Dissertations / Theses on the topic 'Statutory audit international standards auditing'

The thesis examines the juridical impact on the statutory audit process after the adoption of the legislative decree 27 January 2010, n. 39 that has implemented the European Statutory Audit Directive (Directive 2006/43/CE) into Italy. In particular, the study analyzes the new legal significance of the international standards on auditing (ISA): art. 11 of the decree 39/2010, indeed, establishes that all statutory audits should be carried out on the basis of international auditing standards. Chapter One contains an analytical reconstruction of the Italian legal framework on statutory auditing and investigates the legal significance of ISA after the adoption of the decree 39/2010. Chapter two studies statutory audit process focusing on its nature and object and combining legislative content with ISA content. The same study method was adopted analyzing powers and duties of the statutory auditors and focusing on the disagreement between law and standards. Chapter three, finally, deals with substantial, legal and procedural effects of audit opinion. The thesis concludes that the new legal significance of the international standards on auditing allows to solve many interpretative problems pointed out by authors and case laws before Italian implementation of the European Directive 2006/43/CE.
La tesi analizza l’impatto giuridico sull’attività di revisione legale dei conti risultante dall’approvazione del d. lgs. 27 gennaio 2010, n. 39 in attuazione della direttiva 2006/43/CE. Lo studio, in particolare, si sofferma sulla nuova rilevanza normativa che l’art. 11 del decreto attribuisce ai principi di revisione internazionali (ISA) affermando che la revisione legale deve essere svolta in conformità agli standards adottati dalla Commissione Europea ai sensi dell’art. 26, parr. 1 e 2 della direttiva 2006/43/CE. Il primo capitolo contiene un’accurata ricostruzione del quadro normativo di riferimento e dei rapporti tra la disciplina codicistica e le regole tecniche contabili e di revisione. Il secondo capitolo si focalizza sull’attività di revisione indagandone la natura e l’oggetto coniugando quanto disposto dalla normativa primaria, oggi contenuta all’interno del citato d. lgs. 39/2010, con il contenuto dei principi di revisione elaborati dalla prassi internazionale e nazionale. Lo stesso procedimento di analisi è stato poi adottato nell’esame dei poteri-doveri riconosciuti al revisore legale approfondendo i punti in cui il dettato legislativo risulta discorde con gli standards di riferimento. Il terzo capitolo, infine, analizza il giudizio sul bilancio e i suoi effetti sostanziali, legali e procedimentali. Le conclusioni cui giunge l’elaborato valorizzano la rilevanza giuridica oggi attribuibile ai principi di revisione internazionali la cui lettura permette di risolvere molti dei dubbi interpretativi rilevati dalla dottrina e dalla giurisprudenza con riferimento al dettato normativo antecedente le modifiche introdotte nel 2010.

The thesis describes law relating to auditors and audit services in the Czech republic. It consists of five chapters. The first one defines the audit, goes through its history, development, and lists the main goals it should fulfill. The second chapter deals with ethics of the audit profession. The rules are mainly covered by the ethics code which sets the basic principles all auditors are obliged to respect and follow. Various circumstances threatening these principles and settings that auditors might find themselves in are detailed there. The third chapter deals with the historical development of law relevant to audit services from 1989 to present. There is also defined which accounting entities are supposed to have their financial statements checked by an auditor in this chapter. The fourth chapter covers the up-to-date subject of implementation of the directive 2006/43/EC of the European Parliament and of the Council by the act no. 93/2009, on Auditors. The structure of the chapter follows the aforementioned act and its subchapters correspond to the act's titles. The last chapter lists the professional regulations the auditors are obliged to comply. This includes especially the International standards on auditing issued by the International Auditing and Assurance Standards Board. The end of the chapter addresses the project for increasing comprehensibility of international standards on auditing and ensuring its uniform administration.

