The accounting and auditing environment in Libya

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Linking Accounting/Auditing Environment and the Remittances of Africans in Diaspora

Linking Accounting/Auditing Environment and the Remittances of Africans in Diaspora

In contrast to the conservative tradition, it is the reformist tradition which originates from the dissenting views about the conservative theories of development. It is maintained under the reformist tradition that a radical transformation of the developing world is impossible within the current world economic order. Under this tradition, accounting information is viewed as rendering partial visibility reflecting extant power structure (Burchell, Clubb, Hopwood, Hughes, & Nahapiet, 1980). The reformists expect accounting to illuminate unjust economic practices and thus provide national leaders and investors with the necessary information for seeking adjustments to structural issues. That is, accounting information should provide national leaders and investors with a basis for evaluating the effects of particular national policies because such an exercise is an inherent part of any path to development. Accountability issues are essential for the success of such relationships and accounting provides this link. This link is crucial especially in African countries if any meaningful response must be got from Africans in Diaspora in terms of remittance of funds. The radical tradition from its perspective, opposes both the conservative and the reformist traditions, arguing that for development to take place in developing countries, Marxist and Neo-Marxist ideologies would be most appropriate. The implication of this perspective is that any advancement in economic development can be jeopardized without effective accounting/auditing environment.
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Accounting information in micro manufacturing enterprises in Libya

Accounting information in micro manufacturing enterprises in Libya

Secondly, exploratory studies need intensive studies taking into account all their aspects and providing detailed case description and analysis. Thirdly, exploratory studies need direct contact with the organisation in order to provide more reliable knowledge. The opportunities of exploring and explanting offered by case study approach are unlikely available if a quantitative approach is adopted. Finally, as was discussed in the qualitative methodology section, researchers should be as close as possible to the phenomena and the people who have experience with the research issues. That must assume a role to get close enough to social subjects to be able to discover, interpret and understand the Owner manager’s generation and use of accounting information and build a picture based on their ideas. For this reason, data will be collected from participants in their own environments using multiple methods of data collection. This will facilitate a grounded understanding of accounting information in micro manufacturing enterprises in Libya. Case studies allow data to be collected from participants in the working environments, to capture data rich in detail about accounting information and offer the researcher the flexibility to explore issues raised by participants.
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Peculiarities of management accounting in Libya

Peculiarities of management accounting in Libya

Apparently talk of a management accounting with higher valences many other accounts in different countries. But what impact does such an organized accounting Lisco if referring to management accounting, cost perceive that reports with performance and productivity reports at various levels, are made annually and submitted to the management company? Moreover, referring to cost calculation, we see that the standard calculation is developed early, during consumption value is reflected as expenses in the financial accounting standard-cost method using the concept of double and calculations are updated at the end of standard production level actually achieved and eleborează comparative statements of actual costs with standard indices determining the increase or decrease in the mean sense deviations recorded.
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The Development of Auditing and the
Possible Existence of an Expectation Gap in
Libya

The Development of Auditing and the Possible Existence of an Expectation Gap in Libya

82 companies have a greater opportunity to manipulate their financial statement reports so as to increase their expenditure and decrease the profit to escape the Libyan tax system. It has been suggested that the Libyan government is seeking rapid economic growth and has, therefore, been inclined to shift its economic focus from the public to the private sector. However, the prime issue frustrating this shift appears to be associated with a lack of the basic mechanisms that are necessary for achieving such an improvement. The key mechanisms have been identified as the lack of (i) sufficient data and documentation systems, (ii) qualified accountants and auditors, (iii) education systems for accountants, and (iv) an authoritative set of accounting and auditing standards. Such deficiencies must be addressed in Libya to aid the development of the whole accounting regime, including local accounting and auditing standards, in line with current international development requirements. However, simply adopting those international accounting and auditing standards which are not appropriate within the Libyan environment is unlikely to be successful. More recently, the Libyan audit system has faced considerable criticism on both the domestic and international fronts. Questions have been raised which challenge the notion whether a clean audit report is even possible without knowing which accounting standards were used to prepare its financial statements. This stresses the needs to set up national accounting and auditing standards to ensure governance over accounting and auditing practices in Libya.
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Literature Review on the Hellenic Auditing and Accounting Environment before, during and after the Crisis Period

