Journal articles on the topic 'Audit manager'
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1
Friyani, Rita, Haryadi Haryadi, Afrizal Afrizal, and Enggar Diah Puspa Arum. "The effect of the performance of the audit committee, internal audit, and manager religion on the implementation of good corporate governance and their implications on fraud." Jurnal Perspektif Pembiayaan dan Pembangunan Daerah 10, no. 2 (June 30, 2022): 105–18. http://dx.doi.org/10.22437/ppd.v10i2.11842.
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The main objective of this research is to analyze the performance of the audit committee, internal audit, and religiosity of the manager on the implementation of good corporate governance (GCG) and its implication for fraud. The study was conducted at State-owned enterprises (SOEs) in Indonesia. The population of this research is all SOEs in Indonesia, and the number of samples is 89 SOEs (based on the Slovin formula). The sampling method used a simple random sampling technique. The research data was obtained by submitting a list of questions to the selected respondents. Respondents consist of the chairman of the audit committee or members of the audit committee, the head of internal audit or members of internal audit, the corporate secretary, and the finance director (financial manager). The data were analyzed using the SEM-PLS model. The research proves that the performance of audit committees and internal audits affects the implementation of GCG, while the religiosity of managers does not affect the implementation of GCG. The research also proves that the performance of the audit committee and the implementation of GCG affect fraud, while internal audit and religiosity of managers do not affect fraud
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Contessotto, Christine, W. Robert Knechel, and Robyn A. Moroney. "The Association between Audit Manager and Auditor-In-Charge Experience, Effort, and Risk Responsiveness." AUDITING: A Journal of Practice & Theory 38, no. 3 (October 1, 2018): 121–47. http://dx.doi.org/10.2308/ajpt-52308.
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SUMMARY Audit quality is dependent on the experience and effort of the audit team to identify and respond to client risks (risk responsiveness). Central to each team are the core role holders who plan and execute the audit. While many studies treat the partner as the primary core role holder, the manager and auditor-in-charge (AIC) are also important. Using data for engagements from two midtier firms, we analyze the association between the experience and relative effort of the manager and AIC and risk responsiveness. We find a manager's client-specific experience is associated with risk responsiveness for non-listed clients but find no evidence that the general or industry experience of a manager, or the experience of the AIC, is associated with risk responsiveness. The client-specific experience and relative effort of the partner is associated with risk responsiveness. These results suggests that managers can provide an important, albeit limited, contribution to the audit. JEL Classifications: M2. Data Availability: The data were made available to the researchers on the understanding that they will remain confidential.
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Favere-Marchesi, Michael. "Audit Review: The Impact of Discussion Timing and Familiarity." Behavioral Research in Accounting 18, no. 1 (January 1, 2006): 53–64. http://dx.doi.org/10.2308/bria.2006.18.1.53.
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I investigate how the trend in audit practice of including face-to-face discussions between the preparer and the reviewer affects audit team performance. Specifically, I focus on the timing of reviewer/preparer discussion and explore whether performance of the audit team in a task involving a review by interview process is affected by the timing of the discussion. The discussion timing compares senior/manager teams when review discussions are held either concurrently with or following the manager's review of the senior's work. Additionally, I explore how reviewers' familiarity with preparers may also affect the audit team performance. Familiarity is examined by comparing senior/manager teams where the managers had either positive prior involvement or no prior involvement with the reviewed seniors. The audit team performance in generating hypotheses in a preliminary analytical review case was measured to assess any differences due to those attributes. Consistent with expectations, I find that post-review discussion and familiarity with the preparers are both, independently, important sources of audit team performance gains in a review process that includes face-to-face discussions.
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Tan, Hun-Tong, and Karim Jamal. "Do Auditors Objectively Evaluate Their Subordinates' Work?" Accounting Review 76, no. 1 (January 1, 2001): 99–110. http://dx.doi.org/10.2308/accr.2001.76.1.99.
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In this study, we investigate whether audit managers' assessment of the quality of work their subordinates perform is influenced by the managers' prior impressions of these subordinates, and whether managers whom the firm considers outstanding are less susceptible to such an effect. We conduct an experiment using actual audit senior-manager teams. Each senior and manager participating in the experiment has been classified by his or her firm as either outstanding or average. Each manager is paired with two audit seniors (one outstanding senior and one average senior), and each evaluates the memos written by his or her paired seniors. Managers evaluate the quality of the memos twice: (1) first, with the identities of the seniors indicated on the memos, and (2) later, when the seniors' identities are not explicitly revealed. Results show that average managers evaluate memos written by outstanding seniors more favorably than those written by average seniors when they know the identities of the memos' authors, but not when the identities of the seniors are not revealed. Outstanding managers do not appear susceptible to this effect.
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Caskey, Judson, Venky Nagar, and Paolo Petacchi. "Reporting Bias with an Audit Committee." Accounting Review 85, no. 2 (March 1, 2010): 447–81. http://dx.doi.org/10.2308/accr.2010.85.2.447.
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ABSTRACT: This study models a manager who privately reports earnings to an independent audit committee that, after its own due diligence, modifies the report for public release to investors. The audit committee alters the reporting and valuation dynamics by attempting to remove the manager's reporting bias, but then presents the information it has collected with its own bias. The audit committee's presence changes the impact of penalties and incentives on reporting, valuation, and due-diligence activities. For example, increasing penalties can sometimes degrade the reporting process. Our simultaneous consideration of the manager, audit committee, and investors provides a new framework for reporting and valuation, and sheds light on empirical earnings quality research that has largely studied the management and audit effects separately.
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Kotamena, Fredson, Poltak Sinaga, Dylmoon Hidayat, and Niko Sudibjo. "SUCCESSFUL HR AUDIT: IS IT DETERMINED BY TOP MANAGEMENT COMMITMENT, HR CONSULTANTS, AND LINE MANAGER INVOLVEMENT." Jurnal Manajemen dan Kewirausahaan 24, no. 1 (March 3, 2022): 33–43. http://dx.doi.org/10.9744/jmk.24.1.33-43.
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The research aimed to find out how to execute a successful HR audit by looking into the top management's commitment, HR consultants' function in the business, and the line manager's level of participation in the audit. 70% of the total population of employees who were selected using probability random sampling participated through an online questionnaire. The hypothesis was tested using structural equation modeling since a total of 104 respondents supplied favorable responses, but only 101 could be employed to test the hypothesis. The result showed that the absence of HR and line managers did not affect the success of HR audits from the starting point and that the term "audit" had a negative connotation.
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Hamilton, Erin L. "Evaluating the Intentionality of Identified Misstatements: How Perspective Can Help Auditors in Distinguishing Errors from Fraud." AUDITING: A Journal of Practice & Theory 35, no. 4 (March 1, 2016): 57–78. http://dx.doi.org/10.2308/ajpt-51452.