This thesis found that many criticisms were directed to the International Auditing Standards (ISA). Thus, the ISA needs more interpretations and improvements to be more applicable and suitable for Jordan. The thesis concluded that the external auditors in Jordan are complying with the ISA. From the perceptions of external auditors, shareholders, academics, internal auditors, and financial management an audit expectation gap exists in Jordan. External auditors, shareholders and the ISA are responsible for that gap. Improvements are needed to both auditors' performance and the ISA to bridge the audit expectation gap. Furthermore, this thesis introduces recommendations to eliminate the shareholders' unreasonable expectations, which is one of the reasons for the audit expectation gap in Jordan.
Doctor of Philosophy (PhD)

L’écart entre ce que le public attend de la part de l’auditeur et ce que ce dernier pense réaliser est connu sous le vocable d’ « expectation gap ». Cette recherche a pour ambition de contribuer à la compréhension de ce phénomène. Nous appréhendons l’ « expectation gap » dans ses dimensions discursive et normative. Ceci nous conduit à poser les deux questions de recherche suivantes : - Comment et pourquoi le concept d’ « expectation gap » a-t-il émergé dans le discours de la profession d’audit ? - Quel est le rôle des normes d’audit dans la réduction de l’ « expectation gap » ? Notre démarche méthodologique, qui s’inscrit dans le contexte français, comporte trois phases : une étude documentaire longitudinale, une enquête fondée sur des entretiens et l’étude du cas de la norme NEP 705 « Justification des appréciations ». Elle permet de montrer que le concept d’ « expectation gap » a été introduit en France dans les années 1990 sous l’impulsion d’institutions européennes et internationales. L’ « expectation gap » est utilisé dans les discours comme une excuse permettant aux auditeurs d’échapper aux accusations du public et de conserver leur statut et leur position sur le marché. De surcroît, les normes d’audit en France non seulement ne permettent pas de réduire l’ « expectation gap », mais jouent au contraire un rôle légitimant
The « expectation gap » is defined as the gap between what the public expects from the auditor and what the auditor expects to achieve. The present research treats the expectation gap in its discursive and normative dimensions. It aims to contribute to the understanding of the expectation gap phenomenon by examining the following research questions: How and why the concept of «expectation gap» has emerged in the discourse of the audit profession? And what is the role of auditing standards in the reduction of the expectation gap? We address these questions within the French context using a methodological approach that consists of three phases: a longitudinal documentary study, a survey based on interviews, and a case study of the standard NEP 705 «Justification of assessments». We find that the concept of «expectation gap» was introduced in France in the 1990s under the influence of European and international institutions. We also find that the expectation gap is used in discourses as an excuse allowing auditors to escape public accusations and maintain their status and position in the market. Finally, we find that auditing standards in France not only don’t reduce the expectation gap, but actually play a role in legitimizing it

On all Swedish audits on fiscal years starting 1st of January 2011 or later, the clarified ISAs should be applied. Before that, the Swedish auditing standards were called RS, which were a direct translation of the elder version of the ISAs but with considerations of Swedish law and Swedish traditions. The EC states that there will be no fundamental changes for the Swedish audits when the clarified ISAs is implemented, and IFAC states that all audits will realize significant changes when the clarified ISAs is implemented. The purpose of this study is therefore to explain how the audit process has been affected by the implementation of the clarified ISAs and what effects it has given rise to. The study also aims at explaining the relationship between audit firm size and impact on the audit process. This study was conducted using qualitative methods for both collecting and analyzing data. The data have been collected using both primary and secondary data. The primary data was collected through questionnaires in order to get as many opinions as possible but interviews were conducted as well in order to get a deep insight about the subject and to make sure that the questions in the questionnaire was relevant. What emerged in this study is that both the EC and IFAC were right about the implementation of the clarified ISAs in Sweden. The auditors that participated in this study explained that the way they are doing an audit has not changed, which means that no fundamental changes have occurred in the audits. However, the auditors have experienced some changes in the audit process, for example an increased amount of requirements on documentation and a more complicated and time consuming auditor’s report. How much the audit process has changed differs depending on the size of the audit firm. Generally, the impact on the audit process at the “big four” are less than it is on small audit firms due to the fact that many of the “big four” have worked with ISA before. Overall, the auditors have experienced that the implementation of the clarified ISAs have meant an increased cost for doing audits, in the form of updates in audit methodologies, educations and more procedures to perform. However, the auditors have not experienced that the audit quality has increased due to this. This means that the costs for an audit have increased while the quality remains the same.

