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Journal articles on the topic 'Auditorův expert'
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1
Krishnan, Jagan, Chan Li, and Qian Wang. "Auditor Industry Expertise and Cost of Equity." Accounting Horizons 27, no. 4 (May 1, 2013): 667–91. http://dx.doi.org/10.2308/acch-50513.
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SYNOPSIS We examine the association between auditor industry expertise and clients' cost of equity. Prior research suggests that industry experts are associated with higher earnings quality than non-experts. If such improved earnings quality were recognized by investors, we would expect it to be reflected in a lower cost of equity. Following recent research in this area, we distinguish between national-only, city-only, and joint city-national industry-expert auditors. Our results suggest that clients audited by city-only or joint city-national industry experts have a lower cost of equity. We also examine whether changing from non-expert (expert) to expert (non-expert) auditors result in a decrease (increase) in cost of equity. We find that when firms change from non-experts to city-only or joint city-national experts, their cost of equity is significantly decreased.
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Gold, Anna, James E. Hunton, and Mohamed I. Gomaa. "The Impact of Client and Auditor Gender on Auditors’ Judgments (Retracted)." Accounting Horizons 23, no. 1 (March 1, 2009): 1–18. http://dx.doi.org/10.2308/acch.2009.23.1.1.
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SYNOPSIS: This study assesses the influence of client gender and auditor gender on auditors’ judgments. In an experimental task, a client offers unverified explanations as to why the auditor’s initial proposed adjusting journal entry (AJE) to lower the inventory value should not be recorded. The design includes one randomly manipulated variable (client gender: male or female) and one measured variable (auditor gender: male or female). The dependent variable assesses the influence of the client’s explanations on the auditor’s final proposed AJE recommendation. The results indicate that both male and female auditors exhibited a male favorability; that is, they were persuaded more by a male than female client to change their initial AJE recommendation. Furthermore, female auditors were more influenced by a male client and less influenced by a female client than male auditors. Using an expert panel’s consensus opinion as a benchmark for the “best” solution, the male auditors were more accurate than female auditors, irrespective of client gender. Additional research will aid in substantiating, determining the limits, and generalizing the findings.
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Bae, Gil Soo, Seung Uk Choi, and Jae Eun Lee. "Auditor Industry Specialization and Audit Pricing and Effort." AUDITING: A Journal of Practice & Theory 38, no. 1 (February 1, 2018): 51–75. http://dx.doi.org/10.2308/ajpt-52039.
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SUMMARY We find that auditor industry expertise is both a firm-level and partner-level phenomenon, which suggests that industry expertise captured by accounting firms is dispersed among engagement partners through knowledge sharing and transfers within audit firms. We also find that the higher audit fees by expert auditors are due to more hours and not higher rates. While spending more hours allows expert auditors to extract higher fees in total, the finding that expert firms/partners exert greater effort does not support the suggestion that expert auditors are in general more efficient in audit production. However, we find weak evidence that audit hours for expert auditors are lower in industries and companies with homogenous operations and comparable accounting than in other industries and companies. This finding suggests that knowledge transfers more likely take place in homogeneous and comparable industries, leading to production efficiency that moderates the increase in audit hours charged by experts. JEL Classifications: M4; M42. Data Availability: All data are available from the identified sources.
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Guo, Ken H. "The Institutionalization of Commercialism in the Accounting Profession: An Identity-Experimentation Perspective." AUDITING: A Journal of Practice & Theory 35, no. 3 (November 1, 2015): 99–117. http://dx.doi.org/10.2308/ajpt-51337.
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SUMMARY This paper draws on theories of institutional work, institutional experimentation, and identity work to develop a conceptual framework of identity experimentation in order to better understand the institutionalization of commercialism in the accounting profession. The framework highlights two key collective identity-experimentation strategies by the profession: boundary work (claiming auditor knowledge and traits and redefining auditors as “versatile experts”) and practice work (reinventing audit to create an “expert work” identity and tailor-making expert work to fit the image of supercharged versatile experts). Such identity experimentation moves the accounting profession toward the commercialization of not only auditing practices but, more importantly, the very identity of the auditor and the profession as a whole. Such change is an important issue as it may have profound implications for the profession's roles in the market economy.
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Iankova Natchkova, Maia. "CHALLENGES TO PROFESSIONAL ETHICS, TRAINING AND CONTINUING EDUCATION OF SPECIALISTS IN THE FIELD OF INDEPENDENT FINANCIAL AUDIT." Knowledge International Journal 34, no. 5 (October 4, 2019): 1301–5. http://dx.doi.org/10.35120/kij34051301n.
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Auditor’s profession is extremely necessary and crucial for the society. It has the important and responsible task to observe and assess the proper implementation of the principles, concepts, rules, legal standards and conventions as set out in the International Financial Reporting Standards/ International Accounting Standards, EU directives, International Standards on Auditing and the national (local) accounting legislation. Specialists in the field of independent financial audit – chartered expert accountants, registered auditors, should verify the timely, reliable, objective, correct, accurate and fair presentation, in all material aspects, of the information about the property and financial position of enterprises, their financial performance, and to determine the opportunities for investing and managing the capitals of audited enterprises in the interest of the society. Auditor’s profession is distinguished with moral at high level and professional ethics of chartered expert accountants, registered auditors; with extreme professionalism in the field of independent financial audit; with professional skepticism in the field of accounting and economic analysis; with professional optimism upon undertraining audit engagements; with independence from personal interests and lack of obligation for loyalty to the assigners of audit engagements; with ensuring high quality performance of audit engagements; with professional and intellectual knowledge and skills in the field of accounting, financial audit, economic analysis, micro- and macroeconomics, statistics and finance acquired upon completion of higher education in economics, upon sitting special examinations for obtaining qualification of chartered expert accountants, registered auditors, and upon carrying out constant and continuing education of auditors. For the purposes of keeping the trust of the society in the independent financial audit, registered auditor’s professional ethics needs to be at high level that enables authoritative and competent establishment of the role and significance of auditor’s profession in the society. Independent financial auditors should observe specific standards of conduct and fundamental professional and ethical principles as set out in the Code of Ethics for Professional Accountants, such as honesty, objectivity, professional competence and proper attention, confidentiality, professional conduct, observance of methodological standards and professional skepticism. They should avoid actions that could discredit the auditor’s profession and have negative impact on the good reputation of the registered auditor. Furthermore, where independent financial auditors market and promote themselves or their audit practice, they should avoid giving the society wrong idea of auditor’s profession. The work of chartered expert accountants, registered auditors is diverse and to a great extent characterized by development of the financial risk. Therefore, this study highlights some of the more significant and socially important specific characteristics of the auditor’s profession, which are monitored by the public and by the government authority supervising the work of the registered auditors. Its objective is to present, determine and distinguish the challenges in the light of good world audit practices faced by the professional ethics, training and continuing education of specialists in the field of independent financial audit, thus contributing to the improvement of their qualification and enhancement of their audit practice. This publication may be used for carrying out different types of financial audit – internal audit carried out by the financial enterprises’ internal units; independent financial audit carried out by chartered expert accountants, registered auditors, and external audit carried out by the government supervisory authority and by other government authorities.
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Hall, Curtis M., Benjamin W. Hoffman, and Zenghui Liu. "Ownership structure and auditor selection." Managerial Auditing Journal 35, no. 8 (August 31, 2020): 1121–42. http://dx.doi.org/10.1108/maj-07-2019-2360.
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Purpose This paper aims to investigate the effect that ownership structure (public vs private) has on the demand for high-quality auditors, specifically in the US banking industry. Design/methodology/approach The authors predict that public banks are more likely to hire a high-quality auditor than private banks and pay a higher audit fee premium for that high-quality auditor (due to higher agency costs, more demand for financial information and higher litigation risk). The authors analyze 2008–2014 banking data from the Federal Reserve using probit and OLS regression analysis to examine if there is a higher probability that public banks choose higher quality auditors and pay higher audit fees when they do so. Findings The results show that private banks are less likely to hire Big 4 auditors and industry-expert auditors than public banks. The authors also find that both private and public banks pay higher audit fees for Big 4 and industry-expert auditors, and that public banks pay a higher premium for Big 4 auditors and industry experts than private banks. Research limitations/implications The findings may not be fully generalizable to other types of firms, as banking is a heavily regulated and complex industry. However, inferences from this study may be generalizable to other similar industries such as insurance or health care. Practical implications The results of this paper imply that public and private banks have differing priorities when hiring their financial statement auditor. This may be of interest to investors and auditing regulators. Social implications The findings of this paper underscore the value of hiring an industry-expert auditor in an industry that is highly complex and regulated. This may be of interest to managers and policymakers. Originality/value Due to data restrictions, the emphasis of prior literature on the banking industry has been on public banks. This study is the first to analyze the differences between public and private banks’ demand for audit services.
