Papers by Charalambos Spathis
The aim of this study is to explore the new International Standard on Audit (ISA) 701 "Communicating
Corporate Governance and Its Association with Audit Opinion: The Case of Greece
Springer proceedings in business and economics, 2021
Query evaluation of TAXIS usefulness using Data Analysis methods 10-12 September
This paper explores the effectiveness of Data Mining (DM) classification techniques in detecting ... more This paper explores the effectiveness of Data Mining (DM) classification techniques in detecting firms that issue fraudulent financial statements (FFS) and deals with the identification of factors associated to FFS. In accomplishing the task of management fraud detection, auditors could be facilitated in their work by using data mining techniques. This study investigates the usefulness of Decision Trees, Neural Networks and Bayesian Belief Networks in the identification of fraudulent financial statements. The input vector is composed of ratios derived from financial statements. The three models are compared in terms of their performances. The results identify the model with the best accuracy rate and highlight the importance of variables in fraudulent financial statement detection. They also indicate that the investigation of financial information can be of use in the identification of FFS and underline the importance of financial ratios.
User Satisfaction from Greek Tax Information Systems
ERP systems and Accounting: Assessing the benefits
ERP systems and healthcare organizations: A review
Corporations use two different sets of financial statements which have mirror-image goals, firms ... more Corporations use two different sets of financial statements which have mirror-image goals, firms want to maximize book income reported to investors, while minimizing the taxable income reported to the tax authorities. The dual nature of corporate profit reporting may be creating a lose-lose situation, less meaningful profit numbers for capital markets and lowered corporate tax revenue for the government. Defenders of the book-tax divide argue that a unified system cannot accommodate these differing objectives, while supporters of the book-tax conformity claim that a tax-based book income can restore the integrity of the financial accounting system. The study reviews the arguments of high vs. low book-tax conformity. It also reviews prior research that examines the association between book-tax conformity and earnings management.
A Data Mining Approach for the Identification of Audit Opinions
Book-tax conformity and earnings management: review of recent research
INTERNATIONAL CONFERENCE ON BUSINESS & ECONOMICS OF THE HELLENIC OPEN UNIVERSITY 2021, Apr 10, 2021
Auditor selection can be regarded as a matter of audit quality. Research studies aiming to model ... more Auditor selection can be regarded as a matter of audit quality. Research studies aiming to model the auditor choice employ statistical techniques. Here we employ three techniques derived from the Data Mining domain to build models capable of discriminating cases where companies choose a Big 4 or a Non-Big 4 auditor. Significant factors associated with the auditor choice are revealed. The three models are compared in terms of their performances. According to 10-fold cross validation bagging increases significantly the performance of one classifier.
Internal Audit Disclosure Regarding to External Audit in Greece
This study’s objective is to assess the factors that influence disclosure of internal audit (IA) ... more This study’s objective is to assess the factors that influence disclosure of internal audit (IA) in Greece. The data was hand collected and obtained from 2014 annual financial reports from 173 companies listed in Athens Stock Exchange (ASE). We assess the internal audit disclosure in terms of internal audit operations, corporate governance, and quantity of disclosure. Previous literature was chosen so as to highlight significant independent variables that are related to external audit. Linear regression analysis examines the association between internal audit operations (IAO), corporate governance code (CGC) and number of words (NW), and seven principal factors. In attempt to define IA Disclosure (IAD), we consider the disclosure of an internal audit function analyzing in operational and procedural aspects and at the same time with aspects of annual report text content. The results indicate internal audit disclosure, on the main sample of Greek listed firms, as well as the existence...
Journal of International Accounting, Auditing and Taxation, 2015
This study examines the relationship between the value relevance of accounting information and th... more This study examines the relationship between the value relevance of accounting information and the conditional conservatism of the European banking sector. Using a bank data set from 15 European countries we study the value relevance of accounting information before and after mandatory IFRS adoption, as well as the extent to which conditional conservatism and value relevance coexist in this context. Our findings suggest that conditional conservatism is positively (negatively) related to value relevance prior to (post) mandatory IFRS adoption. This finding validates the IASB's objectives of higher value relevance and lower conservatism. Additional analyses provide evidence that country-specific features not only affect the potential increase in accounting quality, but also the relationship between value relevance and conditional conservatism.
