RCAAP Repository

The audit procedures are increasingly supported by the use of computer tools, especially in data extraction and analysis procedures. Computer Assisted Audit Tools and Techniques (CAATT) are examples of tools used for this purpose, but many other softwares are used to support audits. Considering this growing use of IT tools to support auditing, this study intends to evaluate the level of use of these tools to support auditing in Portugal, more specifically on internal auditing in Portuguese companies. This dissertation intends, through an inquiry, to evaluate the use of IT tools to support auditing in Portuguese companies, namely: the most used tools; the factors that influence the use of these tools; the level of knowledge and frequency of use of the main tools by the Portuguese internal auditors; when using specific audit support tools, in which type of audit procedure they are most used; and, when they do not use it, the reasons for their non-adoption. This research concludes that internal auditors mostly use generic rather than specific tools in their audit work, indicating that the cost of software is the main reason for not using it. The use of specific IT tools to support auditing is influenced by the size of the workplace, more specifically by the size of the audit department. Other factors that also influence the use of these computerized techniques are the experience in auditing and the existence of a certified internal auditor in the workplace.  

This essay focuses on Portuguese Foundations and in their taxation, specifically at the level of fiscal restraints. The study aims to relate the role of foundations with the Social State; present the fiscal framework to support foundations; analyze the use of fiscal support available by the foundations; and expose the Foundation's vision of the positive tax discrimination that they can benefit from. For its implementation, we use a qualitative methodology, using documentary analysis and interviews. In a first phase, we delimited the sector where the Foundations are inserted, fit them as entities of the non-profit sector, define and characterize the Foundations, and finally, we approach the relation of these with the State within the framework of the Social State paradigm. Then, introducing the tax framework of foundations, by the level of incentives and tax benefits got analyzed, either by tax either globally, in a given time period the support enjoyed by them. Finally, we present and analyze the results of data obtained through interviews. For its implementation, we use a qualitative methodology, using documentary analysis and interviews. We conclude that Foundations as entities of the nonprofit sector play an important role in society, complementing, and even replacing the State itself in its social functions. For this reason, the Foundations consider the tax incentives available to them to be fair. Depending on their purpose and the activities they pursue, Foundations may be subject to some tax incentives and benefits that they recognize to be important to their sustainability. As example, IMI is the benefit that is obtained by the largest number of Foundations. However, it is in IRC that they obtain the greatest reduction of the tax burden. IVA was the tax in which the Foundations had a greater presence, representing 7% of the entities that obtained tax benefits in this tax. The study allowed to conclude that the tax benefits obtained by the Foundations do not have significant expression in the total benefits granted by the State to all the collective taxpayers. The Foundations believe that there could be more tax incentives and, as such, tis presented here some postponements to this effect.

The goals of this study are to identify the main causes of noncompliance taxes and to analyse the behaviour of the taxpayers to act in this way. The main causes we identify for a noncompliance tax are the taxpayer interest, the source and the income levels, a low probability of audit and a small penalty rate, the social class and people’s behaviour that taxpayer knows, the complexity and the instability of tax. The benefit or the loss that the taxpayer can feel are the main reasons for being affected by self-interest and to adopt a noncompliance tax behaviour. Furthermore, the taxpayer is more likely to oppose the taxes that belong to their pay-roll and reduce these taxes. We conclude that the tax audit and the penalty rate are both deterrents of tax evasion. In the other hand, the taxpayer seems to be influenced by social factors and people’s behaviour that he knows, following these behaviours. To finish, we prove that the complexity and the tax instability are also influence the conduct of taxpayers. Those who have difficulties understanding and complying with the taxes are leading to an involuntary noncompliance tax situation.

Several efforts have been made to restore the confidence of users of financial statements, especially after the huge financial scandals in the early twenty-first century. Thus, they are planned changes to the audit report, either on the transposition of European regulations, which refer to the direct use of the International Standard on Auditing, or by additional national requirements. The main purpose of these changes is to increase the informational value of the report, and it is therefore an attempt to reduce differences in expectations for audit, that is the gap between what society expects of the audit and the results thereof. The determination of the impact of these changes on the Portuguese reality thus becomes attractive. Therefore, the overall objective of the study is to assess the expected effect of the changes planned for the audit report in narrowing the audit expectation gap, in light of agency theory. From the quantitative analysis of questionnaires and content analysis of face- to-face interviews with financial analysts, auditors and chief executive officers, we obtained evidence that in perception of respondents, the planned changes to the audit report have a positive effect in reducing the audit expectation gap in Portugal.

