Audit Services Research Articles

THE AUDIT PROCESS OF THE IT SYSTEMS OF A COMPANY THAT PROVIDES ACCOUNTING SERVICES

Over the time, IT systems have constantly evolved and for this reason IT systems must undergo periodic audit procedures to see if they enable the achievement of a company's strategic objectives and the efficient use of IT resources. The main purpose of the paper is to investigate how the audit mission is carried out on IT systems (ERP systems) within a company that provides accounting, consulting, payroll and audit services. The role of these IT systems (ERP systems) is to ensure the correct and complete integration of information within a company. ERP systems provide the perfect maintenance of the internal control system, but also the ability of managers to analyse the information provided by these IT systems as correctly as possible. In this article, the author made a case study, analysing the risks of an IT system of a company that offers accounting services using the MEHARI technique. The results obtained showed that the systems are effective and would withstand cyber-attacks, but could be less resistant in terms of specialized attacks (well-equipped hackers, professional spies).

Factors influencing environmental and circular economy disclosure of Viet Nam listed companies

This study examines the environmental and circular economy disclosures (ECED) level and factors influencing this level of 32 Vietnamese listed companies from 2018 to 2022. The content and frequency analyses are performed to determine the level of ECED, and regression analysis is to investigate the influencing factors. Drawing on a sample of 160 sustainable development and annual reports following the Global Reporting Initiative frameworks (GRI), the study evidenced that 32 listed companies paid great attention to the GRI 300 category (on environment topics) with the top three GRI standards 302 (energy), 307 (environmental compliance), and 303 (water and effluents), respectively. In addition, the Feasible Generalized Least Square method results showed that the companies with government ownership and Big4 audit services had a higher level of ECED. In comparison, larger companies had a lower disclosure level. Meanwhile, companies in the manufacturing sector with foreign shares and the independence of the Board of Directors did not affect the disclosure information disclosure level in the studied sample.

Public Sector Audit Reforms and Financial Management

Developing economies across the world face high public corruption and weak financial management, and the role of sound audit practices in shaping the narratives is still at the exploring stage in most countries in sub-Saharan Africa. This research explores the nexus between public audit reforms and public sector financial management using survey research design and Nigeria as a case study. Participants in the study were drawn from The Office of the Auditor General of the Federation (OAuGF) Headquarter in Abuja. Agency theory anchored this study and simple descriptive analytics was used in testing the seven hypotheses. The research established that: the recent audit reforms carried out in Nigeria are considered necessary for better public sector financial management; Nigeria’s audit system has a strong connection with public sector financial management; there is a need for the establishment of Federal Audit Service Commission (FASC) in Nigeria; the recent audit reforms will block treasury loot and leakages in Nigerian public funds management; Nigeria needs effective audit laws to wholesomely fight corruption through recent audit reforms; and the recent Nigerian audit reforms embrace integrity, transparency and accountability in the management of public funds. The study makes the following recommendations: there is a need for audit staff orientation and professional development in order to promote their overall productivity and efficiency; there is a need for the establishment of Federal Audit Service Commission (FASC) in order to promote the independence of Nigerian Audit system from executive interferences; Nigeria audit laws should be strengthened to curtail fund leakages, wastages of public property, and promotion of value-for-money expenditures; and the recent audit reforms carried out by the government of Nigeria should be sustained and given all necessary supports in order to achieve the desired results.

From ‘strong recommendation’ to practice: A pre-test post-test study examining adherence to stroke guidelines for fever, hyperglycaemia, and swallowing (FeSS) management post-stroke

