Audit Planning Research Articles

Improving the efficiency and person-centredness of occupational therapy input into care-plans in a forensic mental health and rehabilitation service

Care-planning is vital to the delivery of timely, person-centred, safe and effective care. Despite the understanding of the benefits of person-centred care-plan in both services, occupational therapists (OTs) within our...

Special audit examination of the coactiva courts of the central bank of Ecuador, period 2013 - 2014

Auditing is a fundamental tool in the management of entities, ensuring transparency and efficiency through adequate controls. This study analyzes the "Special Audit Review of the Coactiva Courts of the Central Bank of Ecuador" conducted by the Superintendency of Banks during the period 2013-2014. The objective is to evaluate the effectiveness of internal controls and administrative processes of the coactiva court. The results reveal significant deficiencies, including a lack of coordination between the areas of the Recovery and Liquidation Department, inconsistencies in the records of insolvency and bankruptcy judgments, and informal management of portfolio recovery. These deficiencies represent a high risk for the bank's operations, affecting approximately 70% of the processes reviewed. A set of practical recommendations are proposed, such as the implementation of an information filing and systematization system, the updating of the lawsuit registry and the creation of an annual operational audit plan. These measures are aligned with international best practices and seek to improve efficiency, effectiveness and transparency in the management of public resources.

ARTIFICIAL INTELLIGENCE AND INTERNAL AUDIT STAFFING PRACTICES: NECESSITATING A DIFFERENT SKILL SET FROM AUDITORS

A decade ago, no machine matched human skills in many areas, but now AI surpasses humans in at least some skill sets. Internal auditors' effectiveness and value addition to organizations hinges critically on their possession of essential skills like risk management, independence, and deep knowledge of internal controls, along with their professional training and ability to align audit plans with organizational goals. Thus, it is important in the literature to highlight the need to understand the relative importance of internal auditor skills, their practical application in the selection, hiring, training, and promotion processes, and the consideration of additional skills or factors that may impact the application of these skills. However, the necessity for auditors to adapt and acquire new skills to meet the evolving requirements of technology, particularly AI, has not been discussed before. There are two main skill sets that are important for internal auditors: perceived behavioral, sometimes called soft, and cognitive, sometimes called hard, skills. Consequently, this text will discuss the changing skill sets and sub-categories of competent internal auditors according to AI. The study’s findings contribute to professional practice and literature by understanding and improving internal auditors’ skills, elevating performance, and streamlining risk assessment processes.

The Mediating Effect of Information Technology Usage on the Relationship of Internal Audit Processes and Internal Auditor Competence towards Internal Audit Effectiveness: Evidence from the Chinese Financial Sector

The effectiveness of internal auditing is determined by various factors, such as the independence of the internal audit function, auditors’ competence, effective audit planning, efficient audit processes, and support from senior management. The digitalization and informatization of modern enterprises have transformed the way companies are managed and have similarly impacted internal audit practices. Informatization not only alters traditional internal audit processes but also changes auditors’ ways of working and thinking. From the perspective of resource-based theory, the effective allocation and full utilization of human, technological and organizational resources can enhance the effectiveness of internal audit. Therefore, the purpose of this study is to examine the impact of internal audit processes (IAP) and internal auditor competence (IAC) on internal audit effectiveness (IAE), as well as the mediating effect of information technology usage (ITU) on the relationship between IAP and IAC and IAE. To test the proposed hypotheses, a questionnaire survey was conducted within Chinese financial enterprises, yielding a total of 133 valid responses. Statistical data analysis was performed using the partial least squares structural equation modelling (SEM-PLS) method. The results indicate that both IAP and IAC have a significant impact on IAE and ITU. Furthermore, ITU serves as a mediating factor, enhancing the positive contributions of IAP and IAC to IAE.

