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This study explores the relationship between gender diversity in South African audit committees and financial reporting quality (FRQ) of non-financial companies listed on the Johannesburg Stock Exchange from 2020 to 2024. A quantitative approach was employed to investigate these relationships, utilising an ex post facto design to collect data from the Osiris database and integrated annual reports. Gender diversity within audit committees was assessed using several measures: dummy variables indicating whether an audit committee had one female director (ACFD1) or two or more female directors (ACFD2), as well as the proportion of females on the committee (ACGD) and its square (ACGD²). FRQ was assessed using earnings management (EM), evaluated through accrual earnings management (AEM) and real earnings management (REM). The study applied both linear and curvilinear models, using fixed-effects models and Two-Stage Least Squares to test the hypotheses. The regression results revealed that ACFD1 had an insignificant negative impact on AEM and an insignificant positive impact on REM. In contrast, ACFD2 showed a significant negative impact on both AEM and REM. Additionally, ACGD had a significant positive impact on AEM, while ACGD² exhibited a significant negative impact. For REM, ACGD also had a significant positive effect, whereas ACGD² demonstrated a significant negative impact. These results indicate that audit committee gender diversity has an inverted U-shaped effect on both AEM and REM. The study's inverted U-shaped results align with critical mass theory, which suggests that a balanced representation of female directors (between 40% and 60%) can reduce earnings manipulation and enhance FRQ. Furthermore, these results provide a strong business case for increasing female representation to critical-mass levels, thereby minimising EM. Theoretically, this research underscores the importance of critical mass and collective action when examining the economic benefits of gender diversity in audit committees. Regulators are encouraged to consider audit committee gender diversity beyond mere numbers.

The study investigates governance challenges in South Africa’s state-owned entities (SOEs) by assessing disclosures provided in SOEs’ annual reports and financial statements regarding fraud, unauthorised expenditure, irregular expenditure, and fruitless and wasteful expenditure between 2022 and 2024, in line with section 55 of the Public Finance Management Act (PFMA) No. 1 of 1999. Adopting an interpretivist research philosophy, the study utilizes qualitative methods through a content analysis of the annual reports and financial statements of the five sampled SOEs. The analysis revealed that, although the selected SOEs demonstrated partial compliance with Section 55 of the PFMA, significant governance and reporting shortcomings persist. While most SOEs maintained records and produced financial statements, none provided evidence of submitting these reports within the required timeframes, and one entity had not produced its 2024 reports by the cut-off date of 10 October 2025. The financial statements frequently lacked a fair and accurate reflection of each SOE’s financial position and performance. Disclosures related to financial misconduct were particularly weak and inconsistent, with irregular, fruitless, and wasteful expenditure reported more often than cases of fraud or unauthorised expenditure, which were largely omitted. These disclosure shortcomings suggest that compliance among SOEs remains superficial and procedural rather than substantive, undermining accountability, transparency and the overall integrity of financial reporting.

This study investigates the impact of financial and pension factors, including funding ratios, pension accounting modifications, and anticipated future cash flows, on disclosure practices in accordance with International Financial Reporting Standards (IFRS). Although previous studies have provided significant insights into the correlation among pension variables, corporate attributes, and disclosure levels, empirical information in IFRS jurisdictions is still few. To rectify this deficiency, we examine the factors influencing key actuarial estimate (CAE) disclosures and the actual variations in discount rates and anticipated asset returns, utilising panel data from 173 German companies (DAX, MDAX, SDAX), encompassing 1,057 and 1,352 firm-year observations, respectively. Employing the deferred remuneration theory as a framework, the findings reveal that greater firm size and regulatory status enhance the sensitivity of discount rates and anticipated returns, whereas extensive litigation disclosures diminish both. Profitability is positively correlated with sensitivity, whereas a weaker financed status exerts a mitigating influence. The correlations are most robust and consistent among DAX and MDAX companies, but less so among SDAX companies. The model exhibits a high overall fit, with R² values between 0.38 and 0.72. The results indicate that management of larger, regulated enterprises must be particularly vigilant about the formulation and dissemination of pension-related assumptions, as disclosure decisions can significantly affect market reactions. This study enhances comprehension of the factors and implications of pension assumption disclosures by presenting comparative evidence from significant German indices, thereby proposing practical recommendations for company policy and regulatory supervision. This work theoretically expands the deferred remuneration theory (DRT) by illustrating that the intensity and orientation of compensation–disclosure interactions differ systematically based on firm size, governance structure, and financial attributes. This indicates that the amount and direction of the relationship between remuneration and disclosure are not consistent, contrary to DRT's assumption. Instead, they exhibit consistent variation based on firm size, governance frameworks, and critical financial performance metrics.

