Audit Education Research Articles

Determinants of Audit Quality

This research investigates the impact of auditor experience, auditor education, client’s internal controls, and audit procedures performed on audit quality in the UAE. An online Likert scale-based questionnaire was distributed to auditors with financial audit experience in the UAE. Multiple regression analysis was adopted to analyze data since more than one independent variable was investigated. The results demonstrate that auditor experience and auditor education are significantly and positively associated with audit quality, while client’s internal controls and audit procedures are not associated with audit quality.

О развитии профессионального аудиторского образования в Российской Федерации

The article is devoted to the development of professional audit education in the context of demand from employers. The forthcoming changes in the qualifi cation exam for auditors, the interaction of the Unifi ed Attestation Commission with specialized international qualifi cations and the introduction of additional certifi cation have been substantiated.

Analiza sajber pretnji kao faktora rizika u bankarskom sektoru

The banking industry faces increased risks based on cyber threats, mostly through mobile applications and web portals, and to a lesser extent through other communication channels. Cyberattacks continue to increase, and the banking sector can be particularly vulnerable, especially in the context of the Covid-19 pandemic. The subject of the paper is to analyze the views of respondents of users of banking services in the Republic of Serbia on the problem of cyber threats as a risk factor in the banking sector. The main conclusion is that the largest number of respondents, as much as 70% of them, are not concerned or not very concerned about security in the banking services' sector. This indicates the existence of a high degree of trust in the security of banking services and the activities that banks undertake to protect data and deposited financial assets. In addition, banks should still emphasize preventive activities to reduce the risks based on cyber threats to an acceptably low level. Some of the preventive activities can be engaging in the education of internal auditors and increasing the effectiveness of information security audits.

Red Flag Effectiveness in Public Sector Audit Using Fraud Pentagon Theory

Auditors in carrying out fraud detection do not always get a bright spot, because the perpetrators have many ways to commit fraud and various underlying motivations. This reason strengthens government auditors, and it is important to understand or recognize indicators or red flags in determining fraud risk assessments. The aim of this article is to gather empirical evidence on how public sector auditors perceive fraud detection. Partial Least Square analysis is the method used. The number of samples in this study was 96 government auditors consisting of 48 BPKP auditors and 48 BPK auditors. The findings demonstrate that gender, duration of employment, and education and training of auditors at BPKB have an impact on the effectiveness of red flags, whereas auditors at BPK have a different impact, with job position, education, and training having an impact on red flag effectiveness. The results of this study give attention to BPKP and BPK to provide opportunities for auditors to participate in continuing education and participate in training that supports auditors in carrying out their work, especially related to training in the use of IT to detect fraud. The perception theory can explain the usefulness of red flags in detecting fraud, according to the findings of this study. This means that in determining the ability to use red flags, it is influenced by individual characteristics (gender, position, length of employment), and the capacity of auditors (education and training).

Determinants Influencing the Audit Quality: Empirical Evidence from Indonesia

In producing a reliable audit quality, it requires the quality of the auditors themselves. The Financial and Development Planning Agency (BPKP) is a state institution that is part of the Government Internal Supervisory Apparatus (APIP). This study aims to determine the effect of auditor skepticism, understanding of information systems, auditor education, and audit motivation on audit quality and the effect of time budget pressure in moderating the effect of audit motivation on audit quality. This research was conducted at BPKP DKI Jakarta with a questionnaire instrument and processed using SEM-PLS. The results of this study indicate that auditor skepticism has a significant effect on audit quality. Meanwhile, understanding of information systems, auditor education, and audit motivation doesn't have an effect on audit quality. Time budget pressure also does not moderate the effect of audit motivation on audit quality. This research is expected to be an additional understanding and knowledge about the effect of auditor skepticism, understanding of information systems, auditor education, and audit motivation on audit quality.

Audit Firm Type and Sustainability Performance: A Study of Quoted Oil and Gas Marketing Companies in Nigeria

The study specifically examines the impact of audit firm types on sustainability performance effort (health care, employment and education) of quoted oil and gas marketing company in Nigeria. The population of the study consists of all the 13 oil and gas marketing companies quoted on the Nigeria Stock Exchange as at end of the year 2020. Secondary data was sourced from the annual reports and accounts of the sampled companies for the period of 5 years (2016-2020). The dependent variables for the study were Sustainability Performance effort proxied by expenditure on education, employment and health care by the oil and gas companies, while the independent variable was audit firm type. A panel regression model was employed for the analysis as the data cuts across different firms over periods. The results revealed that there is no significant relationship between audit firm type and sustainability performance. This is evident from the p-value of 0.554 which is related to audit firm type and health care. Also, the result of the audit firm and education revealed a p-value of 0.422 and that of audit firm type and employment 0.364. This result provided a basis for rejecting all the hypotheses. The study therefore, recommends that the oil and gas companies should continue to undertake their responsibility in the sustainability performance without any reference to whether they are being audited by any type of audit firm