Analysis of Financial Report Audit Planning Based on Public Accontant Professional Standards (Case Study on Kap Dony and Ramli)

Analysis of Financial Report Audit Planning Based on Public Accontant Professional Standards (Case Study on Kap Dony and Ramli)

ARTIFICIAL INTELLIGENCE INVESTMENT, REALISTIC REPORTS, AND FINANCIAL LOSS

During audit planning, auditors examine the business of different firms. Still, the target is to minimize the discrepancy in the real planned financial statement of inspection and summary reports of internal audits. On the other hand, expenditures on artificial intelligence have been increasing in Turkish firms; according to the National Artificial Strategy document, AI will be part of every organizational process, including internal audits. Moreover, the literature supports a positive relationship between internal audits and firms’ decreasing capital loss. So, this research aims to analyze the relationship between AI expenditures, internal audit reports, and the firms’ historical loss. To reach this aim, suitable data was analyzed from 732 incorporated companies that are members of the Chamber of Trade and Industry/Tekirdag/Turkey. Structural equation modeling results show that AI investments decrease the discrepancy between financial statements and internal audit reports (β=-0.045). On the other hand, discrepancies found in the internal audit reports compared to real financial statements are increasing firms’ financial losses by almost 10% (β=.118). In other words, investing in AI contributes to more realistic financial reports, resulting in fewer financial losses. From this perspective, this study is one of the leading studies that connects AI investment to internal audits and the financial performance of Turkish firms.

The Relationship between Audit Planning, Audit Hours and Audit Quality for the Adoption of New External Audit Law：Focusing on Auditor Change

The Relationship between Audit Planning, Audit Hours and Audit Quality for the Adoption of New External Audit Law：Focusing on Auditor Change

The effect of internal audit planning on risk factors: evidence from Yemen’s banks

This study aims to determine the extension of implicating risk factors in strategic planning for internal audit in Yemeni commercial banks, including inherent risk factors and control risks, whether caused by internal or external influences, and focuses on the strategic purpose of internal audit. A questionnaire instrument, specifically designed for this research purposes, was distributed to 58 respondents comprising internal auditors of commercial banks, as well as auditors of the External Control Department of the Central Bank of Yemen. The study determines whether Yemeni commercial banks include internal auditing in their operational structure. It also determines the risks that internal auditors prioritize while developing their internal audit strategies. This study uses Smart PLS methodologies to evaluate the hypotheses through data analysis. The results indicate that internal audit is considered one of the important operational activities in the structure of commercial banks of Yemen, and that the planning process for internal audit largely takes into account the inherent risk factors and control risk factors, whether the audit process is carried out by internal auditors or auditors of Central Bank of Yemen. AcknowledgmentThe authors extend their appreciation to the Deanship of Scientific Research at King Khalid University for funding this work through a large-group Research Project under grant number (RGP.2/131/45)”.

TRENDS AND PATTERNS IN COSO-RELATED AUDITING RESEARCH: A BIBLIOMETRIC STUDY

This study aims to thoroughly examine the landscape of COSO-related auditing research by analyzing 375 publications from 2003 to 2023 after rigorous filtering. Using tools such as the Web of Science Core Collection, Biblioshiny R package, and VOSviewer, the study uncovered a significant annual publication growth rate of 2.51%, indicating collaborative efforts and a variety of document types. An analysis of recent influential research patterns provides deeper insights into COSO-related auditing trends. This research emphasizes influential authors and the prominent role of the United States in research output, emphasizing the importance of international collaborations. Keyword clusters such as “corporate governance,” internal audit, “audit planning,” and “quality” reveal the key thematic areas. The study, which was led by ABDOLMOHAMMADI MJ, examines improvements in prediction-based options trading. It shows how important it is to keep up with changing COSO guidelines and to use technology-based audit tools such as data analytics and AI to make audits more efficient and effective.