Literature Review on the Hellenic Auditing and Accounting Environment before, during and after the Crisis Period

Department of Accounting and Finance, School of Economics and Management, Greece Copyright©2019 by authors, all rights reserved. Authors agree that this article remains permanently open access under the terms of the Creative Commons Attribution License 4.0 International License Abstract The purpose of this paper is to examine the literature regarding the accounting and auditing environment in Hellas; Hellas is a natural experiment in the sense that has characteristics that substantially differ from the major European countries. “For example, the mandatory adoption of International Financial Reporting Standards (IFRS) on January 1, 2005 aimed to improve the quality of financial reporting in Greece, which had been regularly criticized for earnings management and the ineffectiveness of external auditing” (Tsipouridou and Spathis, 2012, Abstract). In addition, Hellas faced a 10-year economic crisis (2008-2018) which affected/changed the Hellenic corporate and capital market environment. For the years before the crisis and the implementation of IFRS, empirical studies showed that Hellas had the one of the highest levels of earnings management (Bhattacharya et al., 2003 and Leuz et al., 2003). All these features are examined in this article in order to gain insight regarding the quality of Hellenic financial reporting and to investigate the changes that crisis had on financial statements quality. The conclusion is that crisis exaggerated problems that already existed in Hellenic corporate environment.
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Perceptions of Auditing and the Provision of Non-Audit Services: Case Study in Libya

Perceptions of Auditing and the Provision of Non-Audit Services: Case Study in Libya

client gives the auditor more experience of the client’s industry and more access to the client’s accounting system, achieved the highest mean score of 3.98, with 72.5% of respondents either agreeing or strongly agreeing. The statement with the next highest mean score (3.58) was the prohibition of the provision of NAS to an audit client is only to maintain the perception of independence, which gained either agreement or strong agreement from 58.8% of respondents. The statement the provision of NAS to an audit client reduces the probability of a threat to switch auditor achieved a mean value of (3.53), with just over half (51.9%) of respondents either agreeing or strongly agreeing with it. The statement with the fourth highest mean score (3.34) was Providing NAS to an audit client by a separate department gives the auditor more credibility. Just under half (47.5%) of respondents either agreed or strongly agreed with this statement, possibly reflecting the confidence of the respondents from large audit firms and local firms in their ability to separate their staff according to the type of services they were commissioned to perform. Indeed, the provision of NAS by staff from separate departments has been practised by large audit firms for decades.
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 The Impact of E-Commerce and Auditing Process in Tourism and  Hospitality Sector of Libya.

The Impact of E-Commerce and Auditing Process in Tourism and Hospitality Sector of Libya.

This phenomenon has its own patterns for economy at the global level, in the information age and advanced modern technology in this era where the borders between countries have been erased geography and changed the concept of the determinants of what capital once was. It is as the globalization has been handed over to every single person who owns a computer, smart phone, tablet and such devices. Anyone who has access to the Internet can make use to this emerging technology from any part of the world. This phenomenon called E-commerce gives a freehand to shop or view any product by any business out there in the world that has set up their website on the World Wide Web (Demers, 2002). Internet allows users to connect within seconds and order what they desire. The E-commerce has given advantages to the consumers all over the world but at the same time it has brought in challenges to the businesses one who are running their business on the World Wide Web and to ones who are not running it on World Wide Web because it brings competition. It has given birth to the electronic accounting which all of these have started doing since they started their products and services online. Accountants and Auditors which are working behind the E- commerce are facing challenges which they never tackled before at work. Adapting to these ideas is not easy for them because it changes the way they have been working.
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ACCOUNTING AND AUDITING

