Audit Employees Research Articles

Examine the Relationship Between the Professional Competency of IA and the Effectiveness of RM in Improving Compliance in Iraq's Public Organization

The importance of internal audits has escalated in the current dynamic and intricate economic and financial landscape. It plays a crucial role in assisting management in attaining its goals by offering unbiased and independent assurance regarding the efficiency of risk management, the sufficiency of internal control, and the accuracy of financial reporting. It is widely known that Iraq has seen instances of fraud and mismanagement of public funds in recent years, highlighting a systemic flaw in the regulatory structure and the auditing profession inside public sector organizations. However, by enhancing compliance through the fundamental pillars of optimizing the efficiency of internal audits and the efficacy of risk management, we can envision a future where the misuse of public funds and various forms of corruption are minimized. This, in turn, will lead to improved adherence to relevant laws and the production of reliable financial statements that can be used for decision-making by appropriate stakeholders. It is the role of government agencies to prioritize these improvements, as they have the power and responsibility to do so. We created a questionnaire of three dimensions and 45 paragraphs to fulfil the research objectives. A sample of internal auditors in sectoral organizations was randomly selected, comprising 283 respondents. We employed both primary and multiple regression analyses to examine the hypotheses. The study concluded that there needs to be a strategy for continuing education for internal audit employees, which indicates a lack of sufficient interest in this topic and the lack of clear strategies and policies for risk management.

Effect of Risk Assessment and Management on Operational Performance of Kenya Revenue Authority

Purpose: Operational performance require effective and efficient internal control mechanisms to check on any leakages, cost of revenue mobilization, negative variance concern on revenue targets among other aspects. The study explained the effect of risk assessment and management on operational performance of KRA Methodology/Approach: Causal design that outline the cause and effect association of risk assessment and management on operational performance. Targeted of finance employees, audit employees and investigation employees adding up to 253 of which 155 were sampled. Findings: Risk assessment and management reported a significant relationship with operational performance of Kenya Revenue Authority. The association was further reported as negative on basic element of risk factor. Implications: KRA management should assess risk and provide mitigation measures that could lead to operational performance. Risk decisions should be well made. That KRA should up audit exercises and conduct interim as well as final audits and make use of audit recommendations given to enable operational performance. Finally, the study recommends that KRA should always make financial reports in accordance to law and hence review them to establish areas to be improved for operation performance.

Pengaruh Audit Internal dan Kompetensi Account Officer terhadap Efektivitas Manajemen Risiko Pembiayaan di BRI Syariah Cabang Suniaraja

Based on observations, the background of this research is the increase in NPF at the BRI Syariah Bank Suniaraja Branch in the last five years. This study aims to determine how the influence of Internal Audit on the Effectiveness of Financing Risk Management at BRI Syariah Bank, to find out how the influence of Account Officer Competence on the Effectiveness of Financing Risk Management at BRI Syariah Bank, and to find out how the influence of Internal Audit and Account Officer Competence on the Effectiveness of Financing Risk Management. Simultaneously. The object of research in this report is to measure the internal audit and account officer at Bank BRI Syariah. The type of research is quantitative associative with primary data type and uses data collection techniques in the form of observation, literature study interviews and questionnaires. While the sampling technique is to use a saturated sample. The population is all account officers and internal audit employees, totaling 36 employees. The results showed that there was no direct influence between internal audit on the effectiveness of financing risk management with t test results tcount < ttabel (1,160 < 1,693), there was an influence between internal audit on account officer competence and t test results tcount < ttabel (3,076 > 1,693 There is an effect of account officer competence on the effectiveness of financing risk management with the results of the t test where tcount > ttabel (2,649 > 1,693 ), and simultaneously there is an influence between internal audit and account officer competence on the effectiveness of financing risk management with the results of the F test where Fcount > Ftabel (3.405 > 3.28).

