The causes of fraud in financial reports between third party confidence in the output of the audit profession and the inevitable development of the profession: the case of Mobily
Ahmed Mohamed Kamel
Salem
Accounting department
Faculty of Commerce
Alexandria University
Alexandria
Egypt
author
text
article
2019
ara
The added economic value of the audit of the financial statements by the external auditor is to give confidence to the financial reports data, which entails the possibility of using these data, once it has been turned into information, in making a different combination of economic decisions by the third party. Economic Unity). This added value has been taken for granted until the economic circles were surprised by a set of financial meltdowns of a number of major entities in the United States and other countries, which led to the criticism of the third party to the profession of external audit, because of its failure to exercise its supposed role as a warning bell For the public interested in the economic unity of the third party.The validity of the previous criticisms was confirmed as a result of the discovery of the underlying causes of these crises, which pointed to the explicit accusation - in most cases - of the role of the review, which some considered a helpful role - if not complicit or concealed - in the occurrence of these crises (many writings have been launched) These crises have the term "financial scandals". This resulted in a crisis of confidence between the profession and the third party of the interested public, which resulted in the profession trying to restore the confidence of the third party, through a number of legislation (such as the Oxley Act "Sarbanes - Oxley Act"), which tried to strengthen the independence of the external auditor in In addition, a number of professional organizations have been established to impose a kind of control over the work of external auditors, such as the Public Company Accounting Oversight Board (PCAOB). The above measures represent a kind of external control over the profession, especially in the case of companies listed on the stock exchange.In other words, financial crises or deficiencies discovered in some professional practices (often found in developed countries in terms of organization of the audit profession) are the engine behind the development of the profession in most, if not all, cases. It is also clear from extrapolation of the reality of professional development efforts that they often start - if not always - in developed countries, and then move gradually - partly or wholly - to the least developed countries in the field of efforts to develop the profession of external auditing. They are first discovered and treated first in those developed countries, and then the infection is transmitted and discovered to other countries, which mimic the methods - partly or completely - reached by the developed countries, both in the discovery or in the treatment. The speed and accuracy of the simulation depend on the gap of professional progress between developed and developing countries. Where the gap is narrowed, the simulation speed increases without its accuracy.In contrast, the larger the gap, the greater the simulation accuracy without its speed, i.e. in the more developed countries, the interest in discovering deficiencies is relatively fast compared to the less developed countries, but the more advanced countries It is far from emulating the treatment methods applied by the developed countries, because of its awareness of the environmental differences that may hinder the application of the same treatment methods as well as the availability of distinct professional cadres who can devise more effective treatment methods. In contrast, in less developed countries, interest in detecting deficiencies is relatively slow compared to more developed countries, and less developed countries largely emulate the treatment methods applied by developed countries, either because they are not aware of the environmental differences that may hinder the application. The same methods of treatment or lack of distinct professional cadres that can devise more effective treatment methods and more appropriate to the environmental conditions of these countries.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
1
36
https://aljalexu.journals.ekb.eg/article_56614_bb97d2c347bceede0842bb22bf9b7716.pdf
dx.doi.org/10.21608/aljalexu.2019.56614
The impact of the integration between the management accountant and the data scientist on the rationalization of administrative decision-A field stud
yosry
el beltagy
Accounting department
Faculty of Commerce
Alexandria University
Alexandria
Egypt
author
text
article
2019
ara
The aim of the research is to identify what is the big data and the returns that can be achieved to the organizations by invest properly, and address the big data revolution in business, data scientists and their role in dealing with big data, the integration of the experience of the managerial accountant and the data scientists and the impact of rationalizing the administrative decision. Three hypotheses were dev-eloped. The first hypothesis dealt with the relationship between the composition of a working group from all disciplines of the orga-nization to benefit from the big data and rationalize the administrative decision. The second hypothesis dealt with the relationship between the use of a data scientists as the leader of a team that combines all disciplines to benefit from big data and rationalize the administrative decision. In addition, The third hypothesis dealt with the relation between the integration between the managerial accountant and the data scientist to benefit from the big data and rationalize the adm-inistrative decision In the field study conducted by the researcher, he concluded that all the approaches to the study to benefit from the big data represented by the research hypotheses all help in ratio-nalizing the administrative decision. When comparing the three approaches to determine the priority of each, the researcher found that the first entrance is better than the two inputs And the third approach is better than the second. The researcher attributed this to the amount of Compatibility that can occur between the members of the team that combines all the disciplines of the organization and the compatibility that can occur between the managerial accountant and the data sci-entist.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