BackgroundThe Quality in Acute Stroke Care (QASC) Trial demonstrated that assistance to implement protocols to manage Fever, hyperglycaemia (Sugar) and Swallowing (FeSS) post-stroke reduced death and disability. In 2017, a ‘Strong Recommendation’ for use of FeSS Protocols was included in the Australian Clinical Guidelines for Stroke Management. We aimed to: i) compare adherence to FeSS Protocols pre- and post-guideline inclusion; ii) determine if adherence varied with prior participation in a treatment arm of a FeSS Intervention study, or receiving treatment in a stroke unit; and compare findings with our previous studies. MethodsPre-test post-test study using Australian acute stroke service audit data comparing 2015/2017 (pre-guideline) versus 2019/2021 (post-guideline) adherence. Primary outcome was adherence to all six FeSS indicators (composite), with mixed-effects logistic regression adjusting for age, sex, stroke type and severity (ability to walk on admission), stroke unit care, hospital prior participation in a FeSS Intervention study, and correlation of outcomes within hospital. Additional analysis examined interaction effects. ResultsOverall, 112 hospitals contributed data to ≥1 one Audit cycle for both periods (pre=7011, post=7195 cases); 42 hospitals had participated in any treatment arm of a FeSS Intervention study. Adherence to FeSS Protocols post-guideline increased (pre: composite measure 35% vs post: composite measure 40 %, aOR:1.2 95 %CI: 1.2, 1.3). Prior participation in a FeSS Intervention study (aOR:1.6, 95 %CI: 1.2, 2.0) and stroke unit care (aOR 2.3, 95 %CI: 2.0, 2.5) were independently associated with greater adherence to FeSS Protocols. There was no change in adherence over time based on prior participation in a FeSS Intervention study (p = 0.93 interaction), or stroke unit care (p = 0.07 interaction). ConclusionsThere is evidence of improved adherence to FeSS Protocols following a ‘strong recommendation’ for their use in the Australian stroke guidelines. Change in adherence was similar independent of hospital prior participation in a FeSS Intervention study, or stroke unit care. However, maintenance of higher pre-guideline adherence for hospitals prior participation in a FeSS Intervention study suggests that research participation can facilitate greater guideline adherence; and confirms superior care received in stroke units. Nevertheless, less than half of Australian patients are being cared for according to the FeSS Protocols, providing impetus for additional strategies to increase uptake.

Digitalization and operational performance of the audit service of Ghana

The study examines the influence of digitalization on the operational performance of the audit service of Ghana. The study relied on quantitative method in which multiple regression was employed. Purposive sampling was employed to obtain a sample size of 120. The findings of the study revealed that digitalization significantly enhances the accuracy of audit processes, the volume of work handled, and the adherence to timelines within audit services. The adoption of digital tools is expected to streamline audit processes and reduce the time required for data collection, analysis, and reporting.

IXBRL Adoption and the Pricing of Audit Services

ABSTRACT This study examines how inline XBRL (iXBRL) mandatory adoption impacts audit fees. Although iXBRL can make financial reporting information accessible to a wide range of external stakeholders, the presentation format change should have no impact on audit pricing. However, audit firms note that presenting nonaudited XBRL metadata on top of audited financial statements could lead to an expectation gap where external stakeholders believe that the inline tags have been audited despite no procedures being required. We find that iXBRL adoption is associated with higher audit fees. Upon further examination, we find that the increase in audit fees reflects more of a risk premium being placed on iXBRL clients rather than increased audit effort, as audit quality does not necessarily improve following adoption. We provide timely information on how auditors respond to iXBRL adoption. JEL Classifications: M41; M42; O33.

Effect of perceived value on customer satisfaction on audit services of financial statements: Case study of auditing companies in Hanoi

This study investigates the impact of perceived value on customer satisfaction on the financial statement audit services of independent auditing firms in Hanoi.The study used quantitative research design, interpretation, and use of a survey questionnaire with a Likert-type scale to measure perceived value (including quality value, value based on price, human value, emotional value, and social value) and customer satisfaction. The survey was distributed to a random sample of 302 respondents, including CFOs; Accounting Managers; Business Owners; Audit Committee Members; and Internal Auditors of 168 selected client companies of different industries and sizes. Regression results with a standardized beta coefficient show that all five dimensions of perceived value have a positive impact on customer satisfaction, with Quality Value and Emotional Value having the strongest impact. Based on the research results, some recommendations are made for auditing companies such as prioritizing quality, improving emotional value, optimizing prices, building strong relationships with customers and leveraging social value to increase customer satisfaction. customer satisfaction on financial reporting audit services, so that auditing companies can improve competitive advantage and build long-term relationships with customers

