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This paper aims to examine how audit report lags and audit fees increased for firms that engage in related party transactions (RPTs) around the introduction of Auditing Standard No. 18 (AS18). AS18, which was introduced in 2014, requires following a risk-based approach and additional audit procedures in auditing RPTs and is expected to eliminate the pre-existing inadequate audit effort in auditing RPTs documented earlier by the Public Company Accounting Oversight Board.

Using eight years of hand-collected RPT data from annual proxy statements (form DEF 14A) from the SEC EDGAR database for a sample based on S&P 1,500 firms, this paper examines the effect of AS18 on audit effort using two measures, audit fees and audit report lags. The paper conducts the analysis using both unmatched samples and entropy-balanced regression models.

This paper finds that audit report lags and audit fees do not significantly increase after AS18 for RPT firms in general. However, when this paper classifies RPTs into Business RPTs and Non-Business RPTs and finds that compared to non-RPT firms, Business RPT firms experience a significant increase in their audit report lags and audit fees after AS18. On the other hand, no such association is observed when comparing non-Business RPT firms with non-RPT firms. In addition, this paper shows that this significant association is only observable in firms with weaker corporate governance mechanisms.

The findings shed light on the role of auditing standards in enhancing audit effort over risky transactions and the role of corporate governance in moderating the relationship between auditing standards and audit effort.

This study is the first, up to the best of the authors’ knowledge, that examines whether the additional required procedures associated with AS18 will result in a significant increase in audit effort after AS18 or not.

This paper aims to examine whether female representation on boards is significantly associated with audit fees paid by top Egyptian listed companies.

The authors collect data on audit fees, board of directors' characteristics and financial data for the top 100 companies listed on the Egyptian Exchange (EGX100) for a period of six years. The authors employ an ordinary least squares regression model to capture the relationship between board diversity (i.e. the proportion of female board directors) and the natural logarithm of audit fees while controlling for firm and industry fixed effects as well as other known firm characteristics.

The authors find that audit fees are significantly associated with the proportion of females serving on firms' boards of directors. The findings suggest a complementary relationship between females on boards, as a quality-enhancing board attribute; and audit fees, as a proxy for audit effort and audit quality.

Limitations of this study arise first from the relatively small sample size, and second from the fact that inferences may be specific to the Egyptian context and similar markets.

The results have important implications for Egyptian policy makers and regulators in terms of board composition.

This study provides empirical evidence that further enforces the business case for women's empowerment and the impact of this on the effectiveness of corporate governance.

To the best of the authors’ knowledge, this is the first archival study to examine the association between female board representation and audit fees in Egypt.

This study aims to examine the ability of independent directors to discipline related-party transactions (RPTs) among listed companies in Malaysia. Firms typically appoint independent directors individually, not as a group. However, board members are commonly viewed collectively as a group, and evidence of the abilities of individual directors is scarce.

The attributes of individual independent directors include accounting literacy, length of service, audit committee membership and active participation in board and audit committee meetings. The unit of analysis is the individual independent director. The final sample consists of 1,552 observations in 2017, and RPTs are categorized as either efficient or conflicting.

The study finds that the tenure of individual independent directors and active participation in board meetings affect the firm’s engagement in RPTs. However, the financial literacy, audit committee membership and attendance of independent directors at audit committee meetings do not affect the firm’s engagement in RPTs, either efficient or conflicting. Overall, this result offers limited support for the upper-echelon theory concerning the attributes of individual independent directors and RPTs.

This study uses cross-sectional observations for 2017, which predates the COVID-19 pandemic. Thus, this study ignores the impact of restrictions in community mobility during the pandemic on the independent director’s ability to monitor the corporation. This circumstance may have implications for practice and merit further research.

The findings provide information for board nominating committees, regulators and policymakers that the capability of individual independent directors to fulfill their responsibilities is limited. The firm’s nominating committee must be very selective in nominating and appointing independent directors with appropriate competencies. Investors should choose companies that have reappointed the same independent directors for an extended period, as they may benefit from the experience in protecting investors’ interests.

This paper contributes novel evidence to upper-echelon theory literature on the association between independent directors and RPT types from the perspective of individual independent directors.

This study aims to investigate the relationship between related party transactions (RPTs), specifically sales and purchases, and financial distress. It also explores the moderating role of various corporate governance mechanisms and audit-firm characteristics in this relationship.

This study spans the period before and during the COVID-19 pandemic and uses a logistic regression model focusing on an eight-year noncylindrical panel data set, covering a sample of Omani listed companies from 2014 to 2021.

