Audit Method Research Articles

The Effect of Audit Tenure, Audit Rotation and Client's Company Size on Audit Quality with Audit Fee as Moderating Variable

Transparency of financial reports is one of the important things for decision-makers. In proving that financial statement information has been presented fairly, companies need independent parties, one of which is the audit services provided by the Public Accounting Firm (PAF). Good or bad Audit Quality for the information presented really depends on the auditor in carrying out his duties.
 This research was conducted at Financial Sector Companies listed on the Indonesia Stock Exchange (IDX) in 2015 - 2019. This research was conducted using quantitative methods and sample selection using purposive sampling method. The analysis used in this research is binary logistic regression.
 The results showed that Audit Tenure and Audit Rotation had no effect on Audit Quality, Client's Company Size had a negative effect on Audit Quality, and Audit Fees had a positive effect on Audit Quality. Audit Fee Interactions are unable to moderate the effect of Audit Tenure and Audit Rotation on Audit Quality, while Audit Fee Interactions are able to weaken the influence of Client's Company Size on Audit Quality. 
 Suggestions from this research are expected to all companies that have high complexity to choose a PAF that suits the audit needs and not too pressurize the Audit Fee given. In addition, companies need to pay attention to Audit Tenure again by considering from a cost-benefit analysis point of view. For future researchers, it is expected to extend the research period and use Audit Quality proxies, population, methods, and analysis tools outside of this study.

A systematic review of food waste audit methods in hospital foodservices: development of a consensus pathway food waste audit tool.

To understand, monitor and compare the scope of food waste in hospital foodservices, it is essential to measure food waste using a standardised method. The aims of this systematic review were to: (i) describe and critique the methodological features of waste audits used in hospital foodservice settings that measure aggregate food and food-related waste and (ii) develop a consensus tool for conducting a food waste audit in a hospital foodservice setting. Seven electronic databases were searched for peer reviewed literature, and 17 Google Advanced searches located grey literature that described food waste audit methods previously used or developed for hospital foodservices. Study selection and quality assessment occurred in duplicate. Data describing the audit method, its feasibility, and strengths and limitations were extracted and synthesised to develop a consensus tool. Eight peer reviewed and nine grey literature documents describing a variety of food waste audit methods were found. The most common practices were 2-week data collection (n=5), foodservice staff collecting data (n=6), measuring food waste only (n=11), measuring food waste at main meals (n=5) and using electronic scales to measure waste (n=12). A consensus tool was developed that proposes a method for preparing, conducting and analysing data from a food waste audit. This review used published evidence to develop the first ever food waste audit consensus tool for hospital foodservices to use and measure food and food-related waste. Future research is needed to apply and test this tool in practice.

Remote Auditing : An Alternative Approach to Face the Internal Audit Challenges During The COVID-19 Pandemic

The research aims to define the roles that the internal audit activity can play in Egyptian business enterprises to confront the crisis of the spread of the Corona virus (Covid-19), and discover the challenges that the internal auditors may face while performing their work during the period of the epidemic. The research also aims to study the factors that should be taken into consideration when preparing and implementing the internal audit plan and reporting on the audit findings during the Corona virus (COVID-19) crisis, in addition to suggesting an alternative approach to facilitate the performance of internal audit tasks efficiently during this period, which is the remote auditing approach. To achieve these goals, the research relied on using the positive approach through the use of the deductive approach to analyze previous studies related to the research topic and derive the research hypotheses, in addition to using the inductive approach to test the validity of the research hypotheses in the real practice in the Egyptian business environment. This was done through a field study conducted on a sample of 95 individuals, which included three categories: the academics represented by the professors of accounting and auditing in the faculties of commerce in Egyptian universities, in addition to the members of the audit committees and the internal auditors of some joint stock companies listed on the Egyptian Stock Exchange. Statistical tests were used commensurate with the nature of the data collected. And based on the results of the statistical hypothesis test, the first hypothesis was accepted, which states that there is agreement between the study sample groups about the importance of the roles that the internal audit activity can play in business enterprises to confront the crisis of the Corona virus (Covid-19). Also, the second hypothesis was accepted , Which states that there is agreement between the study sample groups about the challenges that may face the internal auditors during the Corona virus (Covid-19) pandemic, as well as the third hypothesis which states that there is agreement between the study sample groups about the factors that should be considered when preparing and implementing the internal audit plan and reporting on the audit results during the Corona virus (Covid-19) crisis. Also, based on the results of the field study, it becomes clear the importance of developing the method of performing the internal audit activity during the Corona pandemic crisis, through applying modern audit methods, such as the remote audit approach, which relies on using information and communication technology to perform internal audit tasks efficiently , which enables the internal audit activity to provide the roles assigned to it and meet the needs of stakeholders , and overcome the challenges facing the internal auditors during the period of the epidemic on the other hand.

