Audit Reviewers' Judgments in Multiple Client Audit Environments

2017 ◽  
Vol 29 (2) ◽  
pp. 1-9 ◽  
Author(s):  
Sudip Bhattacharjee ◽  
Mario J. Maletta ◽  
Kimberly K. Moreno
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Contrast Effects ◽  
Comparative Information ◽  
A Current

ABSTRACT This study replicates Bhattacharjee, Maletta, and Moreno (2007), who find that audit preparers are susceptible to contrast effects in a multi-client environment. We demonstrate that auditors in the role of reviewers are also susceptible to contrast effects from a prior client. Audit reviewers' assessments of internal audit quality of a current client were significantly affected by the quality of the internal audit group of a client they previously reviewed. Specifically, when auditors first reviewed a client with a weak internal audit group they assessed the subsequent moderate internal audit group as being of higher quality than when they first reviewed a prior client with a strong internal audit group or did not review a prior client. Reviewers' documentation of evidence was also influenced by comparative information from the prior client. These results corroborate the key findings of Bhattacharjee et al. (2007) and confirm audit reviewers' susceptibility to contrast effects.

scholarly journals MODEL PENGUKURAN KUALITAS AUDIT INTERNAL

2017 ◽  
Vol 17 (3) ◽  
pp. 299
Author(s):  
Ida Rosnidah
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Measurement Model ◽  
Primary Data ◽  
Private Companies ◽  
Internal Auditor ◽  
Internal Auditors ◽  
State Enterprises

Internal auditor’s independence is sometimes in doubt. This makes sense because the internal auditor is an integrated part of the organization. As a part of the organization, the internal auditor has a role to audited financial statements, give some suggestions and recommendations that can be used as the basis for making some decisions in the future. The lower of internal auditor’s independence has an impact audit quality, that can make the role of internal auditor degrade. So, the quality of internal auditor still becomes an important issue until  now. The purpose of this study is to establish a measurement model of internal audit quality based on the influencing factors not only independence, but also competence, professionalism and motivation. This study uses primary data by distributing questionnaires spread to 60 internal auditors who work  in  inspectorate, private companies, state enterprises (BUMN) and local government enterprises (BUMD) in Cirebon District and Municipalities. Data analysis method used is single stage multivariate model among variables/pathway analysis. The results show that the competence, independence, professionalism and motivation affect the quality of internal audit either partially or simultaneously, and competence contributes the most to the quality of the internal audit. Thus, this research model can be used to measure the quality of internal audit.

On Improving the Internal Audit Quality of Small and Medium-sized Enterprises

2020 ◽  
Vol 9 (4) ◽  
pp. 177
Author(s):  
Hongbo Wang
Keyword(s):  
Decision Making ◽  
Emerging Markets ◽  
Social Development ◽  
Influencing Factors ◽  
Audit Quality ◽  
Internal Audit ◽  
Audit System ◽  
Core Function

With the progress of economic and social development, SMEs(Small and Medium-sized Enterprises) have come into being. A large number of entrepreneurs have devoted themselves to future emerging markets. Finance, as a core function in the operation of each enterprise, not only provides decision-making information for enterprise managers, but also undertakes the major mission of mastering the rise and fall of enterprises. The financial system under the company's overall system and the audit activities that playing the role of supervision before, during, and after the financial activities are influencing factors of the internal audit quality of the enterprise. This article analyzes how to improve the internal audit quality of an enterprise from three aspects: whether the audit system is well-constructed, the independence requirements of the internal audit system, and the audit assessment control.

scholarly journals The Improving Model of the Quality of Financial Statements and Successful Implementation of Local Financial Information Systems