Thesis (PhD) -- University of Western Sydney, 2001.
"This thesis is submitted in fulfillment of the requirements for the award of the degree of Doctor of Philosophy, School of Accounting, University of Western Sydney" Includes bibliographical references.

The goal of this thesis is explanation of audit profession theoretically and practically. It focuses on audit process and its implementation in real audit practice. The thesis explains basic definitions of audit profession, it shows differences between external and internal audit and identifies subjects authorized to carry out audit work and their rights and obligations. It is also devoted to legal framework of audit profession. This thesis contains treatise on International Standards on Auditing (ISA). A great part of this thesis is devoted to audit procedures. Finally it offers transfer of requirements and knowledge in practice. The audit process is demonstrated on the Mechanics Ltd.

The aim of this thesis is clarification of the importace of financial statement audit, characterization of the auditor's procedure and presentation of a possible fulfillment of these theoretical outputs based on the financial statement audit of a real company.

This thesis focuses on audit documentation in practice. The main aim of thesis is give the comprehensive requirements list on audit documentation. This include international standard on auditig, the Law on auditors and the Law on accounting. These requirements are describe on praktice example. There is include historici development in the Czech Reublic and in the word.

There is considerable evidence of the existence of audit expectation gap between auditors and the public in Sweden. However, conflicting views exist regarding the role of audit education in narrowing this gap. This thesis, therefore, aims to investigate if the teaching of audit courses for civilekonom students contributes in narrowing the expectation gap resulting from the misunderstanding of audit regulations as contained in ISA and ABL.A survey questionnaire containing seventeen semantic differential belief statements measured using the five-point Likert scale was completed by four groups of students; first-year civilekonom students with/without an audit education background and, final-year civilekonom accounting students with/without an audit education background (n=137). The questionnaire covered topics on; auditors’ responsibilities, audit reliability, and decision usefulness.The results of the study indicate audit education partially (at α 0.05) had an impact in reducing the AEG on the responsibilities of auditors especially on issues related to; auditors’ responsibility in maintaining accounting records, management’s responsibility for preparing the annual financial statements and auditors’ judgment in selecting audit procedures. However, audit education had no impact on auditors’ responsibilities in detecting fraud, audit reliability and reliability of financial statements, and decision usefulness. Furthermore, the limited sample size, low response rate and use of convenience sampling may affect the generalizability of the results. Additionally, the Cronbach Alpha would have been more reliable if more participants were involved.This study concludes by calling on educational institutions in Sweden to update their accounting curriculum to encompass topics related to the nature, scope, and limitations of audits based on ISA and ABL. Moreover, this study recommends the audit profession and regulators to design and implement policies aimed at improving users understanding of the nature, scope, and limitations of an audit through audit education, refresher courses and other forms of audit-user communication. This study extends previous studies on the AEG by ascertaining the role of audit education in narrowing the AEG.

This thesis describes the International Standards on Auditing (ISA) and the Vietnamese national Standards on Auditing (VSA), their genesis and current situation. The thesis presents a development of the audit in Vietnam, it's present situation and expected progress. The research refers to a survey. The aim of this survey was finding out the opinions and attitudes of Vietnamese's auditors to ISA and VSA.

