Effective Audit Research Articles

Impact Corporate Taxpayer Compliance On Tax Revenue Growth With Tax Audit Moderation

This study examined the effect of tax audits and corporate taxpayer compliance on increasing tax revenue, focusing on corporate taxpayers at KPP Madya Makassar. A quantitative approach was employed, using secondary data collected from 12 corporate taxpayers annually from 2015 to 2018, resulting in 48 observations. Data analysis included descriptive statistical tests, classical assumption tests, and hypothesis testing through linear regression. The results indicated that while the Taxpayer Compliance Level and Tax Audit had positive coefficients, neither variable significantly affected tax revenue. Additionally, the interaction between Taxpayer Compliance and Tax Audit did not significantly moderate the impact on tax revenue. These findings suggest that although tax audits have a role in monitoring compliance, they do not substantially moderate the relationship between taxpayer compliance and tax revenue. This study provides valuable insights for tax authorities and policymakers in designing strategies to enhance compliance and optimise tax audits.

지방자치단체의 감사제도와 자치권 보장

Currently, local governments operate various types of auditing systems. Audits by the National Assembly, the Board of Audit and Inspection, external audits by the central government, internal audits by local assemblies and internal audit bodies, and so on. In the case of foreign countries, since the autonomy of Korea is guaranteed, the internal audit system is well developed rather than the local or federal government. However, in Korea, rather than assuring the autonomy of the local autonomous entities, auditing at the central level is taking place, and self--audits by local assemblies and internal audit bodies are often carried out at the formal level. Local governments operate these types of auditing systems, but there are still many problems with the auditing system of local governments. Especially, there are many kinds of auditing system and there is insufficient division of the scope of auditing, and audits are conducted to make duplicate audits or unnecessary affairs. Self-audit There is also a lack of independence and expertise, so insufficient effectiveness of auditing and lack of support from self-audit bodies limits the ability to influence However, in order to guarantee the autonomy of the local autonomous entities of the local autonomous entities, Korea will examine the ways of improving the external audits and strengthening the self - audit, and discuss the audit system to guarantee the autonomy of the local autonomous entities.

How Corporate Governance Practices Influence the CSR in the Non-financial Sector of Pakistan An Empirical Study of Pakistan Stock Exchange

In the course of this research the variables such as Women Directors, Board Size, Board Independences, Ownership structure and Audit committee are taken into consideration and how these factors influence Corporate Social Responsibility (CSR) disclosures. The analysis is based on data taken from the Pakistan Stock Exchange (PSX) for the period 2010-17. The analysis technique such as Fixed Effect Regression model is used which is based on Hausman diagnostic test results. Where the result reflects a positive significant effect of AUDIT, BIND and WDIR on CSR disclosure, however the relationship between BS and OWN on CSR disclosure has not been established. Control Variables such as Profitability (PRFT), Firm Size (FS) and Leverage (LEV) are investigated in this study. Using fixed effect model correlation matrix, regression analysis and descriptive statistics are examined. Considering the non-financial sectors of Pakistan, the study determines that AUDIT, BIND and WDIR plays pivotal role while promoting CSR related activities. Furthermore, the insights gained from the present study explored the importance of Corporate Governance (CG) strategies to promote CSR, the outcome of the study can be a helping hand for the policy makers and corporate decision makers while devising effective governance strategies. The control variables such as FS, PRFT and LEV provide depth of understanding regarding the factors influencing CSR disclosure. In a broad sense, the current research enhances the scholarly discourse on CSR disclosure. The findings of the study give a roadmap for future research studies to fill the identified gaps and further improve CSR disclosure practices in non-financial sector of Pakistan.