2020 ◽  
Vol 1 (2) ◽  
pp. 128-144
Author(s):  
Irfan Irfan ◽  
◽  
Eka Nurmala Sari ◽  
Muhyarsyah Muhyarsyah ◽  
Siti Irafah ◽  
...  
Keyword(s):  
Information System ◽  
Internal Audit ◽  
Financial Statements ◽  
Financial Information ◽  
Successful Implementation ◽  
City Governments ◽  
Financial Reports ◽  
Financial Report

his study aims to (1) examine and analyze the influence of Human Resource (SDM) competence and the role of internal audit on the successful implementation of the Local Financial Information System (SKID) partially and simultaneously, (2) examine and analyze the competence of SDM and the role of internal audit on the quality of financial report partially and simultaneously,(3) examine and analyze the influence of SDM competence and the role of internal audit on the quality of financial reports on the successful implementation of the SKID. The object of this study is all provincials and district / city governments throughout North Sumatera. The sample of this study was 34 (thirty four). The data was collected by questionnaire, documentation, and interview methods. The analysis method used was path analysis using SPSS Program. The results of this study indicate that (1) SDM competence and the role of internal audit have no partial effect on the successful implementation of SKID (2) SDM competence, the role of internal audit doesn’t simultaneously affect the successful implementation of SKID (3) SDM competence and the role of internal audit have a significant effect partially to the quality of financial reports (4) the successful implementation of SKID has no effect on the quality of financial reports (5) SDM competence, the role of internal audit, the successful implementation of SKID simultaneously affects the quality of financial reports (6) SDM competence and the role of internal audit have no effect on quality financial reports through the successful implementation of the local financial information system.

scholarly journals Impact of Applying Governance Standards in Evaluating the Quality of Internal Audit in Yemeni Private Universities

2021 ◽  
Vol 13 (46) ◽  
pp. 81-103
Author(s):  
Ahmed Ali Qassem Mohssen
Keyword(s):  
Audit Quality ◽  
Private Universities ◽  
Relative Weight ◽  
Internal Audit ◽  
Slight Variation ◽  
Internal Auditing ◽  
Audit Process ◽  
Transparency And Disclosure ◽  
The Impact

The study aimed to measure the impact of applying governance standards in evaluating the quality of internal audit in Yemeni private universities. To achieve this, the researcher followed the descriptive and analytical approach and employed a questionnaire to collect data from a sample that included (68) participants. After conducting relative analysis, governance was at an average level of (64.9%). There was also a slight variation in the level of implementation, as the dimension of transparency and disclosure was the most frequent dimension, followed by accountability and independence. Further, there was a medium level of adherence to internal auditing standards at a relative weight (65%). The level of commitment to the audit dimensions was as follows: managing the internal audit activities (67%), communicating the results (66%), assessing the risk and control management (64%), and planning and implementing the audit process (62%). and The study also found that the combined governance standards (transparency and disclosure, accountability, independence) increase the quality of the internal audit in Yemeni private universities and the highest dimensions of governance standards affecting the quality of internal auditing are the dimension of independence (80.3%), accountability (71.7%), and disclosure and transparency (63.7%). In light of this, the study recommended adopting governance standards as an integrated approach to achieve quality performance in private Yemeni universities; spreading the culture of governance in private universities among their leaders and staff by holding training courses, seminars, and conferences in order to be accepted and absorbed. In addition, governance should be included in some related academic courses in the disciplines of administrative and accounting sciences. Keywords: governance standards, internal audit quality assessment, private Yemeni universities.

scholarly journals Emotions in leaders’ enactment of professional agency

2019 ◽  
Vol 31 (2) ◽  
pp. 143-165 ◽  
Author(s):  
Päivi Hökkä ◽  
Katja Vähäsantanen ◽  
Susanna Paloniemi ◽  
Sanna Herranen ◽  
Anneli Eteläpelto
Keyword(s):  
Qualitative Content Analysis ◽  
Leadership Coaching ◽  
Content Type ◽  
Current State ◽  
Before And After ◽  
State Of Affairs ◽  
Practical Implications ◽  
A Current

