling for the likelihood of being transparent, we then test whether funders respond to more transparency by increasing their funding to organizations that provide more information. Here, we hypothesize and find that the level of transparency is associated with greater future contributions. Moreover, we find that organizations with better performance to report accrue incrementally more future contributions. Overall, our results support the assertion that transparency in the nonprofit sector is value added to key stakeholders. [ABSTRACT FROM AUTHOR]

We focus on the first year of the auditor–client relationship and investigate whether audit quality varies with the timing of the new auditor's appointment. We find that audit quality is not lower for companies that engage new auditors before the end of the third fiscal quarter than for companies that do not change auditors. However, companies that engage new auditors during or after the fourth fiscal quarter are more likely to misstate their audited financial statements than companies that engage new auditors earlier in the year and companies that do not change auditors. In additional tests, we find that the decrease in audit quality associated with late auditor changes is more pronounced for companies with complex operations (i.e., more operating segments). These results suggest that the extent to which audit quality suffers in the first year of audit engagements is affected by both the amount of time required to understand the client's business, assess risks, and perform the audit (all of which are driven by client complexity), as well as the amount of time available for auditors to perform these tasks. [ABSTRACT FROM AUTHOR]