Different scandals around the globe during the past, in specific during the last decade, have intrigued the stakeholders to question the roles of both auditors and management. But most of the fingers since then have been raised on the role of auditors, because it is the auditors who are entrusted with the responsibility to detect any errors or frauds in the financial reports of the client-firm. Apart from this, the long-term auditor client relationship has been the center of attention in most of the discussions and debates as well. Numerous studies have been conducted by the academic researchers, financial and professional analysts, regulatory authorities and governing bodies, and in some cases by the auditors and the firms as well regarding the effects of long-term auditor-client relationship on audit quality, equity risk premium, financial reports quality, audit pricing etc. These studies provide us with different results, both with the positive and negative associations and effects of long-term auditor-client relationship on the basis of different factors and contexts. For long, auditing has been discussed in different studies and research areas but mostly in association with publicly listed companies. Less attention has been paid to the relationship of auditors and clients as far as clients in SMEs are concerned. In any country around the globe, SMEs are of major contribution in terms of backing the economy, giving it both the boost and the stability, as they collectively form the major chunk of the economy. If we specify our study to the SMEs in Sweden, then 99% of the enterprises in Sweden represent the SME sector; in addition they employ around 60% of the manpower. Based on these facts, and due to less attention given to auditor-client relationship in terms of SMEs, instead of; we have directed our concerns towards the study of effects of auditor-client relationship on audit quality in SMEs in this particular research study. In this study, we have opted for qualitative research with semi-structured interviews to be used as the tool for data collection. Interviews were conducted with two different groups of interviewees, one group representing the auditors and the other group representing the client-firms (SMEs). A total of seven interviews were conducted in order to strengthen and validate the results for our research question. Due to the limitations of this study, mostly in terms of cost and time, samples were selected from Umeå, Sweden. The data interview structure, data analysis and discussion, and conclusions were all made based on existing theories summarized in the theoretical review of this study. The results of this study suggests that (1) long-term audit tenure is beneficial for the audit quality if certain risk factors like risk of auditor independence and risk of developing complacency are controlled; and (2) factors such as NAS, industry specialization, knowledge and experience of the auditor, internal control in the client-firm, professional ethics, proper audit plan, providence of unbiased information by the client, and appointment of the auditor by the client-firm itself enhances the audit quality.

The aim of this thesis is to analyse auditing methods, which are specified in International Standards on Auditing - ISAs, and consequently apply some of these theoretical outputs to the financial statement of a real company.

This thesis describes the development process and the establishment of audit in the Russian Federation, the classification of audit activities, legislation and regulation of auditing services in Russia. Within the practical part is compared the statutory regulation of audit in Russia and the European Union.

Previous research has focused on finding reasons to why smaller companies (SMEs) choose voluntary audit. The IAASB has in 2018 suggested a move away from the SME concept and has instead talked about audit of less complex entities. A problematization of using ISA for such entities is the bases for the new IAASB project. An explorative analysis of complexity in the audit of these entities, using ISA, is currently lacking in academic literature.   The study therefore aims to identify the complexity that auditors perceive in the audit of less complex entities in Sweden, using ISA. However, complexity within the auditing industry is still very diffuse and unidentified. Though many of the smaller companies choose to be audited, regulations like ISA are too large for this type of company. We are using interviews to achieve the aim of the study and the legitimacy theory and stakeholder theory to explain complexity. In order to identify where in the process the complexity is perceived, we are basing the research on the audit process.   The result of the study shows that it is challenging to define complexity when conducting an ISA based audit on less complex entities. Although, the results show that complexity exists, or at times, ‘ill-fit’, with ISA for these entities. Thus this thesis finds that there is an increasing demand amongst auditors for a new standard for these entities. The study attempts to contribute with an explanation of complexity, and our expectations are that future research will continue exploring this area.
Tidigare forskning har fokuserat på att finna anledningen till varför de mindre företagen väljer att bli reviderade, men vi har inte uppfattat att fokus har lagts på specifikt de mindre komplicerade företagen. Inte heller har det fokuserats på den komplexitet som upplevs och uppstår vid revidering av denna typ av företag, utifrån regelverket ISA.   Studiens syfte är att identifiera den komplexitet revisorer upplever vid revidering av mindre komplicerade företag i Sverige, utifrån ett ISA-perspektiv. Vårt ämnesområde är relativt outforskat och det inte är förrän nyligen som begreppet mindre komplicerade företag blivit aktuellt. Dock är begreppet komplexitet inom revisionsbranschen fortfarande diffust och odefinierat. Ämnesområdet är ett aktuellt ämne eftersom många mindre företag väljer att bli reviderade trots att krav ej föreligger, men med ett regelverk som ISA upplevs det som ingående och omfattande för denna typ av företag. Vi använder oss av intervjuer för att uppnå studiens syfte, och utgår från legitimitetsteorin och intressentmodellen för att försöka förklara komplexiteten. Vi utgår från revisionsprocessen för att identifiera var i processen som den upplevda komplexiteten existerar.   Studiens resultat visar på att revisorerna upplever en komplexitet, men att den är svårdefinierad. Det finns även en ökad efterfrågan bland revisorerna på en ny separat standard för de mindre komplicerade företagen. Studiens bidrag är att bidra med en förklaring av begreppet komplexitet utifrån det revisorerna uttryckt, och våra förhoppningar är att framtida forskning ytterligare ska beröra detta outforskade område.

