EXPLORING THE RELATIONSHIP BETWEEN GOVERNANCE VERSUS AUDITING AND REPORTING STANDARDS

2018 ◽  
Author(s):  
Monica Ana Pop ◽  
Keyword(s):  
Reporting Standards ◽  
The Relationship

Factors that influenced the adoption of IFRS by Islamic banks in the UAE

2020 ◽  
Vol 33 (1) ◽  
pp. 75-91 ◽  
Author(s):  
Mohammad Haroun Sharairi
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Accounting Standards ◽  
Adoption Process ◽  
Islamic Banking ◽  
Reporting Standards ◽  
Islamic Banks ◽  
Content Type ◽  
Financial Reporting Standards ◽  
The Relationship

Purpose This paper aims to investigate the factors that influenced the current adoption of the international financial reporting standards (IFRS) by Islamic banks in the UAE. This paper examined the relationship between the theoretical aspects and practical components of the research investigation regarding the factors that influence the adoption of IFRS. This paper will contribute to the existing knowledge and practices in not only Islamic countries but also Western countries in terms of a deeper understanding of the adoption of IFRS by the Islamic banks and how the factors could influence the Islamic banking adoption, process, activities and financial reporting. Design/methodology/approach Several theories of regulation were considered in this paper to explain the existence of Islamic accounting regulations and understand why some of the Islamic accounting prescriptions became formal regulations, while others did not. Data was collected for this purpose by conducting a survey with professionals and managers of four Islamic banks in the UAE. Findings This paper revealed that factors, such as religion, culture and local investors, may have limited influence on the current adoption of accounting standards in the Islamic banks. Furthermore, this paper uncovered a concern among respondents of issues that developed when Islamic banks commenced the adoption of IFRS. This paper also indicated that respondents’ opinion does not reflect a perception that all IFRS are suitable for the application of Shariah transactions. Originality/value This study is unique as no study has yet explored the factors that influenced the adoption of the IFRS by Islamic banks in the UAE.

Audit committee effectiveness, isomorphic forces, managerial attitude and adoption of international financial reporting standards

2019 ◽  
Vol 9 (4) ◽  
pp. 502-526 ◽  
Author(s):  
Juma Bananuka ◽  
Arafat Walugyo Kadaali ◽  
Veronica Mukyala ◽  
Bruno Muramuzi ◽  
Zainab Namusobya
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Explanatory Power ◽  
Mediating Effect ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Microfinance Institutions ◽  
Content Type ◽  
Financial Reporting Standards ◽  
The Relationship

Purpose The purpose of this paper is to report the results of a study carried out to establish the contribution of audit committee (AC) effectiveness, isomorphic forces and managerial attitude to the adoption of international financial reporting standards (IFRS). Design/methodology/approach This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 67 MFIs that are members of the Association of Microfinance Institutions of Uganda (AMFIU). Findings Both AC effectiveness, isomorphic forces and managerial attitude significantly contribute to the adoption of IFRS. However, the explanatory power of managerial attitude is subsumed in isomorphic forces and AC effectiveness. Results further indicate that AC effectiveness partially mediates the relationship between isomorphic forces and adoption of IFRS. In terms of control variables, ownership and capital structure are not significant predictors of adoption of IFRS. Originality/value To the authors’ knowledge, this is the first study to investigate the contribution of AC effectiveness, isomorphic forces and managerial attitude to the adoption of IFRS in MFIs using evidence from a developing country on the African scene like Uganda. Further, earlier literature has not tested the mediating effect of AC effectiveness in the relationship between isomorphic forces and the adoption of IFRS which has been reported in this paper.

Intellectual capital: mediator of board of directors’ effectiveness and adoption of International Financial Reporting Standards

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zainabu Tumwebaze ◽  
Juma Bananuka ◽  
Kassim Alinda ◽  
Kalembe Dorcus
Keyword(s):  
Board Of Directors ◽  
Financial Reporting ◽  
Intellectual Capital ◽  
Mediation Effect ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Content Type ◽  
Reporting Practices ◽  
Financial Reporting Standards ◽  
The Relationship