Analisis Kualitas Audit Syariah Perusahaan JII Tahun 2014-2019

The quality of sharia audit is the provision of services performed by auditors to disclose financial statements that are free from material misstatement either caused by fraud committed by the company manager or the independence of auditors who audit the financial statements based on Islamic rules and principles. The purpose of this study is to analysis of the quality of sharia audit based on education, experience, and independence of auditors on the companies listed in the Jakarta Islamic Index. The population in this study is all companies registered in the Jakarta Islamic Index in 2014 - 2019 with sampling method is according to the specified criteria so the number of samples is 53 companies. The results of Logistic Regression Analysis show that the coefficient of determination obtained as 0.574, it means that 57.4% of the quality of sharia audit quality is influenced by education, experience, and independence of auditors. Furthermore, the auditor’s education and auditor’s experience have no effect on the quality of sharia audit. While the independence of auditors significantly affects the quality of sharia audits.How to Cite:Nengsih, T. A., Subhan, M., & Juliana. (2021). Analisis Kualitas Audit Syariah Perusahaan JII Tahun 2014-2019. Akuntabilitas: Jurnal Ilmu Akuntansi, 14(2), 243-254.

PENGARUH KEPEMILIKAN SAHAM EKSEKUTIF, CEO EDUCATION DAN PERGANTIAN AUDITOR TERHADAP KECURANGAN LAPORAN KEUANGAN PADA PERUSAHAAN BUMN (STUDI EMPIRIS PADA PERUSAHAAN BUMN YANG TERDAFTAR DI BEI)

This study aimed to examine the factors that influenced the fraudulent financial statements of state-owned companies (BUMN) on the Indonesia Stock Exchange. The factors that influenced the fraudulent financial statements of state-owned companies on the Indonesia Stock Exchange were executive share ownership, CEO education and auditor changes. This study used a quantitative approach. The population in this study were 25 state-owned companies in the Indonesia Stock Exchange. The sampling technique used purposive sampling method with certain criteria in order to obtain a sample of 24 state-owned companies. The data in this study were analyzed using the help of IBM SPSS version 25 by testing multiple linear regression analysis. The results of this study indicated that share ownership partially affected the fraudulent financial statements of BUMN companies. Meanwhile, the results of CEO education and replacement of auditors partially had no effect on fraudulent financial statements of BUMN companies. As well as executive share ownership, CEO education and replacement of auditors simultaneously affected the fraud in the financial statements of BUMN companies.

661 Improving Antibiotic Prescribing in a District General Hospital: A Closed Loop Audit

Abstract Aim Broad-spectrum antibiotics are effective in decreasing wound infection and postoperative intra-abdominal abscesses for patients undergoing appendicectomy. Compliance with local hospital antibiotic guidelines is important in ensuring antibiotic efficacy and reducing potential for toxicity and antibiotic resistance. The aim was to assess the impact of educational interventions on the adherence to local antibiotic guidelines in patients undergoing appendicectomy at a Scottish district general hospital. Method Preoperative antibiotic prescribing in consecutive adult patients aged ≥ 16 years undergoing appendicectomy were audited against hospital guidelines over a four-month period between March 2019 and July 2019. We implemented change through antibiotic prescribing teaching for doctors in the surgical team and anaesthetic team. This change was subsequently evaluated through a re-audit over a three-month period between December 2019 and February 2020. Results The baseline audit demonstrated 68.8% (n = 11/16) compliance to local antibiotic guidelines among patients undergoing appendicectomy. The remaining patients had the correct choice of antibiotics, but gentamicin was prescribed in different doses. Gaps in prescriber awareness of antibiotic guidelines were identified. Following departmental teaching sessions regarding antibiotic prescribing and use of the gentamicin dosing calculator, the re-audit showed 93.8% (n = 15/16) compliance with local antibiotic guidelines among prescribers in the surgical team and anaesthesic team. Conclusions Education interventions were instrumental in improving adherence to antibiotic prescribing guidelines. This highlights the importance of regular audit and prescriber education in the promotion of antibiotic stewardship in hospitals.

Развитие национальной системы квалификационной аттестации аудиторских кадров как фактор повышения качества аудита и востребованности профессии

The article includes materials presented at the scientifi c and practical conferences «Problems of Audit Quality» organized by the Self-regulatory organization of Auditors «Sodruzhestvo» in June-July 2021. Th e conferences are dedicated to the development of audit education and qualifi cation certifi cation of audit personnel in the Russian Federation, aimed at improving the quality of audit through the introduction of a competence-based approach and the creation of a national system for regular monitoring of auditor’s competencies, contributing to the training of broad-based specialists in demand in various areas of economic, business and fi nancial management.