The thesis is focused on cooperation between external and internal audit and its benefits for the selected organisation and all concerned parties. Theoretical part deals at the beginning with the history of external and internal audit in Europe, United states of America and Czech republic. Other chapters are dedicated to the definitions, mission and contribution of external and internal audit. The thesis also deals with the czech and international legislation in the field of the analyzed audit. The practical part is focused on external and internal audit in two organisations, more specifically the University of economics in Prague and company ČEZ. Those organisations were selected with the intent of making a comparison of the contribution of the audits in different institutions, when it comes to the nature of business and size.

The International Standards on Auditing are created and published by the International Auditing and Assurance Standards Board. These standards are high quality, modern and approved by regulators throughout the world. Most of the developed countries addopted the ISAs in some way. The International Standards on Auditing have been effective for all audits in the Czech Republic since 2005. Their implementation in the European Union is expected shortly. Standards contribute to better international comparability and enhance the credibility and quality of the audit, including auditor's report. The Clarity project was in progress between 2003 and 2009. It was aimed at clearing standards, increasing clarity and facilitating their interpretation.

The aim of this Master's Thesis is to describe an internal audit procedure in multinational company ČEZ, a. s., on the fictional sample of internal audit. The Master's Thesis is divided into theoretical and practical part. The theoretical part focuses on describing the basic concepts and processes of internal audit in general. The practical part deals with the internal audit process in a company which generate and sell electricity and heat. After studying company's documents related to internal audit was carried out fictitious internal audit. The main products of this audit are documents named Assignment of Audit and Final Report. Materials dealing with process of internal audit in this company are on high level and there wasn't any problem in performance of fictitious internal audit.

Performance evaluation of internal auditing departments is extremely important as organisations depend on the advice and assurance they obtain from these department. Therefore, this study seeks to determine the perceived most relevant and appropriate performance measurement system (PMS) used to evaluate the performance of internal auditing departments. The determination of such a PMS may lead to effective performance measurement, meeting and exceeding stakeholders’ expectations, and achieving strategic objectives. Questionnaires were distributed to organisations that hold an internal auditing department within the regions of Cape Town, South Africa and Windhoek, Namibia. The Statistical Packages for Social Sciences (SPSS) tool was used to analyse the data. The results obtained from the survey reveal that the most frequently used PMS to evaluate the performance of internal auditing departments is the Balanced Scorecard. The results also indicate that the Chief Audit Executive (CAE)/internal auditing managers are of the opinion that stakeholders expect the PMS of Internal Audit to assess the effectiveness and efficiency of their department. The CAE/internal auditing managers are also of the opinion that stakeholders expect the PMS to measure the competency of internal auditing departments and ensure that these departments adhere to the Code of Ethics, International Standards for the Professional Practice of Internal Auditing (ISPPIA), and apply the risk-based approach to their operations. The implications of this study contribute to identifying the PMS perceived to be the most relevant and appropriate to evaluate the performance of internal auditing departments. This study has affirmed that the Balanced Scorecard is perceived to be this PMS for effective and efficient performance evaluation of internal auditing departments. Despite the Balanced Scorecard being the effective and efficient PMS for internal auditing departments, it is not utilised properly to make provision for measures focusing on the assessment of risk management processes, internal audit control, and governance.

The thesis is focused on the audit on an agricultural entity. There is a historical development of audit and basic information. The thesis describes the regulation in the European Union, the procedure itself in accordance with International Standards on Auditing and the specifics of the audit at the agricultural company. In the analytical part is the procedure shown on a particular entity. The aims are to describe legislative regulation and procedure of audit in the Czech Republic.