Integrated predictive analytics in IT audit planning

This review explores the integration of predictive analytics in IT audit planning, emphasizing its transformative potential in enhancing the efficiency and effectiveness of audit processes. Predictive analytics, which involves the use of machine learning, data mining, and statistical modeling to forecast future events based on historical data, has seen widespread adoption across various industries. In the context of IT audit planning, its application can significantly improve risk assessment, resource allocation, and overall audit execution. The study begins by defining predictive analytics and outlining its key techniques. It then provides an overview of the traditional IT audit planning process, highlighting its critical steps and inherent challenges, such as limited risk visibility and inefficient resource use. By integrating predictive analytics, organizations can address these challenges by leveraging data-driven insights to identify emerging risks, prioritize audit areas, and optimize audit schedules. The integration process involves several stages, including data collection and preparation, model development, and implementation. The review discusses the importance of selecting appropriate data sources, cleaning and preprocessing data, and choosing the right predictive models. It also covers the deployment of these models within existing IT audit frameworks, emphasizing the role of advanced tools and technologies. The benefits of integrated predictive analytics are manifold. Enhanced risk assessment allows auditors to proactively identify and mitigate potential issues, while improved resource allocation ensures that audit efforts are focused on the most critical areas. Additionally, predictive analytics can detect anomalies and patterns that might go unnoticed in traditional audits, thereby increasing audit effectiveness. Case studies of successful implementations in various organizations are presented to illustrate the practical benefits and outcomes of integrating predictive analytics into IT audit planning. The review also addresses potential challenges, such as data quality issues, model accuracy, and organizational resistance, offering strategies to overcome these hurdles. The integration of predictive analytics in IT audit planning represents a significant advancement in audit practices. By adopting these techniques, organizations can enhance their audit capabilities, leading to more proactive and effective risk management. The review provides recommendations for implementation and highlights future trends in predictive analytics and IT auditing. Keywords: Integrated, Predictive Analytics, IT, Aduit Planning.

Evaluating a model of best practice in primary care led post-diagnostic dementia care: feasibility and acceptability findings from the PriDem study

ObjectivesTo evaluate the feasibility and acceptability of a primary care-based intervention for improving post-diagnostic dementia care and support (PriDem), and implementation study procedures.DesignA non-randomised, mixed methods, feasibility study.SettingSeven general practices...

TAX COMPLIANCE CONTROL AND AUDIT OF TRANSFER PRICING TRANSACTIONS

The article presents the authors' vision of the features and mechanism of tax compliance control and audit in the management of transfer pricing operations. Effective interaction between business entities and tax authorities in the process of controlling and auditing transfer pricing transactions should be based on the principles of compliance with the help of two tools – assessment of the quality of transfer pricing policy and internal control system (as a result of interaction of internal and external control systems) and assessment of the quality and effectiveness of internal audit of transfer pricing (as a result of interaction of internal control and audit systems). In accordance with the above, tax compliance control and audit becomes a new element of the established system of monitoring of controlled transactions of a business entity, which proposed to understand as the use of tools to confirm the quality and effectiveness of internal control and audit systems of transfer pricing transactions of a business entity by a tax authority, which certifies the taxpayer's commitment and responsibility to comply with tax legislation in terms of compliance with the arm's length principle. Confirmation by the tax authorities of the quality of the transfer pricing policy and internal control and audit system of the entity should be based on the developed, tested and approved system of assessment parameters. Confirmation of the assessment of the quality of the transfer pricing policy and internal control system will demonstrate the responsible position of the taxpayer based on tax compliance with the transfer pricing legislation in accordance with the arm's length principle and will increase the level of trust in it on the part of the tax authorities. In turn, the introduction of such a tool as an internal transfer pricing audit quality assessment into the process of monitoring-controlled transactions will allow the company to submit and use the results of its internal audit in assessing transfer pricing risks to form its tax rating and assess the need to include it in the audit plan. This tool assumes that the internal audit system is sufficient to timely detect violations of tax legislation in the field of transfer pricing in accordance with the arm's length principle.