A Comparative Analysis of Independent Audit Sectors in Turkiye And Uzbekistan

The independent audit sector consists of independent auditing companies and professionals providing auditing services to businesses and organizations. The sector has a critical importance for developing countries to provide and sustain qualitative operations of enterprises and organizations. A strong independent audit sector helps to improve the operations of entire private sector and hence provides better integration to international markets In this context, due to the importance of the subject, a research on the audit sector is carried out in this study. The main axis of the study is the comparative analysis of the independent audit sectors in Uzbekistan and Türkiye. Since there is no other study comparing these two countries in terms of this sector, this paper tries to make a contribution to the related literature. The study’s central hypothesis is that Uzbekistan has a significant potential to catch international auditing standards. A comparative analysis is conducted for independent audit sector of two counties in order to test this hypothesis

Media pressure, corporate social responsibility, and the risk of share price crash

The investigation employs a compilation of data from 5085 listed entities over the period from 2013 to 2022 to explore the dynamics between media coverage, corporate social responsibility initiatives (CSR), and the risk of stock market crashes. The results suggest that greater media focus can elevate the chances of stock value plummeting, whereas robust CSR dedication tends to mitigate such risks. The extent of overall debt funding plays a significant role as an intermediary in the connection between CSR efforts and the threat of equity market meltdowns. Moreover, the influence of the audit services provided by the Big Four firms greatly alters the correlation between CSR endeavors and the probability of market downturns. Additionally, the influence of CSR on the risk of crashes varies based on the profitability of the company. The study proposes that enhancing CSR execution, maintaining moderate levels of financial leverage, and optimizing approaches to media relations can all contribute to reducing the likelihood of stock market crashes.

Parkinson’s Disease (PD) Management in a Tertiary Irish Hospital

Abstract Background There is no Irish platform for operationalizing services for People with Parkinson’s and associated disorders (PwP). The UK-wide Parkinson’s clinical audit was developed in 2009, to address concerns about the quality of care provided to PwP. Our aim was to use the UK Parkinson’s Audit cycles to drive quality improvement in our service, providing the first Irish data on quality of care for PwP. Methods The audit’s service descriptor was completed in June 2022. A sample of PwP attending Movement-Disorder clinics completed patient reported experience measure questionnaires between May - July 2022. We retrospectively collected patient data using the audit tool, which was submitted electronically. This was directly compared to our service audit data from 2019. Results In 2019, we included 30 patients in our audit – average age 67yrs, 57% male, 100% Caucasian, average duration PD 7yrs. In 2022, we included 40 patients of similar demographics. The data collected showed our services had improved or remained stable across all domains from 2019 to 2022 including medication documentation, advanced care planning, multi-disciplinary team input, non-motor, activities of daily living and bone health assessments. The service user experience remained unchanged. In 2019, our service fell in the lowest quartile of standards amongst the cohort of services audited. We improved to the top half of services audited in 2022. This was achieved by mentoring from exemplar UK services, generating a proforma to standardize assessments in outpatients, providing information to clinicians regarding local services and engaging with patients in an annual ‘Have Your Say’ day. Conclusion Our data demonstrates that repeated national audit cycles, with the patient voice at the centre, are crucial in driving quality improvement across services for PwP. As the only Irish participant in the Parkinson’s UK Audit, it's clear a National Irish Audit would be the first step in optimizing care for PwP nationally.

Quality Of Care In Parkinson's Disease: Lessons From A National Audit

Abstract Background It is recommended that people with Parkinson’s disease (PD) are treated within specialised services. As part of a research project mapping and evaluating PD services nationally, the first audit of PD services in the Republic of Ireland was conducted. Methods A de novo audit tool was developed by an expert group, based on a rigorous review of existing international standards, guidelines and audit tools, with extensive stakeholder input (including people with PD). All 14 specialist PD services in the Republic of Ireland were eligible; up to 30 case-notes were randomly selected per service in 2022/2023, looking at the most recent 2 visits (new patient) or 3 visits (established patient). Results In total, 261 case-notes were included, from 11 specialist PD services, led by a geriatrician (n=5) or neurologist (n=6). Overall, 16.8% of patients were seen less often than annually. Motor and mobility assessments were well performed (>75%); but cognition (70%) and pain assessments (64%), saliva management (50%), and bone density determination (18%) were inadequate. Access to PD nurses (65%), physiotherapy (69%), speech and language therapy (53%), and occupational therapy (50%) was inadequate; PD nurses were mainly in Dublin. However, specialist nurse and MDT access was better than reported by people attending generic services for PD care (1). Providing written information following diagnosis (24%), and communication with the carer were infrequently documented (financial support discussion: 12%; availability of support locally: 26%). Gerontology-led services more often screened for malnutrition (99% v 78%) or orthostatic hypotension (94% v 52%). Conclusion PD care relating to assessment, multidisciplinary involvement, and information sharing was sub-optimal in some areas, with the caveat that documentation may not reflect actual practice. Reference 1. O’Shea E, et al. Experiences of Health Service Access and Use for People Living with Parkinson’s Disease in Ireland: A National Survey. Health & Social Care in the Community. 2023 Aug 9;2023.