ACCOUNTING AND AUDITING

shareholders and is given responsibility to protect shareholder interests. This individual, for whom no professional title of any kind is required, attends board meetings without voting right, is authorized to call a shareholders’ meeting, and has full access to company information. At each annual general meeting, the comisario is required to deliver a report with respect to the accuracy, adequacy, and rationality of financial and other information presented by the board of directors, including an opinion on whether appropriate accounting policies were followed in preparing the financial statements. Within publicly traded companies, minority shareholders who collectively hold more than 10 percent of the outstanding stock have the right to appoint a second comisario. Comisarios are subject by law to personal criminal and civil liability for violation of prescribed duties, though lawsuits against them have been relatively infrequent. Nonetheless, Mexican practitioners usually view the risk attached to the mandate of comisario as greater than that borne by external auditors. For that reason, to be able to adequately fulfill his or her duties with respect to rendering an opinion on the financial statements, the comisario is generally a partner of the same accounting firm that conducts the external audit, but usually not the same individual who acts as signing audit partner, as recommended in the code of best practices issued by the CNBV. As a result, within publicly traded companies and other regulated entities where external audit is mandatory, the comisario appears in effect to often act more as a quality controller of the independent auditor’s work, rather than to effectively exercise separate oversight of the fairness and accuracy of financial statements.
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Accounting and Auditing

Accounting and Auditing

INTRODUCTION I. Background Information – Accounting and Auditing ROSC As part of the Reports on the Observance of Standards and Codes (ROSC) initiative, the World Bank conducts the Review of Accounting and Auditing (A&A) Practices. This review assesses the comparability of national accounting and auditing standards with International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISAs), respectively, and the degree of actual compliance with the standards applicable to the Statutory Financial Statements of business entities. The review also focuses on the institutional arrangements that underpin the quality of accounting and auditing practices. An overview of the ROSC-A&A program, as well as a detailed presentation of the ROSC A&A methodology and the diagnostic tool, are available at http://www.worldbank.org/ifa/rosc_aa.html.
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Accounting and Auditing

Accounting and Auditing

Because of the bright lines surrounding the rules, sophisticated preparers were able to apply them in a way that made sure few leases were capitalized, said former FASB Chairman Dennis Beresford, now an accounting professors at the University of Georgia. The rules have been tweaked over the years so more businesses, especially those that ended up purchasing the leased asset at the end of the contract, put their leases on their balance sheets. Some information is also disclosed in financial statement footnotes but many critics thought it wasn’t enough.

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ACCOUNTING AND AUDITING

ACCOUNTING AND AUDITING

39. Stakeholders expressed concerns about the deteriorating quality of corporate financial reporting caused by the confusion arising from multiple sources of accounting standards. Interviews and discussions with various stakeholders—including foreign banks, international rating agencies, banking regulators, securities market regulators, stock exchange staff, academics, and some experienced audit practitioners—addressed the issues of perception of the quality of financial reporting. Lack of enforcement was identified as an important factor constraining high-quality financial reporting. There was a general consensus that university-level education in accounting needed significant improvements to prepare future accountants and auditors for the modern business world. Several foreign investors and stock market players emphasized that inadequate disclosure of relevant issues (such as segment reporting; consolidated financial statements; interests in joint ventures; provisions, contingent liabilities, and contingent assets; related-party transactions; financial instruments;
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ACCOUNTING AND AUDITING