Perception of the Importance of Internal Audit Effectiveness and Its Impact on Organizational Performance in Public Enterprises: Empirical Evidence from Morocco

Perception of the Importance of Internal Audit Effectiveness and Its Impact on Organizational Performance in Public Enterprises: Empirical Evidence from Morocco

The specific indirect effect of IRS audits

The specific indirect effect of IRS audits

METHODOLOGICAL APPROACHES TO TAX AUDIT: THE IMPERATIVE OF ANALYSIS UNDER THE CONDITION OF UNCERTAINTY OF THE TERM

Introduction. A tax audit is a comprehensive examination of the financial activities of business entities with the aim of assessing compliance with tax legislation and identifying possible violations. In modern conditions, when economic instability and constant changes in tax legislation are becoming the norm, ensuring the effectiveness and accuracy of tax audits requires the use of complex methodological approaches. One of the key problems of the tax audit is the uncertainty of terms, which makes it difficult to plan and conduct audit procedures. Uncertainty can be caused by various factors, including changes in legislation, economic crises, force majeure and other unforeseen events. This uncertainty creates additional challenges for auditors who must adapt their methodological approaches to new conditions. The purpose of the article is considering methodological approaches to the interpretation of tax audits, identify their advantages and disadvantages. To justify the analysis as an imperative element of the tax audit method in the system of control over compliance with tax legislation. Methods. The following methods were used in the study of methodological approaches to tax audits in conditions of uncertainty of terms: analysis of literary sources. A systematic review of scientific publications, articles, monographs and legal acts related to tax audit was conducted. This made it possible to identify existing approaches and theoretical foundations; Comparative analysis: a comparison of different methodological approaches used in tax audits in different countries and conditions was made. This helped identify the most effective practices and adapt them to conditions of uncertainty. Results. A detailed substantiation of methodological approaches to the interpretation of tax audit from the standpoint of linguistic semantics strengthens the opinions of those scientists and practitioners who believe that in parallel with independent audit and audit services in the field of taxation, the concept of tax audit can be used for inspections carried out by tax authorities. In this case, both tax authorities and independent auditors have the right to use the concept of tax audit and have the right to conduct it. However, in our opinion, it is more appropriate to use two separate terms, in particular, such as "state tax audit" and "independent tax audit".

Examining the moderating role of senior management support in internal audit effectiveness: evidence from GCC region

Examining the moderating role of senior management support in internal audit effectiveness: evidence from GCC region

How hours allocated to year-round auditing procedures affect audit quality

PurposeThis paper aims to examine how the allocation of audit hours to the year-round procedures, based on the risk of material misstatements in financial statements, impacts audit quality.Design/methodology/approachUsing a data set on audit hours spent on year-round and year-end procedures, the authors build an empirical model for testing the effectiveness of year-round auditing of Korean public firms during the period of 2014–2018.FindingsThe initial tests do not show that proportionate increases in year-round procedures increase audit quality. However, after the authors control for the risk of material misstatements, the authors find that proportionate increases in year-round audit hours generally increase audit quality, except for high-risk firms where audit quality increases only as year-end hours proportionately increase. For high-risk firms, the results suggest that increases in year-round audit procedures occur at the cost of the essential year-end work. Similarly, except for high-risk firms, the authors find that the allocation of more audit effort to year-round procedures improves audit efficiency.Originality/valueTo the best of the authors’ knowledge, this study provides some of the first empirical evidence showing how a risk-based approach to allocating audit effort over the duration of an audit can impact audit quality and efficiency. Regulatory bodies, such as the International Auditing and Assurance Standards Board and Public Company Accounting Oversight Board, which consider the proper allocation of audit hours as a key audit quality indicator, should find the results useful.

Bio-Rollup: a new privacy protection solution for biometrics based on two-layer scalability-focused blockchain.