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".

Measuring and Mitigating Racial Disparities in Tax Audits

Abstract Tax authorities around the world rely on audits to detect underreported tax liabilities and to verify that taxpayers qualify for the benefits they claim. We study differences in Internal Revenue Service audit rates between Black and non-Black taxpayers. Because neither we nor the IRS observe taxpayer race, we propose and use a novel partial identification strategy to estimate these differences. Despite race-blind audit selection, we find that Black taxpayers are audited at 2.9 to 4.7 times the rate of non-Black taxpayers. An important driver of the disparity is differing audit rates by race among taxpayers claiming the Earned Income Tax Credit (EITC). Using counterfactual audit selection models to explore why the disparity arises, we find that maximizing the detection of underreported taxes would not lead to Black EITC claimants being audited at higher rates. Rather, the audit disparity among EITC claimants stems largely from a policy decision to prioritize detecting overclaims of refundable credits over other forms of noncompliance. Modifying the audit selection algorithm to target total underreported taxes while holding fixed the number of audited EITC claimants would reduce the share of audited taxpayers who are Black and would lead to more audits focused on accurate reporting of business income and deductions, fewer audits focused on the eligibility of claimed dependents, higher per audit costs, and more detected noncompliance.

How does the Chinese digital transformation of enterprises affect the auditor switch?

The digital transformation of enterprises has brought great changes to the audit service demand of enterprises and the audit service supply of auditors. Therefore, there is a pressing need to study the digital transformation of enterprises and its impact on auditor switch. This paper aims to explore the influence of enterprise digital transformation on auditor switch and its potential implications for improving auditor efficiency. Using Python's machine learning tools and text analysis methods, This paper measure the digital transformation of Chinese listed companies and study the impact of digital transformation on the frequency of auditors witches. Our findings suggest that companies that have undergone digital transformation have reduced the frequency of changing auditors by alleviating information asymmetry, enhancing the effectiveness of companies' internal controls and increasing audit fees. This unique measurement mode of digital transformation provides new evidence for the relationship between the audit service demand of enterprises and the audit service supply of auditors under the digital transformation environment. The research can assist businesses in understanding how digital transformation affects auditing professionally and in improving their audit processes accordingly.

Conceptual Approaches to the Implementation of a Quality Management System for Audit Services Based on International Standard for Quality Management 1

Conceptual Approaches to the Implementation of a Quality Management System for Audit Services Based on International Standard for Quality Management 1

A - 100 Who Is at the Door? Clinical Presentations and Predictors of Dementia Diagnosis in a Specialist Dementia Service

Abstract Objective This service audit aimed to identify predictors associated with a dementia diagnosis and the diagnostic base rate in a UK-based, specialist Younger People with Dementia (YPWD) Service. Method All patients referred between July 2022 and 2023 to the YPWD service were included in the study. All 191 patients were under 65 years at the time of referral. 69 patients were excluded from analysis (e.g., if the patient withdrew from the service prior to assessment or if the referral was deemed inappropriate based on service guidelines). A quasi-experimental design was used, investigating the relative predictive value of factors such as demographics, presenting cognitive symptoms, comorbidities, or mental health to receiving a dementia diagnosis. Following definition, raters reviewed client case notes to establish the presence or absence of each criterion. Results Significant predictors of a dementia diagnosis in YPWD were functional change (p < 0.001), behavior change (p < 0.001), being accompanied to assessment (p < 0.001), diminished insight (p < 0.001), executive functioning difficulties (p < 0.05), cognitive screening test score below cut-off (p < 0.05) and previous radiological investigation prior to referral (p < 0.001). The diagnostic rate for YPWD was 15%. Conclusions Memory problems alone are an insufficient predictor for a dementia diagnosis in YPWD, unless accompanied by additional factors. Overreliance on the presence of subjective memory complaints in primary care as a percipient to referral for specialist assessment contributes to a low diagnostic rate for the service The presence of insight and attending appointments alone contraindicate the presence of an organic disorder. Results indicate that factors beyond diagnostic criteria may be clinically significant.