THE INFLUENCE OF COMPETENCE AND COMMUNICATION ON EMPLOYEE PERFORMANCE OF INTERNAL AUDIT WORK UNIT AT PT BANK MANDIRI (PERSERO), TBK WITH MEDIATION VARIABLE JOB SATISFACTION

This study aims to analyze the influence of competence and communication on internal audit employees' performance at PT Bank Mandiri (Persero) Tbk with the mediating variable of Job Satisfaction. The population in this study were 284 employees of the internal audit of PT Bank Mandiri Tbk. Whereas in this study using saturated samples, the entire population of this study became research respondents. The data collection method is by distributing questionnaires as a primary data collection tool. Furthermore, the data is processed and analyzed using the Amoss 26 Structural Equation Models method. This study uses competency and communication independent variables as well as employee performance-dependent variables and job satisfaction mediation variables. The results of the study prove that there is an effect of competence on job satisfaction; there is an effect of communication on job satisfaction; there is an influence of competence on performance; there is an effect of communication on performance; there is an effect of job satisfaction on performance; there is an influence of competence on performance through job satisfaction; there is an effect of communication on performance through job satisfaction.

Internal Audit of Cybercrimes in Information Technologies of Enterprises Accounting

The article is devoted to the problem’s research of cybercrimes at the enterprise and the efficient methods of its solvation. The main trends of the cybercrime’s development in the national and the global scope are defined. The analysis of the normative-legal acts on cybercrime is made. The main risks of cyberthreats before the illegal alienation of the enterprise assets are determined. The specific peculiarities of cybercrimes in the information technologies of enterprises accounting are revealed, the main ones of which are: cyberspace, the anonymity, harmful program products, the electronic (digital) track. The practicability of the internal audit use for the system opposition to cybercrimes at the enterprise is grounded. The main competences of the internal audit employees for the efficient work in the cyberspace of the enterprise are formulated. The recommendations, concerning rules of behavior for the employees in the cyberspace, are elaborated. The method of the internal audit is improved by the additional involvement of the modern ways of watching the electronic (digital) tracks of ill-intentioned persons in the cyberspace of the enterprise. The order of the juridical registration, concerning the methods use of watching the electronic (digital) track in practice of the internal audit at theenterprise, is offered.

Employee Satisfaction and Work-Life Balance in Accounting Firms and Audit Quality

SUMMARYThe PCAOB's audit-quality framework posits that superior inputs are essential for achieving high audit quality, and these inputs depend on the accounting firm's ability to recruit and retain quality personnel. However, the link between these inputs and audit quality has gone largely unexplored. We use employees' reviews of accounting firm employers from Glassdoor.com to examine perceptions of these inputs, and test whether accounting firms' internal characteristics explain employee satisfaction and audit quality. Our descriptive evidence suggests that “career opportunities,” “senior management,” and “culture and values” play a more important role in employees' satisfaction than do “compensation and benefits” or “work-life balance.” Although work-life balance is not among the most important factors that are associated with audit employees' job satisfaction, better work-life balance is nonetheless associated with higher audit quality. However, we do not find a significant association between audit-employees' job satisfaction and audit quality.

English

In recent years, significant changes have been made in the internal audit function, based on regulatory stipulations along with the need for improvement of internal audit services. These changes had a significant impact not only on the business itself, but also on the markets and on various stakeholders, and have led to the need to implement a methodology for conducting internal audits based on risk. Our research attempts to record the established status in the Greek shipping companies listed in the New York Stock Exchange NYSE regarding risk based internal audit, based on the perceptions of internal audit professionals. In order to succeed in that, a survey was performed among internal audit employees of various levels at Greek shipping companies listed on the NYSE. The research contains useful conclusions regarding the status of implementation of risk based internal audit methodology. Also, the research focuses on the impact of certain characteristics of internal audit like control activities using multiple regression econometric model based on the regulatory framework for internal audit as provided by the Institute of Internal Auditors. In order to succeed in that, regression analysis was executed based on the results of the aforementioned survey questionnaires. The results revealed significant relationship between risk based internal audit and some the characteristics of internal audit. The conclusion is that risk based internal audit methodology may have viable outcomes to the management of risks within the Greek listed Shipping companies. Key words: Internal audit, corporate governance, shipping industry, risk based internal audit.