ACCOUNTING AND AUDITING

30. The CNBS, recognizing the need for improved governance arrangements in Honduran banks, requires institutions under its purview to form an “audit committee.” However, the composition and responsibilities of these committees may not be conducive to effective oversight of the financial reporting process. The audit committee must consist of five members, including an owner-director, the general manager and the internal auditor of the company. This precludes it from being independent of the company’s management, 31 which is an essential characteristic of a body charged with governance. Furthermore, the tasks attributed to the audit committee are primarily of ensuring compliance with applicable rules and regulations. Whereas it may provide management with its opinion on whether to maintain or change the external auditor, the audit committee is not responsible for overseeing the work of external auditors, or the company’s financial reporting process. In practice, implementing effective audit committees in Honduras currently is a difficult challenge, in view of the small number of individuals who are qualified to perform the function of independent director. However, as the approach to supervision of banking and insurance evolves from compliance-based to risk-based, thereby making financial reporting and auditing more and more important to the supervisor’s work, the CNBS may want to consider making gradual adjustments to the role and composition of audit committees, in line with good international governance corporate practices. For example, the CNBS could require at least one independent member and set forth minimum requirements for individuals to serve on audit committees (e.g., education, professional experience, etc.). Finally, overlapping responsibilities between the comisario and the audit committee call for a clarification to avoid unnecessary duplicative efforts.
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ACCOUNTING AND AUDITING

ACCOUNTING AND AUDITING

regulates accounting requirements for prudential regulatory reporting and general- purpose external financial reporting of banks, as well as nonbanking financial institutions. In the early 1990s, as a result of the distress in the banking sector, the Failed Bank Decree was promulgated which set the stage for the trial of several bank executives, officials, and directors. Some of the cases are still in court. At present the Central Bank of Nigeria issues guidelines in consonance with Nigerian Accounting Standards, and reviews and approves the audited financial statements for compliance before they are published. Although capacity exists in the Directorate of Banking Supervision and the Directorate of Banking Examination (Inspection) to monitor and enforce bank-related accounting and auditing requirements, the capacity did not quite keep up with the rapid growth of the banking sector. Occasionally, the Stock Exchange and Central Bank have divergent views on the approval of financial statements of listed banks. In such cases, the statements are not published until they receive the approval of both. Banks’ auditors have a legal duty to report such matters as contraventions of legislation and irregularities to the Central Bank. The Governor of Central Bank may order a special examination of a bank’s books and affairs for a variety of reasons; an audit report other than unqualified would attract such an investigation. Sanctions available under the Banks and Other Financial Institutions Act include fines, imprisonment, and suspension or revocation of license. 24 Examples of
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ACCOUNTING AND AUDITING

ACCOUNTING AND AUDITING

67. The IFRS consolidated financial statements often include a considerable amount of standard wording, which may not deal adequately with the events and circumstances of that company. The standard wording is usually drawn from model financial statements provided by the audit firms. In several cases, the standard wording includes accounting policies for events and transactions which are not relevant to the companies concerned. In several instances, management with whom the ROSC team met was unable to discuss the recognition and measurement principles and the disclosures in their IFRS financial statements. 17 According to some, the use of standard wording reflects the lack of knowledge and understanding of IFRS and IFRS financial statements among accountants employed by companies. The audit firms assert that they do not ‘prepare’ those financial statements, and that they assist only as far as is ethically permissible. The standard wording also reduces the relevance of those financial statements to external users. 68. There is a shortage of internationally recognized expertise on the valuation of property, plant and equipment, which brings into question the reliability of valuations used on privatizations, business combinations and other non-cash transactions. It is understood that there is no valuation firm in Georgia which employs valuation experts with internationally recognized qualifications. Many local valuation experts do not have such qualifications and allow different valuation bases, with the result that some audit firms are unwilling to rely on their valuations. Some companies had never had unqualified audit opinions due to an inability to properly value their PPE. This is a major problem for foreign and internal investors in privatization processes and other corporate investment.
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Accounting & Auditing

Accounting & Auditing

c) Whether term loans were applied for the purpose for which the loans were obtained, if not, the amount of loan so diverted and the purpose for which it is used may be r[r]

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ACCOUNTING AND AUDITING UPDATE