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SUMMARY Although auditors are responsible for detecting misstatements arising from either error or fraud, the auditing standards require very different audit responses when a misstatement is believed to be the result of an intentional act (AS No. 14, PCAOB 2010a). Specifically, if auditors suspect intentional misstatement, then they should perform additional audit procedures, reassess overall fraud risk and the integrity of management, and communicate potential concerns to the audit committee. Thus, if auditors fail to recognize and respond to information indicating a misstatement was caused intentionally, then audit quality may be impaired. The objective of this study is to investigate whether auditors who consider the perspective of the manager responsible for a misstatement's occurrence are more sensitive to circumstances indicating the misstatement was intentional. Using an experiment with audit managers and senior managers, I find that auditors who consider the client manager's perspective assess the misstatement as significantly more likely to be intentional when circumstances surrounding it indicate high, as opposed to low, fraud risk. In contrast, auditors who do not consider the client manager's perspective do not assess intentionality any differently, regardless of the level of fraud risk.
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Maksymov, Eldar M. "Auditor Evaluation of Manager's Competence After a Failure in Internal Control." AUDITING: A Journal of Practice & Theory 40, no. 3 (February 19, 2021): 105–25. http://dx.doi.org/10.2308/ajpt-18-036.
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SUMMARY Audit guidance requires auditors to assess management's competence with respect to internal controls over financial reporting (ICFR) based on the recommendations of COSO's integrated framework. The omission bias theory suggests that after internal control failures, auditors may assess managers' competence in a manner inconsistent with these requirements. Results from four experiments using 313 experienced audit and accounting professionals support this concern and a means of mitigating it. I find that auditors view the manager to be most competent when prior to the failure in the key control the manager did nothing to prevent the failure versus reinforced the key control. I do not find this effect when auditors had shared their concerns about the key control with the manager prior to the control's failure. My results also show that auditors incorporate their competence judgments about management into evaluations of the ICFR, as required by the audit guidance.
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Hecht, Harry, and Debbie Niemeier. "Evaluation of Past Audits of Project Development on California State Highway System." Transportation Research Record: Journal of the Transportation Research Board 1817, no. 1 (January 2002): 1–10. http://dx.doi.org/10.3141/1817-01.
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The California Department of Transportation (Caltrans) is responsible for developing and maintaining the state highway system. Fourteen audits related to the Caltrans project delivery process have been conducted in the last 30 years, an average of about one every 2 years. Most of the audits cited expense and timeliness problems with project development. Yet neither the degree to which these audits accurately assessed the problems with project development nor the degree to which implementation of audit recommendations served to improve project development has been evaluated. The audit findings and recommendations were researched and compared with newly collected data from interviews with project managers involved in the development of highway projects throughout California. Findings indicate that many of the recommendations of past audits have not been implemented, do not apply, or, if implemented, do not appear to have materially changed or to have improved project development times or costs. A flaw of previous audits was the failure to directly involve project managers in identifying constraints on project development. Moreover, discussions with project managers suggest there is a need to update, review, and value-engineer an overly rigid project development process. Despite audit assertions that project delivery can be improved with more aggressive project management, project managers are not delegated the same level of authority as they are assigned responsibility. Thus, the role of the project manager in project planning, management, and quality control is administratively constrained. There is a need to develop new methods for conducting these types of audits so that major issues and problems are better defined before solutions are recommended.
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Tabone, Norbert, and Peter J. Baldacchino. "The statutory audit of owner‐managed companies in Malta." Managerial Auditing Journal 18, no. 5 (July 1, 2003): 387–98. http://dx.doi.org/10.1108/02686900310476855.
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Historically, as a former British colony, Malta has had its accounting and auditing practices highly influenced by UK regulation. However, in the last decade, departures have steadily been occurring from a UK‐based regulatory framework to one increasingly influenced both by international standards and European Union requirements. One such departure relates to the retention of the statutory audit requirement for all Maltese companies, despite its earlier abolishment for small companies in the UK. This study evaluates the relevance of a mandatory annual statutory audit requirement for owner‐managed companies as perceived by two interest groups: the owner‐manager and the auditor. It also considers possible alternatives to such a requirement. Results indicate that for Maltese owner‐managed companies, the statutory audit fulfils two important roles: it bears relevance to outside third parties, and it has a positive effect on the owner‐manager and staff.
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Keune, Marsha B., and Karla M. Johnstone. "Materiality Judgments and the Resolution of Detected Misstatements: The Role of Managers, Auditors, and Audit Committees." Accounting Review 87, no. 5 (April 1, 2012): 1641–77. http://dx.doi.org/10.2308/accr-50185.
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ABSTRACT This study investigates how manager and auditor incentives, along with audit committee characteristics, are associated with materiality judgments about detected misstatements. Using data on detected misstatements that occurred between 2003 and 2006, we find auditors' incentives to protect their reputations weaken the effect of managerial incentives associated with the pressure created by analyst following; auditors are less likely to allow managers to waive material misstatements as audit fees increase. Regarding audit committee characteristics, results reveal that audit committees with greater financial expertise are less likely to allow managers to waive material misstatements compared to audit committees with less expertise. Data Availability: Data used in the study are available from public sources.
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Stang, Vivian B., Mary Jane Beavis, and Geneviève Côté. "Chart Audit of Spiritual Care Documentation: Continuous Quality Improvement." Journal of Pastoral Care & Counseling: Advancing theory and professional practice through scholarly and reflective publications 74, no. 4 (November 23, 2020): 280–89. http://dx.doi.org/10.1177/1542305020964793.
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Eight spiritual care practitioners at an acute care teaching hospital undertook a systematic chart audit of their documentation practices in the patient electronic health record. The purpose was to evaluate their practices using the standards of their professional association and regulatory college. A preliminary “mock audit” was essential for the overall success of the audit. Plans for ongoing chart audits will lead to continuous quality improvement. A limitation was that their manager acted as both improvement coach and performance evaluator.
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Patterson, Evelyn R., and J. Reed Smith. "The Strategic Effects of Auditing Standard No. 5 in a Multi-Location Setting." AUDITING: A Journal of Practice & Theory 35, no. 1 (June 1, 2015): 119–38. http://dx.doi.org/10.2308/ajpt-51172.
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SUMMARY Auditing Standard No. (AS) 5 provides guidance in the required audit of internal control over financial reporting and its integration into the financial statement audit. AS 5 advocates a “top-down” approach, in which control testing helps the auditor assess the risk of financial misstatement across multiple locations. We consider a manager who oversees two locations and who has private information about internal control strength in each location. Only when controls are weak can the manager commit fraud. We show how the manager's opportunity to commit fraud and informational characteristics of internal control tests impact the manager's probability choice of fraud and the auditor's choice of substantive test effort.
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Banbhan, Ashfaque Ali, Khalid Hussain Abbasi, and Farheen Qasim Nizamani. "The Relationship between CEO Characteristics & External Auditing Quality: A Longitudinal Assessment." Global Economics Review IV, no. IV (December 30, 2019): 141–56. http://dx.doi.org/10.31703/ger.2019(iv-iv).13.
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All publicly-traded companies are required by law to disclose their accurate financial information in order to reduce information asymmetries. This study focuses quantitatively on the impact of top management on the quality of corporate audits. Using company financial data, this study found that there is a positive correlation between highquality audits and company performance, as a higher quality audit can ensure rigorous follow-up to financial reports. This study also broadens the understanding of a higher-level manager in the presence of a quality audit.