37
87
https://aljalexu.journals.ekb.eg/article_56619_0c229a24a834704145ece5d63fa0c255.pdf
dx.doi.org/10.21608/aljalexu.2019.56619
The Role of Accounting Information Systems in Sustaining Small and Medium Enterprises - A Field Study
Karima Hassan
Mohamed Mohamed
Accounting department
Faculty of Commerce
Azhar University
Cairo
Egypt
author
text
article
2019
ara
Small and medium-sized enterprises face many challenges for sustainability and survive and continue to grow, due to limited financial resources, the most important of these challenges is the weakness of the system The accounting of these facilities did not have sufficient awareness of the importance of the accounting system in many areas, and how you can use accounting information to improve their business and take Decisions, and then optimize the use of available resources, it has limited the role of accounting in recording transactions, and often lacking these facilities to accounting info-rmation system. And research aims to study the use of accounting information systems in small and medium enterprises in Egypt, bringing out the relevance of accounting information system in strengthening the sustainability of projects Small and medium-sized enterprises. In order to achieve this, the researcher will rely on both theoretical and developmental research using the theoretical and field study methods. First, it presents the primary data and information related to the research problem. Second, conducting a field study by distributing survey lists on a sample of small and medium enterprises (The number of workers, the capital and the age of the project), the characteristics of the project owner (ownership, management and the qualification of the entrepreneur qualification) and the degree of use of the infor-mation systems. Hacbیh in the businesses of small and mediumsized in Egypt, while there is no statistically significant relationship between a qualified owner of the project and the degree of use of accounting information systems in small and medium-sized business projects in Egypt
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
88
120
https://aljalexu.journals.ekb.eg/article_56625_1ecb8b49fe9f8a2182d5b9fa6bfab2bc.pdf
dx.doi.org/10.21608/aljalexu.2019.56625
Evaluating the effectiveness of accounting education programs in the formation of personal traits that qualify for practicing the professional uncertainty of auditors in Saudi Arabia (Experimental study)
Ahmed Kamal
Motawe
Accounting department
Faculty of Commerce
Elmansoura University
Elmansoura
Egypt
author
text
article
2019
ara
Interest in the issue of professional uncertainty has increased in recent times in an attempt to identify the factors influencing the practices of professional uncertainty among auditors because of its impact on the quality of the audit process, as some of the most important factors that led to the recent failure of the audit (Beasley et al. (2001; Hurtt, 2010; Popova, 2012; Carpenter & Reimers, 2013), consistent with the findings of the SEC, where auditors' failure to detect fraud was due to their low level of professional skepticism. Of the 45 cases of fraud studied, 24 were attributed to lack of practice Aquby accounts for the level of professional skepticism appropriately (Fatmawati et al., 2018).Despite the importance of the issue of the practice of professional uncertainty by auditors and the multiplicity of studies (Zarefar et al., 2016; Nolder & Kadous, 2018), which dealt with the factors that enhance the professional uncertainty of auditors, but to the knowledge of the researcher does not exist in the Arab domain writings on the impact study Accounting education programs at universities on the formation of professional skepticism among graduates, although the latest studies (Ciołek & Emerling, 2019) in this area have indicated that the lack of building skepticism in the early stages of accounting education makes the results of subsequent training weak On the behavior of auditors towards the exercise of professional uncertainty.Based on the researcher's belief that the starting point for building the levels of professional uncertainty among auditors should start with the development of the so-called traits professional ske-pticism through accounting education programs offered by universities and institutes of different types, this study seeks to assess the effectiveness of the role of these programs in building Attributes of professional uncertainty through experimental study on students and graduates of accounting education programs in Saudi Arabia.2 - Research problemProfessional skepticism is the cornerstone of the audit profession.Professional skepticism is referred to in the auditor's position during the audit process, which includes continuous inquiry resulting from a questionable mindset and critical evaluation of audit evidence obtained to reasonably be assured of reliability. In building his opinion, ISA (200) defines professional suspicion