Internal Audit Function in Tunisian Listed Companies: An Explanatory Study

Purpose – The aim of this paper is to explore the attributes and activities of the internal audit function in Tunisian listed firms and evaluate its capacity to fulfill its role in corporate governance process. Design/methodology/approach – The study has been carried out through a questionnaire survey that aims to analyze internal audit function (IAF) characteristics’ in Tunisian listed firms.  The main aspects of this study were: insourcing versus outsourcing arrangements of the internal audit function; organizational statue; internal audit activities and internal audit interaction with external auditors.Findings – The findings of the study show that despite its changing role within the organization, the internal audit function suffers from some limitations that impair its independence and limit its intervention field. Also, internal audit function in Tunisian listed companies is focused on financial audit, internal controls and risk management assessment. Further analysis reveals a considerable level of coordination between internal and external auditors. Research implications – The paper’s findings are of interest to several different parties, primarily the professional internal audit body, chief audit executive (CAE), audit committee and senior management.Originality/value – The paper describes an empirical study, conducted on a sample of Tunisian listed companies, which provides a better understanding of the internal audit function attributes and activities. The paper is also a meaningful contribution to the internal audit literature, as it examines an interesting subject that has not yet been largely investigated in the context of emerging market. Keywords - Internal audit function - Corporate governance - Listed companies - Tunisi

LA GESTION DES RESULTATS DANS LES BANQUES TUNISIENNES : VERS UNE GESTION REELLE

L'objectif de cet article est d'étudier le comportement des banques tunisiennes en matière de gestion des résultats dans un contexte caractérisé par des mutations économiques importantes. En se basant sur une démarche, à la fois, qualitative et quantitative, les résultats montrent que les banques tunisiennes gèrent moins leurs résultats par le biais des provisions pour créances douteuses. En conséquence, les banques s'orientent de plus en plus vers la gestion réelle de leurs résultats par la cession des titres de participation et le recours aux sociétés de recouvrement.Provisions pour créances douteuses, Gestion réelle des résultats, Gestion comptable des résultats, Secteur bancaire.

Political Connections and Debt Access: The Case of Tunisian Firms

The purpose of this paper is to study the effect of political connections on debt access in the case of Tunisian firms before and after the 2011 uprising. The results show that the impact of political connections on debt access differs according to three criteria: Firstly, according to debt maturity, secondly according to the degree of political connections, and finally according to the sub-period studied. Keywords: Debt Access, Political Connections, Tunisia JEL Classifications: G30, G3

Unlocking technological capabilities to boost the performance of accounting firms

Research Question: What is the impact of the use of Internet technology on the financial and non-financial performance of accounting firms? Motivation: The evaluation of the performance of an accounting firm is based on the technological factor. This study is based on a multi-activity study of accounting firms which includes mainly reporting, auditing, and tax activities to create a realistic approach to appropriately measure the performance of accounting firms. Especially with the scarcity of studies have been conducted regarding the organizational impact of technologies on accounting firms. Idea: the purpose of the study was to determine the effect of technology on the performance of accounting firms, based on empirical data. Data: 104 observations were received via a questionnaire sent to the heads of the accounting firms. Tools: we used linear regression to measure the impact of technology use on performance and validated our results graphically. Findings: the results demonstrate that accounting firms equipped with technological capabilities benefit from superior performance. Contribution: these results have practical implications, suggesting that there is value in fostering a mutually beneficial relationship between academic research and the professional practice of accounting firms. Accounting professionals can utilize research insights to enhance their working methods, policies, and decision-making processes pertaining to technology. This collaboration can lead to tangible improvements within the accounting field and contribute to its ongoing development

L’impact des interactions formelles et informelles entre la fonction d’audit interne et le comité d’audit sur la mise en œuvre des recommandations du rapport d’audit interne

International audienceL’objectif de ce papier est d’analyser l’impact de ces interactions formelles et informelles entre la fonction d’audit interne et le comité d’audit sur la mise en œuvre des recommandations du rapport d’audit interne. Les tests portent sur 159 observations parmi les entreprises tunisiennes cotées (période 2013-2015). Les analyses multivariées montrent que la mise en œuvre des recommandations du rapport d’audit interne augmente avec l’ampleur de plusieurs formes d’interactions formelles et informelles entre le comité d’audit et la fonction d’audit interne

The Determinants of Investment Account Holders’ Disclosure in Islamic Banks: International Evidence

In this paper, we offer a novel contribution to Islamic accounting literature by examining the determinants of Investment Account Holder (IAH) disclosure in Islamic banks’ annual reports. Using data from Islamic banks around the world, our regression analysis shows that the level of IAH funds, the return on IAH funds, adoption of AAOIFI standards, liquidity level, bank size and ownership have a positive significant relationship with IAHs’ disclosure level. Our findings can be useful for IAHs, regulatory bodies and information users in general as they help them to understand IAH practices in Islamic banks and the main incentives of managers to disclose IAHs’ information. The present study offers an original contribution to the Islamic accounting literature as it is the first one—to the best of our knowledge—that investigates the relationship between the specificities of Islamic banks and the extent of IAH disclosure

Banking supervision and nonperforming loans: a cross-country analysis

Purpose – The purpose of this paper is to empirically analyse the cross-countries determinants of nonperforming loans (NPLs), the potential impact of supervisory devices, and institutional environment on credit risk exposure. Design/methodology/approach – The paper employs aggregate banking, financial, economic, and legal environment data for a panel of 59 countries over the period 2002-2006. It develops a comprehensive model to explain differences in the level of NPLs between countries. To assess the role of regulatory supervision on credit risk, the paper uses several interactions between institutional features and regulatory devices. Findings – The empirical results indicate that higher capital adequacy ratio (CAR) and prudent provisioning policy seems to reduce the level of problem loans. The paper also reports a desirable impact of private ownership, foreign participation, and bank concentration. However, the findings do not support the view that market discipline leads to better economic outcomes. All regulatory devices do not significantly reduce problem loans for countries with weak institutions, corrupt environment, and little democracy. Finally, the paper shows that the effective way to reduce bad loans is through strengthening the legal system and increasing transparency and democracy, rather than focusing on regulatory and supervisory issues. Practical implications – First, higher CARs results in less credit exposures. Second, international regulators should continue their efforts to enhance financial development. The results suggest that foreign participation plays an important role in reducing credit exposure of financial institutions. However, in developed countries, foreign entry led to more problem loans. Finally, to reduce credit risk exposure in countries with weak institutions, the effective way to do it is through enhancing the legal system, strengthening institutions, and increasing transparency and democracy. Originality/value – The paper contributes to the literature on banking regulation and supervision. It examines aggregated data which best reflect the level of NPL of the banks in a country as opposed to individual data included in databases that suffer from the problem of representativeness. It considers the impact of regulatory variables after controlling for bank industry factors that alter primarily problem loans. Finally, the paper examines the effectiveness of regulation through the inclusion of institutional factors.Banking, Credit, Loans, Regulation, Risk assessment