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Berglund, Nathan Robert, and John Daniel Eshleman. "Client and audit partner ethnicity and auditor-client alignment." Managerial Auditing Journal 34, no. 7 (July 1, 2019): 835–62. http://dx.doi.org/10.1108/maj-10-2018-2036.
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PurposeThe purpose of this study is to examine the role of ethnic similarity in the audit partner–client manager relationship and its impact on auditor selection and retention decisions.Design/methodology/approachThe authors use name matching analysis to infer ethnicity of audit partners and client managers in the US nonprofit reporting environment. The authors examine the degree of ethnic similarity (co-ethnicity) between the two parties and model auditor selection and retention decisions as a function of co-ethnicity. The authors also model reporting attributes as a function of co-ethnicity.FindingsThe authors find that the ethnic similarity between the client manager and their external audit partner is a significant determinant of auditor-client alignment. Specifically, the authors find that clients are more likely to select and retain an audit partner who is ethnically similar to the client manager. The authors find that co-ethnicity is associated with a lowered propensity to issue a going concern opinion to a financially distressed client and an increased occurrence of underreporting of fundraising and administrative expenses.Research limitations/implicationsTaken together, the evidence suggests that ethnic diversity (the opposite of co-ethnicity) in the auditor-client relationship is associated with higher audit quality. These findings are relevant to client managers, audit committees and public accounting firms as they make auditor selection and reporting decisions.Originality/valuePrior studies have found that co-ethnicity influences the formation and future success of various business partnerships. The auditor-client relationship is a unique setting within the business environment where the two parties must balance their desire to maintain a close relationship with their need to maintain independence. The study is the first to examine the role of ethnicity in the auditor-client relationship.
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Lee, Kyungha (Kari), and Rahul Menon. "The Effects of Subjectivity on Manager and Auditor Reporting." Accounting Review 94, no. 5 (November 1, 2018): 273–95. http://dx.doi.org/10.2308/accr-52316.
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ABSTRACT This paper develops an economic model of how subjectivity in accounting estimates affects a manager's reporting behavior and auditors' subsequent information aggregation decision. In our model, the auditor receives a potentially manipulated report from the manager and uses an additional, albeit less precise, estimate to verify the report. We show, perhaps surprisingly, that as subjectivity increases, the auditor puts more weight on the manager's report, but the manager manipulates her report less. The overall effect of subjectivity on audit precision and the expected bias in the audited report is nonmonotonic. We further analyze how subjectivity affects the manager's investment behavior and optimal compensation structure. By introducing the notion of subjectivity, our model provides novel insight and empirical implications on managerial reporting behavior, audit quality, and investment efficiency when involving accounting estimates.
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Hughes, Russ. "Certification of sustainable forest management systems: The importance of field verification." Forestry Chronicle 72, no. 6 (December 1, 1996): 595–97. http://dx.doi.org/10.5558/tfc72595-6.
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Certification requires an independent third party verification, commonly called an audit, to ensure that all components of a certification standard have been met. Field visits are an essential element to the Certification audit; however, the degree of field verification during the audit may vary depending on the objectives of the Sustainable Forest Management System. A key issue will be determining the proper balance between systems evaluation and field verification. Field audits establish credibility with the forest manager, the public and customers in addition to providing opportunities for training and public participation.
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Fatemi, Darius J. "An Experimental Investigation of the Influence of Audit Fee Structure and Auditor Selection Rights on Auditor Independence and Client Investment Decisions." AUDITING: A Journal of Practice & Theory 31, no. 3 (August 1, 2012): 75–94. http://dx.doi.org/10.2308/ajpt-10289.
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SUMMARY This study uses experimental markets to gain insights into the effect of audit fee structure and auditor selection rights on auditor independence and client investment decisions. I find that firm managers are more willing to make a high cost/return investment under a lowballing setting than when auditors are paid a flat rate. Auditor behavior is primarily summarized as a response to past manager choices; when managers are especially willing to invest and honest, auditors perform fewer tests of manager disclosures. I also show that under manager selection, when lowballing exists, auditors initially attribute a higher accuracy to investigations indicating high manager investment than tests that suggest low investment, but the difference in accuracy assessments dissipates with time. Under investor selection, accuracy assessments of test results do not differ according to their outcome. Further analysis indicates that auditor retention under manager selection is negatively impacted by both unreliable auditing and disagreements with managers, with only the former affecting retention under investor selection.
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Hurley, Patrick J., Brian W. Mayhew, and Kara M. Obermire. "Realigning Auditors' Accountability: Experimental Evidence." Accounting Review 94, no. 3 (August 1, 2018): 233–50. http://dx.doi.org/10.2308/accr-52224.
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ABSTRACT We use experimental economic markets to examine the impact of changing institutional design features on audit quality. Specifically, we manipulate auditors' economic accountability to managers by altering who hires the auditor—a manager or an independent third party—and auditors' psychological accountability to investors by explicitly stating that the auditor is hired on the investors' behalf. Our design shifts auditors' accountability from managers, who have directional goal preferences, to investors, who prefer judgment accuracy. We find that removing auditors' economic accountability to managers and replacing it with psychological accountability to investors significantly increases audit quality. This increase in audit quality occurs despite the independent third party randomly hiring auditors. In an additional treatment, we incorporate auditor accuracy into the third-party hiring algorithm and find even higher audit quality. Our results suggest that altering auditors' accountability relationships can significantly enhance audit quality. Data Availability: The laboratory market data used in this study are available from the authors upon request.
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Khansalar, Ehsan, Mahmoud Lari Dasht-Bayaz, and Javad Zarei. "Influential Factors on Analytical Methods in External Audit." International Journal of Economics and Finance 7, no. 11 (October 27, 2015): 76. http://dx.doi.org/10.5539/ijef.v7n11p76.
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In 1394, a research was conducted to detect the influential factors on using analytical methods in external audit. Results of research hypothesis examination revealed that analytical procedures were used effectively during implementation steps of external audit and needed initial information including industry indices, budget, standard costing, firm size, accounting systems, effective internal controls, audit managers work history and his(her) coworkers, educational level of audit manager and his(her) coworkers, industry, familiarity with statistical-analytical procedures and institution size influence on using analytical procedures. However among factors mentioned above only firm size, accounting systems and effective internal controls are crucial factors which influence on using analytical procedures.
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Spraakman, Gary. "INTERNAL AUDIT AT THE HISTORICAL HUDSON'S BAY COMPANY: A CHALLENGE TO ACCEPTED HISTORY." Accounting Historians Journal 28, no. 1 (June 1, 2001): 19–41. http://dx.doi.org/10.2308/0148-4184.28.1.19.
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The accepted history of managerial internal audit is that its origins are in financial and compliance auditing. Managerial was added after firms started to expand geographically or into other businesses. That expansion increased complexity and created problems for managers which the internal auditor assisted in solving with managerial audits. Contrary to that two stage development, something comparable to managerial internal audit was being practiced by the Hudson's Bay Company in the form of inspections as early as 1871. Rather than in financial and compliance auditing, these inspections had their geneses in the desire of the senior manager and the committee (board of directors) for additional information on the fur trade and retail operations. This paper will describe the inspection function at the historical Hudson's Bay Company, the circumstances leading to the development of this function, and how it complemented other controls.