A proposed model for disclosing the role of the collective intelligence system in improving joint auditing

This research aims to present a proposed model for disclosure and documentation when performing the audit according to the joint audit method by using the questions and principles of the collective intelligence system, which leads to improving and enhancing the efficiency of the joint audit, and thus enhancing the confidence of the parties concerned in the outputs of the audit process. As the research problem can be formulated through the following question: “Does the proposed model for disclosure of the role of the collective intelligence system contribute to improving joint auditing?” 
 The proposed model is designed for the disclosure of joint auditing and the role of collective intelligence in improving it to achieve integration between the auditor’s report on the one hand and the joint audit information on the other hand, by disclosing the joint audit information in the explanations complementing the audit report that should be available in the current audit file of the economic unit in question. Auditing, by merging the questions of the collective intelligence system (who, what, how, why) with the indicators of the quality of the audit, and the research reached a set of conclusions, the most important of which is unified documentation of the joint audit work in the audit office as it is permissible to use the collective intelligence system—documenting the work carried out by members of his team independently of the other office. As for the most important recommendations, they were represented in need to adopt the proposed model for using collective intelligence to improve the quality of joint auditing performance, which aims to provide a mechanism for disclosure and documentation of joint auditing

Analysis of the RBA implementation and the preparation of an audit program at the Ministry of Villages, Development of Disadvantaged Regions and Transmigration

Risk-Based Audit (RBA) is an audit method that applies a risk approach in its implementation. By applying the RBA method, it is expected that an audit can be performed effectively and efficiently, thus producing maximum audit results. This study aims to analyze the implementation of RBA upon audits conducted by The Audit Board of Indonesia (BPK). Furthermore, this study analyzes the preparation of an Audit Program in line with the previously determined RBA. The research framework uses Agency Theory which emphasizes the relationship between management and principal. To ensure that management does not perform any manipulation, an independent third party must conduct the audit. This study applied a qualitative research methodology with a case study approach at BPK. The author expects to dig deeper into the application and implementation of RBA within BPK by using the case study approach support by audit documents and interviews with BPK Audit Team. The results showed that the implementation, performance, and monitoring of RBA by the BPK Audit Team were in line with the instructions and guidelines set by BPK.

Assessing the development of performance audit methodology in the supreme audit institution: The case of Indonesia

Badan Pemeriksa Keuangan (BPK), or The Audit Board of the Republic of Indonesia, has introduced performance audits intensively since public sector audit reforms were initiated in 2001. However, the implementation of performance audits still faces several obstacles. This study examines the development of the performance audit methodology in BPK, which can be divided into three stages: before the revitalization of BPK in 2006, the initial development of performance audits during 2006-2010, and the maturity of the implementation of performance audits since 2011. This study concludes that several key factors have affected the implementation of performance audits at BPK, including the development of audit guidelines, the dynamics of medium-term government planning, the focus of the BPK’s Management, and assistance provided by other supreme audit institutions (SAI). To address new realities and challenges in the future, more sophisticated performance audit methods need to be adopted by BPK, such as big data analytics, the adoption of governance audits, and employing public policy analysis. Without adopting such methods, the institutionalization of ​​effective performance audits might not be achieved in the future.

Pharmacist-led educational interventions provided to healthcare providers to reduce medication errors: A systematic review and meta-analysis.