The Republic of South Africa (RSA) adopted the move to accrual-based accounting in 1999, and the implementation of GRAP standards by the Municipalities has been affected since 2006. The expected benefits were improving transparency, accountability, quality, and efficiency of municipal financial reporting. The aim of this study is to investigate the impact of GRAP standards on the quality of financial reporting in RSA municipalities during the period of Pre-GRAP (2005/06 to 2009/10) compared to Post-GRAP (2010/11 to 2015/16).   This study employed a quantitative approach wherein secondary data was sourced online from the National Treasury database. A panel dataset split into two subpanels (pre and post), drawn from a sample of 125 municipalities, was used to test the study’s hypothesis.  The data were winsorized to eliminate outliers, and a multicollinearity test was conducted to identify and eliminate variables that could have resulted in model misspecification. A Hausman Test was used to select the study’s regression model, which was estimated using the STATA 15 software. The residuals of the regression model were used as a measure of accrual quality and, hence, financial reporting quality. A larger standard deviation of residuals indicates poorer accruals quality and financial reporting quality. The findings indicated a standard deviation of 0.061 (pre-GRAP) and 0.084 (post-GRAP) for the adoption periods, which indicates higher financial reporting quality. These relatively unchanged standard deviation results suggest that GRAP did not significantly improve the quality of financial reporting by municipalities after its adoption.

This research investigates Computer-Assisted Audit Techniques (CAATTs) within the Internal Audit Unit at the City of Ekurhuleni Metropolitan Municipality (EMM). The study explores the extent to which CAATTs are utilized, the challenges faced in their implementation, and their impact on the efficiency and effectiveness of internal audits. Data was collected through a mixed-methods approach, including surveys and interviews with internal auditors. The findings reveal that while CAATTs, primarily TeamMate, are increasingly being used to automate audit processes, their adoption is hindered by limited access, insufficient training, and high costs. Despite these challenges, CAATTs have been shown to improve audit accuracy and efficiency, contributing to more timely and reliable audit outcomes. The study highlights the need for enhanced IT infrastructure, greater executive support, and comprehensive training to optimize the use of CAATTs. Based on these findings, the research provides several recommendations, including expanding the use of diverse CAATTs, investing in IT support, and fostering a culture of innovation to maximize the benefits of these technologies in internal auditing. This study contributes to the growing body of knowledge on CAATTs and offers practical insights for municipal internal audit units seeking to enhance their audit capabilities through technology.

Small and Medium-sized Enterprises (SMEs) are essential to the South African economy.  The corporations Act of South Africa (71 of 2008) mandates that corporations adhere to either complete International Financial Reporting Standards (IFRS) or IFRS for Small and Medium-sized Entities (SMEs).  The International Accounting Standards Board (IASB) established IFRS for SMEs in 2009 as an alternative framework for qualifying firms, providing an option in lieu of the comprehensive IFRS standards.  Notwithstanding its deployment, the impact of IFRS for SMEs on financial reporting quality (FRQ) in South Africa has not been extensively examined.  The research involved a sample of twenty accounting firms, with five businesses chosen from each municipality to manage Annual Financial Statements (AFS) for five SMEs each, culminating in a total of 100 SMEs.  Due to the absence of a universally accepted metric for evaluating FRQ, the study utilised three previously established measures together with an aggregate measure.  The research employed Ordinary Least Squares (OLS) Regression analysis to investigate trends in FRQ over two time periods: 2010-2014 and 2015-2019.  Findings demonstrate no substantial enhancement in FRQ among Vhembe SMEs over time.  Discretionary accruals exhibited stability, indicating consistent reporting quality.  The results underscore the significance of accrual accounting and standardised methodologies, enhancing the quality and dependability of financial data for stakeholders.  This research offers essential insights for accountants, business proprietors, investors, and regulatory entities, highlighting the beneficial effects of IFRS for SMEs on the quality of financial reporting among South African SMEs.