that an auditor has an interrogative mindset that has the ability to critically assess the evidence he obtains, which may enable him to detect material misrepresentations. It carries, whether due to errors or fraud (IAASB, 2012a).The IAASB, 2012a asserts that professional uncertainty reduces the risk of overlooking unusual circumstances, over-generalizing when drawing conclusions from the auditor's observations, and using inappropriate assumptions to determine the nature, timing and extent of audit procedures and to assess their results. To consider professional skepticism as the force that drives auditors to identify potential errors and irregularities and investigate their effects, if any. This means that an appropriate level of professional skepticism is imperative for the quality of the audit process.Although SAS: 99 and ISA (240) emphasize the need for auditors to exercise professional skepticism at all stages of the audit process so that they can carry out audits efficiently and effectively, most studies at the Arab level (Reicho, 2014; Abul Fadl, 2016; Coptic; 2017), and International (Ashari & Zahro, 2013; Chiang, 2016; Aschauer et al., 2017) addressed the issue of professional uncertainty in terms of impact on the performance of auditors, and only a few Studies that address the sources and types of occupational uncertainty and how to develop and measure it (PoPva, 2012; Hurtt, 2010), so the issue of occupational uncertainty still requires more For studies by researchers.Previous studies categorize sources of professional uncertainty into two sources: the first is the uncertainty resulting from the traits and personal characteristics of the auditors Trait Professional Skepticism, and the second the professional uncertainty resulting from the experience with clients or the so-called positional skepticism. Risho, 2014), that professional skepticism stemming from personal traits is the most critical element in determining the level of professional skepticism of auditors, and that skepticism based on personal traits is a guarantee and protection of the auditor from the risk of over-reliance on the second source. From sources of professional skepticism, Where the suspicion suspicion does not do in the case of the trust of the auditor in the client and based on previous experience in dealing with them.Although the personal traits of auditors are one of the most important sources of building professional skepticism, these traits are influenced by many variables associated with the environment, origin and societal culture and are very complex factors in measuring or predicting their impact, but what can not be overlooked is the impact of education and training on changing personal traits. For individuals, if education or training does not achieve the desired or targeted change, this means that we are in a state of unquestionable failure, requiring a review of the scientific content, the way in which the content is presented, or both.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
121
182
https://aljalexu.journals.ekb.eg/article_56628_36f2c4fbcf62d9f99a2279312d454eaa.pdf
dx.doi.org/10.21608/aljalexu.2019.56628
Determinants and Results of Real Approach to Profit Management - An Empirical Study on Companies Listed in the Egyptian Stock Exchange
Sahar Abdel Same
Mahmoud
Accounting department
Faculty of Commerce
Alexandria University
Alexandria
Egypt
author
text
article
2019
ara
Profit is one of the most important items in the financial statements which significantly affects investment and credit decisions. Profits can be manipulated through accounting numbers, or real decisions. The decision to trade-off between the use of the accounting approach and the real approach to profit management depends on several factors. Profit management through real activities is expected to impact the operational and financial performance of the company as companies change the timing and structure of real economic activities and transactions. Therefore, the current study aims to develop and test a comprehensive framework for the real approach to profit management. To achieve this objective, an empirical study was conducted on a sample of 78 companies listed on the Egyptian Stock Exchange during the period 2013-2017. While there was a negative and significant relationship between the use of real entrance and corporate governance. As for the results of the real entrance to profit management, the results showed a negative and significant relationship between the use of the real entrance and the operational performance of the company, especially in the long term.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
183
227
https://aljalexu.journals.ekb.eg/article_56631_3d9f280879a8f433aad520be750e1fc1.pdf
dx.doi.org/10.21608/aljalexu.2019.56631
The impact of corporate governance on the relationship Between the behavior of the Executive Director and the management of profits: an applied study on companies listed on the Saudi stock market
Manar Mansour
Elgarboa
Accounting Department
Arab East Colleges for Graduate Studies
Saudi Arabia
author
Hanan mohamed
Ismail Yousef
Accounting department
Faculty of Commerce
Alexandria University
Alexandria
Egypt
author
Hesham Mohamed
El Barak
Department of Accounting
Faculty of Economics and Administrative Sciences
Imam Muhammad bin Saud Islamic University
Saudi Arabia
author
text
article
2019
ara