Medication errors are avoidable events that can occur at any stage of the medication use process. They are widespread in healthcare systems and are linked to an increased risk of morbidity and mortality. Several strategies have been studied to reduce their occurrence including different types of pharmacy-based interventions. One of the main pharmacist-led interventions is educational programs, which seem to have promising benefits. To describe and compare various pharmacist-led educational interventions delivered to healthcare providers and to evaluate their impact qualitatively and quantitatively on medication error rates. A systematic review and meta-analysis was conducted through searching Cochrane Library, EBSCO, EMBASE, Medline and Google Scholar from inception to June 2020. Only interventional studies that reported medication error rate change after the intervention were included. Two independent authors worked through the data extraction and quality assessment using Crowe Critical Appraisal Tool (CCAT). Summary odds ratios (ORs) with 95% confidence intervals (CIs) were calculated using a random-effects model for rates of medication errors. Research protocol is available in The International Prospective Register of Systematic Reviews (PROSPERO) under the registration number CRD42019116465. Twelve studies involving 115058 participants were included. The two main recipients of the educational interventions were nurses and resident physicians. Educational programs involved lectures, posters, practical teaching sessions, audit and feedback method and flash cards of high-risk abbreviations. All studies included educational sessions as part of their program, either alone or in combination with other approaches, and most studies used errors encountered before implementing the intervention to inform the content of these sessions. Educational programs led by a pharmacist were associated with significant reductions in the overall rate of medication errors occurrence (OR, 0.38; 95% CI, 0.22 to 0.65). Pharmacist-led educational interventions directed to healthcare providers are effective at reducing medication error rates. This review supports the implementation of pharmacist-led educational intervention aimed at reducing medication errors.

Experiential examination of higher education partnerships in the UK: a knowledge management perspective

PurposeHigher education institutions possess a plethora of knowledge at the institutional, departmental and individual levels. Therefore, knowledge management plays a vital role in assisting partnerships to synergise knowledge and strengthen market competitiveness when working collaboratively. The purpose of this study is to identify and critically discuss the role of knowledge management concepts that support development of UK higher education partnerships. This knowledge management research was undertaken with the purpose of exploring components of behavioural constructs in assisting the development of successful partnerships between higher education institutions.Design/methodology/approachThis research embraces a qualitative methodology and makes use of an expert panel method to gather field data and assess the relevance, robustness and applicability of a conceptual model developed in the context of higher education partnerships. Guided by two research questions, the researchers elicited knowledge from eight experts, academics and practitioners, who had initiated and led partnership development between UK higher education institutions. The experts were invited and selected to attend the panel using the criteria of “Years of Experience in the Higher Education sector”, “Job Positions and Experiences” and the “Partnership Scope and Impact”.FindingsDepicting in a tree analogy, the conceptual model indicates that effective knowledge management will require higher education executives, managers and practitioners to centre on nurturing “tree roots” presented as behavioural knowledge management constructs and include institutional culture, trust, absorptive capacities and communication channels. The research findings elaborate on previous research and provide a categorisation of partnership outcomes between higher education institutions, explaining that partnership outcomes can be of an “Academic”, “Marketing and Finance” or “Managerial” nature. Importantly, practical use of the model could be implemented using audit methods or benchmarking methods, whereby the categorised elements of the model are used as a criterion of assessment for audit teams.Originality/valueThe conclusion extracted experiential insights to provide guidance as to how higher education executives, managers and practitioners can make use of knowledge management behavioural constructs and activities to assist collaborative undertakings in the higher education sector. This paper provided a new, modified, knowledge management higher education partnership tree, thus giving researchers and academic practitioners a holistic viewpoint of important partnership knowledge management factors.

Теоретичні аспекти нічного аудиту на готельному підприємстві

Introduction. Hotels are luggage and service enterprises. To make the right management decisions and increase profits hospitality enterprises must have accurate, timely, and truthful information on the issues of commercial activities. The most effective way to obtain this information is possible when conducting a regular external audit. It is the quality of the current audit that determines the financial position of the state enterprise. Night audit is one of the areas of internal audit of hotel enterprises, aimed at ensuring the safety of assets, verifying the reliability of accounting information, improving the efficiency of operations, and their compliance with enterprise policy. Night audit is of particular importance for managers and owners of hotel enterprises, as it helps to assess the implementation of the objectives of production and economic activity. Purpose. The purpose of the article is to study the theoretical aspects of night auditing in the hotel industry. Methodology of research. The achievement of this goal was carried out with the help of general scientific and applied research methods, in particular: methods of scientific abstraction - to substantiate the essence and significance of night audit as an aspect of internal control in the hotel industry; methods of logical generalization - to determine the main tasks of the night audit; methods of systematization, detailing and grouping - to consider the methods and basic functions of night auditing. Results. Analyzing and systematizing the scientific works of many scientists, the essence, purpose, and tasks of night audit were determined, the technology and methods of night audit of the hotel were considered, the main competencies of night auditor in the process of control operations were clarified. Conclusions. The practical significance of the obtained results is to determine the need to introduce the practice of night audit as a full-fledged type of control. The scientific novelty of the research results is the deepening of the theoretical foundations of night audit technology to improve the accounting and control support of the management system of the hotel industry. Further research will focus on the detailed implementation of night audit automation in hotel activity.

