Purpose This paper aims to report on the quality of corporate social responsibility (CSR) disclosure in S&P Europe 350 companies. The paper also examines the impact of corporate governance structure and other firm-specific characteristics on the quality of CSR disclosure in European companies. Design/methodology/approach The paper uses a disclosure index adopted from Jizi et al. (2014). Moreover, the paper contributes to the CSR disclosure literature by developing a new index that includes all the aspects introduced by the Global Reporting Initiative version 4.The data of CSR reporting are manually collected from the firms’ reports. The population and sample of this study are related to 350 companies operating in 16 European countries. Tobit regression analysis is used to test the hypotheses. Findings The results reveal that directors’ ownership, the presence of a CSR committee and firm size positively affect the quality of CSR reporting. Further testing of the independent variables on each CSR sub-category is made. The CSR sub-categories used are, namely, community involvement, employees, environment, social product and service quality, supply chain sustainability and business ethics. The presence of a sustainability committee inside the company is the only factor that shows a strong positive effect on the disclosure of every CSR sub-category and the CSR inclusive index. Research limitations/implications The limitations of this research are that it focuses exclusively on the effect of the internal corporate mechanisms on the quality of CSR reporting; disregarding the economic, institutional, political and cultural factors that can play a role in influencing sustainability reporting of the companies. Practical implications Better CSR disclosure leads to the firm having a better image in the society; this, in turn, has implications on firm performance, attracting funds, as well as recruiting and retaining high profile employees. Stakeholders are placing cumulative significance to corporate transparency particularly in the area of CSR. Managers should exert more efforts into not only improving the disclosure of the various facts of CSR but also into using the various media available for disclosure. Companies should take the initiative of establishing a CSR committee to ensure effective formation and implementation of CSR policies and disclosure of CSR activities. Social implications The CRS research itself bears the merit of social implications. Moreover, the findings of this research pave the way for future researches to examine the effect of the adoption of global CSR initiatives and frameworks on the quality of CSR reporting. Originality/value This paper contributes to the CSR disclosure literature by developing a new index that includes all the aspects of CSR and exploring the relation between the rarely explored “presence of sustainability committee” and CSR disclosure, as well as testing a vast number of CSR sub-categories that is not extensively covered in previous studies. Moreover, the paper covers a large sample of companies across 16 European countries, in terms of their stand-alone sustainability reports, dedicated chapters of CSR in annual reports, integrated reports, website CSR information and any attachments/links provided on the websites for further CSR documents, brochures or data sheets.

Purpose Information technology (IT) largely affected contemporary businesses, and accordingly, it imposes challenges on the auditing profession. Several studies investigated the impact of IT, in terms of the extent of use of IT audit techniques, but very studies are available on the perceived importance of the said issue in developing countries. This study aims to explore the impact of implementing IT on the auditing profession in a developing country, namely, Egypt. Design/methodology/approach This study uses both quantitative and qualitative data. A survey of 112 auditors, representing three of the Big 4 audit firms as well as ten local audit firms in Egypt, is used to gather preliminary data, and semi-structured interviews are conducted to gather details/qualitative-pertained information. A field-based questionnaire developed by Bierstaker and Lowe (2008) is used in this study. This questionnaire is used first in conducting a pre-test, and then, the questionnaire for testing the final results is developed based on the feedback received from the test sample. Findings The findings of this study reveal that auditors’ perception regarding client’s IT complexity is significantly affected by the use of IT specialists and the IT expertise of the auditors. Besides, they perceive that the new audit applications’ importance and the extent of their usage are significantly affected by the IT expertise of the auditors. The results also reveal that the auditors’ perception regarding the client’s IT is not affected by the control risk assessment. However, the auditors perceive that the client’s IT is significantly affected by electronic data retention policies. The results also indicated that the auditors’ perception regarding the importance of the new audit applications is not affected by the client’s type of industry. The auditors find that the uses of audit applications as well as their IT expertise are not significantly affected by the audit firm size. However, they perceive that the client’s IT complexity as well as the extent of using IT specialists are significantly affected by the audit firm size. Research limitations/implications This study is subject to certain limitations. First, the sample size of this research is somehow small because it is based on the convenience sampling technique, and some of the respondents were not helpful in answering the surveys distributed for this research’s purpose. This can be attributed to the fear of the competitors that their opponent may want to gather information regarding their work to be able to succeed in the competition in the market so they become reluctant to provide any information about their firm. Even some people who were interested to participate were not having enough time because the surveys were distributed during the high season of their audit work and there was limited time for the research to be accomplished. Hence, it is difficult to generalize the results among all the audit firms in Egypt because this limits the scope of the analysis, and it can be a significant obstacle in finding a trend. However, this can be an opportunity for future research. Second, the questionnaire is long and people do not have enough time to complete it. This also affected the response rate. In addition to this, the language of the questionnaire was English, so some respondents from the local audit firms were finding difficulty in understanding some sophisticated IT terms. Practical implications This study makes some recommends/suggestions that can well be used to solve some practical problems regarding the issues concerned. This study focuses on accounting information system (AIS) training during the initial years of the auditors’ careers to help staff auditors when they become seniors to be more skilled with AIS expertise needed in today’s audit environment. Clear policy statements are important to direct employees so that IT auditors evaluate the adequacy of standards and comply with them. This study suggests increasing the use of AIS to enhance individual technical and analytical skill sets and to develop specialized teams capable of evaluating the effectiveness of computer systems during audit engagements. This study further recommends establishing Egyptian auditing standards in this electronic environment to guide the auditors while conducting their audit work. Social implications Auditors should prioritize causes of risks and manage them with clear understanding of who receives them, how they are communicated and what action should be taken in a given community/society. So, they have to determine and evaluate all risks according to the client’s type of industry (manufacturing, non-financial services and financial). Auditors also have to continually receive feedback on the utility of continuous auditing (CA) in assessing risk. In particular, it is better for the auditor to determine how the audit results will be used in the enterprise risk management activity performed by the management. In addition, privacy has several implications to auditing, and so, it has to be reflected in the audit program and planning as well as the handling of assignment files and reports. Alike, retention of electronic evidence for a limited period of time may require the auditor to select samples several times during the audit period rather than just at year end. Originality/value As mentioned, this study is conducted within a developing country’s context. The use and importance of IT is reality of time. However, very few studies are devoted to explore the use/importance of IT in auditing in developing countries, and thus, this study carries a significance to have better understanding about it. Moreover, knowledge of how IT is used, the related risks and the ability to use IT as a resource in the performance of audit work is essential for auditor effectiveness at all levels including developing countries.

