Role of the auditor in the prevention of companies: which indicators?

Abstract

Under the new law 73-17 on the prevention of business difficulties, the legislator's primary intention is to bring Morocco into line with international standards, in particular the principles of the World Bank and the United Nations Commission on International Trade Law (UNCITRAL) governing the treatment of insolvency, and to put in place new safeguard procedures for companies in difficulty, Therefore, the prevention of business difficulties is a subject that is close to our heart because we note in the media that the number of business failures in Morocco since January 2021 represents a total of 2,694 companies, which translates into an increase of 15% since the year 2020, for this reason, The main objective of our work is to show that the best remedy to situations of imbalances and crisis is to act upstream to defuse in an early way the difficulties encountered by companies as soon as they occur, and to help managers to overcome this barrier in the life of their companies while implementing the indicators provided in the manual of standards of legal and contractual auditing Moroccan, We plan to analyze the nature of the relationship between the ratios as indicators provided in the manual of the standards of legal and contractual audit in Morocco and the prevention of difficulties of companies, following an approach of theoretical reflection preparing a quantitative study following a hypothetico-deductive approach, by analyzing, deciphering and interpreting the relationship between the various ratios and the prevention of difficulties from scientific articles, theses and laws.

Key words: Company in difficulty, economic failure, financial failure, legal failure, internal prevention, external prevention.

JEL Classification: M10, M40

Paper type: Theoretical Research