Purpose The purpose of this paper is twofold: to test whether intellectual capital mediates the relationship between board of directors’ effectiveness and adoption of International Financial Reporting Standards (IFRS) and to examine the contribution of the specific elements of intellectual capital and board of directors’ effectiveness to adoption of IFRS. Design/methodology/approach This study is cross-sectional. Usable questionnaires were received from 67 microfinance institutions (MFIs) that are members of the Association of MFIs of Uganda. The data was analyzed using Statistical Package for Social Sciences and MedGraph program (Excel version). Findings Results indicate that intellectual capital mediates the relationship between board of directors’ effectiveness and adoption of IFRS. Results further indicate that board independence and board meetings contribute significantly to the adoption of IFRS unlike board size and board committees. Results also indicate that in the intellectual capital elements, only structural capital and human capital significantly contribute to the adoption of IFRS unlike relational capital. Originality/value This study provides more insights on our understanding of the relationship between intellectual capital, board of directors’ effectiveness and adoption of IFRS. Specifically, it provides first time evidence of the mediation effect of intellectual capital in the relationship between board of directors’ effectiveness and adoption of IFRS using evidence from an African developing country – Uganda. Further, this paper adds to existing literature on corporate governance and reporting practices, as it provides more insights on the contribution of specific elements of board of directors’ effectiveness and intellectual capital to adoption of IFRS.

scholarly journals The effectiveness of corporate governance in adhering to business ethics and social responsibility in family businesses to achieve sustainable development dimensions - A statistical reading of Algeria experience in the field of governance and business eth

2018 ◽  
Vol 2 (2) ◽  
pp. 104-136
Author(s):  
Mouhamed Said SAIDANI ◽  
Labidi MEHAOUAT ◽  
Ahmed BEKKAYE
Keyword(s):  
Corporate Governance ◽  
Business Ethics ◽  
Ethical Behavior ◽  
Family Businesses ◽  
Reporting Standards ◽  
Minority Shareholders ◽  
Goods Market ◽  
Ease Of Access ◽  
The Relationship

The study aimed at revealing thcve nature of the relationship between corporate governance and business ethics in family businesses in Algeria. In order to clarify the relationship, the aspects of impact were analyzed in 07 key areas: Protection of minority shareholders’ interests PMSI, Ethical behavior of firms EBF, Strength of auditing and reporting standards SARS, Efficiency enhancers  EE, Ethics and corruption CORR, Ease of access to loans EAL, Goods market efficiency GME, Using the statistical program SPSS 24 to study associative relationships and derive long-term dynamic relationships, the results showed a long-term balance between corporate governance and broader ethics In five key aspects: Protection of minority shareholders’ interests PMSI, Ethical behavior of firms EBF, Strength of auditing and reporting standards SARS, Efficiency enhancers  EE, Goods market efficiency GME, with no relationship between corporate governance and Ethics and corruption CORR, Ease of access to loans EAL, This leads us to say that there is a long-term dynamic balance between institutional governance and business ethics in family businesses in Algeria. The study therefore recommends further structural institutional reforms if any future governance or institutional effectiveness is to be achieved.

scholarly journals The relationship between financial reporting standards and accounting irregularities: evidence from US banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali İhsan Akgün ◽  
Yener Altunbaş ◽  
Yurtsev Uymaz
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Bank Performance ◽  
Reporting Standards ◽  
Content Type ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
The Usa ◽  
The Relationship ◽  
Practical Implications

Purpose The purpose of this paper is to explore whether the choice of International Financial Reporting Standards (IFRS) vs Generally Accepted Accounting Principles (GAAP) is associated with the frequency and likelihood of accounting irregularities and fraud in US banks. Design/methodology/approach The authors examine the relationship between financial reporting standards and accounting irregularities in publicly listed US banks. Using a sample of 4,284 banks with accounting irregularities observed in the USA over the period of 1996–2014. They used logit model to estimate the likelihood of corporate misreporting having been committed in terms of accounting irregularities. Findings The authors show that banks that use US GAAP exhibit better operating performance than fraudulent banks that use IFRS except for certain variables. They also find that fraudulent banks are more likely to commit accounting irregularities when they have to follow IFRS and banks have relatively better bank performance. Practical implications Overall, the empirical findings result consistent with Kohlbeck and Warfield’s (2010) find that accounting standards are linked to fewer accounting irregularities. Originality/value In this study, accounting irregularities have a significant effect on bank performance during the Dodd–Frank period. It finds that banks that choose to use IFRS are more likely to have accounting irregularities and to engage in fraud.

Key audit matters: did IAASB unravel the knots of confusion in audit reports decisions?