Do high‐centrality CEOs influence audit outcomes?

AbstractUsing insights from the social network theory which posits that individuals with high network centrality have influence and power within their social networks, we argue that CEO network centrality increases the CEO bargaining power in audit fee negotiations. We find that audit fees are lower in firms managed by CEOs with high network centrality. We also find that high‐centrality CEOs do not negotiate audit fees at the expense of lower‐quality audit services. We further document the influence high‐centrality CEOs have on the audit decisions of their social peers within the network. For example, we show that less central (i.e., peripheral) CEOs are likely to hire auditors that do work for firms with CEOs enjoying high levels of network centrality. Together our findings suggest that high network centrality reflects a bargaining power CEOs can use to lower their audit fees.

Caring for a Child with a Cleft Lip and/or Palate: A Narrative Review.

Raising a child with healthcare needs places additional demands on caregivers. In 2012, Nelson and colleagues authored a review of 57 papers pertaining to parents' experiences of caring for a child with cleft lip and/or palate (CL/P). Thanks in large part to this review, available literature on this topic has grown considerably. The aim of the present review was to update and critically appraise recent literature, with the wider goal of assessing progress in the field and setting recommendations for future work. All original, peer-reviewed articles pertaining to the psychological adjustment of parents of children with CL/P living in high-income countries (published May 2009 to May 2024) were examined. A total of 126 articles were included. Findings were narratively synthesised according to three salient themes: Emotional Impact; Social Experiences; and Care Delivery. Recent research has built on Nelson et al.'s recommendations, addressing some prior gaps in knowledge. Nonetheless, some areas remained largely unexplored and critical methodological limitations were still evident. Recommendations for clinical practice include: improved informational resources for parents and non-specialist health professionals, regular audit of services in collaboration with parents and families, routine psychological screening for known risk factors and integrated psychological support from diagnosis onward. Recommendations for future research include the design of multicentre, prospective, longitudinal studies with sufficient sample sizes and appropriate control/reference groups, inclusion of families from diverse ethnic and socioeconomic backgrounds, further examination of factors contributing to psychological growth, the development and evaluation of psychological interventions, and cross-condition learning.

Research on the Application of AI Technology in Auditing

With the rapid development of AI technology, the application in the field of auditing has become an important means to improve the efficiency and quality of auditing. AI technology has significantly improved the efficiency and quality of audit work by automating data analysis, risk assessment, and audit processes. However, as technology evolves, so do challenges such as data privacy, security, algorithmic transparency, and lack of talent. In order to address these issues, it is recommended to strengthen data protection, improve the accuracy and transparency of algorithms, formulate unified AI audit standards, and focus on cultivating audit talents with AI skills. In the future, the audit industry needs to actively manage and control risks while enjoying the convenience brought by AI, ensure the quality and credibility of audit work, and promote the development of audit services in a more efficient and intelligent direction.

Is buying cheaper than sharing? A study of the effect stand-alone contracting out versus public co-production has on cost in Norwegian local auditing services

ABSTRACT Contracting out and public co-production are widely used alternatives supplementing inhouse service delivery with aims to decrease costs. Scholars struggle however with establishing causal relationships comparing how these alternatives affect performance. This paper analyzes the effects outsourcing and intermunicipal cooperation has on costs, using Norwegian local auditing services as case. We set out to determine how organisation, in the form of single municipalities contracting out versus intermunicipal production, and the size of the cooperation (i.e. number of cooperating municipalities) affect costs. The results indicate that under competitive market conditions, cooperation in general is more costly than contracting out to private actors. However, when it comes to cooperation size, the results show that costs decrease when more members are included, indicating that smaller cooperations are more costly than larger ones. This indicates that an increase in cooperation size creates significant returns to scale.