Salary perception and career prospects in audit firms

PurposeThis paper aims to examine the role that auditor’s salary perception has on audit quality and delay. The findings contribute to a greater understanding of the audit employee-level factors that influence audit work outcomes.Design/methodology/approachThe authors use Big 6 employee reviews, salary data and audit and financial data from 2007 to 2017 to measure how to audit employees’ pay satisfaction affects audit quality (small profits and going concern opinions) and audit delay. The authors use a regression approach to analyze this relationship. In subsequent tests, the authors split the sample on high career opportunities to investigate how this moderates the relationship between salary perception and audit quality.FindingsThe authors document a discrepancy between pay perception and reality. It is explained, though not completely, by salary level, comparisons to peers and superiors, firm-wide attitudes, cost of living and human capital in the area, work–life balance and perceived career prospects. Surprisingly, the unexplained pay dissatisfaction relates positively to audit quality and audit efficiency (audit delay), after controlling for salary level. Further tests show that an audit employee’s expectation of career opportunities moderates this result.Originality/valueThis is the first paper that empirically tests the relationship between pay satisfaction and job performance in the context of audit employees in public accounting. The authors contribute to an emerging literature that investigates audit employee-level characteristics and attitudes in relation to audit quality.

The power of the US SEC whistleblower programme: What compliance and regulatory professionals should know

The US Securities and Exchange Commission’s (SEC) whistleblower programme has become one of the most effective tools for enforcing US securities law. This paper provides the historical context that led to the creation of the programme, outlines its main features, and reports on its overall effectiveness and results. In addition, the legal and practical challenges faced by the SEC’s Office of the Whistleblower, which takes the lead in evaluating whistleblower submissions, are examined and some solutions to these challenges are proposed. Lastly, the paper provides practical advice and do’s and do not’s for companies and their internal compliance and audit employees to implement common-sense policies and procedures to address the very real possibility that, because of a US Supreme Court decision two years ago, their employees may be incentivised to report directly to the SEC rather than through internal compliance mechanisms.

Employee Movements from Audit Firms to Audit Clients

ABSTRACTRegulators have expressed concerns about the “revolving door” between auditors and clients, whereby audit employees move directly from audit firms to audit clients (i.e., “direct alumni hires”). Regulators are concerned that these direct hires could compromise audit quality, partly because these employees could have previously audited their hiring company's financial statements. In contrast, we examine accounting and finance executives who move indirectly from audit firms to audit clients and who could not have previously audited the hiring company's financial statements (i.e., “indirect alumni hires”). We show that indirect hires occur more often than the direct hires that have concerned regulators. We predict and find that both direct and indirect alumni hires are associated with lower rates of executive turnover and audit firm turnover. However, there is no evidence that the reduced rates of executive turnover are explained by managerial entrenchment or that these hires are associated with lower audit quality. Overall, our findings suggest that direct and indirect employee movements from audit firms to audit clients are beneficial to executives, audit clients, and audit firms because they reduce the incidence of costly turnover.

Efektivitas Manajemen Risiko Pembiayaan di BNI Syariah Cabang Surabaya dalam Pengendalian Pembiayaan Bermasalah

This study aims to examine the role of internal audit as a function of supervision of the effectiveness of risk management with the competence of account officers as an intervening variable in BNI Syariah Surabaya Branch. The method used in this study is quantitative associative with a saturated sample of 34 people consisting of internal audit employees, account officers, financing units, and risk management. Data were analyzed using Partial Least Square (smartPLS 3.0). The results show that the role of internal audit is not directly influenced to the effectiveness of financial risk management, internal audit has a positive effect on the competency of account officers, and account officer becomes an intervening variable on the effectiveness of risk management. Practical implications, BNI Syariah Surabaya must maintain and strengthen the role of internal audit and account officers to reduce financing risks.