The increased use of artificial intelligence generated content (AIGC) among vast user populations has heightened the risk of private data leaks. Effective auditing and regulation remain challenging, further compounding the risks associated with the leaks involving model parameters and user data. Blockchain technology, renowned for its decentralized consensus mechanism and tamper-resistant properties, is emerging as an ideal tool for documenting, auditing, and analyzing the behaviors of all stakeholders in machine learning as a service (MLaaS). This study centers on biometric recognition systems, addressing pressing privacy and security concerns through innovative endeavors. We conducted experiments to analyze six distinct deep neural networks, leveraging a dataset quality metric grounded in the query output space to quantify the value of the transfer datasets. This analysis revealed the impact of imbalanced datasets on training accuracy, thereby bolstering the system's capacity to detect model data thefts. Furthermore, we designed and implemented a novel Bio-Rollup scheme, seamlessly integrating technologies such as certificate authority, blockchain layer two scaling, and zero-knowledge proofs. This innovative scheme facilitates lightweight auditing through Merkle proofs, enhancing efficiency while minimizing blockchain storage requirements. Compared to the baseline approach, Bio-Rollup restores the integrity of the biometric system and simplifies deployment procedures. It effectively prevents unauthorized use through certificate authorization and zero-knowledge proofs, thus safeguarding user privacy and offering a passive defense against model stealing attacks.

Determinants of Internal Audit Effectiveness in Local Government Authorities (LGAs): Evidence from Morogoro Region of Tanzania

This study examines the determinants of internal audit effectiveness in Local Government Authorities (LGAs), addressing the growing importance of robust Internal Audit Function (IAF) in public sector governance. The study employed the descriptive research design based on a mixed research approach integrating both qualitative and quantitative approaches. Data were collected from 45 purposively selected respondents with extensive auditing experience. A multiple linear regression model was used to assess the impact of these factors on internal audit effectiveness. The empirical results indicate that the four factors account for 65.7% of the variance in internal audit effectiveness, with IT utilization being the most significant contributor (R² = 0.657, Adjusted R² = 0.616). The ANOVA results further validate the model, showing a statistically significant F-statistic of 3.2976 with a p-value of 0.001, indicating the robustness of the findings. Top management support was found to be critical in fostering a culture of accountability, while the independence of internal audit ensures objectivity and unbiased assessments. IT utilization was identified as a key driver in enhancing the efficiency and reliability of audit processes. Finally, the competence of internal auditors was shown to significantly influence the quality and accuracy of audit outcomes. The study recommends the need for institutionalizing top management support, safeguarding auditor independence, advancing IT utilization, and promoting continuous professional development for auditors. These measures are essential for improving governance and accountability within LGAs, thereby contributing to more effective and reliable internal audit practices.

Pengaruh Kompetensi dan Independensi Terhadap Efektivitas Audit Internal Serta Dampaknya pada Tata Kelola Pemerintah yang Baik: Studi Pada Inspektorat Kota Gorontalo

This research aims to determine the influence of competency and independence on the effectiveness of internal audit and its impact on good government governance (Study at the Gorontalo City Inspectorate). The type of method used in this research is a quantitative method with data collection techniques using primary data. The number of samples in this research is 56 samples in 2020-2022. The tool used in this research uses Path Analysis.The results of this research show that competence and independence have a positive and significant effect on the effectiveness of internal audit through good government governance.

MEDIATING EFFECT OF INTERNAL AUDITORS’ ETHICAL CONDUCT ON THE RELATIONSHIP BETWEEN USAGE OF INFORMATION TECHNOLOGY, MANAGEMENT SUPPORT FOR INTERNAL AUDIT DEPARTMENT, AND INTERNAL AUDIT EFFECTIVENESS: A CONCEPTUAL FRAMEWORK

Low level of internal audit effectiveness is practically increasing in the Nigerian ministries, department, and agencies. In proffering solution to this lingering issue, this present study proposed a framework to examine the degree of effectiveness of internal audit functions in Kano state, Nigeria MDAs. The proposed framework is motivated by agency theory with the mediating effect of auditor’s ethical conduct. This present study extends the already extant body of knowledge in the area of internal audit effectiveness by expanding agency theory with the mediating effect of auditor’s ethical conduct. Also, this study has implication to support management, shareholders and other policy makers in addressing ineffectiveness and corrupt practices in the Nigerian MDAs. If this framework is authenticated, it would provide more evocative insight on the extends of internal audit effectiveness in Kano Nigerian MDAs, the legislators and government official would benefit greatly from this study if eventually concluded as it would assist MDAs to enhance internal audit effectiveness and curb corruption. In the subsequent studies the proposed framework will be empirically tested through data collection and analysis of relevant data.