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Brouwer, Arjan, Peter Eimers, and Henk Langendijk. "The relationship between key audit matters in the new auditor's report and the risks reported in the management report and the estimates and judgments in the notes to the financial statements." Maandblad Voor Accountancy en Bedrijfseconomie 90, no. 12 (December 15, 2016): 580–613. http://dx.doi.org/10.5117/mab.90.31228.
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For decades, auditors have communicated their opinion on financial statements with standard wordings in the auditor’s report. However, stakeholders expect more information from the auditor. The limited transparency regarding an auditor’s actual activities, has contributed to the dissatisfaction concerning the functioning of auditors. The new (extended) auditor’s report is an answer to the information needs of stakeholders. The key audit matters reported by the auditor provide new insights to financial statement users with respect to significant estimates and risks reported in the financial statements. It may be expected from the auditor that he pays extra attention to the most significant estimates and risks. This article contains an examination of the degree to which reported key audit matters match with the significant risks presented in the directors’ reports, and with the significant accounting policies and estimates in the notes. We have studied management reports, financial statements and auditor’s reports of 50 companies listed in the Netherlands (at the AEX and Midkap index) in 2015. Our study shows that the key audit matters in the new auditor’s report often correspond with the significant accounting policies and estimates as they are reported by management in the notes. However, only in ten percent of the cases, the risks presented in the directors’ reports are mentioned as key audit matters in the new auditor’s report. Auditors have a strong focus on balance sheet items as key audit matters. Many companies recognize the riskiness of issues like reliability and continuity of IT systems and complying with regulation, but these are hardly mentioned as key audit matters. This is also a general finding of our study for issues related to the internal controls of the audited companies.
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Wright, Nicole S., and Sudip Bhattacharjee. "Auditors' Use of Formal Advice from Internal Firm Subject Matter Experts: The Impact of Advice Quality and Advice Awareness on Auditors' Judgments." Current Issues in Auditing 14, no. 2 (May 15, 2020): P31—P39. http://dx.doi.org/10.2308/ciia-2019-510.
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SUMMARY When subject matter experts are consulted during an audit, the quality of the expert's advice depends upon their ability to fully understand and incorporate client-specific facts into their advice. PCAOB inspection reports suggest that auditors are neglecting to perform the required work to assess the quality of experts' recommendations. This article summarizes a recent study by Wright and Bhattacharjee (2018) examining how receiving expert advice of different levels of quality and the timing of communication making auditors aware of the eventual use an expert, impact auditors' judgments. Auditors who were aware that an expert was going to be used put forth more effort before receiving the expert's advice, and were less in agreement with management's position, than auditors who were unaware. Upon receiving the advice, aware auditors were more discerning and accurate than unaware auditors, providing that the timing and communication of consulting decisions affect auditors' assessments of expert advice.
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Grenier, Jonathan H., Bradley Pomeroy, Matthew T. Stern, and Natalie B. Zielinski. "The Effects of Accounting Standard Precision, Auditor Task Expertise, and Judgment Frameworks on Audit Firm Litigation Exposure." Current Issues in Auditing 14, no. 2 (June 9, 2020): P19—P30. http://dx.doi.org/10.2308/ciia-2019-511.
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SUMMARY This article summarizes the published study “The Effects of Accounting Standard Precision, Auditor Task Expertise, and Judgment Frameworks on Audit Firm Litigation Exposure” (Grenier, Pomeroy, and Stern 2015), where the authors examine ways that auditors can defend their judgment during litigation regarding the appropriateness of clients' application of imprecise accounting standards. The authors find that utilizing technical experts will reduce litigation exposure arising from imprecise accounting standards because it is difficult to challenge judgments made by a recognized expert. However, the study also finds that using a framework for making high-quality professional judgments represents a cost-effective alternative to technical expertise, as doing so also constrains jurors' ability to challenge auditors' judgments. In sum, the study suggests that auditors are well equipped to handle the increased litigation exposure associated with imprecise accounting standards, and the ongoing worldwide transition to such standards is unlikely to lead to auditor herding to industry norms.
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Saiewitz, Aaron. "Email versus In-Person Audit Inquiry: Recent Research and Additional Survey Data." Current Issues in Auditing 12, no. 2 (September 1, 2018): A36—A44. http://dx.doi.org/10.2308/ciia-52267.
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SUMMARY Recent research suggests that an auditor's choice to conduct audit inquiry via email versus in person can adversely impact both auditor and client behavior. In this study, I review recent research on this important topic, and I present additional survey-based evidence that describes how clients perceive auditor email versus in-person inquiries. I find that clients generally view auditors' in-person requests as more important and urgent than email requests, and clients feel they can more carefully craft their responses to support their company's preferred reporting position via email compared to in person. Further, clients expect that auditors will question an aggressive response more quickly in person than over email. Although audit partners have expressed concerns that email communication could impede auditor-client relationship building, I find no differences in how much clients like the auditor or in clients' willingness to work again with the auditor after receiving an email or in-person request. However, recent research suggests that email requests can lead to more negative feelings toward the auditor, which could affect the auditor-client relationship over time. I discuss implications for audit firms and provide suggestions for future research.
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MacTavish, Carolyn. "Audit negotiations." Managerial Auditing Journal 33, no. 8/9 (September 3, 2018): 658–82. http://dx.doi.org/10.1108/maj-02-2018-1794.
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Purpose Audit negotiations are impacted by many factors. This study aims to investigate how two such factors, communication of the National Office Accounting Consultation Unit (ACU) and the auditor’s approach, affect chief financial officers’ (CFOs’) willingness to adjust the financial statements and satisfaction with the auditor. Design/methodology/approach This study uses a 2 × 3 between-subjects experimental design. Participants are 169 highly experienced CFOs and financial officers. The experimental design crosses the two multi-dimensional auditor approaches found in the literature with two influence tactics used to communicate ACU involvement, as well as a control condition, with no communication of the ACU involvement. Findings Communicating the ACU’s involvement as a higher authority (similar to a boss) results in greater willingness to record an adjustment to the financial statements when auditors use a hands-off “compliance-officer” auditor approach, but lower willingness by CFOs to adjust the financial statements when auditors use an expert-advisor auditor approach as compared to when coalition tactics are used. Results also show that communicating the ACU as a higher authority negatively impacts a CFO’s satisfaction with the audit partner. Overall, these results highlight the importance of the auditor’s approach and communication of ACU involvement within the auditor–client relationship. The outcomes of this study are limited to situations where unexpected audit adjustments are found during the year-end process and thus cannot be discussed pre-emptively with clients. Research limitations/implications This paper advances the understanding of how the multi-dimensional auditor’s approach can shape and limit the effectiveness of influence tactics. These factors are important, as auditors are tasked with maintaining not only quality audits but also client relationships. However, although rich in detail, factors other than auditor approach may have inadvertently been manipulated and are driving results. Practical implications The approach taken by the auditor with a client throughout the audit sets the stage during the auditor–client negotiations. Therefore, audit partners must consider their own approach with the client before communicating the ACU’s involvement as the auditor approach shapes and limits the tactics available for use. Using ill-suited tactics may undermine the client’s willingness to record an adjustment to the financial statements and cause undue harm to the auditor–client relationship. Originality/value This paper uses highly experienced CFOs and financial officers to examine how two common elements in the audit negotiation context can significantly affect the outcome to the financial statements and the relationship between the client and audit partner.
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Havrys, A., and Yu Sukach. "QUALIFICATION REQUIREMENTS FOR INDIVIDUALS AND ORGANIZATIONS WHICH CONDUCT THE AUDIT ON CIVIL PROTECTION, TECHNOGENIC AND FIRE SAFETY." Fire Safety 37 (January 6, 2021): 31–36. http://dx.doi.org/10.32447/20786662.37.2020.05.