The Impact of Audit Employee Job Satisfaction on Audit Quality

I exploit a novel office-level dataset on employee job satisfaction from Glassdoor.com and a natural experiment based on local precipitation during the auditing time period to examine the effect of audit employee job satisfaction on audit quality. I find that a unit increase in job satisfaction (on a scale from 1 to 5) decreases absolute abnormal accruals by 0.7 standard deviations. Using AAERs, “Big R” and “Little r” restatements, I find that more satisfied audit employees are more likely to detect significant accounting irregularities, but not minor accounting errors. Among job satisfaction indicators, these effects are driven by management quality and career opportunities. Overall, this evidence demonstrates the importance of individual audit employees to the audit process and has practical implications for audit firms’ treatment of employees and audited firms’ information environment.

Audit personnel salaries and audit quality

This study examines the relation between audit personnel salaries and office-level audit quality. We measure audit personnel salaries at the associate, senior, and manager ranks for Big 4 audit offices from 2004 to 2013, using unique individual-auditor-level data obtained from the U.S. Department of Labor. We find that offices that pay lower salaries have a higher percentage of clients that experience restatements. In related analyses, we also find lower levels of audit quality when audit employees are paid less, relative to other lines of service in accounting firms. Finally, we document positive and significant associations between salary and fees, suggesting that audit offices pass some of the cost of higher labor onto their clients. Overall, our findings provide important initial evidence on the role of audit salary and its relation to audit quality and audit fees.

Exploring Motivational Drivers of Audit Employees - A Study Focusing on Generation Y

This study explores audit employee motivation and especially what motivates the new generation of auditemployees, Generation Y. A survey was distributed amongst Swedish audit employees, and the res ...

FAKTOR-FAKTOR YANG MEMPENGARUHI KECENDERUNGAN

This study was aimed at finding out whether there is a significant effect of internal control system, compensation, and information asymmetry on accounting fraud. This study was conducted at Bank DKI in Central Jakarta. This study belonged to quantitative research. The data source was primary data source. The data collection techniques used were questionnaire distributed. The respondents were group internal audit employees. The sampling technique used is purposive sampling. The data were analyzed using descriptive analysis, data quality testing, classical assumption testing, and multiple linear regression analysis using Statistical Package For Social Science (SPSS) 23. The results showed that (1) effective on internal control system has a significant positive effect on accounting fraud, (2) compensation does not a have a significant effect on accounting fraud, and (3) information asymmetry does not have a significant effect on accounting fraud.Key word : Effective on Internal Control System, Compensation, Information Asymetry, Accounting Fraud.

FAKTOR-FAKTOR YANG MEMPENGARUHI KECENDERUNGAN

This study was aimed at finding out whether there is a significant effect of internal control system, compensation, and information asymmetry on accounting fraud. This study was conducted at Bank DKI in Central Jakarta. This study belonged to quantitative research. The data source was primary data source. The data collection techniques used were questionnaire distributed. The respondents were group internal audit employees. The sampling technique used is purposive sampling. The data were analyzed using descriptive analysis, data quality testing, classical assumption testing, and multiple linear regression analysis using Statistical Package For Social Science (SPSS) 23. The results showed that (1) effective on internal control system has a significant positive effect on accounting fraud, (2) compensation does not a have a significant effect on accounting fraud, and (3) information asymmetry does not have a significant effect on accounting fraud.Key word : Effective on Internal Control System, Compensation, Information Asymetry, Accounting Fraud.