This study examines the effect of CEO’s conduct (CEO narcissistic personality and CEO shares’ ownership) to engage in earning management on a sample of listed companies in the Saudi Stock Exchange (Tadawul) during the period from 2014-2017. The study also examines the role of corporate governance mechanisms (Audit Committee, Number of BOD Directors, Percentage of Non-executive directorsand CEO Double-standards) in restricting administrative self-interested choices of thee CEOs leading to increasing the information content of financial statements and reducing non-consistency of information between the management and users of financial statements as stakeholders in the company. To achieve the objectives of the study, the researchers relied on Miller’s way to measure practices of earning management. The rese-archers also used a number of multiple regression models to investigate the relationship between the CEO conduct and earning management as well as the role of corporate governance in limiting such relationship. The results suggested that there is a statistically significant positive relationship between the CEO narcissistic personality and earning management. Also, the results revealed that there is no significant re-lationship between CEO ownership of shares and earning mana-gem-ent. The findings also suggested that corporate governance mec-han-isms reduced influence of CEOs having narcissistic personality on ea-rning management. Since governance variations are applied as amen- ded variations in regression model, the relationship between the CEO narcissistic personality and earning management changed from a significant positive relationship to non-significant. This implies that corporate governance mechanisms can restrict administrative self-interested choices of CEOS in relation to earning management.The results of the study highlighted the significance of corporate governance due to its vital role in detecting financial and administrative corruption. The results also show the importance of monitoring the application of corporate governance mechanisms by listed companies. The researchers recommended both auditors and researchers to perform necessary exercising and professional care to detect such immoral practices of executives in general.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
228
295
https://aljalexu.journals.ekb.eg/article_56635_4c96a74e835c5375b7c3acf409dabba3.pdf
dx.doi.org/10.21608/aljalexu.2019.56635
Measuring the Impact of Managerial Ability on the Quality of Financial Reporting and the Stock Price Crash Risk- An Empirical Study on Listed Firms in the Egyptian Stock Exchange
Magdy Melegy
ABd EL Hakim Melegy
Accounting department
Faculty of Commerce
Banha University
Banha
Egypt
author
text
article
2019
ara
Purpose: Measuring the impact of managerial ability of executive managers on the quality of financial reporting and its role in reducing stock price crash risk. Design and Methodology: The current study adopted the content analysis approach to exam the annual reports of a sample of (116) non-financial joint stock companies listed on the Egyptian Stock Exchange during the period (from 2016 to 2018), with a total of (348) views in order to test the study hypotheses that reflect the relation between managerial ability of executive managers and the financial reporting quality indicators such as the accounting conservatism, real earnings management, information asymmetry, Financial reporting timeliness, earnings announcement tone, and the impact of the managerial ability in reducing the stock price crash risk. In addition, the current study used the multiple regression technique to test the study hypotheses. Conclusion and Recommendations: The results of the current study research concluded that the managerial ability has a positive effect on the quality of the financial report of the study sample. Moreover, it has a positive and statistically significant relation with the accounting cons-ervatism, the financial reporting timeliness and the earnings annou-ncement tone. While it has a negative and statistically significant rela-tion with both the real earnings management and the information as-ymmetry. Managerial ability also has a negative and statistically sign-ificant effect on reducing stock price crash risk. Based on the current study results, Egyptian companies should pay more attention to the managerial ability of executive managers (such as accounting literacy, experience, period of work, personal skills, reputation, and comm-unication) because of its positive effect on firm’s economic results, establishment of controls and legislation necessary to regulate the chief executive officer job, ownership of firm's shares, reduction of excessive confidence, and to control and prevent management hiding of bad news and to enhance transparency in order to reduce stock price crash risk. Study Limitations: The results of the current study should be limited to the sample size and methods of measuring the variables applied. The current study focused on analyzing the impact of the managerial ability of executive manager (excluding this of the financial manager) on the quality of the financial reporting and the stock price crash risk in non-financial listed companies in the Egyptian Stock Exchange market. Practical Implications: The results of the current study may be of interest to the Board of Directors in the hiring decisions of executive managers, it is also of great interest to stakeholders when assessing m-anagement skills as a potential determinant of the quality of the financial reporting. The study results can also provide useful information to accounting standard boards and controlling authorities about accounting quality, reduction of stock price crash risk and the management ability to adopt accounting standards. Originality and Value: This study contributes to accounting literature by attempting to reduce the debate about the relationship between managerial ability (characteristics of managers) and the quality of the financial reporting, which would help in explaining the discrepancy bet-ween the performance of different firms, and also provides additional evidence to explain the role of management ability in reducing future stock prices crash risk in the Egyptian business environment, as an exa-mple for emerging economies.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