Given the idea that consumers associate human characteristics to brands, the primary purpose of this dissertation is to explore the impact of brand personality, in what regards its different dimensions on consumer behavior. In the other hand, the aim of this study is to determine the effects of brand love on consumer behavior, given the importance of this recent construct on marketing. The conceptual model and associated hypotheses were based on a sample of 478 consumers, in the clothing brand context. The data were thus collected using an online survey. In order to investigate the consequences of brand personality and brand love, besides exploratory factor analysis, multiple regression techniques were conducted. The results of the present study show that almost all brand personality dimensions (peacefulness, passion, sincerity and sophistication) have a positive and significant impact on brand love. Peacefulness, sophistication and sincerity dimensions of brand personality have a positive effect on loyalty, word of mouth and the willingness to pay a price premium for a clothing brand. This research has also demonstrated the influence of peacefulness and passion dimensions of brand personality on consumer willingness to provide personal information and active involvement. Resistance to negative information is positively influenced by excitement and passion dimensions of brand personality. Concerning brand love, this research confirmed its positive and significant influence of all consumer behavior constructs considered in these model, which reinforces and completes previous findings. Therefore, these findings provide several guidelines and valuable insights for clothing brand management.

O nº18 da série IV da Revista Estudos divulga várias temáticas que, centradas na investigação em Contabilidade e no seu referencial normativo, na investigação em Gestão e em Finanças empresariais, denotam a natureza multidisciplinar dos vários estudos científicos e pedagógicos ao serviço do conhecimento em geral e das instituições e sua inserção no meio, em particular, num contexto de profundas mudanças normativas, económicas e financeiras. (...)

The objective of this article is to highlight the importance of tangible fixed assets in Portuguese Polytechnical Higher Institutions (HEIs) and, on the other hand, to analyze the changes arising from the introduction of the new Accounting Standardization System for Public Administrations (SNC-AP), at the level of subsidy financing as transactions without consideration for the acquisition of these assets.We chose the qualitative methodology, supported by multiple case studies, and analyzed the annual accounts of the polytechnic HEI in the period between 2010 and 2015. With the imminent adoption of SNC-AP, main differences in the recognition and measurement of tangible fixed assets, in relation to the POC-Education, were identified and analyzed.We conclude that tangible fixed assets have great importance in the financial structure of polytechnic HEIs, that investment grants have a high weight on total tangible fixed assets and that investment grants awaiting recognition as income in the financial structure have a negative impact on the financial position of the polytechnic HEI; the positive impact of the adoption of the SNC-AP on the structure of the polytechnic HEI balance sheets, due to the change in the accounting of investment grants (POC-Educação) as transfers without charges (SNC-AP).

The aim of this study is to analyze the effects of working capital management on the profitability of Portuguese firms in the construction sector. For this purpose, longitudinal data were collected from the SABI database between 2008 and 2016. The research hypotheses were tested using panel data methodologies. Our results provide evidence of a negative linear relationship between the profitability and working capital management indicator, which is consistent with several previous studies. It also appears that a reduction in the average number of days of inventories and an increase in the average number days of payables leads to an increase in the profitability of construction companies. However, unlike the previous research, we find evidence of a convex relationship between the profitability and working capital management.In addition, we also analyze the differences in the working capital management policies during the most recent financial crisis relative to the post-crisis period. In this context, firms must adjust working capital policies in line with the business cycle.

The capital structure and the dividend policy are widely studied in the corporate finance field, but the results are not consensual. A vast number of studies assume the exogenous relationship between the capital structure and the respective explanatory variables, been the same for the dividend policy. Recently, academics have questioned the hypothesis that the relationship between capital structure and dividend policy is endogenous, meaning that capital structure and dividend policy decisions affect each other. In this context, this paper wants to analyse the relationship between the capital structure and the dividend policy, considering a sample of Portuguese firms, and a panel data. To the best of our knowledge, this is the first study to analyse this relationship in Portugal. We conclude that the pecking order was the most adequate theory to explain the capital structure. In addition, we find no evidence to support the irrelevance hypothesis of dividends.

Conservatism is defined in two ways: conditional and unconditional. The conditional conservatism is a result of the asymmetric registration of "good news" and "bad news" and the unconditional conservatism relates to accounting standards discretionarity.In this context, the main objective of this study is to describe and analyze the process of accounting research on conservatism, from 2008 to 2018, based on a bibliometric approach. The present study is essential to complement this knowledge.Findings confirm that accounting research on conservatism is scant. Although in recent years a progressive advance and a strong interest have been demonstrated. However, there is a greater interest in research on conditional conservatism and a small number of proposed measures on unconditional conservatism. However, this topic still represents an area that deserves to be explored in the accounting literature.