Purpose Although there has been an increase in workplace studies on professional agency, few of these have examined the role of emotions in the enactment of agency at work. To date, professional agency has been mainly conceptualised as a goal-oriented, rational activity aimed at influencing a current state of affairs. Challenged by this, this study aims to elaborate the nature and quality of emotions and how they might be connected to the enactment of professional agency. Design/methodology/approach Data are collected in the context of a leadership coaching programme that aimed to promote the leaders’ professional agency over the course of a year. The participants (11 middle-management leaders working in university and hospital contexts) were interviewed before and after the programme, and the data were analysed using qualitative content analysis. Findings Findings showed that emotions played an important role in the leaders’ enactment of professional agency, as it pertained to their work and to their professional identity. The study suggests that enacting professional agency is by no means a matter of purely rational actions. Practical implications The study suggests that emotional agency can be learned and enhanced through group-based interventions reflecting on and processing one’s own professional roles and work. Originality/value As a theoretical conclusion, the study argues that professional agency should be reconceptualised in such a way as to acknowledge the importance of emotions (one’s own and those of one’s fellow workers) in practising agency within organisational contexts.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI KUALITAS LAPORAN KEUANGAN PEMERINTAH DAERAH KOTA SEMARANG

KINERJA ◽  
2016 ◽  
Vol 20 (2) ◽  
pp. 179
Author(s):  
Lilis Setyowati ◽  
Wikan Isthika ◽  
Ririh Dian Pratiwi
Keyword(s):  
Human Resources ◽  
Internal Audit ◽  
Financial Statements ◽  
Financial Statement ◽  
Primary Data ◽  
Significant Positive Effect ◽  
Role Of It ◽  
Positive Effect

AbstractThe purpose of this study is analyze the factors influence the quality of financial statement .This study uses primary data obtained from questionnaires to accounting of SKPD Semarang. The method used in this research is multiple regression analysis. The results of this study indicate that (1) the variable role of information technology did not significantly affect the quality of financial statements, (2) the competence of human resources significant positive effect on the quality of financial statements, (3) the role of internal audit significant positive effect on the quality of financial statements.Keywords: role of IT, competence of human resources, role of internal audit, and quality of financial statement

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KUALITAS LAPORAN KEUANGAN DAERAH KABUPATEN MAJALENGKA

2021 ◽  
Vol 4 (1) ◽  
pp. 70-79
Author(s):  
Mochamad Febri Sayidil Umam ◽  
Tito Marta Sugema Dasuki
Keyword(s):  
Local Government ◽  
Internal Audit ◽  
Sampling Technique ◽  
Department Head ◽  
Financial Reports ◽  
Accounting Information Systems ◽  
Analysis Technique ◽  
Finance Department

Abstrak This research aims to determine empirical evidence about the effect of the use of financial accounting information systems, human resource competence, and the role of internal audit on the quality of financial reports of the Local Government Majalengka. The research method uses a descriptive verification approach. The population in this study were employees of the Local Government of Majalengka. The sampling technique used was purposive sampling. The sample of this study was 135 employees in the finance department (head of department and financial staff). The research is explanotary research which relates to the position of the studied variables and the influence between one variable and the research variable. The data analysis technique used multiple regression analysis with SPSS software. The results of this study indicate that partially the use of SIAKD has no significant effect on the quality of LKPD, HR competence has a significant effect on the quality of LKPD, the role of Internal Audit has a significant effect on the quality of LKPD. Simultaneously the use of SIAKD, HR competence and the role of Internal Audit have a significant effect on the quality of LKPD.    

scholarly journals The Effect of Audit Committee Characteristics on Audit Quality: The Moderating Role of Internal Audit Function

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
Josephine Kuan Pei See ◽  
Anwar Allah Pitchay ◽  
Yuvaraj Ganesan ◽  
Hasnah Haron ◽  
Ratih Hendayani
Keyword(s):  
Structural Equation ◽  
Audit Committee ◽  
Audit Quality ◽  
Internal Audit ◽  
Secondary Data ◽  
Listed Companies ◽  
Internal Audit Function ◽  
The Relationship ◽  
Moderating Role