The empirical findings reveal a contrasting relationship between RPT sales and financial distress: a significant negative relationship in the postpandemic period, and a positive relationship in the prepandemic period. Conversely, RPT purchases exhibit a consistently significant positive relationship across all periods. The presence of a Big Four audit-firm and audit delay are notable moderating variables associated with audit-firm attributes. Additionally, the board’s review of RPT transactions, size, meetings and independence are significant moderator variables pertaining to corporate governance.

This study provides empirical evidence to inform regulators of the efficiency and opportunistic aspects of RPTs in relation to financial distress. The study’s findings offer valuable guidance to managers by suggesting ways to reinforce corporate governance practices and strengthen audit mechanisms to counteract the negative consequences of RPTs.

To the best of the author’s knowledge, this study is the first to explore the direct relationship between both RPT sales and purchases and financial distress while also examining the moderating effect of corporate governance and audit attributes. This comprehensive approach distinguishes itself from its unique contributions to the field.

This paper aims to examine the influence of board gender diversity on corporate anti-corruption disclosure (ACD) and the role of the Sapin II Law.

The authors used panel data regressions on a sample of French listed firms from 2010–2020. Keywords-based content analysis is used to measure ACD. Additionally, the Difference-in-Differences (DID) model investigate whether the ACD levels with high and low female directors’ changes before and after the Sapin II Law.

There is a positive relationship between female directors and corporate ACD. This relation is particularly significant in firms who applies the Sapin II Law.

The authors focus solely on larger French listed companies, which may not reflect small and medium-sized businesses. Due to data limitations, the authors could not include demographic factors like age, education and experience that could influence company behavior. Furthermore, self-reported data may not adequately reveal illicit practices within these companies.

The relationship between board gender diversity and corruption disclosure informs policymakers on reforms for female directors. The findings also aid investors and suggest that managers should view gender diversity as a governance tool to reduce corruption.

This paper is original in focusing on ACD and using a DID methodology to assess the impact of the Sapin II Law. It uniquely investigates threshold effects between board gender diversity and ACD and examines the French context, including the Copé-Zimmermann Law’s gender diversity mandate.

This study aims to assess the impact of the introduction of International Financial Reporting Standards (IFRS) on the informational relevance of accounting figures for Moroccan companies listed on the Casablanca Stock Exchange. Specifically, it seeks to determine whether IFRS adoption improves the ability of accounting data to reflect share price movements.

The empirical analysis covers a sample of 27 Moroccan listed companies over a six-year period (2015–2020), with a total of 162 observations. The study tests various hypotheses through association studies to evaluate the effectiveness of accounting figures in reflecting share prices in the pre-IFRS and post-IFRS periods. The analysis utilizes Ohlson's (1995) price model, which is widely used in the literature for such assessments.

The results show that both earnings and shareholders’ equity are more effective in explaining share price variations in the post-IFRS period than in the pre-IFRS period. In particular, equity demonstrates greater explanatory power than earnings. The combined explanatory power of equity and earnings is significantly stronger in the post-IFRS period, suggesting that the adoption of IFRS has played a key role in enhancing the quality of financial information disclosed in the Moroccan market.

Theoretical implications – this study highlights that the adoption of IFRS reduces information asymmetry, thereby mitigating conflicts of interest and agency costs. By aligning accounting practices with international standards, IFRS enhance transparency and governance, fostering a more reliable business environment. Practical implications – the study indicates that IFRS adoption improves the transparency, reliability and comparability of financial information, enhancing investor confidence and making the Moroccan financial market more attractive. It provides useful guidance for regulators, businesses and countries considering IFRS implementation, demonstrating the importance of these standards in boosting market transparency and attracting global investments.

This study explores the impact of IFRS adoption on the relevance of financial information in Morocco, a topic that has been underexplored in emerging economies. It fills a gap in the literature by providing insights into IFRS adoption in a specific context, thus contributing to the ongoing debate on their effectiveness in developing economies.

This paper aims to examine the theoretical underpinnings of international financial reporting standards (IFRS)-related studies and offers directions for theoretical and empirical research. Specifically, this study examines the main theories in IFRS adoption research (i.e. adoption, compliance and effects).

The sample contains 67 empirical papers that have used theories and was collected from Web of Science database. This study uses a systematic review technique.