The financial information plays an important role in the decision making by the managers and stakeholders of any company. Thus, to ensure the quality of financial statements should be an important goal of an organization. However, there are numerous incentives that lead to the earnings management, which leads to the distortion of accounting information. One of the means of earnings management, through a specific accrual, is in the recognition of impairment losses on accounts receivable. The objective of this study is to analyze if exist earnings management in the recognition of impairment losses on accounts receivable by listed companies in Portugal, between 2010 and 2017, as well as identify the determinants of recognition of those losses. The methodology used is based on a quantitative analysis, constructing regression models to analyze, on the one hand, the determinants in the recognition of impairment losses in accounts receivable and, on the other hand, the existence of practices of earnings management. Data collection was done through the SABI database, complemented by the content analysis of the reports available at the CMVM. We conclude that the turnover, changes in accounts receivable, indebtedness, size and type of auditor are determinants of the recognition of impairment losses on accounts receivable. We also conclude that listed companies seem to manipulate results through impairment losses on accounts receivable, more specifically through income smoothing, especially in the post-crisis period, and via big bath during the period of crisis. Our study contributes to the evidence that IAS/IFRS, despite being recognized as high quality standards, are permissible to earnings management, given the discretion and flexibility associated with them.

In the last decades the environmental concern has been increasing. One of the measures being implemented is limiting the circulation of vehicles with higher gas emissions, in city centers, and at the same time raising awareness of the acquisition of green vehicles (electric, hybrids and plugins) as a form of reducing the ecological footprint. This dissertation studies the behavior of the Portuguese consumer in the decision to buy green vehicles, focusing in particular on the understanding of the various reasons and impediments to the purchase of green vehicles and in the perception of the influence of corporate social responsibility. A qualitative study was developed using 5 focus groups held between May and October 2018. In these discussion groups participated 24 Portuguese adults aged 24 and 67. The results show that the economic-financial component and the technical and functional vehicles are relevant variables in the decision-making of the consumer, in the characteristics of green acquisition of green vehicles. The environmental benefits and the compatibility of the same with their beliefs / values are factors that tend to gain importance in the decision making of the consumer, as the new generation acquires purchasing power. The social norms and pressure as well as the CSR activities developed by the companies, namely by the producers and sellers of green vehicles do not influence the behavior of the consumer, in the acquisition of a green vehicle but the consumer manifests the desire to identify with a group of family and friends. The consumer who appreciates the new technologies is not more likely to buy a green vehicle given the price of them. Finally, measures are suggested to promote the consumption of this type of vehicles, with less environmental impact.

Both the capital structure and the dividend policy themes have been the subject of intensive study, but without major conclusions. There are several studies that assume the exogenous relationship between the capital structure and the respective explanatory variables, and the same is verified for the dividend policy. Recently, academics have been questioning the hypotheses of the relationship between capital structure and dividend policy being endogenous, meaning capital structure decisions influence dividend policy ones and vice-versa. The main objective of this paper is to find evidence to confirm an eventual relationship between the capital structure and the dividend policy. Therefore, an econometric model as built, based on two different methodologies, to allow the confirmation, or not, of the objective previously described, as well as understand which factors are determinants in the capital structure theme and in the dividend policy puzzle. This study, as far as we know, is the first to try out this analysis between the two themes, considering the economic and business context of Portugal. Thus, no evidence was found to confirm the existence between the capital structure and the dividend policy of the Euronext Lisbon companies. However, evidence was found that allows the conclusion that the pecking order theory is the most adequate in the explanation of the capital structure theme and evidence was found of the non-acceptance of the irrelevance hypothesis of dividends.

The social and environmental responsibilities are key elements in the overall vision of the management of any company. However, the economic result appears as natural purpose of the existence of companies. The Social and the Added Value Statement (DVA) are financial statements that describe information that can contribute to the measurement of results, and also the disclosure of social information, which according to the Agency Theory, reduce information asymmetry. In this sense, the objective of this study is to investigate the Petrobras Social Report indicators observing the relationship between economic growth and environmental and social investments of the company. The study makes use of perspective of the Agency Theory as theoretical support the research. In methodological terms, we conducted a case study, through document analysis and a quantitative approach. The results show that environmental and social investments, evidenced by the Social and DVA balance are associated with your earnings.