296
383
https://aljalexu.journals.ekb.eg/article_56637_71288b6c51c026df474d3a736ada5332.pdf
dx.doi.org/10.21608/aljalexu.2019.56637
A proposed framework for developing the system of responsibility accounting system to evaluate the performance of administrative leaders in government units in the application On Saudi Arabia
Sherif MOhamed
Abd El Hamid El Shekh
Accounting department
Faculty of Business Administration
Elsharkaa University
Elsharkaa
Saudi Arabia
author
text
article
2019
ara
The proposed framework of the study is based on three main axes that will help in measuring and evaluating the performance of the administrative leaders in the government units. The first axis is the implementation of the liability accounting system. The second axis depends on dividing the gov-ernment unit into expenditure centers.: Measures of results of admini-strative work (reflective measures of expenditure centers), including: level of customer satisfaction with the services provided, the level of quality of service provided, the level of legal performance and compliance with the regulations and laws of the unit.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
384
471
https://aljalexu.journals.ekb.eg/article_56640_e913d89762aee9a6427dac74dfccd838.pdf
dx.doi.org/10.21608/aljalexu.2019.56640
The Impact of Board Characteristics on the Disclosure of the Forward-Looking Information
Evidence from the Egyptian Stock Market
Mohamed Samy
El-Deeb
Accounting department
Faculty of Management Sciences
Modern Sciences and Arts University
Cairo
Egypt
author
Lamis Mustafa
Elsharkawy
Accounting department
Faculty of Management Sciences
Modern Sciences and Arts University
Cairo
Egypt
author
text
article
2019
ara
Purpose - The paper aims to empirically test the impact of the corporate governance mechanisms related to the board characteristics on the forward-looking disclosures of companies listed in the Egyptian stock market. Design/methodology/approach- This study used Board size, Board independence, Board CEO duality, and gender diversity as measures for corporate governance mechanism in relation to the board characteristics. Forward looking disclosures were investigated using a checklist that included 24 items distributed over 4 categories of disclosure (1- environment around the company, 2- Goals, strategies and business policies, 3- organization, management and corporate structure and 4- Financial issues) through a content analysis where a score was calculated by adding the sum of disclosed items in the company’s annual report and then divide them by the total number of items. Two control variables were used: firm size which was measured by the natural logarithm of total assets and auditor type which is a dummy variable taking a value of 0 for non-Big 4 audit firms and 1 for Big 4). The sample included the most active 30 companies (EGX30) in the Egyptian stock exchange market covering the period from 2010 till 2017. Data were analyzed using regression analysis.FindingsThe research findings showed a positive significant correlation between that CEO duality and the forward-looking disclosure, and a negative significant correlation between Board gender diversity and the disclosure of forward-looking information. The content analysis results for the company’s annual reports indicated that management is disclosing more qualitative forward-looking disclosures than the quantitative forward-looking disclosures. In addition, results showed that the auditor type and board company size have a positive impact on the disclosure of the forward-looking information. In contrast, the results did not show a significant correlation between board independence and the board size with the disclosure of the forward-looking information.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
1
38
https://aljalexu.journals.ekb.eg/article_56642_ac25665145a3afe34f6661d026e13ff9.pdf
dx.doi.org/10.21608/aljalexu.2019.56642
The extent of difference in the value-relevance and predictive abilities of net income and comprehensive income for future operating cash flows -an empirical study on the companies listed in Egyptian Stock Exchange from 2016-2018
Ahmed MOhamed
Mohamed Shawky
Accounting Department
Faculty of Commerce
Alexandria University
Alexandria
Egypt
author
text
article
2019
ara
This reseaech aimes at analyzing the extent of difference in the value- relevance ability for net Income (NI) and comprehensive incomme (CI) with market value of the companies and stocks’ returns; the affecting factors on these differences; and a-nalyzing the predictive ability for future operating cash flows and their differenceces in NI and CI including their affecting factors on the companies listed in Egyptian stock Exchange.
The study results showed an increasing of the value- relevance ability of NI comp-aring to CI relating to the company market value. It can be interpreted by the lack of disclosures on CI components in companies listed in Egyptian Stock exchange and the converging of NI and CI. The significance of each of the two moderating vari-ables, the sector type and audit quality, were not significantly affected by the value relevance ability of NI or CI, especially with increasing impact of the size of the co-mpany, adding the two moderating variables. These can be attributed to the relation between large sized companies and the Egyptian audit firms in partnership with the Big 4 audit firms.