ACCOUNTING AND AUDITING UPDATE

• Rationalising procedures for laying draft notifications granting exemptions to various classes of companies/ modifying provisions of the 2013 Act in Parliament - Section 129 of the 2013 Act deals with the preparation of financial statements in accordance with the accounting standards. It permits the Central Government to, on its own or on an application by a class or classes of companies, by notification, exempt any class or classes of companies from complying with any of the requirements of this section or the rules made thereunder, if it is considered necessary to grant such exemption in the public interest and any such exemption may be granted either unconditionally or subject to such conditions as may be specified in the notification.
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Accounting and Auditing Supplement No

Accounting and Auditing Supplement No

Proposed ASU Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments was issued May 21, 2015. The comment deadline ended July 6, 2015. Why Issued This proposed ASU is part of the FASB simplification initiative and is in response to stakeholder’s feedback that the requirement to retrospectively apply adjustments made to provisional amounts recognized in a business combination adds cost and complexity to financial reporting but does not significantly improve the usefulness of the information provided to users.

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FUNDAMENTALS OF ACCOUNTING AND AUDITING

FUNDAMENTALS OF ACCOUNTING AND AUDITING

The system of accounting treats all units of money as the same irrespective of their time dimension. This has created doubts about the utility of the accounting data, leading to the introduction of inflation accounting. (iii) Cost Concept: According to cost concept, the various assets acquired by a concern or firm should be recorded on the basis of the actual amounts involved or spent. This amount or cost will be the basis for all subsequent accounting for the assets. The cost concept does not mean that the assets will always be shown at cost. The fixed asset will be recorded at cost at the time of its purchase but it may systematically be reduced in its value by charging depreciation. These assets ultimately disappear from the balance sheet when their economic life is over and they have been fully depreciated and sold as scrap. It may be noted that if nothing has been paid for acquiring something, it would not be shown in the accounting books as an asset.
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Ethics in accounting and auditing

Ethics in accounting and auditing

Accounting and auditing professions deal with the most critical issues relative to individuals i.e. property. Accountants are as same as physicians in which trust has a major role in their profession. Client’s mistrust is destructive to accounting systems and profession. Main matter in the field of accounting is exclusive benefit of CPAs‘s legal auditing as well as ability to re- spond which is the requirements of unique advantage. Profession is protected proprietary advantage through its superior characteristics such as independence, in- tegrity and protecting public interest. The relationship between characteristics and professional behavior is main criticisms against profession. Major accounting errors as well as unusual and exceptional errors, caus- ing losses to investors and is outside of moral assump- tions. However, the focus of professional behavior and code of conduct in the audit is moral decisions making which should not be considered simple and insignifi- cant. Audit firm should confront with illegal activities considering auditing professional code of conduct. The firm also should abide by its legal obligations to protect the reputation of the recently conducted Research in the accountants and auditors professional code of con- duct, concentrated on accretion understanding and ac- ceptance of accepted professional ethics. Unethical behavior Continuation showed that ethical principles are more important than technical rules in professional accounting and auditing. Thus, ethics got more atten- tion and the International Federation of Accountants gives the committee mission to provide the Code of Professional Conduct. Committee developed the first Code of professional conduct of accountants in 1996, to be used as a model of ethical guidelines.
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Accounting and Auditing Occupations

Accounting and Auditing Occupations

high rate of growth is expected to continue through 2014. Source: BW Research, 2007 Executive Summary A substantial staffing shortage and talent crunch for accounting occupations has been confirmed by employers in the Greater Silicon Valley. This shortage is created, in part, by a convergence of trends re-shaping the accounting industry, including the Sarbanes Oxley Act of 2002 (SOX). SOX requires more complex accounting systems and rigorous reporting, which increases the need for accounting staff. Other factors impacting the profession include the globalization of markets, rapid technological changes, and baby-boomer retirements. To validate the demand for accounting occupations and workforce challenges of regional employers, 150 accounting firms were surveyed. Eight occupations were examined: accountants, bookkeepers, accounting clerks, auditors, internal auditors, tax preparers, budget analysts, and cost accountants. Employers identified a number of factors driving their difficulty in hiring and retaining accounting professionals:
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