The purposes of study are to examine the effect of audit committee characteristics namely gender, frequency of meetings, independence member in audit committee and audit committee size on audit quality and the moderating role of internal audit function in the relationship between audit committee characteristics and audit quality. The objective is to contribute to the new evidence on the role of audit committee characteristics plays towards the audit quality with internal audit function as moderator. This research applied a quantitative approach and secondary data as the main source of information for analysis. Stratified random sampling techniques are being used in this study. Further, the structural equation modelling (SEM) approach via SmartPLS was utilized to achieve the research purpose by evaluating the data collected from 250 public listed companies in Malaysia. The results reveal that only three of the audit committee characteristics, namely presence of female members in the audit committee, frequency of meetings and independence of directors, are positively influencing the audit quality for listed companies in Malaysia. Surprisingly, this study also found that internal audit function did not play the moderating effect in the relationship between audit committee characteristics and audit quality. The findings will facilitate researchers and scholars to enhance the understanding of audit committee characteristics particularly the gender, frequency of AC meetings and independence members in the audit committee played in improving overall audit quality. The companies’ stakeholders like professional accountancy body and governments may use the outcomes from this research study to improve existing rules and government regulations and code of conducts of its members to improve the quality of their works. This study contributes to the relatively new discussion on the effect of audit committee characteristics on audit quality by adding internal audit function as a moderator in Malaysia. The outcome from this study may assist the companies’ stakeholders like professional accountancy body and governments in determining improved methods to enhance audit committee characteristics in improving audit quality.

scholarly journals Can Emotional Intelligence Help in Reducing Auditor’s Engagement in Quality Threatening Behaviours?

2018 ◽  
Vol 2 (2) ◽  
pp. 70-73
Author(s):  
Muhammad Aamir ◽  
Siti Zaleha Abdul Rasid ◽  
Shathees Baskaran ◽  
Fadillah Binti Ismail ◽  
Faiza Manzoor
Keyword(s):  
Emotional Intelligence ◽  
Job Performance ◽  
Audit Quality ◽  
The Other ◽  
Work Practices ◽  
Accounting Profession ◽  
Regulatory Bodies ◽  
Emotionally Intelligent

Quality Threatening Behaviours (QTBs) in auditing are associated with reduced audit quality and are under the focus of researchers and practitioners for the last two decades following the major corporate failures around the globe.  QTBs are a constant threat for audit profession and lawmakers, regulatory bodies, practitioners and researchers are striving to reduce auditors’ engagement in these undesirable behaviours.  Existing literature advocates that emotional intelligence (EI) meaningfully affects workplace behaviours. Wong and Law (2002) affirm that emotional intelligence is linked to job performance.  Emotionally intelligent individuals respond to negative issues related to work in a better way (Greenidge, Devonish, & Alleyne, 2014).  On the other hand, individuals who score low on emotional intelligence face problems in regulating emotions instigated by negative work practices reacting in a manner that can be detrimental for the organization and its members (Quebbeman and Rozell, 2002).  Emotional intelligence is equally important for individuals in the accounting profession (Daff, de Lange, & Jackling, 2012).  Akers and Porter (2003) proclaim that “EI skills are critical for the success of the accounting profession” (p. 65).  Auditing is a frantic occupation that causes pressure on auditors (Fisher, 2001) that fetch damaging outcomes.  Negative behaviours of auditors are caused by different pressures and lessen the quality of audit, emotional intelligence ability can help auditors in avoiding indulgence in these behaviours (Yang, Brink, & Wier, 2018). Grounding on the role of emotional intelligence at work across different contexts and its ability to negatively affect harmful workplace behaviours, it can be inferred that emotional intelligence can reduce auditors engagement in quality threatening audit behaviours.

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