Exploration on the Application and Innovation of Enterprise Audit Methods under the Background of Big Data

Exploration on the Application and Innovation of Enterprise Audit Methods under the Background of Big Data

Maturity Evaluation of Information Technology Governance at PT Insurance XXX Using the DSS02 and DSS03 domain Cobit 5 Framework

PT Asuransi XXX is one of the largest national general insurance companies in Indonesia, which since its inception was focused on the oil and gas industry. As time goes by and the development of the business world, XXX insurance company responds to market challenges by expanding its business to segments outside the oil and gas industry, including aviation, chemical & petrochemical, power generation, mining and manufacturing, both conventional and sharia-based businesses. Supporters of the company's operational development have implemented a reliable application system. In its development, this system needs to be managed for service request management, incidents and management, because this system is getting bigger, more complex and the number of users is increasing. To measure however great the quality of service, ongoing information is needed an audit method that can measure whether the services provided have been running well, effectively and efficiently. COBIT 5.0 DSS02 and DSS03 domains are used as methods to measure whether the level of IT service demand management capabilities, incidents in managing problems with the system, has been running effectively and optimally. From the measurement results of all these processes, it can be seen that the DSS02 and DSS03 levels are at level 2 (managed).

Fraud Audit Based on Visual Analysis: A Process Mining Approach

Among the knowledge areas in which process mining has had an impact, the audit domain is particularly striking. Traditionally, audits seek evidence in a data sample that allows making inferences about a population. Mistakes are usually committed when generalizing the results and anomalies; therefore, they appear in unprocessed sets; however, there are some efforts to address these limitations using process-mining-based approaches for fraud detection. To the best of our knowledge, no fraud audit method exists that combines process mining techniques and visual analytics to identify relevant patterns. This paper presents a fraud audit approach based on the combination of process mining techniques and visual analytics. The main advantages are: (i) a method is included that guides the use of the visual capabilities of process mining to detect fraud data patterns during an audit; (ii) the approach can be generalized to any business domain; (iii) well-known process mining techniques are used (dotted chart, trace alignment, fuzzy miner…). The techniques were selected by a group of experts and were extended to enable filtering for contextual analysis, to handle levels of process abstraction, and to facilitate implementation in the area of fraud audits. Based on the proposed approach, we developed a software solution that is currently being used in the financial sector as well as in the telecommunications and hospitality sectors. Finally, for demonstration purposes, we present a real hotel management use case in which we detected suspected fraud behaviors, thus validating the effectiveness of the approach.

Analysis of Pre-settlement Audit Method Based on Civil Engineering Cost

Analysis of Pre-settlement Audit Method Based on Civil Engineering Cost

Pre-anaesthetic clinical examination influences anaesthetic protocol in dogs undergoing general anaesthesia and sedation.