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Shawn, Hyuk, Hyoik Leese, Jaegyung Jung, and Sanghyuk Moon. "Relation Between Real Earnings Management And Audit Quality." Journal of Applied Business Research (JABR) 32, no. 3 (May 2, 2016): 967–80. http://dx.doi.org/10.19030/jabr.v32i3.9666.
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Net income is composed of CFO and accruals. Auditors generally detect discretionary accruals to raise reliability of financial reporting and call upon managers to correct their financial reports according to the materiality. From these viewpoints, prior researches use the size of discretionary accruals as proxies for the audit quality. However, manager can also use CFO factors as means of earnings management. We confirm whether abnormal CFO factors, that is, real activity earnings management (hereafter RAM) by Roychordhury model(2006), can be as a proxy for the audit quality with comparing the size of RAM with existing proxies of audit quality such as auditors’ size (e.g. big4), audit time and audit fee. Our results show that the size of RAM is positively correlated with some existing proxies of audit quality. Also, we find discretionary accruals positively correlated with RAM in Korea. The result implies managers in Korea simultaneously use RAM as well as discretionary accruals as a means of earnings management.
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Nugroho, Dwiyanjana, and Vera Diyanty. "HEXAGON FRAUD IN FRAUDULENT FINANCIAL STATEMENTS: THE MODERATING ROLE OF AUDIT COMMITTEE." Jurnal Akuntansi dan Keuangan Indonesia 19, no. 1 (June 30, 2022): 46–67. http://dx.doi.org/10.21002/jaki.2022.03.
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This paper aims to examine the effect of the fraud hexagon on fraudulent financial statements (FFS), and the audit committee (AC)'s role in moderating this relation. The research model uses logit regression with data on all non-financial companies in Indonesia ranging from 2016 to 2020, which were obtained from annual reports and Thomson Reuters. The sensitivity test uses a coefficient difference test based on the Overall Manipulation Index. This study shows that the probability of FFS is higher when the manager has the stimulus, opportunity, and capability. On the other hand, rationalization and collusion do not affect the probability of FFS. Interestingly, managers with high ego do not commit fraudulent financial reporting. The AC can minimize the stimulus, opportunity, and capability of the manager to make FFS. On the other hand, the AC cannot minimize the rationalization, ego, and collusion network of the manager. Theoretically, this study contributes to developing the situational action theory literature related to FFS and the fraud hexagon framework. This study provides academic implications that the arguments and empirical research findings that examine the behavior of managers in committing fraudulent financial reporting can be built not only based on the proxies used, but also by referring to the fraud theoretical framework.
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D'Onza, Giuseppe, Rita Lamboglia, and Roberto Verona. "Do IT audits satisfy senior manager expectations?" Managerial Auditing Journal 30, no. 4/5 (May 5, 2015): 413–34. http://dx.doi.org/10.1108/maj-07-2014-1051.
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Purpose – This paper aims to analyse the relationship between the senior management and the information technology (IT) auditing undertaken in Italian banks, focusing specifically on the internal IT auditing. The purpose of this paper is to investigate senior executives’ expectations regarding IT auditing, the techniques IT auditors apply to meet these expectations, the degree to which senior managers are satisfied with the auditing and the expectation gap. Design/methodology/approach – We conducted 22 interviews with senior managers and IT auditors of seven Italian banks, comprising large and small financial institutions, to gain data for our analysis. Findings – We found that overall, the IT auditors’ contributions satisfy senior managers, even though they still see room for improvement. They expect more support for the IT governance processes, specifically for the alignment between IT investments and business needs and between IT risk management and the value that IT resources provide. In addition, they want IT auditors to focus more strongly on IT security. To meet these expectations, IT auditors would have to improve their technical and non-technical skills. These skills will allow them to expand their activities, to be more proactive and to take on effective roles in IT governance processes. Originality/value – This study contributes to the existing literature by providing insights into the internal audit function’s evolving role and into banks’ IT audit activities. It also provides a valuable insight into senior management’s expectations regarding the role IT audit activities should play to support the profession and the banking policymakers, thus providing a better understanding of IT audit activities and improving these activities’ role.
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Ramsay, Robert J. "Senior/Manager Differences in Audit Workpaper Review Performance." Journal of Accounting Research 32, no. 1 (1994): 127. http://dx.doi.org/10.2307/2491391.
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Baldwin, C., and W. E. I. Forsythe-Yorke. "How to build a better manager Consider audit." BMJ 308, no. 6941 (May 28, 1994): 1441. http://dx.doi.org/10.1136/bmj.308.6941.1441.
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Sijabat, Jadongan. "PENGARUH ATRIBUT-ATRIBUT KUALITAS AUDIT TERHADAP KEPUASAN KLIEN (Studi Empiris Pada Perusahaan Perbankan di Kota Medan)." Visi Sosial Humaniora 1, no. 2 (December 18, 2020): 42–58. http://dx.doi.org/10.51622/vsh.v1i2.104.
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This research is a study about attributes of audit quality. The purpose of this research is to re-examine the effect of attributes of audit quality to client satisfaction as Bhen et al (1997).
This research conducted with survey on perception of financial managers or controller, that distributed by mail survey to 100 financial manager of banking in Medan City. Unit analysis are the financial managers or controller of banking. There are fifty five questionaires (55%) received and analyzed by Ordinari Least Square supported by SPSS 10.00 program.
The results showed that some of attributes of audit quality effected client satisfaction. The results showed that there were some different result between this study and Bhen et al. (1997).
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Abdel-Khalik, A. Rashad. "Why Do Private Companies Demand Auditing? A Case for Organizational Loss of Control." Journal of Accounting, Auditing & Finance 8, no. 1 (January 1993): 31–52. http://dx.doi.org/10.1177/0148558x9300800103.
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The objective of this paper is to explain the motivation for owners of private companies to voluntarily demand audit (positive) assurance. It is hypothesized that the owner/manager seeks audits as compensatory control systems for the organizational loss of control inherent in hierarchical organizations. Thus, the expected value of wealth at risk due to loss of control sets a lower limit on the amount owners would be willing to pay for audits to compensate for that loss. The hypothesized relationship was tested using information for 103 private companies demanding audit (positive) assurance. The obtained relationships were basically unaltered by the introduction of lenders' requirement of audits (n = 40). Furthermore, the hypothesized compensatory aspect of audit assurance was absent for the demand for negative assurance (reviews) in a sample of 31 companies. This is consistent with the fact that negative assurance is not viewed as a way of providing confidence so as to compensate owners for loss of direct supervision and control.
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Bowlin, Kendall. "Risk-Based Auditing, Strategic Prompts, and Auditor Sensitivity to the Strategic Risk of Fraud." Accounting Review 86, no. 4 (April 1, 2011): 1231–53. http://dx.doi.org/10.2308/accr-10039.