Generally, the review shows the prevalent and pervasive use of institutional theories of isomorphism across all the three areas of IFRS adoption. Particularly, regarding IFRS adoption stream, this study finds the institutional theory as a dominant theory used to explain IFRS diffusion around the globe. For IFRS compliance, this study finds that the agency and the capital need theories are widely used. For IFRS adoption effects stream, this study finds a few studies using the contingency and neo-institutional theories. Overall, the review provides theoretical lens for IFRS adoption, IFRS compliance and IFRS adoption effects.

Given the lack of a well-defined set of theories in the domain of accounting, the findings provide further guidance on theory building within the field. Further, accounting regulators, academics and practitioners may benefit from the findings when explaining various changes in the world of accounting.

This systematic literature review presents the evolution of accounting-related research in the Indonesian context. We examine 55 academic articles from the initial 296 records of accounting and finance research in the Q1 Scopus-indexed journals from 1995 to 2022. This study sheds light on Indonesia’s main research streams, unique settings and urgent future research agenda.

This study adopts a systematic approach for a comprehensive literature review. We select articles according to a series of criteria and compile the metadata for the bibliographic mapping.

Our bibliometric analysis suggests five main research streams, namely (1) political connection, (2) capital market, (3) audit and accountability, (4) firm policy and (5) banking. We identify the following distinctive country settings, which are well discussed in extant literature: political connection, two-tier board system, weak accounting profession, information opacity and cultural impact on accounting. We outline prospective agendas to examine the institutional mechanisms’ role in addressing major environmental challenges through accountability.

This study offers unique contributions to the literature by comprehensively reviewing accounting-related research in Indonesia. Despite Indonesia’s economic and environmental importance, it has received limited attention from scholars. Using dynamic topic analysis, we highlight the need to examine the role of informal institutions, such as political connections and culture and formal institutional mechanisms, such as corporate governance and environmental disclosure.

The study aims to analyse the role of digitisation in accounting in enhancing the overall effectiveness of accounting functions. To achieve this, the study provides empirical evidence from the stakeholder’s perspective of digitisation of accounting, auditing, reporting and regulatory compliance procedures.

The study has applied a quantitative approach to identify the thoughts of auditors, accountants and academicians on the impact of digitalised accounting applications on accounting functions. The data was collected by administering an empirical study and a sample of 482 professionals from the accounting, auditing and academic sectors. To analyse and interpret data descriptive statistics, structured equation modelling and mediation analysis has been used.

The finding of the study signifies the relevance of digitalised accounting applications in accounting functions and reveals that there is a significant impact of digitalisation on accounting, auditing, reporting and regulatory compliance aspects of accounting functions. The outcome of the study explores that a digitalised accounting system reduces possible errors and improves the accuracy and transparency of the system.

The study highlighted the importance of developing new methods and techniques that can be used in practice. This indirectly advocates the inclusion of such concepts in accounting curricula to emphasise the need to understand the challenges and opportunities created by digitisation. Furthermore, the study will become a motivation to scholars who intend to explore different areas through which new technologies can be adopted to transform traditional accounting systems.

The contributions of the current study have implications that the adoption of digitised accounting enhances economic efficiency through a reduction in accounting costs, and enhanced accuracy that leads to the elimination of penalties and litigations for non-compliance with regulatory authorities. This indirectly impacts positively on the financial health of the business organisations and economies at large. This implication becomes greater evidential support to the organisations which are yet to plan the adoption and implementation of digital tools in their organisation for accounting functions.

Digitalisation is a relevant part of the accounting function to improve efficiency and accuracy. Since accounting and auditing practitioners struggle to control the accuracy and efficiency of transactions. Furthermore, the outcome of the study assists organisations in gaining real-time access to financial data, transforms workflows and empowers management to make timely informed sound decisions, optimise resource allocation, efficient regulatory compliance and so on.

This study aims to examine the relationship between financial report readability (FRR) and audit fees (AF) by bringing evidence from an emerging market. In addition, it reveals the moderating influence of board gender diversity (BGD) on such a relationship.

The authors analyzed data collected manually from the financial reports of Egyptian nonfinancial firms listed on the Egyptian Stock Exchange between 2016 and 2021 using Pooled OLS, Random effects, Fixed effects regressions.

The authors found a negative relationship between FRR and AF. Likewise, BGD is found to be negatively related to AF, and positively associated with FRR. In addition, the authors found that the negative association between FRR and AF is more pronounced in the case of BGD.

This paper contributes to previous research on the auditors’ reactions to the clarity of financial reporting as well as the role of board gender concerning the FRR-audit pricing relationship in emerging markets.