An Interpretive Analysis of how Audit Quality is Perceived in Economies in Transition

With the movement of many internationalaccounting firms into Egypt, and the growth of local auditfirms, it is particularly interesting, and relevant forgovernmental legislators, to study how the providers of theaudit service perceive the quality of what they do. In thissense, the purpose of this paper is to report the perceptions ofprofessional auditors in Egypt concerning how they perceivethe quality of the service they provide. The paper also analyzesdifferences between perceptions of the Big 4 audit firms andother local audit firms. Based on 28 semi-structuredinterviews, it was revealed that the interviewees generallybelieved that the audit quality is preserved high in thepresence of four factors: (1) high ethical standards to guideand regulate the profession; (2) a well planned and conductedaudit; (3) a more knowledgeable audit team; and (4) having agood relationship with the client management

The Usefulness of Different Accounting Earnings Measures: The Case of Egypt

The objective of this paper is to investigate whichmeasure of accounting income (comprehensive income,operating income, or net income) is more useful to equityinvestors in explaining future earnings, future cash flows, andstock returns. This study proposes that different measures ofincome are more useful for different uses. The research isundertaken within the Egyptian environment that allowsconsiderable asset revaluations and holds the reporting ofextraordinary items. Therefore, such environment provides arich ground for testing the expected effects of reportingcomprehensive income and its components on the Egyptianinvestors. The results do not support the superiority ofcomprehensive income measures in explaining the followingperiod’s net income compared to net income. None of the fourtested measures of earnings is able to explain the followingperiod’s cash flows. Operating income is superior to the otherthree measures of income in explaining stock return

Macro and Micro Earnings Manipulation: The Role of Accounting Standard Setting Process

Preparers of financial statements are in aposition to influence the view of economic reality presented inthose statements to interested parties. The term 'macromanipulation'is used to describe the lobbying of preparersagainst regulators (accounting standards setters) to persuadethem to produce regulation that is more favorable to theinterests of preparers. The aime of this paper is to introduce asuggested tool that could be used to ascertain why somefinancial accounting standards turn out to the benefit of one ofthe stakeholders involved in the process of accountingstandards setting. This paper utilizes the construct of power toreveal the influences from parties involved in the process ofaccounting standards setting. The comprehensive incomereporting standard is used in this paper as an example of thesetypes of standard that may involve 'macro-manipulation'

Disclosure tone, corporate governance and firm value: evidence from Egypt

This study examines the extent to which corporate governance (CG) affects disclosure tone (DT) and assesses the impact of DT on firm value (FV). It also tests the effect of CG on FV using DT as an intermediary variable. Content analysis is used to measure DT level. CEO duality, board size, gender diversity, and board independence are used as proxies for CG. Tobin’s Q is used to measure FV. The empirical analysis shows significant positive impact of CG on DT and FV. We also find a highly significant association between disclosure of good/bad news with leverage, audit quality, firm growth, and abnormal accruals. The results also indicate that DT along with the profitability of the firm (ROA) and Abnormal Accruals are significantly associated with FV. Finally, the results of the structure equation modeling show that gender diversity, ROA, leverage, revenue growth, and abnormal accruals are the most influential variables that run from CG and DT into FV. The novelty of this study stems from its empirical analysis that tests the association between CG, DT from one side and DT and FV from the other side, and then measures the impact of CG on FV using DT as an intermediary variable

Prevalence, Molecular Characterization, and Economic Impact of Hydatid Cysts in the Slaughtered Animals in Abattoirs of Minoufyia Governorate, Egypt

The hydatid cyst is considered a hazardous obstacle for public health and the livestock industry. The present investigation sought to ascertain the prevalence of hydatid cysts, histopathology, and economic losses in slaughtered food animals in Egypt's Minoufyia governorate. Furthermore, the molecular characterization of the cysts was performed using an analysis of the NADH dehydrogenase 1 sequence. Visual meat inspection of 6417 slaughtered animal carcasses in Minoufyia Governorate abattoirs was conducted over two years, from March 2019 to February 2021. The prevalence of hydatid cysts in slaughtered animals was 1.48%. The prevalence in different animal carcasses was 1.5% in sheep, 1.33% in cattle, 0.71% in buffaloes, and 9.5% in camels while cyst was not detected in goats. Females had a higher prevalence than males. Autumn had the highest prevalence of hydatid cysts at 0.44%, followed by winter at 0.40%, spring at 0.39%, and summer at 0.25%. The liver and lungs were the most infected organs, with infection rates of 57.9% and 42.1%, respectively. In addition, the histopathology of recovered hydatid cysts was recorded. The sequence analysis of NADH dehydrogenase revealed that the sequence of camel and cattle is E. canadensis and the buffalo sequence is E. ortleppi. The phylogenetic tree revealed that Echinococcus canadensis from Egyptian camels and cattle belonged to the same taxon as genotypes 6-10 of the E. granulosus complex. The E. ortleppi sequence from Egyptian buffalo was found in the same clade as genotype 5 of the E. granulosus complex. The economic costs of organ condemnation amounted to 47320 EGP. The results of this survey present the prevalence, economic impact, and molecular characterization of hydatid cysts from animals in Minoufyia governorate, Egypt.  Strict hygienic measures are needed to control this infection in food animals and humans.