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ABSTRACT Under risk-based auditing, more (fewer) audit resources are allocated to accounts that are more (less) likely to be misstated. However, if auditors do not anticipate the strategic risk that arises when client managers anticipate auditors' risk-based resource allocations, undetected misstatements among ostensibly low-risk accounts could be more common than traditional risk assessment procedures suggest. Using a laboratory experiment, I find that participants assuming the auditor role in a stylized audit game do not naturally attune to strategic risks, but instead focus resources toward accounts with high non-strategic risk and away from ostensibly low-risk accounts. Manager-participants exploit these allocations by overriding the low-risk accounts more often than accounts with high non-strategic risk. However, auditor-participants who are asked to predict managers' expectations of, and responses to, audit resource allocations, devote additional resources to the low-risk accounts. These results are robust to the level of available audit resources.
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Godfrey, Anne-Marie, Stuart Leblang, Ron Grabov-Nardini, and Monte Jackel. "Considerations for Asian fund managers under the US New partnership audit regime." Journal of Investment Compliance 19, no. 3 (September 3, 2018): 39–41. http://dx.doi.org/10.1108/joic-04-2018-0023.
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Purpose This paper aims to explain how the Bipartisan Budget Act of 2015, as modified by the Protecting Americans from Tax Hikes Act of 2015, changes the way the US Internal Revenue Service will conduct audits of collective investment vehicles treated as partnerships for US tax purposes. Design/methodology/approach This study explains the entities covered by the new partnership audit regime, the effective dates of the new regime and steps to be taken by funds covered by the new audit regime. Findings The results show that the new regime creates a liability at the partnership level for any unpaid tax, placing the tax burden on current-year partners. Practical implications A fund manager should determine whether the new audit regime is applicable to any of the funds he or she is managing and, if so, amend the fund documents to accommodate the new audit rules, providing a mechanism to elect and supervise a partnership representative, a mechanism to allocate the economic burden of the tax to the appropriate partners and a procedure for selecting the method to calculate the amount of the fund’s tax liability attributable to an audit. Originality/value This study provides practical guidance from experienced investment, fund and tax lawyers.
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Fossung, Michael Forzeh, Samuel Tanjeh Mukah, Kueda Wamba Berthelo, and Motika Eubert Nsai. "The Demand for External Audit Quality: The Contribution of Agency Theory in the Context of Cameroon." Accounting and Finance Research 11, no. 1 (January 11, 2022): 13. http://dx.doi.org/10.5430/afr.v11n1p13.
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This study examines the effect of agency theory on the demand for external audit quality in Cameroon. Specifically, it looks at the impact of shareholder/manager agency cost, shareholders/creditors agency cost, and majority/minority shareholders agency cost on external audit quality demand in Cameroon. The focus is on a sample of 171 companies drawn from the regions of Littoral, Centre and North-West using questionnaires. We assess the explanatory power of agency theory on the demand for a better quality of audit in the Cameroonian context by modelling external audit quality as a function of agency costs. The logistic regression analysis allows us to study the nature of any possible interaction. The analysis shows that while an increase in shareholder/creditor agency cost and an increase in shareholder/manager agency cost negatively affect the demand for audit quality, the majority/minority agency cost and the size of the audited client positively and significantly affect the demand for audit quality.
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Mei Rinta. "Ukuran Dewan Direksi, Aktivitas Komite Audit Dan Ukuran Komite Audit Terhadap Manajemen Laba." Journal of Accounting Science 5, no. 1 (August 22, 2021): 89–103. http://dx.doi.org/10.21070/jas.v5i1.1336.
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In accordance with the agency theory that management is responsible to the owner, so he will try to keep the performance of financial statements is always good and will act opportunistically to manage earnings if the performance of financial statements shows a decline. Therefore, the role of the board of director and audit committee is needed to protect the interests of the owner and manager. This study aims to investigate the effect of board of directors size, audit committee activities and the size of the audit committee on earnings management. This study uses a quantitative approach using secondary data from 322 samples of companies in the manufacturing sector during the period 2015-2017. The data collected was tested using multiple linear regression analysis techniques. This study produces findings that the size of the board directors have an insignificant negative effect on earnings management, the activities of the audit committee have a significant negative effect on earnings management and the size of the audit committee have an insignificant positive effect on earnings management.
Keywords: Board Directors Size, Audit Committee Activities, Audit Committee Size, Earnings Management.
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Ziaee, Morteza. "The Effect of Audit Quality on the Performance of Listed Companies in Tehran Stock Exchange." International Letters of Social and Humanistic Sciences 21 (February 2014): 36–43. http://dx.doi.org/10.18052/www.scipress.com/ilshs.21.36.
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Audit opinion shopping has been studied extensively in accounting research. A firm engages in opinion shopping by influencing or even manipulating its auditor‟s decision in certain ways to obtain an opinion that is more favorable that that warranted by the quality of its accounting information. If such behavior exists, then it would lead to a higher degree of information asymmetry between managers and investors and weaken auditing‟s protective effect on investors. Many researches have been done to improve the understanding of audit quality to a better understanding This concept can be achieved and the relationship between audit quality and other parameters to be determined. One of Many variables that its relationship with audit quality research, examined. The size of the audit firm. Methods of the research in this field Angelou January 1981 to practice. He stated his Yhay concluded between audit quality and auditor size. There is a positive relationship. This study sought to examine the relationship between audit quality and financial performance of companies in Iran. For this population the financial manager is accepted in Tehran Stock Exchange and 2008 to 2012 have been selected. Distribute and collect the questionnaires they reached the conclusion that audit quality could affect the financial performance of companies.
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Misbah, Misbah, Mustakim Muchlis, and Roby Aditiya. "PERAN AUDIT SYARIAH DALAM PENGAWASAN PRAKTIK SHARIAH COMPLIANCE PADA LEMBAGA KEUANGAN SYARIAH." ISAFIR: Islamic Accounting and Finance Review 3, no. 1 (June 30, 2022): 152–64. http://dx.doi.org/10.24252/isafir.v3i1.29823.
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This study aims to find out how the Role of Sharia Audit in Supervision of Shariah Complince at Bank Syariah Indonesia (KCP) Bima City. By focusing on three main topics of discussion, namely the role of the shariah compliance audit, the shariah audit framework, and the concept of monotheism contained in the shariah compliance audit. The research method used in this research is qualitative with a phenomenological approach. The informants from the Indonesian Sharia Bank (KCP) Bima City consisted of two informants, namely the Leader and the Branch Operational and Service Manager. The data used in this study is primary data obtained through direct interviews with informants and secondary data is data obtained from internet data. The results of this study indicate that, the role of shariah compliance audit at the Bank Syariah Indonesia Office (KCP) Bima City is the supervision of financial statements. Furthermore, in the implementation of the sharia audit framework at the Indonesian Sharia Bank Sub-Branch Office of Bima City, the guidelines on the DSN MUI fatwa for audits outside of the financial aspect and sharia PSAK as guidelines in auditing financial statements. And the concept of monotheism contained in the shariah compliance audit at Bank Syariah Indonesia (KCP) Bima City is to apply an honest and trustworthy attitude in the implementation of the audit.