Controlling corporate governance decision-making RISK is one of the prime safeguarding directives in the PCAOB’s requirement that the financials of Market Trading Firms [MTFs] are reasonably free from material error and thus are reliable indications of the results of operations. In this Corporate Governance Risk [CGR] context, it is important to understand the Interacting- & Integrated-Systemic Components of CGR and how they have evolved over time. We examine these aspects from Circa 1985 to date. We argue that the Driving Control System is: The Firm’s decision-making system of Internal Control over Financial Reporting [ICoFR] that impacts the Nature of CGR—to wit, Increasing CGRisk results as management experiences Increasing difficulties in maintaining adequate ICoFR. We examine the historical development of these systemic components and how they have spawned an Economic Sector of Firms that Rate & Score MTFs on the nature of their CGR profile, one currently predominate aspect of which is: The Nature of the MTF’s Caretaker Persona. With this as context, we present a duel-effect inferential design that examines the reliability of the Bloomberg™ Market Navigation Platform’s Institutional Shareholder Services™ [ISS]-Profiler as an information-link to be used in selecting MTFs to create CGR-sensitive Investment Portfolios. Our inferential results suggest for the MTFs in the ISS-Groups [{1: Lowest CGR} & {5: Mid-Level CGR} & {10: Highest CGR]}, it is likely that: (i) The decisions made by all involved in Management’s System of ICoFR, in its current COSO-version, are reflective of these MTF’s Caretaker Personas, (ii) The effects of these Caretaker Personas are analytically perceptible as reflected in the MTF’s Financials, and (iii) are aligned with the expected Nature of the ISS-Groups.

Despite anecdotal evidence indicating that a lack of management support towards internal audits (IAs) affects their efficacy, only a few studies have been conducted on the topic in a provincial government (PG) context. Besides, studies on the lack of management support towards IA efficacy lack theoretical grounding. This research aims to address this knowledge gap. The paper applied principal–agent theory to identify barriers to efficient management support towards the IA role within PGs, using the case of the Western Cape Government (WCG). Initially, questionnaires were sent to 260 WCG participants. The results revealed that management has a bad perception of IA as adding value to the organisation and does not take timely corrective actions based on audit findings and recommendations. The study adds to the limited knowledge about management and the IA relationship within PGs.

Audits are essential because of the separation of ownership and control in modern economies. Shareholders or owners delegate resources to management to enhance their wealth under this arrangement. Therefore, they want the agents to provide authentic, precise, and impeccable reports. Therefore, the research evaluated the effect of auditor independence on the performance and the moderating effect of firm size on the relationship between auditor independence and the performance of deposit-taking SACCOs in Kenya. The study was based on Agency theory. The study used a descriptive survey research technique. The study used primary data collected using structured questionnaire. A sample size of 223 was selected by a simple random sampling method from a target of 504. Descriptive and inferential statistics were used to examine the data using the SPSS 26 software. The R2 of 0.512 suggests that 51.2% of the variability in the financial performance can be accounted for by the auditor's independence. Firm Size increased the R2 to 0.714 an indication that it is a significant moderator on the relation between internal audit independence and performance. For each one-unit rise in Sacco size, the impact of the Auditor’s Independence on financial performance increases by 0.222 units substantially (P=0.000). The study concluded that Sacco size has a significant moderator in this study. The study recommended that Saccos should tailor their strategies and internal audit processes based on their size. Larger Saccos may benefit from more robust auditor independence measures and closer scrutiny of financial performance indicators.

To improve audit reports' transparency and information content, China implemented new auditing standards in 2017.  The standards, which include disclosing key audit matters, were applied to A+H share companies in 2017 and A-share companies in 2018.  This paper uses A+H-share companies as the experimental group and A-share companies as the control group and applies the difference-in-differences method to test the market response to the new auditing standards.  We find a statistically significant positive cumulative abnormal return (CAR) during the report release event window for the A+H share companies.  The results indicate a greater investor reaction to the release of audit reports under the new standards implying that the audit reforms enhanced the information of the reports.  Furthermore, the positive CAR indicates that the reports reassured investors that the audit did not reveal significant problems or that existing weaknesses were addressed.  We also found a statistically insignificant difference in the volatility of stock prices during the event window for the experimental and control group. 

The purpose of this research is to adopt public accounting professional standards in Malang and Surabaya, East Java, Indonesia, in order to improve audit quality. A total of 150 junior and senior auditors, supervisors, managers, and partners from public accounting companies in Malang and Surabaya, Indonesia, were included in the sample. The study's findings revealed that the competency of the auditors performing audits on behalf of the customer had an impact on the audit quality. Recommendations for improving audit quality based on public accountants' professional standards should be maximized and implemented to public accountants' audits on the client side so that auditor quality improves and more assignments are completed.  