This master’s work summarises main implementation principles of accounting audit in the Czech Republic with context of European Union. Work explains status and role of auditors in society, general demands on accounting audit, the way of their control and fulfilling. Also contains suitable recommendations for Czech auditors.

The thesis deals with the verification the financial statements and annual reports of the selected company. The aim of the thesis is to characterize the financial statements and the annual report and subsequent application of the theoretical basis for the practical demonstration of the audit contract specific firm. The theoretical part of the thesis is divided into six separate parts. The first chapter describes the concept of audit, defines its basic objectives and principles and provides information about its development. The second chapter pursues to the regulation of the audit, both in terms of international standards and the czech law. The main legal standards are Directive of the European Parliament and of the Council 2006/43/EC., Act No. 93/2009 on Auditors and International Standards on Auditing. The third chapter defines the professional audit regulatory and characterizes the Code of Ethics. The fourth chapter focuses on the use of audit methods and procedures during the audit engagement. The last chapter of the theoretical basis discusses an audit documentation, as one of the possible means of proof audit trail. The last chapter of the thesis is represented by a practical part where the specific entity Zemský hřebčinec Písek státní podnik presents selected audit procedures and methods with a focus on work as an assistant of the auditor. An important part of the thesis consists of an annex that contains selected parts rather stable and normal component auditor's documentation.

This thesis called "The audit from the perspective of the audited entity" is focused on the audit, but from a different point of view than most of the specialized publications about audit. It is possible to divide the thesis into two parts. In the theoretical part, there is explained the issue of audit from the historical view, which is followed up with the legislation and professional treatment. Briefly there are mentioned the International Standards On Auditing, that have gradually replaced nowadays invalid Czech Auditing Directives. At the end of the theoretical part, the whole audit procedure is processed in details. The main emphasis is put on the moments, which affected the audited entity in the meaning that it is necessary its active cooperation with auditor, for example communication with auditor during the contract for audit, providing of various background materials for audit or negotiations of management with auditors during the audit. In the second, practice, part of this thesis the theory is put into practice in the real existed entity NÁBYTEK a.s.. The main goal is to map the audit of NÁBYTEK a.s. from the perspective of the audited entity, not from the view of auditor or auditor's company.

Audit is an interdisciplinary activity which requires, nowadays more than ever in the past, knowledge and skills in the field of accounting and related financial knowledge, as well as from other non-financial sectors (such as the statistics or the information technology). The use of statistics in the audit may not be entirely obvious at first sight and thus the main aim of this thesis is to point out possible ways to apply statistical tools in substantive testing (which represents an important stage of the audit work). The most important use of statistics in the audit can be found in sampling methods. The range of a tested population may be too wide for testing the whole population that leads to the fact that it is necessary to select an audit sample appropriately. The thesis outlines what kind of method and technique of selection to choose and how to generalize the results obtained during the sample testing to the entire population. Besides the main aim in the form of the application of statistical tools in the audit, the thesis also focuses on a brief description of the audit history, polemic of current understanding of the term audit, professional organizations and regulations of the audit in the Czech Republic and description of individual stages of audit work (especially on a detailed analysis of a substantive testing).

This thesis found that many criticisms were directed to the International Auditing Standards (ISA). Thus, the ISA needs more interpretations and improvements to be more applicable and suitable for Jordan. The thesis concluded that the external auditors in Jordan are complying with the ISA. From the perceptions of external auditors, shareholders, academics, internal auditors, and financial management an audit expectation gap exists in Jordan. External auditors, shareholders and the ISA are responsible for that gap. Improvements are needed to both auditors' performance and the ISA to bridge the audit expectation gap. Furthermore, this thesis introduces recommendations to eliminate the shareholders' unreasonable expectations, which is one of the reasons for the audit expectation gap in Jordan.