No abstract

Purpose This paper aims to examine the effect of religiosity on the degree of auditor independence given the significance of symbolic gestures constructed by client economic conditions in different situations before and after considering the degree of auditors’ moral development. Design/methodology/approach The paper uses an experimental design based on running mixed factorial analysis of variance (SPANOVA) using mainly repeated measures GLM to test the interaction effects between (and within) variables on auditor independence. Findings The main findings indicate that there is a significant interactional effect between the degree of moral development and intrinsic religiosity on the degree of auditor independence, given the stimulating effect of the client’s economic gestures/conditions. Practical implications The Egyptian economy is growing and ensuring that auditor independence is paramount to sustaining the local, as well as foreign investors’ interest. Hence, this study is very important in highlighting factors that might lead to some impairment of auditors’ independence. Originality/value To the best of the authors’ knowledge, this study is the first to test the interactional effect between the religious orientation rather than religious affiliation and moral development on the degree of auditor independence, such a relationship has not been tested before in the literature. Additionally and most importantly, it uses statistical measurement through its experimental design, as there is a lack of studies in terms of auditor independence in Egypt. The existing literature follows the perceptional assessment rather than the real measurement of the degree of auditor independence.

Purpose -The purpose of this paper is to contribute to the theory and applications in social business and accountability. Design/methodology/approach -The paper develops the theoretical arguments, shows the importance of non-accounting measures, explores available non-accounting measures and suggests BSC as an externally validated reporting tool. Findings -There is a need to expand the accounting base to non-financial measures; social business and social enterprises do not have externally validated performance reports and there is no benchmark data to compare performance. Research limitations/implications -This is a conceptual and theoretical study. It needs empirical validation. Practical implications -Using the suggested measurement and reporting will make public accountability transparent and expand the accountant's social role. It will motivate teaching of social business in accounting. Social implications -The study supports social business as a legitimate entity; corporations engaged in social business will be more publicly responsible; the study will encourage investment in social business; small entrepreneurs from the bottom of the society will have an opportunity to participate in the economy; and the poor will participate in the economy, will expand the economy and contribute to social and economic development. Originality/value -The paper includes guidelines for implementing the proposed BSC, performance measurements and reporting techniques.

Purpose This study aims to explore corporate governance (CG) practices that can lead to firms’ better performance in different organizational life cycles. The authors propose a configurational approach to explore how a set of CG practices combine in bundles to achieve high performance outcomes for firms across their corporate life cycles. Design/methodology/approach Fuzzy-set qualitative comparative analysis was used to analyze a sample of data of 21 countries and 9 industries. Data referred to the period of 9 years extending from the year 2005 to the year 2013. Findings This study reveals that there are multiple CG practices that exist through firms that can achieve high firm performance. Moreover, CG practices combine in different ways for firms in their growth, maturity and declining stages. Research limitations/implications This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles. Practical implications The current study draws attention to the policymakers’ need to assess the current level of regulatory and competitive development of their countries and form policy accordingly. The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Social implications The approach used in the current research study not only offers the linkages between CG and performance to managers as incentives to comply with regulation but also to view CG-related activity as a strategic move. Originality/value This study broadening the focus of CG studies to include a rigorous explanation of the global CG phenomena and to provide effective solutions for the practitioners. Contribution to Impact This study demonstrates the value of using a configurational analytical approach to explore both the firm and country-specific CG practices (together) that engage firms to achieve the desired level of performance across the corporate life cycles.

No abstract

No abstract