The interplay of corporate governance, internal audit effectiveness, and sustainable financial reporting quality in Tanzanian commercial banks

The interplay of corporate governance, internal audit effectiveness, and sustainable financial reporting quality in Tanzanian commercial banks

Internal Auditors’ Characteristics, Internal Audit Effectiveness, and Enterprise Risk Management in Jordan: A Resource-Based View

Jordanian public-listed companies (PLCs) face significant internal, external pressures and risks that hinder their performance and survival in today’s high-risk business environment. The relatively recent implementation of Enterprise Risk Management (ERM) adds to its ineffectiveness, further complicating the situation. This study aims to examine the impact of internal auditors' characteristics on ERM effectiveness and internal audit effectiveness (IAE) from the Resource-Based View (RBV) perspective. Additionally, it explores the relationship between IAE and ERM effectiveness, as well as the mediating role of IAE. A quantitative cross-sectional research design was utilised, collecting data from Jordanian PLCs via questionnaires, with 119 final responses analysed using SPSS and SmartPLS softwares. The findings indicate that internal auditors' characteristics positively impact both ERM effectiveness and IAE. Furthermore, IAE positively impacts ERM effectiveness and serves as a partial mediator in this relationship. These results align with the RBV, highlighting that internal auditors' characteristics and IAE as valuable internal resources that foster sustainable competitive advantage. Practical implications include raising companies' awareness of the critical importance of internal auditors' characteristics and IAE, thereby offering a cost-effective solution to enhance ERM effectiveness.

PENGARUH FAKTOR-FAKTOR KEUANGAN TERHADAP AUDIT REPORT LAG PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

The increasing number of companies in the form of Go Public is a sign that the development of activities on the Indonesia Stock Exchange (IDX) is increasing, this will trigger a high demand for effective and efficient financial statement audits. Companies that have gone public have an obligation to submit financial reports in a timely manner. Delays in submitting financial reports are caused by audit report lag. Financial factors such as company size, profitability, leverage, liquidity, earnings per share, and financial distress are indicated to be the cause of audit report lag. So that these financial factors require special attention so that the submission of audited financial reports is timely. This study aims to determine the effect of company size, profitability, leverage, liquidity, earning per share, and financial distress on audit report lag in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2022. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2022. The sampling technique in this study used purposive sampling method, so that a sample of 86 companies was obtained with a total of 217 observations. The results showed that company size and profitability had a significant negative effect on audit report lag, leverage and liquidity had no effect on audit report lag, and earning per share and financial distress had a significant positive effect on audit report lag

Sampling targets to assess occupational health in occupational health and safety management system audits: a mixed-methods research in Japan.

Occupational health and safety management systems (OHSMS) are the foundation of occupational health and safety activities within an organization. An important element of these systems is audits. However, OHSMS auditors often lack confidence in conducting occupational health audits compared with their proficiency in conducting occupational safety audits. For occupational health to be effectively managed by OHSMS, the sampling competence of auditors engaged in third-party audits should be improved. Therefore, we conducted this study to identify appropriate sampling targets for occupational health related to International Organization for Standardization (ISO) 45001. We adopted a mixed methods approach to identify appropriate sampling targets. This involved conducting focus group discussions with experts in occupational health and performing systematic text condensation analysis. The validity of our findings was further reinforced through confirmation by external auditors who specialize in ISO 45001. In the qualitative phase, 6 occupational health sampling targets were identified, and of these, 5 were subsequently validated in the quantitative phase: (1) Health issues, legal requirements, and occupational health goals identified by the organization; (2) Occupational health risk assessment and control processes; (3) Processes related to occupational health and documented information showing the results of efforts; (4) Organizational roles and functions of occupational health professionals and opportunities for their professional development; and (5) Processes to ensure commitment to occupational health issues and objectives. To ensure effective and comprehensive occupational health audits, auditors should review these targets. This study will enhance the competence of auditors by identifying appropriate occupational health sampling targets.