In this article we clarify the difference between the concepts of taxpayers education, fiscal literacy and tax knowledge, in which the first is more embracing and includes the remaining two. Fiscal literacy is an important attribute in order to develop citizen tax awareness, that it may be a tax culture and for living in tax citizenship. Throughout the article, we carried out a literature review focused on tax education programs. Thus, we present briefly a set of several countries in initiatives that, in general, the Tax Authority is largely responsible for the creation and implementation of programs, which may act independently or in partnership with other organizations and institutions. As a rule, these take into account the specificity of the context in which each country and their needs. We found that since the 50’s, the United States was developing its tax education program. Between 1950 and 1960, Europe began to show concern over this matter, having been the Nordic countries pioneers in creating effective taxpayers education programs, notably Denmark and Sweden. However, the highlight program in Europe is the "Red Box ", held in the UK. Compared to most European countries, Portugal started later, only in 2007. In Latin America, these initiatives are more recent, telling some of these countries with the financial support of institutions such as the BID, UNESCO e UNICEF.

This study, developed in real context at the company Jorge Silva, Neto, Ribeiro & Pinho, SROC, Lda., has as target to analyze the practical application of the analytical procedures at its client ABD, SA, given the relative efficiency and effectiveness of the procedures applied and the scarcity of resources that the auditor is faced many times, in order to identify the benefits/limitations arising from its application or of his abandonment, respectively.It was possible to respond through a qualitative methodology to a number of research questions that allowed us to know, understand and interpret the application of these audit procedures.It was concluded that the application of analytical procedures in ABD, SA didn't add any speed in error and fraud detection, or contributed to time improvement in the development of the audit's work, for having been privileged a substantive approach for throughout the work.

This study presents a review of the literature related to the presentation of comprehensive income. For this purpose, the standards that regulate it are analyzed, as well the related empirical research. The American accounting standards (US-GAAP) provide rules for the presentation of comprehensive income since the 90s of the twentieth century. However, this presentation is only regulated in the Portuguese accounting standards in 2010, with the implementation of the Accounting Standardisation System (SNC). The SNC provides the presentation of comprehensive income in the statement of changes in equity, the format that today is no longer allowed by the Financial Accounting Standards Board or the International Accounting Standards Board. The literature review performed allows us to identify an opportunity of future research, consisting on the analysis of the components of "other comprehensive income" for the companies that adopt the SNC, in order to assess to what extent it is important that the portuguese Accounting Standards Board review the current presentation of comprehensive income.

This paper aims to analyze the financial risk hedging in Portuguese Stock Index (PSI) 20 listed companies. To this propose, we have reviewed the individual and consolidated account reports of the respective companies, analyzing the period between 2008 and 2012.Regarding financial risks we identified the following in PSI 20 firms: credit risk, currency risk, interest rate risk, liquidity and price risk. As counter measures we found that these firms use as hedge the instruments that best suits their needs. In this aspect no preference on any particular hedging instrument was found, except in the case of swaps and forwards products, as hedge for currency risk and interest rates.

There are several factors that influence the professional judgment of an auditor to determine the materiality, particularly in terms of the audited company, the audit company and the intrinsic auditor's characteristics.The main goal of this paper is to know the main factors that influence the professional judgment of the auditor, when determining the materiality during audit planning.The auditors, to define quantitatively the materiality, use benchmarking indicators and apply a percentage, which may vary mainly due to the risk of material distortion of company to audit. Thus, the higher risk of distortion evaluated for the audit company, the lower percentage will be applied, and vice versa.According to the results, the main benchmarking indicators used by the auditor are the turnover, the assets and equity capital. The main qualitative factors that influence materiality determination are business, entities knowledge and the needs of the financial statements stakeholders.So, the obtained results indicate that, to determine the materiality, the auditor's professional judgment choosing the benchmark indicator and the percentage to be applied is influenced by qualitative factors.

The current economic situation in which the financial system has been showing divergent returns in recent years has led to the development of themes related to the study of factors explaining the profitability of the banking sector. Thus, the main objective was to analyze and determine the explanatory variables in the profitability of financial institutions operating in Portugal, as provided by the profitability of their assets. In the empirical study it was used a sample of 29 Portuguese banks and the estimated results were obtained by using the econometric method OLS and were related to the period from 2002 to 2012. Results suggest that the variables concentration, capital ratio, debt ratio and credit and accrued interest proved to be statistically significant in the banking profitability explanation. Therefore, there seems to be a positive relationship between the degree of concentration of the Portuguese banking system and its profitability. In turn, there is an inverse relationship between the capital ratio of banks, debt ratio and credit and accrued interest and their profitability. However macroeconomic variables, inflation and gross national product, as well as the solvency ratio did not show statistically significant in explaining bank profitability in Portugal.