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Introduction. In this study, the problem of audit concept definition scarcity in legal documents (expert assessment) of civil protection, technological, and fire safety was considered. Specific qualification requirements, structure, rights, respon-sibilities, reports, a system for conducting and results registration of auditor inspections and audit organizations working in civil protection field and fire safety inspection have not been approved.Today, the issue of audit (expert assessment) of civil protection, technological, fire safety, and insurance of facilities is becoming the most pressing issue. Society, and in particular businesses, are reorienting themselves to European standards of doing business, where property insurance is necessary, and it guarantees them compensation in the case of an emergency.Purpose. The main purpose of the article is to highlight the problem of the lack of a rightful audit concept in civil protection, technological, and fire safety.Methods. Expert assessment of the state of businesses, institutions, and organizations, regardless of their ownership form, makes it possible to get a full picture of object shortcomings, proposals for their elimination, without prosecuting officials quickly and efficiently and without terminating the installation, units and the object as a whole. The audit is a kind of state supervision (control) in the field of civil protection, technological, and fire safety, but without administrative and legal consequences. Based on legal documents analysis in the field of civil protection and fire safety, processing of auditors' feedback, and practical experience of the authors of the article, the main scientific results are proposed.Results. The authors show organizational structure of audit associations. Also, the authors’ qualification requirements for auditors (experts) and their assistants, including the availability of relevant education, experience in practical, teaching, and research work in the field of civil security, and passing the qualifying examination was proposed.Conclusion. According to this organizational structure, high-class auditors create an association that will determine (organize) the activities of all levels of experts. The next step is the high-class experts, who form the relevant associations on a territorial basis, which control the activities of the first and second class experts. The last step is the first and second class auditors, who report to the higher class auditors in their activities.The proposed results should be taken into account in the existing regulations on auditing or a separate regulation in the field of civil protection, technological, and fire safety.
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Havrys, A., and Yu Sukach. "QUALIFICATION REQUIREMENTS FOR INDIVIDUALS AND ORGANIZATIONS WHICH CONDUCT THE AUDIT ON CIVIL PROTECTION, TECHNOGENIC AND FIRE SAFETY." Fire Safety 37 (January 6, 2021): 31–36. http://dx.doi.org/10.32447/20786662.37.2020.05.
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Introduction. In this study, the problem of audit concept definition scarcity in legal documents (expert assessment) of civil protection, technological, and fire safety was considered. Specific qualification requirements, structure, rights, respon-sibilities, reports, a system for conducting and results registration of auditor inspections and audit organizations working in civil protection field and fire safety inspection have not been approved.Today, the issue of audit (expert assessment) of civil protection, technological, fire safety, and insurance of facilities is becoming the most pressing issue. Society, and in particular businesses, are reorienting themselves to European standards of doing business, where property insurance is necessary, and it guarantees them compensation in the case of an emergency.Purpose. The main purpose of the article is to highlight the problem of the lack of a rightful audit concept in civil protection, technological, and fire safety.Methods. Expert assessment of the state of businesses, institutions, and organizations, regardless of their ownership form, makes it possible to get a full picture of object shortcomings, proposals for their elimination, without prosecuting officials quickly and efficiently and without terminating the installation, units and the object as a whole. The audit is a kind of state supervision (control) in the field of civil protection, technological, and fire safety, but without administrative and legal consequences. Based on legal documents analysis in the field of civil protection and fire safety, processing of auditors' feedback, and practical experience of the authors of the article, the main scientific results are proposed.Results. The authors show organizational structure of audit associations. Also, the authors’ qualification requirements for auditors (experts) and their assistants, including the availability of relevant education, experience in practical, teaching, and research work in the field of civil security, and passing the qualifying examination was proposed.Conclusion. According to this organizational structure, high-class auditors create an association that will determine (organize) the activities of all levels of experts. The next step is the high-class experts, who form the relevant associations on a territorial basis, which control the activities of the first and second class experts. The last step is the first and second class auditors, who report to the higher class auditors in their activities.The proposed results should be taken into account in the existing regulations on auditing or a separate regulation in the field of civil protection, technological, and fire safety.
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Krishnan, Jagan, and Yinqi Zhang. "Auditor Litigation Risk and Corporate Disclosure of Quarterly Review Report." AUDITING: A Journal of Practice & Theory 24, s-1 (December 1, 2005): 115–38. http://dx.doi.org/10.2308/aud.2005.24.s-1.115.
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The U.S. Securities and Exchange Commission (SEC) recently made timely reviews of quarterly financial statements mandatory for all registrants. The objective is to improve corporate quarterly reporting. However, formal review reports are not required to be included in 10-Q filings, and may not even be issued by auditors. A priori, one would expect these reports to be useful to investors if they imply added auditor diligence or if they contain modifications to the standard report. We find that only 5.7 percent of the companies in our sample attached the auditor's review report in their 10-Q filings. Also the majority of these reports are “clean,” suggesting that clients may not be disclosing the reports when they are modified. After controlling for factors such as auditor type, agency costs, capital market transactions, and company size, we find a significant negative association between auditors' litigation risk and disclosure of the review report. In addition, we find that the disclosure of the review report is associated with auditor type and company size.
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Reheul, Anne-Mie, Tom Van Caneghem, and Sandra Verbruggen. "Nonprofit organizations’ choice in favor of a sector expert auditor: a study of behavioral choice criteria." Journal of Public Budgeting, Accounting & Financial Management 27, no. 2 (March 1, 2015): 179–224. http://dx.doi.org/10.1108/jpbafm-27-02-2015-b003.
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From 2006 onwards very large Belgian nonprofit organizations (NPOs) are legally required to appoint an external auditor. In this context we investigate whether auditor choice in favor of a sector expert, being a higher quality auditor, is associated with NPOs’ expectations regarding several auditor attributes. We find that NPOs are more likely to choose a sector expert if they attach higher importance to an auditor’s client focus and relationship with management. NPOs are less likely to choose a sector expert if they care more about the practical execution of the audit. We provide recommendations for increasing the appeal of sector expertise as valuable auditor attribute. The resulting quality increase of NPOs’ financial statements and audit reports could benefit various stakeholders.
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Comunale, Christie L., and Thomas R. Sexton. "A Fuzzy Logic Approach to Assessing Materiality." Journal of Emerging Technologies in Accounting 2, no. 1 (January 1, 2005): 1–15. http://dx.doi.org/10.2308/jeta.2005.2.1.1.
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Auditors may encounter misstatements during the course of an audit, each of which requires a binary materiality assessment. We propose a fuzzy expert system approach that assesses materiality as a continuous characteristic by allowing a misstatement to possess a degree of materiality between 0 and 1. This potentially allows the auditor more flexibility and precision in materiality assessment, and greater insight regarding subsequent testing and investigation. We demonstrate that a fuzzy expert system can help the auditor incorporate qualitative factors into the materiality assessment of each misstatement and identify which misstatements are most worthy of further investigation. The auditor may compare the materiality assessments of all misstatements to plan an audit strategy. By providing a formal model structure, the fuzzy expert system formalizes and documents the materiality assessment process. This may facilitate better communication within the audit team and with the client, and enhances process consistency across auditors, engagements, and years.
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Mao, Juan, and Qin Jennifer Yin. "Auditor Reverse-Merger Expertise: Evidence from Chinese Reverse-Merger Companies." AUDITING: A Journal of Practice & Theory 36, no. 4 (February 1, 2017): 115–33. http://dx.doi.org/10.2308/ajpt-51690.
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SUMMARY This study investigates if hiring auditors with Chinese reverse-merger expertise affected 182 Chinese companies that executed reverse mergers with U.S. shell companies from 2003 to 2011 to become U.S. publicly traded companies (Chinese reverse-merger companies, or CRM companies). We find that CRM companies that employ CRM-expert auditors pay higher audit fee premiums, and are more likely to up-list to national exchanges, when they are compared to CRM companies with non-CRM-expert auditors. Additional analyses suggest that clients of CRM experts also are more likely to file annual financial reports on time, but CRM-expert auditors are not associated with fewer misstatements in financial reporting or continued trading on national exchanges. This suggests that CRM-specialist auditors help clients navigate regulatory requirements for up-listing, but they do not achieve improved financial reporting quality.
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Liberatti, Vanessa Moraes, Raquel Gvozd, Sonia Silva Marcon, Laura Misue Matsuda, Isabel Cristina Kowal Olm Cunha, and Maria do Carmo Fernadez Lourenço Haddad. "Validação de instrumento de auditoria do Sistema Único de Saúde." Acta Paulista de Enfermagem 32, no. 5 (October 2019): 500–506. http://dx.doi.org/10.1590/1982-0194201900070.