Diplomová práce Ekonomické a právní aspekty auditorské činnosti se zabývá činností auditora. První kapitola se věnuje právní regulaci auditorské činnosti, tj. zákonu č. 93/2009 Sb. Jelikož zákon nabyl účinnosti dne 14.4.2009, jedná se o téma navýsost aktuální. Práce detailně popisuje jednotlivé instituty nového zákona jako je Rada pro veřejný dohled nad auditem, subjekty veřejného zájmu, zabývá se podmínkami pro výkon auditorské činnosti. Pozornost je věnována i zvýšeným nárokům na chování auditora jako jsou etika, nezávislost a mlčenlivost. Významný prostor je věnován i Komoře auditorů ČR jako jediné samosprávné organizaci zastřešující všechny auditory či auditorské společnosti. Závěr právní části je věnován zhodnocení současného právního stavu a nástinu možného dalšího vývoje, kde autor zaujímá stanovisko k této úpravě. Druhá kapitola, nazvaná Ekonomické aspekty auditorské činnosti, se zabývá popisem auditorské činnosti doprovázený mnoha praktickými příklady, tj. popisem práce auditora na jednotlivých zakázkách. V této práci nejsou popsány všechny aspekty auditorské činnosti. Pozornost je zaměřena na nejdůležitější z nich. Struktura této kapitoly kopíruje sled auditorských prací. Postupně popisuje obecné cíle auditora, plánování auditu, identifikace a vyhodnocení rizik při auditních zakázkách,...

The ever-increasing use of Fair Value Accounting (FVA) is preferable in promoting such benefits as relevant financial information and improving transparency of financial reporting compared to traditional accounting methods (McDonough et al. 2020). At the same time, the passage of FVA introduces substantial difficulties from the audit perspective in obtaining and confirming fair value inputs (Bradley & Sun 2021; Griffith 2020). Given the rising use of complex estimates of FVA, the problem of management bias can lead to demands for high-quality audit services. Consequently, more audit effort and time are required from auditors to provide assurance in financial reporting which eventually leads to higher audit fees (Sangchan et al. 2020). This study’s primary motivation is driven by the limited and inconclusive research on the monitoring costs resulting from Fair Value Disclosure (FVD) (Miah 2019). Therefore, it aims to examine the relationship between FVD and audit fees paid by Jordanian firms from 2005 through to 2018. It explores the relationship between the presence of FVD and audit fees and looks closely at the relationship between the proportion of fair-valued assets and audit fees. Due to the uniqueness of this study’s institutional environment characteristics, the impact of a number of ownership structure factors (including family, government and financial institutional ownership) on the association between the proportion of fair-valued assets and audit fees is examined. The moderating role of the major two auditor industry expertise attributes: market share (MS) and portfolio share (PS) on the link between the proportion fair-valued assets and audit fees is also investigated. This study, moreover, considers further factors of the auditees’ industry type, such as whether the entity is in the financial or non-financial sector. An analysis is also conducted to produce new empirical evidence on the effect of the Global Financial Crisis (GFC) on the association between the proportion of fair-valued assets and audit pricing. This study is based on the publicly available secondary data from a sample of annual reports published by Jordanian firms listed on the Amman Stock Exchange (ASE). This analysis employs an Ordinary Least Squares (OLS) regression to test the developed hypotheses. A number of additional analyses and sensitivity tests are also conducted to ensure that the main regression results are robust to different measurements and estimators. The regression analysis finds that a greater level of FVD (and proportion of fair-valued assets) is the major driver of higher audit fees. The results are more pronounced for firms with larger ratios of the subjective FVDs (Level 3 assets). Further, a significant and positive difference in the association between the proportion of fair-valued assets and audit fees is evident for finance industry vs. non-finance industry. Specifically, the moderating impact of industry type is significantly positive (negative) in relation to Level 2 (Level 1) assets but not significant for Level 3 assets. A significantly negative (positive) impact of the pre-crisis (post-crisis) period on the association between the proportion of fair-valued assets and audit fees is confirmed. The regression findings, moreover, confirm a negative impact of the moderating pre-crisis over fair value inputs, whereas a positive impact of post-crisis is documented only for Level 1 assets. These findings are in line with the agency and stakeholder theories as the conjunction between the different types of users and the likelihood of material misstatements, and managers’ fraud following the application of FVA have led to abuse of power. Shareholders have potentially been misled simply to serve managements personal interests. The current study’s results are consistent with agency and stakeholder theories, and indicate that family ownership leads to a weaker relationship between the proportion of fair-valued assets and audit fees. Conversely, the analysis confirms the opposite for both governmental and financial institutional ownership factors. This is also consistent with signalling theory. The regression, moreover, confirms that the nature of the impact of moderating family ownership on the association between Level 1 assets and audit fees is significantly negative (not for Level 2 and Level 3 assets). The analysis confirms that state ownership in the case of the subjective fair values (Level 3 assets) leads to expensive audit fees being charged. The regression, moreover, confirms that the association between the highly uncertain fair values (Level 3 assets) and audit fees is strengthened when financial institution ownership exists. In line with the signalling theory, the analysis suggests that the association between the proportion of fair-valued assets and audit fees is strengthened when the client hires industry specialist auditors identified by MS. Conversely, industry specialists identified by the PS approach are not significantly moderating the relationship between the proportion of fair-valued assets and audit fees. With respect to fair value hierarchy level inputs, Level 1 was the only level found to be moderated by both scenarios with positive (negative) sign under the product differentiation scenario (shared efficiency scenario). The results furthermore support the agency and stakeholder theories. This study pioneers the topic by examining post-FVA transformation consequences in a developing country, Jordan (Abdullatif 2016). It is the first attempt of its kind to examine the integration of the agency, signalling and stakeholder theories with fair value proxies to establish and evaluate the nature of the relationship between FVD and audit fees (Samaha & Khlif 2016). Results of this study provide policymakers and standard setters with updated empirical evidence originating from a non-Western setting about the post-implementation costs of IFRS/FVA. The findings also benefit regulatory authorities on monitoring and governing the audit profession, which could lead to considering the challenges of auditing the less verifiable fair values. This research assists Jordan’s government in providing more specific guidelines and recommendations that simplify and guarantee best practices of FVA. This contribution makes the findings of the study more relevant to wider settings. Arguably, the findings from Jordan as a study site can reasonably be generalised to other countries in the ME, especially to those that have not yet applied or recently have applied fair value model.