The results also indicate that the significant of value relevance ability of CI comparing to NI according to stocks’ returns, indicating that the stocks’ returns are more closely linked to CI. With the addition of the two moderating variables, the re-sults of the multiple regression model analysis indicated that the impact of both the sector type and audit quality was not significant on the value -relevance ability of NI and CI.The study results also showed significant of predictive ability of the future operating cash flows for the NI as compared to the CI.The difference between the predictive ability of each of them is explained by the low volatility in NI compared to the high volatility in CI and OCI. With the addition of the two moderating variables, the results of the multi-regression model analysis showed that the effect of the audit quality on predicting future operating cash flows. However, the effect of company sector did not increase the predictive ability of NI and CI.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
1
56
https://aljalexu.journals.ekb.eg/article_56662_e555390635f9a3a98fead5b4808ded51.pdf
dx.doi.org/10.21608/aljalexu.2019.56662
The Role of applying The Insurance Contracts Standard (IFRS 17) in Activating The Relationship Between Solvency II and Investments Profitability of Egyptian Insurance Companies
Mohamed Mosa
Ali Shehata
Accounting Department
Faculty of Commerce
Sadat City University
Sadat City
Egypt
author
text
article
2019
ara
The research aims at studying and analyzing the requirements of the application of IFRS: 17 in terms of recognition principles, measurement approaches, methodology and mechanisms of presentation and disclo-sure to be followed by Egyptian insurance companies according to the application of this standard, and to determine the role of its application in activating the relationship between solvency indicators as regulatory standards guiding the supervisory and supervisory entities in this field locally and internationally, and improving the profitability of the inve-stments of Egyptian insurance companies as an objective measure that accurately reflects the economics of insurance entities. The researcher presented a theoretical methodology based on four main sections re-lated to the research variables and achieve its objectives, as well as an applied study on a sample of five insurance companies operating in the Egyptian market in the field of property and liability insurance (Misr Insurance Company, Suez Canal, Mohandes Co., Delta, gig-Egypt Insurance). Through a five-year time series from 2014 to 2018 of 25 views, the financial performance indicators for these companies were assessed before the IFRS17 was applied once, and applied another time as a trial framework, a range of statistical methods (Descriptive An-alysis, Multiple Discriminant analysis, correlation analysis, path anal-
ysis) through SPSS software for data analysis and hypothesis testing. The researcher has concluded that: the integration between accounting standards related to insurance contracts IFRS: 17 and international regulatory standards Solvency II contributes to improve the credibility and fairness of financial reports in insurance companies in terms of: Accurate measurement and objectivity of the financial position, impr-ove the profitability of financial performance, increase the level of disc-losure And transparency, and contribute to the development of adequate and accurate indicators to assess financial performance. It was also concluded that there was a significant difference between the insurance companies under study on both the solvency and profitability in-dicators. In addition, there is a significant (inverse) relationship bet-ween Solvency II and the profitability indicators of these companies. Finally, the results of the applied study revealed that the application of the standard IFRS: 17 contributes to activate the relationship between solvency II indicators and profitability indicators by reducing the degree of adverse impact between these indicators, which enables the company to form a barrier of solvency enhance its ability to pay its obligations towards policyholders, as well as directing its investments towards investment channels that ensure the highest profitability.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
34
119
https://aljalexu.journals.ekb.eg/article_56669_68498a8d480ec90f48e4104937aeae09.pdf
dx.doi.org/10.21608/aljalexu.2019.56669
The Impact of the corporate life cycle on the relationship between related party transactions and earnings quality:
An Empirical study on listed corporations in the Egyptian stock exchange
Mohamed Mahmoud
El Hoshy
Accounting Department
Faculty of Commerce
Damnhour University
Damnhour
Egypt
author
text
article
2019
ara
This research aims to test the relationship between related party transactions and the earnings quality, based on a set of characteristics of earnings quality, including: accrual quality, persistence, predictability, and finally volatility. The study also aimed to test the impact of the corporate life cycle stages on the previous relationship, using a sample of non-financial companies listed on the Egyptian stock exchange for the period of six years 2011-2016. The results of the study indicated a significant negative relationship between related party transactions and the earnings quality measured using the composite index. With respect to the individual measures of earnings quality, the results indicated a significant negative relationship between the related party transactions and the earnings quality, measured by the Persistence and the predi-ctability of earnings. On the other hand, the results of the study indi-cated that maturity stage reduced the negative impact of related party transactions on the earnings quality measured using the composite index. With respect to the individual measures of earnings quality, the results indicated an increase in the positive effect of related party transactions on the earnings volatility for companies that were in the growth stage.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