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Resumo Objetivo Analisar a validade e a confiabilidade de um instrumento utilizado em auditoria no Sistema Único de Saúde (SUS). Métodos Pesquisa metodológica que empregou as etapas de adaptação de um instrumento de auditoria recomendado pelo Ministério da Saúde, Portaria nº 3410/2013, validação do conteúdo por experts e teste de confiabilidade do instrumento validado. Resultados Em relação a adequação do instrumento, originalmente o mesmo possuía 100 itens e 32 subitens, e passou a apresentar 55 itens, com seus respetivos critérios de avaliação, bem como a fonte de coleta da informação, totalizando 165 itens de analise. Na validação desse instrumento os experts sugeriram alterações quanto à semântica e o conteúdo em 77 (46,66%) itens. O teste de confiabilidade apresentou índice de concordância de 0,85 entre as enfermeiras auditoras 1 e 2; 0,82 entre as enfermeiras auditoras 1 e 3 e 0,96 entre as enfermeiras auditoras 2 e 3 com média de 0,88, representando uma concordância quase perfeita interavaliadoras. Conclusão A adequação do instrumento fundamentado na legislação vigente e a validação por experts deixou-o conciso, claro e objetivo, apresentando consistência estatística para uso em auditoria no SUS, demonstrada pelo teste de confiabilidade.
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Puspitasari, Devi. "PENGARUH PERSEPSI AUDITOR TERHADAP KINERJA AUDITOR (Studi Empiris pada Auditor Sektor Publik di Inspektorat Kabupaten Serang)." Jurnal Riset Akuntansi Tirtayasa 5, no. 1 (April 10, 2020): 73–88. http://dx.doi.org/10.48181/jratirtayasa.v5i1.8382.
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This study aims to determine and examine the effect of auditor perceptions on auditor performance in the attack district inspectorate. The object in this study is the inspectorate in the district government attack. Sampling is done by survey method. The type of data used is subject data, and the data source used is primary data. Processing and analysis of data using the help of SPSS vesi 19.00 application with multiple linear regression models. Based on the results of hypothesis testing obtained Audit Effectiveness has a positive and significant effect on the performance of public sector auditors, Auditor Policy has a positive and significant effect on the performance of public sector auditors, External Auditor Professionals have a significant and positive effect on the performance of public sector auditors, Other Expert Professionals have a positive and significant effect on public sector auditor performance, barriers have a positive and significant effect on the performance of public sector auditors, Public Administration has a positive effect on the performance of public sector auditors.
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Reffett, Andrew, Billy E. Brewster, and Brian Ballou. "Comparing Auditor versus Non-Auditor Assessments of Auditor Liability: An Experimental Investigation of Experts' versus Lay Evaluators' Judgments." AUDITING: A Journal of Practice & Theory 31, no. 3 (August 1, 2012): 125–48. http://dx.doi.org/10.2308/ajpt-10291.
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SUMMARY Critics of the legal system argue that the use of lay jurors to adjudicate auditor negligence claims results in non-meritorious decisions of auditor liability. Palmrose (2006) therefore proposes that the courts rely on panels of experienced auditors to evaluate the merits of auditor negligence claims and make recommendations to the courts. There is, however, scant evidence to indicate how auditors' and lay evaluators' judgments might differ in cases of alleged auditor negligence. Our study addresses this gap in the literature by providing theory and empirical evidence that elucidates several systematic differences between auditors' and lay evaluators' judgments. Results of an experiment indicate that auditor evaluators are less reliant on plaintiff losses as evidence than lay evaluators, but—consistent with social identity theory—experience greater empathy for auditor defendants. Consequently, auditor evaluators consistently provide lower assessments of auditor liability than lay evaluators, irrespective of audit quality. In addition, results of the experiment indicate that different legally irrelevant inputs primarily determine both auditor and lay evaluators' negligence verdicts—emotional reactions for auditor evaluators and plaintiff losses for lay evaluators. Finally, results are mixed as to whether auditor evaluators' judgments are more sensitive to varying levels of audit quality than lay evaluators' judgments.
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Awaluddin, Murtiadi, Nirgahayu Nirgahayu, Rulyanti Susi Wardhani, and Andi Sylvana. "The The Effect of Expert Management, Professional Skepticism And Professional Ethics On Auditors Detecting Ability With Emotional Intelligence As Modeling Variables." International Journal of Islamic Business and Economics (IJIBEC) 3, no. 1 (June 11, 2019): 49. http://dx.doi.org/10.28918/ijibec.v3i1.1567.
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This study aims to examine the effect of management experts, professional skepticism and professional ethics on the auditor's ability to detect fraud with intelligence emotional as a moderating variable. This research was conducted at the Makassar City Inspectorate. This research is an explanatory study with a quantitative approach. The study used a saturated sample method with a sample of 25 people. Analysis data in this research using multiple regression analysis with absolute difference value. The results of multiple analysis show that management experts, professional skepticism and professional ethics have a positive and significant effect on the auditor's ability to detect fraud. The result of the analysis show that emotional intelligence is able to moderate expert management and professional skepticism towards the auditor's ability to detect fraud, while emotional intelligence does not moderate professional ethics on the auditor's ability to detect fraud.
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Hammersley, Jacqueline S. "A Review and Model of Auditor Judgments in Fraud-Related Planning Tasks." AUDITING: A Journal of Practice & Theory 30, no. 4 (November 1, 2011): 101–28. http://dx.doi.org/10.2308/ajpt-10145.
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SUMMARY In this paper, I develop a model that describes auditor and fraud risk factor characteristics that I expect to affect auditor performance in fraud-related planning tasks (i.e., fraud hypothesis generation, risk assessment, and audit program modification). I expect that auditor knowledge, especially fraud knowledge, will significantly affect auditor performance in audit program modification tasks through its effects on fraud risk factor identification and hypothesis generation. Further, due to fraud's rarity, I expect that this knowledge is acquired primarily through indirect experience such as training rather than from direct experience and is enhanced when auditors have better problem solving skills and higher epistemic motivation. This is a significant departure from knowledge acquisition in other audit settings, and there is currently no evidence in the literature examining these relationships. I also propose that the diagnosticity of fraud risk factors and, specifically, the degree to which they support generation of specific testable fraud hypotheses affect auditors' ability to plan effective changes to audit programs. Finally, I review and summarize the extant fraud-related, audit planning literature and identify opportunities for future research. JEL Classifications: M40; M41; M42.
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Ricchiute, David N. "Effects of an Attorney's Line of Argument on Accountants' Expert Witness Testimony." Accounting Review 79, no. 1 (January 1, 2004): 221–45. http://dx.doi.org/10.2308/accr.2004.79.1.221.
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I test whether hints at an attorney's line of argument influence accountants' expert witness testimony. In experiment 1, litigation services accountants review evidence adopted from a recent auditor-liability case and decide whether a defendant auditor complied with generally accepted auditing standards. I find that hints posed before the review of evidence result in decisions that are more consistent with the attorney's verdict preference. Motivated by a lack of research on the role of accountants' expert testimony in judges' decisions and by evidence that most auditor-liability cases settle, I find in experiment 2 that the certainty of decisions in an expert's report affects the settlement decisions of experienced lawyers, a proxy for trial judges. These findings show that hints at an attorney's line of argument can influence accountants' decisions about evidence documenting auditing issues, and that the certainty of decisions in an expert's report can affect the decisions of mock trial judges. The study has implications for drafting attorney-expert retention letters, and for training accounting experts and the judiciary about the role of hints in the attorney-expert setting.
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Ettenson, Richard, James Shanteau, and Jack Krogstad. "Expert Judgment: Is More Information Better?" Psychological Reports 60, no. 1 (February 1987): 227–38. http://dx.doi.org/10.2466/pr0.1987.60.1.227.
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Two groups of professional auditors (expert ns = 10 and 11) and one group of 11 accounting students (novices) made judgments for 32 hypothetical auditing cases which were based on 8 dimensions of accounting-related information. Analyses indicated that the experts did not differ significantly from the novices in the number of significant dimensions; both the professionals and the students had roughly three significant factors. When evaluating the information, however, the experts' judgments primarily reflected one source of information, with other cues having secondary impart. In comparison, no single cue was dominant for the students' judgments. These results were interpreted to indicate that the nonuse of information by experts does not necessarily indicate a cognitive limitation. Instead, experts may have better abilities to focus on relevant information. The professional auditors also exhibited greater consistency and consensus than did the students. In contrast to much previous work, the experts here are viewed as being skilled and competent judges.