Contributions of internal control to public governance: a study of the perception of internal auditors of federal educational institutions

Purpose: The article aims to analyze the perception of Internal Auditors of Federal Educational Institutions regarding the contributions of Internal Control to Public Governance. Methodology: Regarding the technical procedures for collecting research data, a structured questionnaire (Survey) with multiple choices was used, on a 10 (ten) point scale with alternatives of no agreement/a lot of agreement, with 1 being no agreement and 10 being very agreement. The analysis was carried out using Factor Analysis. Results: As a result of the research, it was identified that the factors: Risk-Based Audit Planning, Transparency, Public Integrity and Accountability, obtained the highest averages as contributions of internal control to public governance in the perception of the responding auditors. Factors such as the Provision of Consulting Services and Society Participation presented the lowest averages among the factors analyzed. After the factor analysis, it was found that the first factor, Adherence to International Auditing Standards, presents approximately 59.7% of the explanatory power of the variances contained in the sample. According to the auditors' perception, adherence or alignment with international auditing standards is representative of the evolution of the governance process in federal public administration. Contributions of the Study: The study contributes to the discussion on public governance regarding the contributions of internal control to its development. The results suggest that the process of adhering to international auditing standards is an irreversible process and recognized as necessary for the development of governance in the federal public sector, given that this adherence to international auditing standards presents itself as a factor with greater explanatory power in the analysis, signaling that for public administration to follow the evolution of its governance, it must remain integrated with international standards and best practices.

AI-Driven risk assessment: Revolutionizing audit planning and execution

AI-Driven risk assessment: Revolutionizing audit planning and execution

Advances in auditing and business continuity: A study in financial companies

This paper delves into the integration of Intelligent Process Automation within the domain of business continuity auditing, with a focus on the Portuguese banking sector. In an era marked by rapid technological advancement, organizations are increasingly leveraging automation to reinforce operational efficiency and realize substantial cost savings. Concurrently, auditors play a pivotal role in ensuring seamless transitions amid technological transformations to safeguard business continuity. This research endeavors to bridge the realms of business continuity and intelligent automation, culminating in a comprehensive application that streamlines the audit process. The implemented solution encompasses the automation of critical audit activities, including communication, information requests, and final report submissions, liberating auditors from the chains of repetitive tasks. The incorporation of business intelligence augments this automation framework, enabling a meticulous analysis of key performance indicators within the audit department. This ensures a continuous evaluation of the efficacy of the Annual Audit Plan. Empirical validation of this initiative was achieved through surveys conducted with audit teams from four prominent Portuguese banks. The results unequivocally affirm the potential benefits of this implementation, extending invaluable support to management in the decision-making process, while concurrently alleviating auditors of routine tasks inherent to the audit process. This study not only underscores the transformative potential of intelligent process automation in the audit domain but also offers a replicable framework for organizations seeking to fortify their business continuity efforts through technological integration. The findings hold implications for businesses navigating the dynamic intersection of technology and audit practices, providing a blueprint for harnessing automation for enhanced operational resilience.

Analisis Kesesuaian Perencanaan Audit Laporan Keuangan Dengan Standar Profesional Akuntan Publik (Studi Pada Kap Di Wilayah Malang)

Audit planning is one of the determining factors for the success of an audit. Therefore, this stage requires special attention from KAP in order to determine a quality audit plan. To ensure this, audit planning by KAP can be guided by the Audit Standards (SA) in the Public Accountant Professional Standards (SPAP). The object of this research is one of the KAPs in the Malang area. This research aims to analyze the suitability of the audit planning carried out by KAP ABC with SPAP. The method used is descriptive analysis with a qualitative approach. Data was obtained through interviews with one of the auditor staff and observations made by the author during his internship at the KAP. The research results show that the financial report audit planning of KAP ABC is in accordance with the SPAP Audit Planning.

О проведении аудита системы управления промышленной безопасностью на примере ООО «Газпром трансгаз Томск»

The results of the audit of the industrial safety management system of Gazprom transgaz Tomsk, LLC, with the participation of the independent expert organization Scientific and Technical Center for Industrial Safety Problems Research, JSC, are provided. Notably, the audit of the industrial safety management system has been combined with the “classic” industrial safety audit. Brief information on Gazprom transgaz Tomsk, LLC, is provided, with the main focus on typical hazardous production facilities selected for the audit. The audit planning process, including the distribution of executives among the facilities to visit, in accordance with their geographic location, is described. The principles of establishment of criteria for the audit are listed. The parallel coordination of the jobs within the audit by the manager of the group of auditors and the representatives of the audit client is mentioned. A description of the stages of audit where the main attention has been paid to the industrial safety management system audit is provided. Notably, depending on the specifics of a visited department, the audit’s focuses change as well. The obtained results have been analyzed. The problem of currently missing requirements for the implementation, functioning, and evaluation of the efficiency of industrial safety management systems has been mentioned. The conclusion on the possibility and advisability of the industrial safety management system auditing combined with the control over the extent of compliance with the industrial safety requirements for hazardous production facilities as proof of the system's efficient functioning has been made. It is stated that such an experience can be used to develop regulatory and legal acts adopting the changes introduced in the Federal Law of July 21, 1997, № 116-FZ «On industrial safety of hazardous production facilities».