120
184
https://aljalexu.journals.ekb.eg/article_56671_edf072f1eafb2b44474e639f7fb52546.pdf
dx.doi.org/10.21608/aljalexu.2019.56671
Analysis of the impact of the operational characteristics of the company on the benefit of accounting information for earnings per share and book value for the purpose of determining the stock prices in the Egyptian stock market
Elsayed Mahmoud
ElHenawy
Accounting Department
Faculty of Commerce
Damnhour University
Damnhour
Egypt
author
text
article
2019
ara
This study aims at studying the value relevance of accounting information (in terms of earning and book value per share) in determining stock prices in the Egyptian stock market. The research aims to test the impact of size of the company, type of industry, leverage, and losses on the value relevance of accounting information, in order to answer the following research questions: Is there a value relevance of accounting information (earnings and book value per share) in the Egyptian stock market? What is the effect of the size of the company on the value relevance of accounting information? What is the effect of the type of industry on the the value relevance of accounting information? What is the effect of the leverage on the the value relevance of accounting information? Is the company suffering of losses affecting the value relevance of accounting information? In order to achieve this objective, a sample of non-financial companies listed on the Egyptian stock market was used for a period of six years from 2012 to 2017. The results of the study showed that accounting information (earning and book value per share) have value relevance in Egyptian Stock market. The results also showed that there is evidence of a significant impact of the size of the company and the level of the company's financial leverage on the role of earnings per share for purposes of determining the share price in the market. On the other hand, the results showed that there is evidence that there is a significant impact of the type of industry to which the Company belongs, or for the loss on the role of book value per share for the purpose of determining the share price in the market.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
185
245
https://aljalexu.journals.ekb.eg/article_56678_d51bf3df474cde590bd6a20571e1bf91.pdf
dx.doi.org/10.21608/aljalexu.2019.56678
The Impact of Adopting International Financial Reporting Standards (IFRS) on the Relationship between Audit Quality and the Readability of Annual Financial Report-Empirical Study on Egyptian Listed Companies
Tamer Ibrahim
El Sawah
Accounting Department
Faculty of Commerce
Alexandria University
Alexandria
Egypt
author
text
article
2019
ara
The research aims to study and analysis the relationship between financial statements audit quality, measured by auditor professional reputation, and the length (readability) of annual financial report, meas-ured by the number of footnotes, pages& words included within this report.In adition to test the impact of adopting international financial reporting stanandards (IFRS)on this relationship. The research includes a sensitivity analysis to examine the effect of expressing audit quality using auditor industry specialization instead of professional reputaion. An empirical study was used to test the two research hypotheses on a sample of 54 listed companies on the Egyptian stock market, during the period from 2014 to 2018 after excluding the first year of applying the recent version of the Egyptian accounting standards because it is a transition year. The total number of observations was 216 observations (firm – year). The empirical study was done by estimating multiple- regression models.
The research has revealed that, there is a significant negative (positive) relationship between auditor`s professional reputation and the length (readability) of annual financial report.There is a significant positive (negative) relationship between IFRS adoption and the length (read-ability) of annual financial report, plus IFRS adoption has a positive effect on the relationship between audit quality measured by reputation andthe length (readability) of annual financial report measured by the number of pages and words within financial report. Finally, the sensi-tivity analysis has revealed a significant negative relationship between auditor industry specialization and the readability of annual financial report based on the number of footnotes included within the report.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
246
314
https://aljalexu.journals.ekb.eg/article_56685_8e9bb76bea8e49f43bb8b831ae2a12c4.pdf
dx.doi.org/10.21608/aljalexu.2019.56685
Study the interactive effect between managerial entrenchment and board independence on firm value
Empirical study in firms listed at Egyptian Stock Exchange
Asmaa Ibrahim
Abd ElRahim
Accounting department
Higher Technological Institute
Tenth of Ramadan
Cairo
Egypt
author
text
article
2019
ara