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Causholli, Monika, and W. Robert Knechel. "An Examination of the Credence Attributes of an Audit." Accounting Horizons 26, no. 4 (August 1, 2012): 631–56. http://dx.doi.org/10.2308/acch-50265.
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SYNOPSIS: An audit consists of two main components: (1) the assessment of risk, and (2) the planning and execution of audit procedures. Both activities require a great deal of professional judgment. In this sense, the auditor is an expert who is best positioned to assess the risk and to conduct the audit in accordance with professional auditing standards. We use a simple decision-making framework to illustrate an auditor's possible strategies when an auditee cannot directly determine the effort level required to conduct an audit appropriately. We discuss and compare three economic perspectives for the audit: search goods, experience goods, and credence goods. Based on the economic theory of credence goods, we predict that a seller has incentives to act strategically when buyers are faced with considerable uncertainties relating to a service they purchase. Specifically, we argue that an auditor might have incentives to (1) under-audit, (2) over-audit, or (3) overcharge. These strategic actions have important implications for audit quality, efficiency, and regulation. We also discuss the professional and institutional arrangements that serve to limit the strategic behavior of auditors. Finally, we discuss previous empirical and behavioral audit evidence in the context of the credence aspects of an audit.
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DUNGAN, CHRIS W., and JOHN S. CHANDLER. "Auditor: a microcomputer-based expert system to support auditors in the field." Expert Systems 2, no. 4 (October 1985): 210–21. http://dx.doi.org/10.1111/j.1468-0394.1985.tb00474.x.
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Moroney, Robyn, and Roger Simnett. "Differences in Industry Specialist Knowledge and Business Risk Identification and Evaluation." Behavioral Research in Accounting 21, no. 2 (January 1, 2009): 73–89. http://dx.doi.org/10.2308/bria.2009.21.2.73.
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ABSTRACT: This paper argues that opportunities for auditors to gain industry-specific knowledge differ across industry settings. This knowledge is of particular benefit when identifying business risks, information sources, evidence-gathering processes and accounts and related assertions. Two groups of auditors, who specialize in very different industries, are compared. One group specializes in a complex industry, which affords them the opportunity to gain relatively more industry specific knowledge than the other group, which specializes in a less complex (generic) industry. Comparing auditor responses with the answers given by expert panels, we find that auditors working in a complex industry have a greater comparative ability to identify business risks, information sources, and evidence-gathering processes in their industry than auditors working in a generic industry.
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Negrin Sosa, Ernesto, Laureano López García, Karina Rodríguez Cabrera, and Daysel Martínez Guerra. "Propuesta de un programa de auditoría a los sistemas de información." ECA Sinergia 8, no. 2 (December 18, 2017): 131. http://dx.doi.org/10.33936/eca_sinergia.v8i2.1014.
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Los cambios que ocurren actualmente a nivel mundial, tales como los avances económicos, tecnológicos y las crecientes exigencias de los servicios que prestarán las organizaciones que ejercen la auditoría hacen que se necesiten cada vez más herramientas de apoyo específicas para evaluar los sistemas de información en general. En este contexto se plantea como objetivo general de esta investigación proponer un programa de auditoría a los sistemas de información adecuado a las características del sistema empresarial cubano que permita el desarrollo efectivo de acciones de control de este tipo, ya que existen limitadas experiencias en este ámbito y generalmente con poco nivel de integración. Para su elaboración se utilizaron diferentes técnicas y herramientas tales como el diagrama causa-efecto, técnicas de auditoría y método de expertos, este último por la imperiosa necesidad de considerar la experiencia acumulada de auditores e informáticos.
Palabras clave: auditoría, programas, sistemas de información.
ABSTRACT
The current global changes, such as economic and technological developments and the increasing requirements of the services provided by the organizations that perform the audit, mean that more and more specific support tools are needed to evaluate the information systems in general. In this context, it is proposed as a general objective of this research to propose an audit program to the information systems appropriate to the characteristics of the Cuban business system that allows the effective development of control actions of this type, since there are limited experiences in this area and generally with little level of integration. Different techniques and tools, such as the cause-effect diagram, audit techniques and expert method, were used to elaborate the latter due to the imperative need to consider the accumulated experience of auditors and computer scientists.
Key words: audit, programs, information systems.
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Wahyudin Nor. "Determinants Of Auditor Motivation In The Government Audit market." Restaurant Business 118, no. 11 (November 7, 2019): 456–69. http://dx.doi.org/10.26643/rb.v118i11.11074.
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Act No. 15/2006 is concerned with the Audit Board of the Republic of Indonesia (BPK), while its authority is vested article 9 (1). In performing its duties, the BPK has an authority to recruite experts and/or auditors externally on behalf of the BPK. This provides a great opportunity for motivated external auditors to audit state finances. To have a better knowledge of the audit bid in the government sector, it is important to understand external auditor opinion on their motivation in pursuing audit engagements on the government audit market. Based on the above idea, the objectives of this study are to examine: the influence of audit fees, auditor competence and regulation changes on auditor motivation. This study uses survey methods on 191 external auditors (partners) public accounting firms registered in the BPK selected by random sampling from the study population. Data was collected through questionnaires and evaluated for validity and reliability before hypotheses testing. The descriptive analysis and multiple regresions are used to analyze and evaluate the hypothesis testing by using SPSS 24 software. The empirical result using multiple regression shows that audit fees, auditor competence and authoritative changes positively significantly effect on auditor motivation.
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Hendrix, Gijs, Jack Wai, Judith Tjin A Sioe, Martina Hener-Schaminée, and Wim Ottema. "Non-auditors in the internal audit function: better practices for successful implementation." Maandblad Voor Accountancy en Bedrijfseconomie 94, no. 3/4 (April 22, 2020): 103–12. http://dx.doi.org/10.5117/mab.94.48602.
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To bring a high level of expertise on-board Internal Audit Functions (IAFs) increasingly include persons that are not trained as auditor in internal audits. These non-auditors (rotational auditors, guest auditors or subject matter experts) function as part of the IAF for a specific period. This practice ensures the IAF has the expertise and skills required to meet today’s challenges of organizations and their IAFs. However, it provides (professional practice) challenges as these auditors usually have limited experience and knowledge around internal audits and might be conflicted in their objectivity and independence. This article provides better practices to optimize the use of non-auditors and mitigate its risks.
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Li, Liuchuang, Baolei Qi, and Jieying Zhang. "The Effect of Engagement Auditors on Financial Statement Comparability." AUDITING: A Journal of Practice & Theory 40, no. 3 (January 20, 2021): 73–104. http://dx.doi.org/10.2308/ajpt-19-061.
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SUMMARY Prior literature finds that audit firm style shapes client financial statement comparability (Francis, Pinnuck, and Watanabe 2014). We expect that engagement partners also shape financial statement comparability, and find that two clients audited by the same engagement auditor have more comparable accruals than two clients audited by different auditors. We also find that engagement auditor past comparability style explains new client comparability with industry peers, suggesting that auditor style persists over time. We uncover that auditor personal traits including gender, experience, qualification, and specialization are associated with higher comparability. Finally, we find that adding the audit-firm, audit-office, and engagement-auditor fixed effects increases the adjusted R2 of our accrual comparability model by 0.6 percent, 1.9 percent, and 10 percent, respectively. Taken together, our findings suggest that the engagement auditors have a distinguishable effect on financial statement comparability that is incremental to the effect of audit firms and offices. Data Availability: All data are publicly available from the sources identified in the text.
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Yen, Alex C. "The Effect of Early Career Experience on Auditors' Assessments of Error Explanations in Analytical Review." Behavioral Research in Accounting 24, no. 2 (March 1, 2012): 211–29. http://dx.doi.org/10.2308/bria-50155.
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ABSTRACT In this paper, I examine the analytical review judgments of staff-level auditors. Heiman (1988) finds that students do not perform as well as senior-level auditors when performing certain analytical review procedures. I conduct an experiment based on Heiman (1988, 1990) to examine the analytical review judgments of those individuals who fall in between the two groups studied by Heiman—staff-level auditors who have some full-time experience, but are not yet at the senior level. I find that staff-level auditors' judgments are similar to the senior-level auditors' judgments observed in Heiman (1990). The results provide evidence about the readiness of staff-level auditors to perform certain analytical review procedures, which has staffing implications for audit firms looking to maximize audit efficiency without sacrificing audit effectiveness. The results also provide insights about the transition of an auditor from novice to expert. Data Availability: Available upon request.