Analysis of Internal Audit Planning in Improving the Effectiveness of Organizational Performance at the Btm Sinar Mentari Tuban Cooperative

This study aims to describe the implementation of an internal audit in the BTM Sinar Mentari Tuban Cooperative and to describe internal audit planning in increasing the effectiveness of the performance of the BTM Sinar Mentari Tuban Rice Cooperative organization. Data collection techniques are carried out using questionnaires, observations, and interviews. Data analysis techniques are measurements with a Likert scale and descriptive statistics. Based on data analysis conducted on internal audits in increasing the effectiveness of organizational performance at the BTM Sinar Mentari Tuban cooperative, it can be seen that The results of research on the effectiveness of the role of internal audit at the Sinar Mentari BTM Cooperative show effective results. This can be seen from the calculation results showing 92.80%. The results of calculating the effectiveness of the company's performance show 92.46%; this means that the company's performance will be effective if there is an internal audit role in the company.

The Influence of External Auditing in Limiting the Creative Accounting Practices in SMEs

This study aims to identify the role of external auditing in limiting the practice of creative accounting among Small and Medium Enterprises (SMEs) in the Kingdom of Saudi Arabia. Creative accounting involves providing fraudulent numbers and may be contained through efficient external auditing and the use of the rules and conduct of professional ethics. To achieve study objectives, a descriptive approach was taken by conducting a field study using a comprehensive inventory method. To suit the nature of the study, this method targeted all audit offices not licensed to practice with joint-stock companies. A questionnaire was used to collect data from the study population, and SPSS was used to analyze the results. The study results indicate that efficiency in external auditing contributes to limiting the practice of creative accounting among SMEs through procedures and audit plans, optimal use of resources (e.g., auditors), and knowledge and use of the rules and conduct of professional ethics. This study also composed a set of proposals to serve practitioners and decision makers, including measures that ensure and develop procedures in audit offices that contribute to discovering and reducing illegal practices. KEYWORDS accounting offices, auditing efficiency, financial statements, fraudulent accounting, professional conduct, professional ethics

PENGARUH UKURAN PERUSAHAAN, PERGANTIAN AUDIT, AUDIT TENURE, DAN FINANCIAL DISTRESS TERHADAP AUDIT DELAY

The more rapidly the capital market in Indonesia develops, the more go public companies are listed, to keep up with existing competitiveness, companies listed on going public must issue financial reports. Financial reports are one of the most important instruments in seeing the performance of a company, especially companies that go public. This study looks at the effect of company size, audit turnover, audit tenure delay, and financial distress on audit delay in food and beverage manufacturing companies listed on the Indonesia Stock Exchange during 2017-2021. The type of research used is quantitative research, by taking samples using the purposive sampling method, namely 100 observation data. The analysis technique uses descriptive statistical tests, logistic regression models, then calculated using Microsoft Excel and processed with Eviews 12. The results of this study are company size, audit turnover, audit tenure, and financial distress simultaneously influence audit delay. Audit turnover has a partial effect, because the new audit takes longer to adjust to understanding the characteristics and scope of the company. Financial distress has a partial effect on audit delay, companies that experience unfavorable finances, companies will focus on improving audit planning, will also have an impact on the auditing process. Meanwhile, company size has no effect on audit delay, even though the larger the assets owned by the company, the company will still complete financial reports on time, and tenure audits have no partial effect on audit delay, because auditors are rules that have been regulated, so it will not have an impact on completion and preparation of audited financial reports.