To Be or Not to Be: Blockchain and the Future of Accounting and Auditing*

ABSTRACTThe purpose of this article is to study the potential impact of blockchain technology on accounting systems and businesses. Blockchain technology characteristics and operating modes have the potential to bring about innovations to the fields of accounting and auditing. After describing the function of blockchain technology, we examine potential accounting transformations and identify how the deployment of this technology might impact accountants and external auditors. To that end, we review the literature and take a prospective approach to the use of blockchain in accounting and auditing. Three major issues regarding the future of blockchain in accounting and auditing emerge: (i) the transformation of accounting techniques; (ii) main evolutions in accounting and auditing; and (iii) main evolutions in the work, skills, and education of auditors.

The use of case studies in developing students’ understanding of the concept ‘material misstatement’

AbstractWe investigate the use of an audit case study in developing students’ understanding of the key concept ‘material misstatement’. Using semantic differentials, we explore changes in connotative meaning (reflecting emotional reaction) of undergraduate students at an Australian university. Shifts in class perspective indicate students perceive the concept as more useful and less fluid after the case study. We contribute to the audit education literature by focusing on this complex concept and developing teaching methodologies to enhance students’ learning. Results support inclusion of comprehensive case studies embedded with judgement and decision making, in accounting curricula to enhance understanding of complex concepts.

Expecation Gap in Surabaya: The Assessment Between Auditors With Audit Report Users

Expectation gaps always occur in companies where there is a difference between what public accountants (auditors) believe to be their responsibilities and what users of financial statements want. Thus this study discusses the expectation gap which aims to determine the performance of auditors in performing any audit work, to know the reactions of audit report users when reading the audit results, and to find out the process between auditors and audit report users when experiencing an expectation gap. This assessment uses qualitative data types. Sources of data used are observation and interviews. This research uses descriptive research and data analysis used is descriptive qualitative analysis. In this study, there is a conclusion that there are differences in expectations between auditors and auditees. Factors that trigger differences in expectations include; audit education both on the auditor and the auditee side, the standards owned by the auditor, the auditor's performance and the auditor's experience and the auditee's attitude

An investigation of the credibility of and confidence in audit value: evidence from a developing country

PurposeThis study aims to investigate the factors that enhance the credibility of and confidence in audit value.Design/methodology/approachData were collected from 254 institutional investors through a questionnaire survey and were analyzed using partial least squares structural equation modelling (PLS-SEM).FindingsThe findings reveal that the two influential predictors of enhanced credibility and confidence are perceived auditor independence and improved auditor communication. Factors related to auditor–client affiliation, such as restrictions on providing non-audit services, mandatory auditor rotation and the presence of effective audit committees, are identified as creating the perceived independence. Improved auditor communication is linked with improving the audit report and ensuring audit education, thus creating more sophisticated users who better understand the scope and purpose of an audit. Furthermore, independent audit oversight acts as a moderator in the relationship between perceived auditor independence, improved auditor communication and enhanced credibility. Enhanced credibility can lead to greater confidence in audit value.Originality/valueIn the wake of the global financial crisis and loss of confidence in the role of auditors, this study investigates the factors that can enhance the credibility of and confidence in audit value, especially in a non-Anglo-American setting. This study is unique in terms of methodological development, as it uses a higher-order Type II reflective–formative model using PLS-SEM.

PrEP your team! Clinician initiation of HIV pre-exposure prophylaxis discussion at sexually transmissible infection testing and diagnosis in gay and bisexual men.

HIV pre-exposure prophylaxis (PrEP) is recommended for gay and bisexual men (GBM) with recent diagnosis of rectal chlamydia (CT), rectal gonorrhoea (NG) or infectious syphilis. A retrospective medical record audit was undertaken at Canberra Sexual Health Centre (CSHC) of all GBM who met this criterion in 2019 and were thus determined to be at higher risk of acquisition of human immunodeficiency virus (HIV). Pre-exposure prophylaxis was discussed and/or commenced in 85% of GBM at higher risk of HIV. Audit results and education were provided to the team with a post-interventional audit in 2020 showing significant improvement. This audit is easily replicated and may be applicable to other settings engaged in GBM care.

Pengaruh Gender, Tipe Kepribadian, Tingkat Pendidikan, dan Pengalaman Audit Terhadap Skeptisme Auditor Internal Pemerintah (Studi Empiris pada Inspektorat Provinsi Jawa Timur)

The purpose of this study is to determine the effect of gender, personality type, audit experience and auditor education level on the skepticism of the internal auditor of the government. The number of samples used in this study were 50 respondents taken by accidental sampling method, namely sampling based on convenience and being in the right situation, time and place. Data analysis in this study uses multiple linear regression with the help of SPSS version 17.0. this shows that gender, personality type, audit experience, and auditor education level significantly influence the skepticism of the internal auditors of the government

Auditor University Education: Does it Matter?