Сфера аудиторской деятельности Российской Федерации в настоящий момент находится в процессе интеграции в интернациональное экономическое пространство, что выражается в переходе с 2017г. на международные стандарты аудита. Многие аспекты финансовой и правовой деятельности аудиторских организаций ещё нуждаются в доработке для их эффективного и конкурентоспособного функционирования в условиях переходного периода. В магистерской диссертации сформулированы и раскрыты положения научной новизны, связанные с систематизацией наиболее существенных различий и тенденций преемственности между федеральными и внедряемыми международными стандартами аудита, а также выявлена взаимосвязь между изменениями в стандартизации аудита и возможностями их внедрения в практическую деятельность российских аудиторских организаций в настоящее время. По результатам исследования разработана многофакторная модель оценки рисков аудиторской организации для повышения ее конкурентоспособности в условиях реформирования отрасли. Практическая значимость заключается в возможности применения данной методики в практической деятельности аудиторской фирмы для преодоления переходного периода без потерь качества оказываемых услуг, репутации и реальных доходов.
The sphere of auditing activities of the Russian Federation is currently in the process of integration into the international economic space, which is reflected in the transition from 2017. on international auditing standards. Many aspects of the financial and legal activities of audit organizations still need to be refined for their effective and competitive functioning in a transitional period. The master's thesis formulated and revealed the provisions of scientific novelty related to the systematization of the most significant differences and continuity trends between federal and international auditing standards being implemented, and also revealed the relationship between changes in audit standardization and the possibilities for their implementation in the practical work of Russian audit organizations at the present time. According to the results of the study, a multifactor risk assessment model has been developed for an audit organization to increase its competitiveness in the context of industry reform. The practical significance lies in the possibility of using this methodology in the practice of an audit firm to overcome the transition period without loss of the quality of services provided, reputation and real income.