This study assesses factors influencing Internal Audit Quality (IAQ) in Greece. Hand-collected da... more This study assesses factors influencing Internal Audit Quality (IAQ) in Greece. Hand-collected data were obtained from 2013 and 2014 annual financial reports from companies such as food industries, beverage –and their subcategoriesindustries as well as fishing and distillation, listed in Athens Stock Exchange (ASE). Previous literature was chosen in order to highlight significant independent variables. Linear regression analysis examines the association between Internal Audit Compliance (IAC) and seven principal factors. In order to define IAC we consider the compliance of an internal audit function analyzing in operational aspects such as the Segmentation of Duties and the Professional Competence and Knowledge Adequacy. The results found indicate Internal Audit Compliance, on a sample of Greek listed firms; have significant associations between the degrees of compliance to some external audit variables.
A comparison of nearest neighbours, discriminant and logit models for auditing decisions
Intelligent Systems in Accounting, Finance and Management, 2007
CHRYSOVALANTIS GAGANIS,a FOTIOS PASIOURAS,b CHARALAMBOS SPATHISc AND CONSTANTIN ZOPOUNIDISa* a Fi... more CHRYSOVALANTIS GAGANIS,a FOTIOS PASIOURAS,b CHARALAMBOS SPATHISc AND CONSTANTIN ZOPOUNIDISa* a Financial Engineering Laboratory, Department of Production Engineering and Management, Technical University of Crete, University Campus, Chania, 73100, ...
Bank service quality in the Balkans
Assessing Internal Audit with Text Mining
Journal of Information & Knowledge Management
Recently internal controls, corporate governance and risk management have received a great deal o... more Recently internal controls, corporate governance and risk management have received a great deal of attention. Regarding internal control, several research studies address the issue of internal audit quality. Noteworthy, according to Sarbanes–Oxley (SOX) the internal controls over financial reporting are assessed by the auditors and the management. In the present study, we assess internal controls over financial reporting by employing Text Mining techniques. We analyse the annual reports of 133 publicly traded Greek Companies. The textual parts of the annual reports that refer to internal audit mechanism are extracted. We adopt a Vector Space model and the term-document matrix records the occurrence frequencies of the terms. By applying feature selection, a set of significant keywords, which are used as predictors, is extracted. The Linear Regression model developed explains the variance of the data and highlights significant predictors. The model manages to successfully assess the i...
Classifying internal audit quality using textual analysis: the case of auditor selection
Managerial Auditing Journal
Purpose This paper aims to assess internal audit quality (IAQ) by using automated textual analysi... more Purpose This paper aims to assess internal audit quality (IAQ) by using automated textual analysis of disclosures of internal audit mechanisms in annual reports. Design/methodology/approach This paper uses seven text mining techniques to construct classification models that predict whether companies listed on the Athens Stock Exchange are audited by a Big 4 firm, an auditor selection that prior research finds is associated with higher IAQ. The classification accuracy of the models is compared to predictions based on financial indicators. Findings The results show that classification models developed using text analysis can be a promising alternative proxy in assessing IAQ. Terms, N-Grams and financial indicators of a company, as they are presented in the annual reports, can provide information on the IAQ. Practical implications This study offers a novel approach to assessing the IAQ by applying textual analysis techniques. These findings are important for those who oversee internal ...
Euro and profitability of Greek banks
Euro and Profitability of Greek Banks. Author info | Abstract | Publisher info | Download info | ... more Euro and Profitability of Greek Banks. Author info | Abstract | Publisher info | Download info | Related research | Statistics. ... The impact of the EURO on Greek Banks is explained through a cost-benefit analysis, by providing a perspective of the anticipated costs, benefits and ...
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Papers by Charalambos Spathis