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Kutsenko, O. I., V. D. Yakovenko, and Ye O. Yakovenko. "EVALUATION OF QUALITY MANAGEMENT SYSTEMS." Scientific Notes of Junior Academy of Sciences of Ukraine, no. 3(19) (2020): 59–70. http://dx.doi.org/10.51707/2618-0529-2020-19-07.
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The article defines the essence of the concepts “assessment” and “internal audit” of the quality assurance system, the requirements of international ISO standards for the formation of an internal system for evaluating the effectiveness of management systems are analyzed, highlights the main aspects of the formation of the program and plan of internal audit, the competence of auditors, proposes a method of expert assessment in the quality management system of educational institutions in the context of a real educational process, proposes automated information and analytical management system. The authors noted that the effectiveness of the conducted internal audit (hereinafter IA) depends on an effective audit program, the competence of auditors and further improvement actions. The purpose, criteria and methods of the audit program are also determined, the example of the “Program of internal audit of structural units of the college” is given. The requirements for auditors were selected and substantiated. Attention is drawn to the fact that the functioning of the quality management system (hereinafter QMS) directly depends on the systematic nature and effectiveness of the IA and, as a consequence, the systematic improvement of the system itself. The proposed system of expert assessment of QMS is considered on the example of the management of the professional pre-higher education institution of the separate structural subdivision “Kherson Polytechnic College of the Odessa National Polytechnic University”. The basic requirements for the formation of a group of experts are defined, also for obtaining a quality forecast the requirements for the competence of experts are defined. The authors of the article concluded that obtaining a general assessment of all processes and identifying the most problematic aspects without automated management is very difficult, so it is proposed to use the suggested system of expert assessment of QMS.
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Abdolmohammadi, Mohammad J., and James Shanteau. "Personal attributes of expert auditors." Organizational Behavior and Human Decision Processes 53, no. 2 (November 1992): 158–72. http://dx.doi.org/10.1016/0749-5978(92)90060-k.
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Miglani, Seema, and Kamran Ahmed. "Gender diversity on audit committees and its impact on audit fees: evidence from India." Accounting Research Journal 32, no. 4 (November 4, 2019): 568–86. http://dx.doi.org/10.1108/arj-01-2018-0001.
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Purpose The purpose of this study is to examine the relationship existing between gender diverse (women directors) audit committees and audit fees. Design/methodology/approach The authors use a sample of 200 listed Indian firms over a four-year period (2011-2014). Ordinary least squares regression is used to assess whether and how the presence of women directors on audit committees affects the fee paid to the external auditor in India. To deal with the self-selection bias, the authors use a two-stage model developed using Heckman’s (1976) method. Findings The results show a significant positive relationship between the presence of a woman financial expert on the audit committee and audit fees after controlling for a number of firm-specific and governance characteristics and potential endogeneity with the propensity-matching score analysis. From the demand-side perspective of audit pricing, the results indicate that women financial experts on audit committees increase the need for assurance provided by external auditors. Using interaction terms, the authors find that women with financial expertise on an audit committee have a stronger association with audit fees as entity becomes more complex. Research limitations/implications The findings suggest that audit committees with women financial experts are likely to demand higher audit quality, ceteris paribus. Practical implications Gender of the financial expert is critical to the audit committee’s effectiveness. The findings of this study have implications for the composition of an audit committee in a firm. Originality/value This study contributes to the extant literature by examining the less-researched topic of the association between the women representation on audit committees and audit fees. It also offers further empirical evidence that will influence the debate on the importance of gender diversity in corporations.
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Knechel, W. Robert. "Do Auditing Standards Matter?" Current Issues in Auditing 7, no. 2 (April 1, 2013): A1—A16. http://dx.doi.org/10.2308/ciia-50499.
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SUMMARY Properly understanding the economic role of auditing standards is an important step toward improving both audit effectiveness and efficiency. In this essay, I observe that auditing standards are most important when an auditor may have an incentive to under-audit. While this conclusion may not come as a surprise, the conditions under which standards may, or may not, have a desirable effect on audit quality are less obvious. More specifically, I present a number of observations about what standards can do: Standards can (1) compensate for the lack of observability of the audit outcome by focusing on the audit process; (2) partially mitigate the information advantage possessed by the auditor as a professional expert that might motivate the auditor to under-audit; (3) counterbalance the diversity of demand across multiple stakeholders that might drive the audit to the lowest common denominator and create a market based on adverse selection; and (4) provide a benchmark that facilitates the calibration of an auditor's legal liability in the event of a substandard audit. However, I also present a number of observations about what standards should not try to do: Standards should not (1) discourage the use of judgment by auditors; (2) limit the potential demand for economically valuable alternative levels of assurance; (3) lead to excessive procedural routine or standardization in the conduct of the audit; and (4) be set based on an enforcement agenda. In the end, standards overreach may undermine the economic value of the audit to many stakeholders and lead to fee pressure for audit firms. Hopefully, these insights can inform future debates about the level and types of standards that are appropriate for the auditing profession.
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Stephan Hayes, Rick, and Richard Baker. "A participant observation study of the resolution of audit engagement challenges in government tax compliance audits." Qualitative Research in Accounting & Management 11, no. 4 (November 11, 2014): 416–39. http://dx.doi.org/10.1108/qram-02-2013-0003.
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Purpose – The aim of this paper is to extend the prior auditing literature by examining audit engagement challenges arising during government tax compliance audits. The prior auditing literature has examined how audit engagement challenges have been resolved through auditor/auditee negotiations. Design/methodology/approach – The empirical evidence for the paper was gathered during a participant observation study conducted by the primary researcher over a period of six years while working as an auditor for the Alcohol and Tobacco Tax and Trade Bureau (TTB) of the US Department of Treasury. Findings – This paper discusses various challenges faced by government auditors and how these challenges were resolved. The path to resolution was not always clearly marked. Resolution depended a great deal on the individual auditor’s judgment, interpretation of the Code of Federal Regulations (CFRs), and the willingness of the auditee to change the methods and techniques they use in operating and reporting wine operations. Materiality was determined by compliance with the regulation criteria [CFRs and the US Code (USC)] – any non-compliance was considered to be material. Resolution of many of the challenges resulted in an increased payments of excise taxes or penalties by the auditee entities. In other cases, the audit agency allowed the auditees to agree to change or amend their practices to correct a violation or a lack of compliance with US federal government regulations. As such, while the difference in the role and status of the government tax compliance auditor as compared with the independent external auditor did not necessarily lead to a different set of audit procedures, the pattern of communications between the auditor and the auditee in a government tax compliance audit were quite different from an external audit of financial statements. The government tax compliance environment is often complex, but the auditor may draw on a number of sources of knowledge and communication: CFRs, USC, Generally Accepted Government Auditing Standards, national audit planning, national experts, winery management, local peers, local government supervision, legal counsel and other auditors. Originality/value – The primary contribution of the paper lies in the fact that little or no prior research in auditing has been conducted using participant observation as a research methodology. The use of participant observation provides new perspectives on the resolution of audit engagement challenges and auditor/auditee communication and negotiation.
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Abbott, Lawrence J., Katherine A. Gunny, and Tracey Chunqi Zhang. "When the PCAOB Talks, Who Listens? Evidence from Stakeholder Reaction to GAAP-Deficient PCAOB Inspection Reports of Small Auditors." AUDITING: A Journal of Practice & Theory 32, no. 2 (December 1, 2012): 1–31. http://dx.doi.org/10.2308/ajpt-50374.