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Dang, Li, and Qiaoling Fang. "Audit quality and owner-manager agency costs: evidence from China." International Journal of Business Innovation and Research 5, no. 1 (2011): 46. http://dx.doi.org/10.1504/ijbir.2011.037256.
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Zarembski, Allan M., Nii Attoh-Okine, and Truxton J. Boyce. "Risk-based scheduling methodology for audit inspections of curves on high-speed mainline tracks." Proceedings of the Institution of Mechanical Engineers, Part F: Journal of Rail and Rapid Transit 232, no. 6 (November 9, 2017): 1650–59. http://dx.doi.org/10.1177/0954409717740748.
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Agencies with safety oversight responsibilities of railroad tracks often perform walking audit inspections of tracks (also referred to as quality audits) to complement and oversee the regular inspections performed by the railway operator or maintenance manager. Traditionally, these audit inspections are scheduled based on the qualitative evaluation of the rail line by the inspectors, together with the available schedule of the inspector(s). This paper presents an approach to replace the current qualitative decision-making process for determining when and where to conduct audit inspections with a quantitative decision-making process. This quantitative process first establishes an acceptable level of risk in a given territory, and then taking into account the defect history and real-time track conditions, it schedules audit inspections based on those conditions. This risk-based scheduling methodology of audit inspections can be used by the safety oversight agencies and inspectors to monitor and “spot” check track conditions and provide oversight over the normal inspection process. The audit inspection’s frequency algorithm, presented in this paper, establishes the acceptable level of risk based on six years of Federal Railway Administration safety audit inspections data of the Amtrak North East Corridor. This methodology takes into account the track conditions in terms of the curve defect rate and optimizes the scheduling of audit inspections of mainline curves based on this defect condition. The risk-based curve audit inspections interval methodology outputs the required maximum curve audit inspections interval (time until next audit inspection or reinspection) while maintaining an accepted level of risk in the presence of real-time curve defect rates.
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Kumbara, Cokis Ratih, Linawati Linawati, and I. Made Oka Widyantara. "Audit Infrastruktur Aplikasi Pelayanan Publik Pemerintah Kota Denpasar." Majalah Ilmiah Teknologi Elektro 16, no. 2 (August 31, 2017): 78. http://dx.doi.org/10.24843/mite.2017.v16i02p14.
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Salah satu Tugas Pokok dan Fungsi utama Dinas Komunikasi dan Informatika Kota Denpasar adalah sebagai pengelola infrastruktur aplikasi pelayanan publik di Pemerintah Kota Denpasar. Pelayanan publik berupa pelayanan kependudukan di Kota Denpasar menggunakan aplikasi Sistem Informasi Administrasi Kependudukan (SIAK) yang meliputi pembuatan KTP, KK, dan Akta Kelahiran. Jika infrastruktur aplikasi pelayanan publik ini mengalami permasalahan, maka akan sangat menghambat semua proses yang berujung kepada komplain masyarakat dan berdampak pada menurunnya tingkat kepercayaan publik. Oleh karena itu dilakukan suatu evaluasi internal berupa audit dalam pengelolaan infrastruktur aplikasi pelayanan publik agar pihak pengelola dapat melakukan perencanaan untuk perbaikan serta peningkatan dan pengembangan infrastruktur yang telah dibangun. Audit dilakukan dengan menggunakan COBIT 4.1 sebagai kerangka kerja kontrol. Berdasarkan hasil audit dengan menggunakan Maturity Model COBIT 4.1, diperoleh tingkat kematangan pada proses AI3 (Mendapatkan dan Memelihara Infrastruktur Teknologi) yaitu berada pada level 3 (defined). Untuk penilaian secara objektif, tingkat kematangan berada diantara level 3 (defined) dan level 4 (managed and measurable) yaitu sebesar 3,53. Rekomendasi diberikan secara bertahap berdasarkan tingkat kematangan yang diperoleh dari hasil evaluasi yaitu tingkat kematangan 3 (defined) untuk dapat ditingkatkan ke tingkat kematangan 4 (managed and measurable), kemudian ditingkatkan lagi menuju tingkat kematangan ideal yaitu 5 (optimized). One of the main functions of Communications and Information Department of Denpasar is a public service application infrastructure management in Denpasar Government. Public services such as settlement services in Denpasar using the Administrasi Information System (SIAK) application which includes the manufacture of ID Card, Family Registers and a birth certificate. If the application infrastructure of public service is experiencing problems, it will greatly hamper the whole process that led to the people's complaints and decrease the level of public confidence. Therefore, an evaluation of internal audit in the form of public service application infrastructure was held so that the manager can do the planning for improvement and development of infrastructure that has been built. Audits carried out by using the COBIT 4.1 framework as controls. Based on the results of audits using COBIT 4.1 Maturity Model, obtained level of maturity in the process AI3 (Obtain and Maintain Infrastructure Technology) which is located on level 3 (defined). For an objective assessment, the maturity level is between level 3 (defined) and level 4 (managed and measurable) amounting 3,53. Recommendation given in stages based on the level of maturity that is obtained from the evaluation that maturity level 3 (defined) to be improved to the maturity level 4 (managed and measurable), then increased again towards the ideal maturity level 5 (optimized).
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Putri, Devi Tiara, and Nursiam Nursiam. "Ukuran Kantor Akuntan Publik (KAP), Opini Auditor, Financial Distress, dan Pergantian Manajer pada Auditor Switching." Perspektif Akuntansi 4, no. 3 (October 30, 2021): 277–96. http://dx.doi.org/10.24246/persi.v4i3.p277-296.
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The study aims to determine the effect of the size of Public Accounting Firm (KAP), Audit Opinion, Financial Distress, and Change of Manager in real estate and property companies listed in the Indonesia Stock Exchange (BEI) for the 2017-2019 period. The data used are secondary. The total sample from the observation is 123 sample obtained with the purposive sampling method. The research used logistic regression analysis techniques. The result of this research indicate that the size of the Public Accounting Firm (KAP) , Financial Distress, Change of Manager had no effect on auditor switching, and Audit Opinion affect on auditor switching
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Lambert, S. Lane. "Merchandise Hardware: A Case Designed to Teach Students Generalized Audit Software Using Microsoft Access." AIS Educator Journal 10, no. 1 (June 1, 2015): 1–4. http://dx.doi.org/10.3194/1935-8156-10.1.1.
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ABSTRACT This paper provides an educational case wherein students learn how Microsoft Access (“Access”) can be used as Generalized Audit Software (“GAS”). Students export data from an Access database provided in the case that simulates a portion of the Expenditure Cycle in the Accounting Information System (“AIS”) used by the case company. Students then import the downloaded data into another Access database where Queries and a Module are used as GAS to analyze and audit the data. In the case, students assume the roles of accounts payable manager, general ledger accountant, procurement manager and internal/external auditor, thereby learning that not only auditors but also accountants and managers can use GAS. Once the students have created and executed the Access GAS procedures illustrated in the case, they are given an assignment that includes modifying a case GAS procedure, documenting GAS procedures, and recommending and implementing improvements in the case AIS based on GAS results. The case is designed to teach students general concepts for planning and performing GAS procedures and software skills in using Access as GAS. This paper is the first educational case that illustrates how Access Modules can be used as GAS.