2021 ◽  
Vol 36 (8) ◽  
pp. 1025-1052
Author(s):  
Mohamed Abdel Aziz Hegazy ◽  
Noha Mahmoud Kamareldawla
Keyword(s):  
Design Methodology ◽  
Financial Statements ◽  
Reporting Standards ◽  
Content Type ◽  
External Auditors ◽  
Big 4 ◽  
Audit Firms ◽  
Audit Reports ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims to investigate how external auditors properly classify the requirements of ISA 701 for key audit matters (KAM) compared with an emphasis of matter or other matters (EOM) in ISA 706 and going concern (GC) in ISAs 706 and 570. Such investigation is important to assess whether the explanatory matters included in ISAs 701, 706 and 570 are appropriate for external auditors so they can properly classify identified audit matters as either KAM, EOM or GC matters and considering the relationship among them. Design/methodology/approach The research used questionnaires sent to a sample of external auditors in five audit firms with international affiliations including two of the Big 4 audit firms. The Z-test for two proportions is conducted to assess whether external auditors were confused when interpreting the explanatory matters included in the ISAs. Findings The research suggests that the current ISA 701 explanations may not adequately help some auditors in their aim of properly identifying all KAM from among the different matters they reach during their audit. When classifying EOM and GC, most of the external auditors misclassified them as KAM. Practical implications This is a timely study. The results have implications for standard setters and regulators through revising the explanations included in the different audit reporting standards including ISA 701 and considering the relationships among them. Originality/value According to the authors’ knowledge, this study is considered among the first that surveyed the appropriateness of the explanations included in ISAs for KAM, EOM, GC and how auditors perceive such explanations when forming their opinion about their clients’ financial statements.

The Relationship between the Structure of Ownership and the Choice of Accounting Policies and their Reflection on the Market Value Considering International Financial Reporting Standards for Banks Listed on the Iraqi Stock Exchange

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Salah Kadhim ◽  
Bakr Ibrahim Mahmood ◽  
Hussein Falah Hasan
Keyword(s):  
Financial Reporting ◽  
Direct Relationship ◽  
Stock Exchange ◽  
Market Value ◽  
Accounting Conservatism ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Before And After ◽  
The Relationship

The study aimed to clarify the concept and importance of the relationship between the structure of ownership and the choice of accounting policies and their reflection on the market value in light of international financial reporting standards for banks listed in the Iraq Stock Exchange. Eleven banks were selected for the period from 2010 to 2019. The results of the study concluded that there is a direct relationship between the percentage of administrative ownership weighted by accounting conservatism and the market value of the research sample banks. This was before and after the application of the International Financial Reporting Standards (IFRS), which indicates that the application of the standards did not limit the management's behavior towards the accounting conservatism policy in order to increase the market value.

Strength of auditing and reporting standards, corruption and money laundering: a cross-country investigation

2020 ◽  
Vol 35 (9) ◽  
pp. 1243-1259
Author(s):  
Ines Amara ◽  
Hichem Khlif ◽  
Anis El Ammari
Keyword(s):  
Money Laundering ◽  
Positive Association ◽  
Moderating Effect ◽  
Policy Implications ◽  
Reporting Standards ◽  
Content Type ◽  
Dummy Variable ◽  
Interaction Variable ◽  
Negative Effect ◽  
The Relationship

Purpose This paper aims to investigate the relationship between the strength of auditing and reporting standards (SARS) and money laundering, and test whether the SARS moderates the association between corruption and money laundering. Design/methodology/approach The sample consists of 348 country-year observations over the period 2015–2017. Data on money laundering are collected from Basel Anti-Money Laundering Reports for 2015–2017, while data on SARS and corruption are collected from the Global Competiveness Reports for the same years. Findings The findings of this study suggest that the SARS is negatively associated with money laundering, while corruption has an insignificant effect on the same variable. The effect of corruption on money laundering becomes positive and significant after removing the SARS. This result implies that the SARS and corruption represent two concurrent forces influencing money laundering phenomenon with a prevailing negative effect for the SARS. When testing for the moderating effect of SARS on the positive association between corruption and money laundering, findings show that the positive association remains stable under low SARS environments, while it is mitigated under high SARS. This moderating effect is further confirmed when using an interaction variable between the SARS dummy variable and corruption as this interaction variable has a negative effect on money laundering. Originality/value The findings emphasize the role played by the SARS in reducing money laundering and mitigating the positive association between corruption and money laundering. These results may have policy implications for governments aiming to combat this phenomenon.

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