Employee Satisfaction in Accounting Firms, Work-Life Balance, Turnover, and Audit Quality

The PCAOB’s audit-quality framework posits that superior inputs are essential for achieving high audit quality, and these inputs depend on the accounting firm’s ability to recruit and retain quality personnel. However, the link between these inputs and audit quality has gone largely unexplored due to a lack of data. We use employee-level reviews of accounting firm employers to examine some of these inputs, and test whether accounting firm’s internal characteristics explain employee satisfaction and audit quality. We provide descriptive evidence suggesting that “career opportunities,” “senior management,” and “culture and values” play a more important role in employees’ satisfaction than do “compensation and benefits” or “work-life balance.” While work-life balance is not among the most important factors that are associated with audit employees’ overall satisfaction, better work-life balance is nonetheless associated with higher audit quality. However, we do not find a significant association between audit-employees’ overall job satisfaction and audit quality.

Employee Movements from Audit Firms to Audit Clients

Regulators have expressed concerns about the “revolving door” between auditors and clients, whereby audit employees move directly from audit firms to audit clients (i.e., “direct alumni hires”). Regulators are concerned that these direct hires could compromise audit quality, partly because these employees could have previously audited their hiring company’s financial statements. We expand the scope of the analysis by examining employees who move indirectly from audit firms to audit clients and who could not have previously audited the hiring company’s financial statements (i.e., “indirect alumni hires”). We show that indirect hires occur more often than the direct hires that have concerned regulators. We predict and find that both direct and indirect alumni hires are associated with lower rates of executive turnover. There is no evidence that the reduced rates of executive turnover are explained by managerial entrenchment. We also predict and find that both direct and indirect alumni hires are associated with lower rates of audit firm turnover. However, there is little evidence that these hires result in lower audit quality. Overall, our findings suggest that direct and indirect employee movements from audit firms to audit clients are beneficial to executives, audit clients, and audit firms as they reduce the incidence of costly turnover.

The Impact of Revolving Door Practice and Revolving Door Policy on Nonprofessional Investors' Perceptions of Auditor Independence

This study is the first to investigate (1) whether United States’ nonprofessional investors perceive an ex-auditor’s employment with an audit client as a threat to the accounting firm’s independence, and (2) whether the strength of the current United States revolving door policy improves independence. This study is motivated by the underrepresentation of nonprofessional investors in the literature, despite them owning approximately thirty-eight percent of the United States equity holdings. Two between-subjects experiments examine these issues. The first experiment finds that investors perceive the ex-auditor’s integrity as significant in explaining the firm’s decision to manage earnings, irrespective of the firm’s previous working relationship with the ex-auditor. The results from experiment two indicate that investors’ perceptions of revolving door firms’ independence do not significantly improve by strengthening the revolving door policy above the American Institute of Certified Public Accountants’ initial policy. Therefore, accounting regulators may consider reducing the stringency of the current revolving door policy to attract prospective audit employees to public accounting. Academics may also be interested in the triangulation of the independence “in appearance” findings in this study the independence “in fact” findings in prior research.

A Post-SOX Examination of Factors Associated with the Size of Internal Audit Functions

SYNOPSIS This study develops and tests a conceptual model articulating factors associated with internal audit function size in the post-SOX era. These factors include audit committee characteristics, internal audit characteristics and mission, internal audit activities performed by others (including outsourced providers and other divisions within the organization), and organization characteristics. Results from a survey of 173 public and private companies reveal that internal audit function size is positively associated with: (1) better audit committee governance, (2) greater organizational experience of the chief audit executive, (3) missions involving IT auditing, (4) the use of sophisticated audit technologies, (5) the use of a staffing model in which internal audit is used for rotational leadership development, (6) organization size, and (7) the number of foreign subsidiaries that the organization possesses. Further, internal audit function size is inversely associated with: (1) the percentage of internal audit employees that are Certified Internal Auditors, and (2) the extent of assurance and compliance activities outsourced to outsiders. These results contribute to prior literature on internal audit function size by considering a variety of factors that are associated with internal audit function size in the contemporary era. Data Availability: Contact the authors.