Development of Accounting and Auditing in Egypt: Origin, Growth, Practice and Influential Factors

Elbayoumi, Ahmed F.; Awadallah, Emad; Basuony, Mohamed A. K.

doi:10.1353/jda.2019.0031

Cited by 15 publications

(8 citation statements)

References 23 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…A new package of the Egyptian Accounting Standards was issued in 2015, applicable starting January 2016. The new Egyptian Accounting Standards are mostly compatible with the International Accounting Standards and International Financial Reporting Standards (Elbayoumi et al , 2019).…”

Section: The Business Environment Of Egyptmentioning

confidence: 99%

Investigating the impact of macro-economic changes on auditors' assessments of audit risk: a field study

Awadallah

El-Said

2020

JAAR

View full text Add to dashboard Cite

PurposeThe study aims at examining whether or not poor macro-economic conditions can lead auditors to change their risk management policies when performing an audit.Design/methodology/approachThe present study is based on a questionnaire distributed to auditors working at the branches of the big four audit firms in Egypt over two rounds under different economic conditions. The responses in each of the two rounds were analyzed to identify any similarities or differences in auditors' behavior when performing analytical procedures under different economic conditions.FindingsAuditors appear to alter their risk management strategies during challenging economic times. The present study results suggest that auditors increase their dependence on non-financial data and information as supporting evidence when assessing audit risk during times of economic difficulties. The findings also show that when the macro-economic trends are declining, audit firms tend to assign the performance of analytical procedures to more experienced audit personnel (i.e. senior auditors, audit managers and partners) with less of this work being done by the audit staff.Research limitations/implicationsThe present study is based on a sample of 40 respondents. It is recommended for future research to use a larger sample size as results may differ for a greater sample. The present research did not consider the effect of auditors' specialization in a certain industry on the audit judgment during an audit engagement. Future research would examine the impact of auditors' industry specialization on audit judgments during periods of unfavorable economic conditions. The present study is based on a survey that aims at capturing auditors' perception. Further research would use other research techniques (e.g. laboratory experiment) to examine the effect of the general economic conditions on auditors' assessment of audit risk.Practical implicationsAuditors need to give sufficient attention to the analyses of non-financial information of their audit clients during the performance of the analytical procedures under unstable economic conditions rather than depending solely on financial information. Moreover, audit firms could use a much richer labor mix for audit teams through increasing their reliance on experienced senior auditors, audit managers and partners during periods of deteriorating macro-economic conditions to mitigate risk and improve audit judgment.Originality/valueThis study adds to the scarce literature in developing countries investigating the influence of external economic factors on the audit process. The present research provides information to practitioners and educators about risk management policies that could be considered in case of performing analytical procedures during an audit conducted under poor economic conditions.

show abstract

Section: The Business Environment Of Egyptmentioning

confidence: 99%

Investigating the impact of macro-economic changes on auditors' assessments of audit risk: a field study

Awadallah

El-Said

2020

JAAR

View full text Add to dashboard Cite

show abstract

“…Egypt has an extensive history in the field of accounting, auditing and accountability. Specifically, in the 1960s, Egypt moved to central planning economic, nationalization, and fast expansion of the public sector (Elbayoumi et al, 2019;Khlif and Samaha, 2014). The Central Auditing Organization (CAO) became the governmental auditing agency responsible for auditing the public sector, covering governmental-owned companies (CAO, 1988;Khlif and Samaha, 2014).…”

Section: Auditing Profession In Egyptmentioning

confidence: 99%

“…The new ESA are mostly consistent with the International Auditing Standards (IAS). ESA and EAS are developed and revised by a professional body, discussed and adopted by a ministerial committee, and issued by ministerial decrees applicable to the Egyptian environment (Elbayoumi et al, 2019;ROSC 2002). The auditing profession in Egypt is still governed by the law 133 of 1951.…”

Section: Auditing Profession In Egyptmentioning

confidence: 99%

Auditors’ ethical reasoning in developing countries: the case of Egypt

Abdelhak¹,

Elamer²,

AlHares³

et al. 2019

IJOES

View full text Add to dashboard Cite

Purpose The purpose of this study is to investigate Egyptian auditors’ ethical reasoning, to understand whether auditors’ ethical reasoning is influenced by audit firm size and/or auditor’s position. Design/methodology/approach This paper draws on 178 questionnaires that include six different ethical scenarios. This paper also uses the accounting ethical dilemma instrument that is developed by Thorne (2000) to measure the ethical reasoning of Egyptian auditors. Findings The findings are threefold. First, this study finds that the general level of deliberative ethical reasoning of auditors working in the Central Auditing Organization (CAO) and small firms are categorized in the post-conventional level, while auditors working in big and medium firms are categorized in conventional level. Second, the result suggests that there is a negative relationship between ethical reasoning and audit firm size in Egypt. Finally, the results show that ethical reasoning levels decrease when the position of auditors increase except for auditors working in CAO. Originality/value This study adds to the scarce literature in developing countries that measure auditors’ ethical reasoning. The findings suggest that auditors’ ethical reasoning depends on auditor’s firm size and the position the auditor holds within the firm. These findings will aid policymakers and regulators, especially in developing countries, to avoid any potential risk regarding professional misconduct and in evaluating the adequacy of the current code of ethics.

show abstract

“…Accounting practices in Egypt, as an emerging country, have been developed also. The first issuance of Egyptian Accounting Standards (EAS) was in 1996, Accounting standards have been developed by the Egyptian Society of Accounting and Auditing (ESAA) which were discussed and adopted by Ministerial Committee and Ministerial Decrees, since EAS has been developed to be consistent with International Financial Reporting Standards (IFRS) by translating them into Arabic (ROSC 2002, Elbayoumi et al, 2019.…”

Section: Egyptian Environmentmentioning

confidence: 99%

The Moderating Effect of Firm Characteristics on the Association Between Accounting Conservatism and Cash Holdings

Soliman

2019

ijafr

View full text Add to dashboard Cite

Recent studies are interested in the determinants of cash holdings (CASH), some of these studies focus on conservatism, as one of these determinants. In light of a debate on the nature of the association between conservatism and CASH, this paper discusses and investigates the answers for three questions, the first question about the direct association between conservatism and CASH, the second question about the moderating effect of firm characteristics on this association, the third question about the effect of adopting Egyptian Accounting Standards (EAS) since 2016 on the last association. This paper focuses on Egyptian listed firms in Egyptian Stock Exchange (EGX), especially EGX 100, for six years period from 2013 to 2018 for 11 main sectors, 125 firms and 703 unbalances panel data observations. The findings indicate that (1) conservatism has a negative effect on CASH, (2) only firm size has a moderating and positive effect on the association between conservatism and CASH, (3) firm leverage, firm growth opportunity, and firm managerial ownership do not have a moderating effect on the last association. (4) Adopting EAS in 2016 by Egyptian listed firms gives the management of these firms' suitable chances to control CASH using its association with conservatism.

show abstract

Development of Accounting and Auditing in Egypt: Origin, Growth, Practice and Influential Factors

Cited by 15 publications

References 23 publications

Investigating the impact of macro-economic changes on auditors' assessments of audit risk: a field study

Investigating the impact of macro-economic changes on auditors' assessments of audit risk: a field study

Auditors’ ethical reasoning in developing countries: the case of Egypt

The Moderating Effect of Firm Characteristics on the Association Between Accounting Conservatism and Cash Holdings

Contact Info

Product

Resources

About