This study investigates how insiders and outsiders affect the earnings management of CEOs by conducting a comparative analysis of insiders, trust banks, outsiders, and global investors. Interestingly, the holding shares of insiders and outsiders have opposite effects on CEOs’ opportunistic accounting behaviours.

AS5[v.Dec:2017] issued by the Public Company Accounting Oversight Board [PCAOB] requires the use of Analytical Procedures [AP] at the Planning and Substantive Phases of Assurance Audits for firms traded on active exchanges. We argue that one aspect of AP, relative to risk-setting, should be vetting the information that is produced/published by the audit client pertaining to Regulation G [v.SEC:2003] called: Non-GAAP information. In our research, we intend to leverage the longstanding Reg[G] requirements to extend the Non-GAAP information to firm performance profiles reported for the Environment, Social, and Governance[ESG]Platform on BloombergÒ. There are two research foci: (1) Offer an AP-Model that uses GAAP & ESG variables to contribute audit evidence useful in making the decision to launch an AP-Extended Procedures examination of the firm’s Enterprise Resource Planning & Control [ERP&C] protocols, and (2) Profile a random accrual-set of firms indexed on Bloomberg so as to offer population parameter estimates for refining the AP-Model. The AP-Model is based upon correlational associations for the ESG- & GAAP-variables from the: Income, Balance Sheet & Cash Flow Statements. If there seems to be a disconnect between the nature of these associations for the ESG-variables and those of the GAAP-variables, the auditor may use this as audit evidence in making the decision to conduct an Extended Procedures Examination of the firm’s [ERP&C] protocols. As for the other focus, we found that for the accrual of firms tested there is no inferential evidence that the ERP&C-protocols are consistent drivers for both the ESG- and the GAAP variable sets.

<div><p><em>The aim of this paper is to study the relationship between earnings management, governance and investors </em><em>behavior</em><em>, since this latter can inform about the nature of earnings management and can be considered as a governance mechanism to reduce accounts manipulations. On the basis of a sample of 700 American firms for the period of 1996-2006, our empirical results show that </em><em>investors who take short positions, are able to interpret the information detected from the earnings management. The activity of these investors may be considered as an indicator of the quality of the governance structure and the presence and nature of earnings management. The under-reaction of investors to information leads to short-term sale of the shares of poorly governed firms and characterized by an opportunistic earnings management and to invest in firms well-governed and characterized by an informational earnings management therefore an abnormal profit can be realized.</em></p></div>

In present study by virtue of the importance of  the fiscal statement contents and illiquid items ignored by the merchant the depreciation contents relation with abnormal return of the shares and future benefits are examined in order to influence the items under consideration of the investors to take related decisions; 94 companies were selected from the accessible universe in five years (2006-2010) to have the data necessary for the study in order to achieve the goal & with the base of keeping attention to the manufacturing & nonmanufacturing companies in the whole industries of stock market except banks & insurance companies. The simple and multivariable regression statistical techniques Chow and Hausman Test were used to test the hypotheses. The significant test was conducted for the paradigms by using the ‘F’ and ‘T’ statistics. The study findings show local high inflation have affection on the both variable results & makes no relation for first variable,for future benefits shows parallel  movements.

The aim of this paper is to study the relationship between earnings management, governance and investors behavior, since this latter can inform about the nature of earnings management and can be considered as a governance mechanism to reduce accounts manipulations. On the basis of a sample of 700 American firms for the period of 1996-2006, our empirical results show that investors who take short positions, are able to interpret the information detected from the earnings management. The activity of these investors may be considered as an indicator of the quality of the governance structure and the presence and nature of earnings management. The under-reaction of investors to information leads to short-term sale of the shares of poorly governed firms and characterized by an opportunistic earnings management and to invest in firms well-governed and characterized by an informational earnings management therefore an abnormal profit can be realized.

In present study by virtue of the importance of  the fiscal statement contents and illiquid items ignored by the merchant the depreciation contents relation with abnormal return of the shares and future benefits are examined in order to influence the items under consideration of the investors to take related decisions; 94 companies were selected from the accessible universe in five years (2006-2010) to have the data necessary for the study in order to achieve the goal & with the base of keeping attention to the manufacturing & nonmanufacturing companies in the whole industries of stock market except banks & insurance companies. The simple and multivariable regression statistical techniques Chow and Hausman Test were used to test the hypotheses. The significant test was conducted for the paradigms by using the ‘F’ and ‘T’ statistics. The study findings show local high inflation have affection on the both variable results & makes no relation for first variable,for future benefits shows parallel  movements.