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Kim, Taewoo. "Does a Manager Respond to a Going-Concern Audit Opinion with an Asymmetry in Gain and Loss?" Sustainability 13, no. 8 (April 15, 2021): 4425. http://dx.doi.org/10.3390/su13084425.
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In this paper, I investigate the relationship between previous going-concern audit opinions and subsequent asymmetric timeliness in accounting. Using the time-series and price-based models and conservatism proxy, I find that firms with going-concern audit opinions subsequently report losses in a more timely manner than firms that did not receive going-concern audit opinions. Furthermore, I also find that firms exiting going-concern audit opinions are more likely to report losses rather than gains in a timely manner, compared to firms non-exiting from going-concern opinions. This study extends the prior research by exploring the association between going-concern opinions and accounting conservatism from the perspective of client firms—that is, how firms behave strategically and conservatively to bypass going-concern opinions, once the firms had received previous going-concern opinions.
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Djamaa, Wahjuny, Yustin Triastuti, and Putri Diaz Tami. "Pengaruh Fee Audit, Kompetensi, Etika Auditor, dan Tekanan Anggaran Waktu terhadap Kualitas Audit pada Kantor Akuntan Publik (KAP) di Depok & Jakarta Tahun 2020." El-Mal: Jurnal Kajian Ekonomi & Bisnis Islam 3, no. 6 (April 25, 2022): 1179–205. http://dx.doi.org/10.47467/elmal.v4i1.1302.
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The purpose of this study is to discuss and determine the effect of audit fees, competence, auditor ethics and time budget pressure on audit quality at a public accounting firm in Depok. Therefore, we need an audit to clearly determine whether our company's financial statements are in accordance with the guarantee. truth and fairness. The truth and fairness of the audit is very influential on the financial statements, so the company needs an audit. An audit that is able to improve the quality of information, but on the other hand, is a good audit. The public spotlight in recent years is the low quality of audits due to the involvement of public accountants in it. Therefore, companies must also maximize Audit Quality which can be influenced by Audit Fees, Competence, Auditor Ethics, and Time Budget Pressure. This type of research is quantitative research. Samples were taken using convenience sample method. The sample consisted of 30 respondents with the positions of Auditor, Public Accountant, Manager, and Supervisor from the Trisnowati & Mariati Public Accounting Firm (KAP), Hary Suganda Public Accounting Firm (KAP), SE.AK.CPA.CA.BKP, Public Accounting Firm (KAP) ) Irfan Zulmendra, Budiandru Public Accountant Office (KAP) located in Depok & Jakarta, so that the research data analyzed were 30 respondents. The results of the study can be concluded that: (1) Audit Fee has a significant effect on Audit Quality with a significance value of tcount 0.030 <ttable 0.05; (2) Competence has a significant effect on Audit Quality with a significance value of tcount 0.000 <ttable 0.05; (3) Auditor Ethics has no significant effect on Audit Quality with a value of tcount 0.393> ttable 0.05; Time Budget Pressure has a significant effect on Audit Quality with tcount 0.000 <ttable 0.05; Audit Fee, Competence, Auditor Ethics, and Time Budget Pressure have a significant effect on Audit Quality with a value of Fcount 7.645> Ftable 2.74.
Keywords: Audit Fee, Competence, Auditor Ethics, Time Budget Pressure, and Audit Quality
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NIgam, Gaurav Kumar. "SOFTWARE AUDIT SYSTEM." INTERNATIONAL JOURNAL OF COMPUTERS & TECHNOLOGY 3, no. 3 (November 30, 2012): 406–12. http://dx.doi.org/10.24297/ijct.v3i3a.2946.
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To remotely monitor your computer over the internet, you have to install this software on the remote computer (called as server) as well as on your own computer (called as client). When connected , Software Audit System software gives you the full mouse and keyboard control over your computer and you can see the whole screen of the remote PC on your own desktop. As we know that computer networks within companies and organizations become more extensive and more complex, there is a considerable growth in the number of software programs that are installed and used on the computer systems. In order to increase the reliability and efficiency of computer Systems, it is mandatory that we clearly understand and control all the computer programs that are being used. The problem may also arise when people installing unauthorized or copied computer programs on their Desktop PC's. It is necessary that we provide auditing tools that can facilitate audit data either locally or reside on to a central network manager and it gives the information related to the installed and used computer programs
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Handriani, Eka. "Earning Management and the Effect Characteristics of Audit Committee, Independent Commissioners: Evidence From Indonesia." Research in World Economy 11, no. 3 (June 18, 2020): 108. http://dx.doi.org/10.5430/rwe.v11n3p108.
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This study examines whether companies listed Indonesia Stock Exchange conduct efficient or opportunistic earning management and to investigate the effect the Independent Commissioner and the Characteristics of the Audit Committee (measured by Auditor Size, Independence, Expertise, and Activities) on it. The sample consists of 186 observations of manufacturing companies in Indonesia Stock Exchange during the 2013-2018. Using Panel Regression Fixed Effect method, we find evidence that Independent Commissioners has a significant effect on reducing Earnings Management. The Positive Accounting Theory-the efficient perspective occurs when the compensation contract and internal control system, including monitoring by the board of commissioners, will limit the common view opportunistic manager and motivate the manager to choose the right accounting policy. The effective monitoring conducted by an independent commissioner can reduce agency costs because management prioritizes the best interest of shareholders by maximizing company resources. Furthermore, it was found that Audit Committee Size can reduce earning management. It is due to the wide range of skills of audit committee members in exercising oversight on management. Audit Committees with accounting and financial expertise can reduce earnings management. This finding indicates that the Audit Committee may tend to uphold conservative as accounting mechanism. Accounting conservatism has an important role in restricting opportunistic management behavior.
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Malenko, Andrey. "Optimal Dynamic Capital Budgeting." Review of Economic Studies 86, no. 4 (August 20, 2018): 1747–78. http://dx.doi.org/10.1093/restud/rdy043.
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Abstract I study optimal design of a dynamic capital allocation process in an organization in which the division manager with empire-building preferences privately observes the arrival and properties of investment projects, and headquarters can audit projects at a cost. Under certain conditions, a budgeting mechanism with threshold separation of financing is optimal. Headquarters: (1) allocate a spending account to the manager and replenish it over time; (2) set a threshold, such that projects below it are financed from the account, while projects above are financed fully by headquarters upon an audit. Further analysis studies when co-financing of projects is optimal and how the size of the account depends on past performance of projects.
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Bhattacharjee, Sudip, and J. Owen Brown. "The Impact of Management Alumni Affiliation and Persuasion Tactics on Auditors' Internal Control Judgments." Accounting Review 93, no. 2 (June 1, 2017): 97–115. http://dx.doi.org/10.2308/accr-51816.