Identify whether pre-anaesthetic clinical examination influences anaesthetic and analgesic agents and techniques protocol in dogs presented for general anaesthesia and sedation at a large referral hospital. In this prospective clinical audit, 554 dogs, undergoing general anaesthesia or sedation for surgical, diagnostic or imaging procedures were included. Multiple attending anaesthetists completed a questionnaire divided into four sections (American Society of Anesthesiologists physical status classification, anaesthetic and analgesic agents and techniques protocol, pre-anaesthetic clinical examination findings and changes made to the anaesthetic protocol). The attending anaesthetist was able to review the patient's history before planning the anaesthetic and analgesic agents and techniques protocol. The patients were examined and changes in American Society of Anesthesiologists physical status classification or anaesthetic protocol were recorded. The initial anaesthetic and analgesic agents and techniques protocol was altered in 23.3% (n=129/554) of cases following a pre-anaesthetic clinical examination, but American Society of Anesthesiologists physical status reclassification occurred in only 8.0% (n=37/464) of cases. Multivariable logistic regression analysis showed that pre-anaesthetic clinical examination performed by European College of Veterinary Anaesthesia and Analgesia diplomates (odds ratio 5.8, 95% confidence interval 2.0 to 17.2), compared to anaesthesia interns, and the presence of an audible heart murmur (odds ratio 2.4, 95% confidence interval 1.4 to 4.4) were factors linked to changes in anaesthetic and analgesic agents and techniques protocol, whereas for each one kilogram increase in patient's weight, the odds of a change in anaesthetic and analgesic agents and techniques protocol to occur decreased by 1.7% (odds ratio 0.98, 95% confidence interval 0.97 to 1.0). Pre-anaesthetic clinical examination has impact on American Society of Anesthesiologists physical status classification, therefore estimation of patient's anaesthetic risk, and influences anaesthetic and analgesic agents and techniques protocol choice.

THE ADMISSIBILITY OF EARTH OBSERVATION DATA IN LEGAL PROCEEDINGS: A CLOSER LOOK TOWARDS DATA IMAGING

Space capabilities utilization, specifically Earth observation capabilities is not just limited to environmental protection and disaster mitigation, as was shown in the UN Principles on Remote Sensing. It can also be used to support law enforcement and legal proceedings in court. However, the technology of Earth observation is very complex and the process from primary earth observation data to analyzed information requires a degree of manipulation to create comprehensive data. Because of this, there is an issue of admissibility of Earth observation data in court. This article would like to answer the fundamental question on how can this data be admissible, beginning with the procedure to obtain it and to ensure the authenticity of the data, and finds that there are methods of Data Imaging and Digital Audit that may ensure its authenticity. It will also find that obtaining this data for evidence requires a process of special agreement that needs to be looked at more in the future.

Professional Ethics and Behavior in Accounting

With the expansion of economy and commerce, the need for accounting and auditing seems essential. The basis of the accounting profession is based on ethics, including honesty, realism etc. In this research, first we address the importance of ethics and its history; also the wrong beliefs in work ethics and the benefits of ethics management in the workplace are explored. Then, the objectives of accounting ethics training, the need for ethics, public criteria and the Principium of professional ethics and behavior, and the professional behavior development nature for accountants are expressed. The factors that create the auditor's abnormal behavior and ethical threats in the audit profession and methods to prevent threats are investigated. In the end, ethical accounting problems in today's economy and the modern attitudes in teaching the professional values and ethics of accounting can be considered.

БЛОЧНО-МОДУЛЬНАЯ МОДЕЛЬ АУДИТА ЭФФЕКТИВНОСТИ СИСТЕМЫ ВНУТРЕННЕГО КОНТРОЛЯ

The internal control system (ICS) organized in insurance companies in the context of the development of innovative processes and the digitalization of the economy does not always meet the requirements of the modern industry, which leads to the need to assess the effectiveness of the ICS and its compliance with new standards. This position involves the modernization of essential theoretical and methodological approaches to the formation and implementation of the audit model of the effectiveness of internal control of companies. The article is devoted to the issue of introducing new approaches to the performance audit of ICS in insurance companies, based on the construction of a block-modular scheme, which should be translated into certain modules. The block-modular scheme proposed by the author can be used to assess the ICS and identify the risks of insurance companies. The studies were based on the existing options for the methodological construction of assessing the effectiveness of the internal control and audit system. The presented model sets a benchmark in the field of risk assessment and verification of the internal control system. The effectiveness of the new approach in assessing the effectiveness of the ICS is evidenced by the fact that the description of the specifics of the activities of insurance companies, as well as the compilation of a register of possible risks for planning the audit of the effectiveness of the internal control system lead to remarkable results that allow truly assessing the effectiveness of the ICS. Areas and methods of audit, control procedures, relationships between business processes and relationships between employees, which were not noticed or were ranked as unimportant events, turn out to be key for the effective operation of the company and the conduct of internal control at a high professional level. The advantage of the block-modular model of the audit of the effectiveness of the ICS of the insurance company is that the correct and accurate route of the work of the controlling body is built, the control flags are correctly placed at all the stages of the audit, which implies that there are no delays at one stage or another and the identification of shortcomings in the work of the internal control. Today we are talking not at all about the quality of insurance services, but rather about the quality of the insurance business, its organization and timely adaptability to changes in the environment of the insured. In this regard, the development of the methodology for assessing the ICS of insurance companies requires new approaches and models