We examine the implications of auditor education for audit quality and audit pricing. We exploit a novel institutional setting in the UK, where auditors major in many different degrees at university and signing auditors are identifiable. Using hand-collected data for a large sample of signing auditors, we establish two main findings. First, auditors whose degrees have a quantitative orientation are associated with higher accruals quality and higher audit fees than those with more qualitative degrees. Second, auditors with degrees directly relevant to accounting are also associated with higher accruals quality and increased audit fees relative to auditors with unrelated university degrees in qualitative subjects. Overall, our study provides evidence that heterogeneity in auditor education is associated with divergent audit outcomes.

The Influence of Competence and Independence to Work Effectiveness of Auditor at Regional Inspectorate of Gorontalo Province

The research objective was to find out the influence of competence and independence on the work effectiveness of auditor at Regional Inspectorate of Gorontalo Province either partially or simultaneously. The approach used in this research was quantitative. The research method used expost facto. The research design applied causality. The technique of data analysis used multiple regression.The research finding showed that (1) competence of auditor had a positive and significant influence on the work effectiveness of auditor at Regional Inspectorate of Gorontalo Province by the determinant value of 23,50%. The meaning of the positive coefficient indicated that the higher the competence of auditor, the more effective work result of auditor at Regional Inspectorate of Gorontalo Province. (2) Independence of auditor had a positive and significant influence on the work effectiveness of auditor at Regional Inspectorate of Gorontalo Province by determinant value of 56,60%. The meaning of positive coefficient indicated that the more independent of auditor in doing inspection and functional supervision function, the more optimum work effectiveness of auditor at Regional Inspectorate of Gorontalo Province. (3) The competence and independence of auditor, simultaneously, had a significant influence on the work effectiveness of auditor at Regional Inspectorate of Gorontalo Province by determinant value of 61,70%. Meanwhile, the rest 38,30% could be explained by other variables such as auditor education, auditor integrity, auditor work motivation, work discipline, and auditor professionalism attitude.Keywords: Work Effectiveness, Auditor Competence, Auditor Independence

A draft framework for quality management system auditor education: findings from the initial stage of a Delphi study

PurposeChanges in structure and conceptual underpinnings of ISO 9001 mean that quality management system (QMS) auditors require a wide knowledge base and skill set to effectively evaluate contemporary QMS and add value to the process. Hence, this study presents an open curriculum framework of the knowledge, skills and attributes for quality auditor education.Design/methodology/approachThis study describes the first two phases of a three-phase study examining the educational requirements for external quality auditors (EQAs). Phase 1 involved a review of relevant international literature on auditor competence and education; Phase 2 involved the collection of qualitative data from a panel of experts, combined with the initial round of a Delphi study. A thematic analysis was used to analyze the findings from the questionnaire.FindingsThe findings of this study suggests there is a need to improve EQAs education, as most experts reported the quality of audit to be variable, inconsistent, poor and diminishing in value. The most important improvements to auditor education are to update and improve the auditors' knowledge on the requirements of the ISO 9001 standard and technology in business and skills such as report writing, communication, IT understanding and analytical ability. Some of the attributes reported as being desirable to instill in EQAs include the following: objectivity, integrity, ethics and professionalism; being observant, perceptive, articulate and confident; having good judgment; flexibility, adaptivity and diplomacy, fairness and open-mindedness.Originality/valueThis study highlights the need for wider EQA education based on the gap identified in its performance. The resulting framework can be adopted by accreditation and certification bodies to evaluate and improve their auditors' audit performance.

Audit Profession Development and Bank Loan Contracting

SUMMARY This study examines the relation between country-level audit profession development (APD) and bank loan contracting around the world. Using a sample of bank loan data from 35 countries, we find that stronger APD is associated with more favorable loan terms, such as lower loan spreads, fewer covenants, and larger loan amounts. These effects are stronger in countries with a weaker rule of law. We also find that stronger APD attracts significantly more lenders participating in loans and more foreign lenders leading loans. A breakdown of APD into three subcategories, namely, auditor education, auditor independence and liability, and auditor oversight, reveals that all three influence various contracting terms. We also provide evidence that stronger APD is associated with a higher degree of timely loss recognition. Collectively, our findings show that APD improves bank loan contracting terms. Data Availability: Data are publicly available from the sources mentioned in the manuscript. JEL Classification: F34; K20; M41; M42.