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SUMMARY: Section 104 of the Sarbanes-Oxley Act (SOX) created the Public Company Accounting Oversight Board (PCAOB). The PCAOB conducts inspections of registered public accounting firms that provide audits for publicly traded companies. The results of the inspection process are summarized in publicly available reports at the PCAOB website. Using these reports, we categorize the inspection reports into three levels of increasing severity: clean, GAAS-deficient, and GAAP-deficient. We examine the potential use of GAAP-deficient PCAOB inspection reports as perceived audit quality signals for the clients of GAAP-deficient auditors that are inspected on a triennial basis by the PCAOB. Our investigation is predicated on the notion that audit quality is generally not directly observable. Thus, the clients of these auditors may seek to signal their desire for audit quality by dismissing their GAAP-deficient auditors. Our results suggest that the clients of GAAP-deficient, triennially inspected auditors are more likely to dismiss these auditors in favor of triennially inspected auditors that are not GAAP-deficient. In addition, we find that greater agency conflicts, the presence of an independent and expert audit committee, and outside blockholdings magnify this effect. Interestingly, we find no evidence that the clients use GAAP-deficient reports to procure a subsequent-year audit fee discount or more favorable going-concern auditor reporting treatment. Our evidence indicates that PCAOB inspection reports created heterogeneity in auditor brand name among a group of non-Big N/non-national auditors that did not previously exist and are universally treated by prior research as “other auditors.”
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Suprapto, Fitria Magdalena, and Wawan Cahyo Nugroho. "Pengaruh Kompleksitas Tugas Terhadap Kualitas Audit Dengan Disfungsional Auditor Sebagai Variabel Moderasi." Akuntabilitas 13, no. 2 (November 9, 2020): 151–64. http://dx.doi.org/10.15408/akt.v13i2.17364.
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The auditor is the most important part of the assessor component of an organization’s financial statements. People who need financial information as a basis for making decisions expect the independence of public accountants in assessing financial statements so that in order to maintain reputation, auditors are always required to be careful in maintaining audit quality. This study aims to examine the effect of task complexity on audit quality with auditor dysfunctionality as a moderating variable. The research sample used auditors who work in KAP located in Surabaya with the sampling technique using purposive sampling method. The source of research is the primary which comes from the collection of survey on respondents to obtain individual opinion. There are 66 questionnaires that meet the criteria to be sampled. Hypothesis testing uses linear regression and moderated regression analysis. The results showed that task complexity had an effect on audit quality. Dysfunctional auditors are not able to moderate the complexity of the task on audit quality
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Bishop, Laura, Freya Bailes, and Roger T. Dean. "Performing Musical Dynamics." Music Perception 32, no. 1 (September 1, 2014): 51–66. http://dx.doi.org/10.1525/mp.2014.32.1.51.
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Musicians anticipate and monitor the expressive effects of their actions during performance. Previous research suggests that the ability to imagine desired outcomes can partially compensate when auditory feedback is absent, permitting continued performance even though information about whether these outcomes are realized is unavailable. Research also suggests that musical imagery ability improves with increasing musical expertise. This study tested the hypothesis that expert musicians’ superior imagery abilities enable reduced reliance on auditory feedback, relative to novice musicians, during the performance of loudness changes (i.e., dynamics). Musicians reproduced the dynamic changes of sounded scales using a loudness slider as the availability of imagery and auditory feedback was manipulated. Contrary to expectations, only novices showed impairment in performing dynamics during imagery disruption and auditory feedback deprivation. Experts showed limited dependence on both sources of information, suggesting greater flexibility in how musical information is mentally represented, compared to novices, and an improved ability to adapt planning strategies.
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Tiwari, Reshma Kumari, and Jasojit Debnath. "Joint Provision of Non-audit Services to Audit Clients: Empirical Evidences from India." Vikalpa: The Journal for Decision Makers 46, no. 3 (September 2021): 153–65. http://dx.doi.org/10.1177/02560909211041796.
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Executive Summary The provision of non-audit services (NAS) by an incumbent auditor has remained a highly contentious issue. One school argues that the joint provision does not impair an auditor’s independence. Instead, it reduces total costs, enhances the ability to detect material misstatements, increases technical competence due to knowledge spillovers and leads to intense competition. However, a substantial tranche of an audit firms’ income is derived from NAS, and the joint provision increases economic ties with the client. Therefore, another school of thought perceives that the joint provision impairs auditor independence. It is also alleged that auditors expect non-audit work after finishing the auditing job. Their independence is also affected by the risks of self-review. Extant literature reveals that the majority of the studies on the issue are archival and experimental. The studies are concentrated in the US, UK, Australia, Malaysia, Nigeria, South Africa, China, and some of the European Union Nations. The article examines the perspective of chartered accountants (CAs) on the joint provision of NAS in India. The study samples 119 CAs. The reliability of the survey result was measured using Cronbach’s α, and a score of 0.77 indicated acceptable internal consistency reliability. The data were analysed using Wilcoxon signed-rank test and the Mann Whitney U test statistic. The summary of their suggestions for ensuring auditor independence is presented separately. The findings reflect that existing prohibitions imposed by the Companies Act, 2013, are not enough to ensure auditor independence, and the Management Services u/s 144 of the Act needs to be clearly defined. Practitioners do not support the proposition that joint provision should end and a separate category of professionals be mandated to render NAS. However, the recommendations include strengthening provisions to reduce the conflict of interest.
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Bouwens, Jan. "Auditors: their mindset and their decisions." Maandblad Voor Accountancy en Bedrijfseconomie 90, no. 10 (October 25, 2016): 385–90. http://dx.doi.org/10.5117/mab.90.31181.
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In the behavioral economics literature it is demonstrated that people that base their decisions on analysis rather than on their intuition are more likely to act: patiently, without losing perspective of the actual topic, without their decisions getting biased by the confidence they have in their own intellectual faculties, independently, and consistent with what new evidence suggests. I argue that it would be of great importance to study these dimensions for auditors as each of these characteristics are related to what society expects of an auditor. I suggest that auditors are studied in their day-to-day operations so that we can increase our understanding of the interplay between the mindset of the auditor and the working conditions auditors face. Data that allow for the design of these studies is now made available through the Foundation for Auditing Research.
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Yaremyk, M. I., and K. Y. Yaremyk. "The Impact of Big Data Analytics and Innovative Information Technologies on Audit Quality." Business Inform 5, no. 520 (2021): 302–7. http://dx.doi.org/10.32983/2222-4459-2021-5-302-307.
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The article is aimed at examining and systematizing the factors influencing innovative information technologies on the auditor’s professional judgment, efficiency and quality of audit, as well as studying the impact of big data analytics on the skills and competence required by auditors to conduct an audit in a big data environment. The state of use of data analytics instruments in auditing is characterized. Based on the analysis of the views of scientists, experts and practicing auditors, the main tasks of the audit are systematized, in which the effective use of big data analytics is possible, among which the following are distinguished: assessment of continuity of the enterprise’s activities along with bankruptcy forecasting; detection of financial fraud and assessment of the effectiveness of control; use of visualization dashboards to form a professional judgment of the auditor on the scope of control, the uniformity of the the sample set and size, the threshold of materiality. The main factors that hinder the use of big data analytics in the audit are highlighted, namely: inconsistency in assessing the reliability and accuracy of data in the sets; ensuring the confidentiality and integrity of the client’s data; uncertainty about several methodological bases of the audit, in particular sampling-based testing, as well as the lack of skills and competencies among auditors regarding the use of big data analytics instruments. Prospects for further research in this direction are to identify the possibility of eliminating inconsistencies in the use of big data at the level of standards, as well as to improve educational and professional training programs for accounting and audit specialists with a focus on obtaining skills in working with big data.
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Kizirian, Timothy G., Brian W. Mayhew, and L. Dwight Sneathen. "The Impact of Management Integrity on Audit Planning and Evidence." AUDITING: A Journal of Practice & Theory 24, no. 2 (November 1, 2005): 49–67. http://dx.doi.org/10.2308/aud.2005.24.2.49.
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This study uses working paper data from 60 clients of a U.S. Big 4 auditing firm to directly examine the influence of auditor-assessed management integrity on auditor's assessments of risk of material misstatement, audit planning, and audit outcomes. We hypothesize that management integrity is related to preliminary risk assessments, and to the persuasiveness, timing, and extent of planned audit procedures. We also hypothesize that the management integrity assessment influences the auditor's evaluation of source credibility of management provided evidence beyond its influence via risk assessments (Beaulieu 2001). Finally, we expect the auditor's management integrity assessment to be associated with the discovery of client misstatements. When we add management integrity to empirical models motivated by Mock and Wright (1993, 1999), we find support for our hypotheses. However, all but two hypothesized associations disappear when we add an indicator variable for prior-year errors. We continue to find that management integrity impacts the persuasiveness of evidence sought beyond what is suggested by the auditor's risk assessment. Interestingly, even after controlling for prior-year errors, we find an inverse association between the auditor's assessment of management integrity and the likelihood of detecting misstatements, suggesting the management integrity assessment aids the auditor in ultimately discovering errors. The results support the importance of assessing management integrity in planning the audit and discovering misstatements.