Problematic Machine Behavior

While algorithm audits are growing rapidly in commonality and public importance, relatively little scholarly work has gone toward synthesizing prior work and strategizing future research in the area. This systematic literature review aims to do just that, following PRISMA guidelines in a review of over 500 English articles that yielded 62 algorithm audit studies. The studies are synthesized and organized primarily by behavior (discrimination, distortion, exploitation, and misjudgement), with codes also provided for domain (e.g. search, vision, advertising, etc.), organization (e.g. Google, Facebook, Amazon, etc.), and audit method (e.g. sock puppet, direct scrape, crowdsourcing, etc.). The review shows how previous audit studies have exposed public-facing algorithms exhibiting problematic behavior, such as search algorithms culpable of distortion and advertising algorithms culpable of discrimination. Based on the studies reviewed, it also suggests some behaviors (e.g. discrimination on the basis of intersectional identities), domains (e.g. advertising algorithms), methods (e.g. code auditing), and organizations (e.g. Twitter, TikTok, LinkedIn) that call for future audit attention. The paper concludes by offering the common ingredients of successful audits, and discussing algorithm auditing in the context of broader research working toward algorithmic justice.

WITHDRAWN: An effective analytics of third party auditing and Trust architectures for integrity in cloud environment

Cloud storage is one of Cloud's infrastructures that preserves, handles, centrally backs up data and makes it available to users through a network (normally the Internet). When data may be assaulted or modified by unauthorised attackers, the cloud owner may be interested in the privacy of data contained within the cloud. A new idea known as Data Auditing is therefore being applied with the assistance of a third party auditor (TPA) firm to check data integrity. The main goal of this work is the creation of a stable and efficient audit scheme based on the trust architecture that guarantees the safety and confidentiality of records, including the security of privacy, public audits and other capable functions. Therefore, all these requirements have been taken up with the new method for auditing. The data owner, TPA and the cloud provider contain three organisations. The data owner performs a variety of operations, such as separating the file into blocks, encryption, hash value, combination and signature. The TPA conducts the core feature of data integrity checks and performs functions, including the generation, concatenating and signature generation of hash values for encrypted blocks retrieved from the cloud server. It then tests whether the data stored in the cloud is corrupted or not by matching all signatures. On demand of customers, it tests the quality of the results. Only encrypted data blocks are processed by the cloud provider. This proposed audit scheme and the confidence architecture facilitates complex encryption of complex, integrity assurance and digital signature computing by means of sophisticated cryptographic algorithms. This article introduces the faith architecture, which is the core basis for complex crypto graphing and forensic analyzer cloud auditing programmes.

Design of Navigation Satellite Systems in Effective Geomonitoring for Mining

Currently for a mining science it is actively developing branch of knowledge, called “satellite technology”, which has diverse practical applications for geodesy, mine surveying, control systems, mining logistic and transport complex, ensuring the safety and control of the risks there creation of tools and methods of the implementation of energy efficiency strategies. For specialists of mine surveying and geodesy introduction of practice, satellite-positioning methods has become almost revolutionary technological revolution that led to a radical revision of the structure of geodetic support of the country, fundamental changes in the methods field and laboratory work on the earth’s surface. There are examples of current uses of satellite technology over the last decade at the leading companies of the mining sector. The creation of new methods of technical and economic audit determines the need for generation and proof of the most common and objective criteria and evaluation indicators for the design phase and launch of the satellite equipment. To extend the lifetime of spacecraft is pro-posed in the schematic design phase to calculate the possible effects of electrostatic discharges and to give recommendations for reducing their negative influence. Developed a new method that allows for 2-3 orders of magnitude to reduce the complexity of calculation for the pattern of spreading of the currents on the surface of spacecraft from electrostatic discharge. The method is based by the idea of macromodeling. The accuracy of calculations is very high (the inaccuracy does not exceed 1%).