This study aimed to test the effect of managerial entrenchment ( CEO Tenure - CEO Age - CEO Duality and Board independence ) on firm value . The study also aimed to test the effect of interaction between items of managerial entrenchment and Board independence on firm value. This study using sample (50) firms listed at Egyptian Stock Exchange in the period (2013-2017). The study hypothesis a positive relationship between the CEO tenure and the firm value, a negative relationship between CEO age and firm value , a positive relationship between CEO Duality and firm value and a positive relationship between board independence and firm value . The study was based on measuring the firm value on the Tobin’s Q model (market perfo-rmance). Used the Multiple linear regression model to study the relation between managerial entrenchment and firm value. The results indicated that there was a positive relationship between CEO Tenure – CEO Duality - board independence and firm value for Tobin’s Q model, no significant relationship between the age of the CEO and the value of the company for Tobin’s Q model. The results also showed that there is a positive relation between( interaction of CEO Tenure and Board indep-endence - interaction of CEO Duality and Board independence ) and firm value For Tobin’s Q model ,and there is a negative relation between interaction of CEO Age and board independence for Tobin’s model.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
315
375
https://aljalexu.journals.ekb.eg/article_56687_c169a1ca957548fc46f3995ccd0a20eb.pdf
dx.doi.org/10.21608/aljalexu.2019.56687
The effect of the degree of complexity of accounting estimates on the planning of audit procedures and the auditor's report
an experimental study
Hazem Mahfouz Mohamed
Newegy
Accounting Department
Faculty of Commerce
Damnour University
Damnhour
Egypt
author
text
article
2019
ara
This research aimed to study, analyze and test the effect of the degree of complexity of accounting estimates on the planning of audit procedures and the report of the auditor. To achieve the objective of the research, an experimental study was conducted on a sample of 52 auditors from accounting offices in Egypt. The researcher has reached several results, the most important of which are; there is a significant effect of the complexity of accounting estimates on the planning of the audit procedures, Further analysis shows that this effect on the audit procedures planning extends to; inherent risk assessment, the expansion of the sample size, Assigning verification of accounting estimates to old assistants and extending the period of verification of accounting estimates.The researcher also concluded that there was a significant effect of the degree of complexity of accounting estimates on the auditor's report, whether in terms of delay in issuing the report or the type of opinion contained in the report. finally The researcher also concluded that there is no significant effect of the auditors' experience and their continuous scientific and professional qualification and their registration in the auditors' register with the Egyptian Financial Supervisory Authority (EFSA) on the relationship between the degree of complexity of the accounting estimates and the planning of the audit procedures and the auditor's report.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
375
442
https://aljalexu.journals.ekb.eg/article_56690_8dab35174c1b2eeb6081d3bfe6a7bc1a.pdf
dx.doi.org/10.21608/aljalexu.2019.56690
"The Effectiveness of Using Artificial Neural Networks Models as one of the proposed Tools to Improve the Accuracy of Production Cost Forecasting-Case Study"
The Effectiveness of Using Artificial Neural Networks Models as one of the proposed Tools to Improve the Accuracy of Production Cost Forecasting
Mohamed Mostafa Gomaa Khames
Mohamed
Lecturer of accounting and auditing at the Egyptian Institute of Alexandria Academy for Management and Accounting
Egypt
author
text
article
2019
ara
The Business Environment has evolved in the recent period and has become a highly variable dynamic, as a result of exposure to competitive pressures and ongoing shift toward Automated in most of the Activities and processes, so it became supposed to all facilities need to keep pace with the rapid developments in new Technology in order to remain able to improve the performance and growth and competition. The Information Technology of the most essential tools that help facility to respond and adapt efficiently and effectively to these changes speed.Evolution in Managerial Accounting has happened since they are affected by the ongoing environmental changes, which led to the change and the development of methods to provide the appropriate information to make appropriate decisions and timely. Which led to a change in the skills prossessed by the Managerial Accountant, so that it can carry out the tasks and functions required of it and implement new practices and methods. The basic problem in the lack of coherence or lack of use of Artificial Neural Networks(ANN) as one of modern technologies in the field of aArtificial Intelligence in the development of Managerial Accounting methods and increase their effectiveness in the costing Prediction.Artificial Neural Networks (ANN) one of the most important Artificial Intelligence tools and play an important role in helping enterprises to achieve their goals and meet the challenges imposed on it. So Research aimed at the need to recognize the importance of the use of Artificial Neural Networks (ANN) in the improvement and development of Managerial Accounting in the Cost Prediction. And Research find that costing properly assist in the development of Managerial Accounting by assisting in the application of many of the modern methods of Managerial Accounting, including the possibility of applying the style of the target cost, and accurate identification of the causes of cost and thus the correct application of the system of activity based costing (ABC), and facilitate the value chain analysis, and can also take advantage of costing a private in the strategic planning of the product in the design phase, and also help estimate the costs to strengthen the competitive position of the business and increase its ability to develop new products.
Alexandria Journal of Accounting Research
Alexandria University, Faculty of Commerce, Accounting & Auditing Department
2682-3144
3
v.
3
no.
2019
443
488
https://aljalexu.journals.ekb.eg/article_275563_063a0e0ef80958445e0a572db44e9ba2.pdf
dx.doi.org/10.21608/aljalexu.2019.275563