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Popova, Velina K., and Sarah E. Stein. "Trading Styles, Inc.: An Analysis of the Going Concern Assessment." Issues in Accounting Education 31, no. 3 (July 1, 2015): 355–66. http://dx.doi.org/10.2308/iace-51218.
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ABSTRACT This instructional case focuses on the auditor's going concern decision for a private retail client. The primary objective of this case is to understand and examine the auditor's consideration of the client's ability to continue as a going concern in a real-world setting. The case provides students with the financial aspects as well as the personal aspects of such a decision. Specifically, students must complete analytical procedures and evaluate information from several sources when forming their opinion. We also ask students to contemplate the auditor's relationship with the client in order to understand issues involving auditor independence. Throughout the case, students have the opportunity to review applicable auditing standards and to draft a going concern audit report. We expect this case would be most applicable for an undergraduate or a graduate audit course.
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Arzhenovskii, S. V., T. G. Sinyavskaya, and A. V. Bakhteev. "Research into behavioral traits of the susceptibility to the risk of significant financial misstatements." International Accounting 23, no. 3 (March 16, 2020): 262–75. http://dx.doi.org/10.24891/ia.23.3.262.
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Subject. The article identifies behavioral signs of the susceptibility to the risk of material misstatements through the expert survey of professional auditors. Objectives. We do empirical research into the impact five behavioral traits have, which we discovered through the two parameter risk assessment model, i.e. tolerance to violation of laws, money pathology, susceptibility to high risk, aspiration of impunity and legislative illiteracy in finance. Method.s We performed the expert survey of professional auditors to discover what determines the susceptibility to fraud among those charged with financial reporting. The expert group was made on the basis of an unbiased approach and documentation. We applied the Rasch model to rank personal traits. The collected data were processed with methods of descriptive statistics and multivariate statistical analysis. Results. Carrying out the statistical analysis of experts’ opinions, we found that their significantly correlated. Personal traits were sorted by their impact on risk assessment. Money pathology, susceptibility to high risk, aspiration of impunity and legislative illiteracy in finance were acknowledged as the most influential factors in terms of the susceptibility to misstatements of financial reporting. Conclusions and Relevance. We empirically proved the importance of factors influencing the propensity to risk of misstating financial reports. We used our own theoretical concept. The findings can be useful to auditing forms to detect the customers’ propensity to the risk of manipulating financial reporting.
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Cassell, Cory A., Gary A. Giroux, Linda A. Myers, and Thomas C. Omer. "The Effect of Corporate Governance on Auditor-Client Realignments." AUDITING: A Journal of Practice & Theory 31, no. 2 (February 1, 2012): 167–88. http://dx.doi.org/10.2308/ajpt-10240.
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SUMMARY Events leading up to the implementation of the Sarbanes-Oxley Act of 2002 (SOX) increased the public's focus on corporate governance and increased regulatory scrutiny of corporate governance mechanisms. These events also contributed to a massive restructuring in the audit market that resulted in the transfer of a large number of clients from Big N to non-Big N audit firms. We extend prior research examining the determinants of auditor-client realignments by investigating the effect of corporate governance on downward (i.e., from Big N to non-Big N auditors) switching activity. We develop a corporate governance index comprised of governance characteristics that we expect auditors to find more desirable in their clients (specifically, board and audit committee independence, diligence, and expertise). The results suggest that Big N auditors consider client corporate governance mechanisms when making client portfolio decisions. Specifically, downward auditor-client realignments are more likely for clients that score lower on our corporate governance index. However, the influence of audit committee-related corporate governance components on downward auditor-client realignments decreased post-SOX. The reduced effect of audit committee-related corporate governance components is consistent with what would be expected if the audit committee-related rules imposed by SOX reduced the variation in audit committee quality across clients. Data Availability: The data used are publicly available from the sources cited in the text.
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Issa, Hussein, and Alexander Kogan. "A Predictive Ordered Logistic Regression Model as a Tool for Quality Review of Control Risk Assessments." Journal of Information Systems 28, no. 2 (May 1, 2014): 209–29. http://dx.doi.org/10.2308/isys-50808.
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ABSTRACT External auditors and management increasingly rely on control risk assessments conducted by internal auditors. Consequently, it is crucial to ensure the quality of such assessments and identify irregular instances that deviate from the normal pattern of assessments. Moreover, processing and prioritizing a large number of outlying internal auditors' assessments can help their superiors as well as external auditors overcome the human limitations of dealing with information overload and direct their investigations toward the more suspicious cases, consequently improving overall audit efficiency. In this paper, we use historic data consisting of control risk assessments procured from the internal audit department of a multinational consumer products company. It is used to infer an ordered logistic regression model to provide a quality review of internal auditors' and business owners' assessments of internal controls. We identify anomalous cases where the assessment does not conform to the expected value and develop a methodology to prioritize these outliers. The results indicate that the proposed model can serve as a quality review tool, thus improving audit efficiency, as well as a learning tool that non-experts can employ to gain expert-like knowledge. Additionally, the proposed ranking metrics proved effective in helping the auditors focus their efforts on the more problematic audits.
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Segal, Milton. "Key audit matters: insight from audit experts." Meditari Accountancy Research 27, no. 3 (June 3, 2019): 472–94. http://dx.doi.org/10.1108/medar-06-2018-0355.
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Purpose Key audit matters (KAM) and their impact on the auditor is a relatively understudied area. The purpose of this study is to analyse whether auditors perceive that the recent requirement for auditors of listed companies to report KAMs has enhanced the transparency of audit reports or not, what additional risks they now face, how the risk is being managed and its impact on the relationship with their clients. Design/methodology/approach The paper uses an interpretive approach for detailed interviews with some of South Africa’s leading audit experts to highlight their perspective of the impact of KAM on audit reporting and the audit environment. Findings The experts have various perceptions of what makes a matter “key”. These vary from materiality, to subjectivity and difficulty, as well as incorporating a time-based consideration. Concerns identified include a significant increase in cost and an increase in potential liability, triggering the need for thorough internal risk management policies. The audit experts conclude that KAM has ultimately failed to achieve its goal of greater transparency, with clients virtually ignoring KAM reports. Research limitations/implications The research relies on a relatively small sample of subject experts and may not provide a complete account of the view of all audit professionals and KAM reports issued. It analyses the impact of KAM from the preparers’ perspective. Originality/value This study contributes to the research conducted in this topical area. Although there has been research on KAM focusing on pre-implementation consequences, there is virtually no formal academic research on the impact KAM has had on audit partners and firms in South Africa post implementation. It may also serve as a basis for the IAASB to consider going forward.
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Mohliver, Aharon. "How Misconduct Spreads: Auditors’ Role in the Diffusion of Stock-option Backdating." Administrative Science Quarterly 64, no. 2 (March 14, 2018): 310–36. http://dx.doi.org/10.1177/0001839218763595.
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I study the role of external auditors in the diffusion of stock-option backdating in the U.S. to explore the role of professional experts in the diffusion of innovative practices that subvert stakeholders’ interests. Practices that are eventually accepted as misconduct may emerge as liminal practices—ethically and legally questionable but not clearly illegitimate or outlawed—and not be categorized as misconduct until social control agents notice, scrutinize, and react to them. I examine how the role of external auditors in the diffusion of stock-option backdating changed as the practice shifted from liminality to being illegal and illegitimate. The findings suggest that professional experts’ involvement in the diffusion of liminal practices is highly responsive to the institutional environment. Initially, professional experts diffuse these practices via local networks, but when the legal environment becomes more stringent, implying that the practice will become illegitimate, experts reverse their role and extinguish the practice. The larger network remains largely uninvolved in both diffusing and extinguishing the liminal practice until the practice is publicly exposed and labeled as illegal and illegitimate. The findings further show that the diffusion and then extinguishing of backdating before it was outlawed depended on the adopter’s geographic proximity to a local office of a complacent expert and on the absence of traceable communication about backdating between these offices. This combination set the stage for each office to develop independent views about backdating, leading some offices to view backdating favorably and diffuse it, and others to view it unfavorably and curtail it—even at the same time and within the same audit firm. This study contributes to research on the diffusion of misconduct by providing insight into the role of professional experts and the mechanisms and boundary conditions governing that role.