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ABSTRACT Concerns over “revolving door” practices of companies hiring directly from their external auditor led to a Sarbanes-Oxley Act provision mandating a one-year cooling-off period before such hires can occur. Yet little is known as to whether these alumni affiliations, still prevalent today, actually impair audit quality. Drawing on Social Identity Theory, we conduct an experiment to examine whether auditors experience heightened identification with an alumni-affiliated client manager and, if so, how this perceived relationship affects their professional skepticism in response to a management persuasion attempt. As predicted, absent the use of a management persuasion tactic, auditors identify more with an alumni-affiliated manager than a non-alumnus with equal professional experience, and this perceived social bond enhances the manager's influence. However, the use of a common persuasion tactic, while effective at influencing auditor judgment when used by an unaffiliated manager, “backfires” when used by an alumni-affiliated manager, leading to diminished persuasion and increased professional skepticism. Evidence suggests that auditors are better able to identify the inappropriateness of the persuasion attempt when the tactic is used by an alumni-affiliated manager.
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Fargher, Neil L., Diane Mayorga, and Ken T. Trotman. "A Field-Based Analysis of Audit Workpaper Review." AUDITING: A Journal of Practice & Theory 24, no. 2 (November 1, 2005): 85–110. http://dx.doi.org/10.2308/aud.2005.24.2.85.
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This paper applies the models of Gibbins and Trotman (2002) and Rich et al. (1997a) in a public sector environment. We consider the factors impacting extent of review, level of stylization, and reviewer styles. We also examine the impact of reviewer rank on the above. In a field-based study we found that variation in review hours was due to both individual reviewer factors (reviewer style) and contextual factors (company size, time pressure, attitude of the reviewer to detail). Overall these results support the general robustness of the Gibbins and Trotman (2002) model to a public sector environment involving very experienced seniors and managers. Following the Rich et al. (1997a) framework we also provide evidence on the extent and types of stylization in the review process. Seniors and managers believed that the focuses of different reviewers differed substantially and that they stylized both the presentation and content of the working papers to accommodate these differences. While the evidence on their stylization was strong, their awareness of stylization by preparers for them was weaker. We also found significant differences between senior and manager reviewers including their extent of review, expectations of the perceived emphasis of the review level above, relative time spent on opinion formation and documentation, and the extent of their responses to reviewers' preferences. Finally, we provided a range of additional insights into reviewer style.
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SEPTIVIANI BHAYANGKARI, LAILAH FUJIANTI, and TRI ASTUTI. "PERAN CORPORATE GOVERNANCE DAN KARAKTERISTIK MANAJER DALAM MANAJEMEN LABA." Jurnal Bisnis dan Akuntansi 21, no. 1 (October 29, 2019): 103–12. http://dx.doi.org/10.34208/jba.v21i1.504.
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This research with an objective to verify the correlations between corporate governance, manager characteristics and company size to the profit. The corporate governance which includes board of commissioners, audit committee and board of directors. Whereas manager characteristics that's being used is managerial educations. The number of samples that's in use are 14 industrial and chemical companies which shares are registered in Bursa Efek Indonesia in the period of 2015-2017. Based on the research results, shows that the board of commissioners variable is significantly effecting the profit managements. This proves that board commissioners are adequate to subdue the actions of earnings management. While audit committee, board of commissioners, managerial educations and company size to the profit doesn't show same significant effects to earnings management as board commissioners does.
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Donnelly, Cecily May, Julie Elsworth, and Jules McKim. "An audit of an Intensive Interaction service." Tizard Learning Disability Review 20, no. 3 (July 6, 2015): 111–16. http://dx.doi.org/10.1108/tldr-07-2014-0021.
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Purpose – Following the development of the post of Trust Intensive Interaction Co-ordinator, it was decided to assess the state of provision of Intensive Interaction within the social care provision of an NHS Trust in the South of England. The purpose of this paper is to: map strengths and weaknesses of current provision; identify successful provision; identify obstacles to successful provision or factors associated with the maintenance of provision throughout the organisation. Design/methodology/approach – Feedback after training sessions offered by the Trust Intensive Interaction Co-ordinator was reviewed; data about teams supporting people needing Intensive Interaction was analysed to ensure the recommended number of people within a team had received training; opinions of managers and support workers on the provision of Intensive Interaction were gathered. Findings – In total, 96 per cent of Trust employees thought training was right for them; 81 per cent of house teams/services had at least three staff and a manager who had received Intensive Interaction training; three areas of concern were identified from the opinions of managers and support workers: discussion of Intensive Interaction in supervision; responsibility for Intensive Interaction happening; and sharing knowledge of successful Intensive Interaction with those connected to the service user. Originality/value – This is one of the first published audits of an Intensive Interaction service. For the Trust, it provides a baseline to allow monitoring of the maintenance of current levels of service provision over time and, following action taken to address areas of concern, whether future provision has been improved.
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Salehi, Tabandeh. "Investigation Factors Affecting the Effectiveness of Internal Auditors in the Company: Case Study Iran." Review of European Studies 8, no. 2 (May 15, 2016): 224. http://dx.doi.org/10.5539/res.v8n2p224.
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<p>There are relatively fewer number of studies focused on internal audit effectiveness, than the number of studies on the effectiveness of external audit. Our focus in this paper is mainly on determinants of internal audit effectiveness. For this purpose we developed and tested five hypotheses using an investigation approach. We gathered our data using a questionnaire, filled out by 355 internal audit manager and 272 other internal audit staff.</p><p>Our multivariate regression model estimates the relationships between the effectiveness of internal audit department and its five main determinants: competency of internal audit staff, size of internal audit department, communications between internal auditors and external auditors, management’s support for internal audit department, and independent (outsourced) internal audit.</p><p>Our results show that internal audit effectiveness has stronger relationships with management’s support for hiring and experienced educated staff, providing the internal audit department with sufficient resources, and the size of internal audit department.</p>
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Brown, Veena L. "The Effects of Manager-Auditor Affiliation and PCAOB Inspection Reports on Audit Committee Members' Auditor Selection." Current Issues in Auditing 11, no. 1 (September 1, 2016): P1—P10. http://dx.doi.org/10.2308/ciia-51611.
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SUMMARY This article summarizes the “The Effects of Prior Manager-Auditor Affiliation and PCAOB Inspection Reports on Audit Committee Members' Auditor Recommendations” (Abbott, Brown, and Higgs 2016), who investigate the extent to which audit committee members (ACM) of small public companies consider auditors' Public Company Accounting Oversight Board (PCAOB) inspection reports and/or the auditors' prior affiliation with management in their auditor hiring decisions. The authors find participants (the study's proxy for ACM) incorporate the inspection report, as well as the auditor's prior affiliation with management into their selection decision. Specifically, an auditor's prior affiliation with management negatively impacts his/her chances of being selected by the audit committee. To the extent inspection results measure auditors' competence and prior affiliation with management measures auditor independence, the authors find auditor independence influences auditor selection decisions only when an auditor is deemed competent. In this paper, I discuss the implications of Abbott et al.'s (2016) findings for auditors, public companies, audit committees, and regulators/policymakers interested in understanding whether and how major aspects of the Sarbanes-Oxley Act of 2002 are being implemented within corporate governance.