Enhancing The Excellence of Quality Management System Auditors: A Competency-Based Training Model with Instructional Design Strategic Approaches and Measurable Outcomes

The development and implementation of a competency-based training model for Quality Management System (QMS) auditors are crucial for enhancing audit quality and organizational performance. This study identifies and addresses gaps in current auditor training programs through a structured approach that includes clear instructional goals, effective assessment tools, and robust instructional strategies. The research utilizes Training Needs Analysis (TNA) data and aligns training objectives with industry expectations through Occupational Standards and Competency Standards. Learning outcomes are formulated using the ABCD method (Audience, Behaviour, Condition, Degree) to ensure clarity, measurability, and achievability. The training program employs Outcome-Based Learning and Teaching (OBLT) methodologies, ensuring that the focus remains on achieving specific competencies. Self-assessment based on competency standards encourages reflective learning and self-improvement, while competency-based assessments measure the effectiveness of the training and the skills acquired by participants. The program culminates in the awarding of Micro Credentials and Certificates of Competency, which are traceable to national and international standards, thereby validating the skills and knowledge gained. Through rigorous testing and evaluation involving experts, educators, and participants, the study refines the training model to ensure its effectiveness and relevance. The findings indicate that the competency-based training model significantly improves the skills and performance of QMS auditors, leading to more effective audits and continuous quality improvement within organizations. This research contributes to the field by providing a comprehensive, evidence-based approach to developing high-quality training programs for QMS auditors.

PENGARUH PEMERIKSAAN PAJAK, JUMLAH PENGUSAHA KENA PAJAK DAN PENAGIHAN PAJAK TERHADAP PENERIMAAN PAJAK PERTAMBAHAN NILAI

This study aims to analyze the effect of tax audits, the number of taxable entrepreneurs and tax collection on value-added tax revenue, case studies at KPP Pratama Kuningan and KPP Pratama Cirebon Satu. The population in this study is tax audit data, the number of taxable entrepreneurs, tax collection and value-added tax revenue at KPP Pratama Kuningan and KPP Pratama Cirebon Satu 2018-2022 per month totaling 60 months at each KPP. The sampling used in this study used a saturated sample where all populations were used as samples. This study used multiple linear regression method. Statistical testing using SPSS Version 23. The results showed that the results of simultaneous tests of Tax Audit, Number of Taxable Entrepreneurs and Tax Collection had a significant effect on Value Added Tax Revenue. As for the partial test results of the Tax Audit variables, the Number of Taxable Entrepreneurs and Tax Collection have a positive and significant effect on Value Added Tax Revenue. Keywords : Tax Audit, Number of Taxable Entrepreneurs, Tax Collection, Value Added Tax Revenue.

How External Auditors Evaluate Internal Audit Effectiveness: An Experimental Study of the Case of Jordan

How External Auditors Evaluate Internal Audit Effectiveness: An Experimental Study of the Case of Jordan

Exploring the dynamics of internal audit effectiveness: Unravelling the mediating effect of internal auditors’ ethical conduct

The research investigates the dynamics of internal audit effectiveness and the mediating effect of internal auditors’ ethical conduct. The impact of internal auditors' ethical conduct on the management's support for the internal audit department and the effective internal control system monitoring is examined, extending the ideas of the agency and policeman theories. One hundred sixty-six responses from the chief and deputy chief internal auditors of Kano state MDAs were used as a sample group in this quantitative study, and they included cross-sectional and correlational methods. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to analyze the sample data. The internal auditors' ethical conduct served as a mediator in the internal audit effectiveness model, as supported by the data. The study failed to support the previous findings regarding the direct effects of management support for internal audit departments and effective monitoring of internal control systems on internal audit effectiveness. Still, the results validated the hypothesis that the mediating effect of internal auditors’ ethical conduct on the effectiveness of internal audits on all predictors. The analysis confirmed that conducting internal audits should be a strategic priority for professional associations and legislators.