Audit Planning Research Articles

Active Role of Risk Management in Internal Audit Planning of Ministry of Energy and Mineral Resources

Active Role of Risk Management in Internal Audit Planning of Ministry of Energy and Mineral Resources

Environmental threat and change detection in saline lakes from 1960 to 2021: background, present, and future.

Saline lakes are internationally known for unique chemical compositions, incorporate assorted foliage, and give a few biological system benefits and have high environmental, financial, and social qualities are additionally assigned as the Ramsar site for giving wetlands to migratory birds. The anthropogenic and regular unsettling influences have influenced the water nature of these lakes by immediate or circuitous tainting of various contaminations in releases from refining, mining, and modern locales. The impacts of such exercises bring about changes to the typical attributes of saline lakes, principal limnological changes, and loss of biodiversity that debase the upsides of saline lakes. Saline water bodies are not expected and are perceived as significant inland sea-going environments. To review the present circumstance, there is a need to bring issues to light of the idea of dangers and their effects on the environment. The article remembers the situation with water contamination for some saline lakes and its unfavorable impact on biodiversity. The audit plans to cause notice the broad harm of saline lakes that have now gone through because of contamination from last years.

Auditor's versions regarding the identification and assessment of risks of financial statements' essential distortion

The paper discusses the problematic issues of identification and assessment of the risks of significant distortion by the auditor based on a hypothetical judgment in the form of a version regarding their committing as a result of fraud. It was found that business risks are the main source of creating the motivation and pressure on management personnel regarding financial reporting distortions. Depending on a number of circumstances, they may have a positive or negative assessment from the management staff. The creation of the version by the auditor is proposed to be carried out based on the knowledge of the criminological characteristics of fraud and methods of its commission. And, at the same time, to be guided by the approach, outlined in ISA 240 and ISA 315 regarding the criminological characteristics of fraud and the methods of its commission, as well as the circumstances that generate it. International Standards on Auditing (ISA) require the auditor to follow the professional skepticism over the audit, to admit the possibility of material misstatement due to fraud, despite the auditor's past experience with regard to integrity and honesty of management personnel and those, who is endowed with the highest authority (clause 15 of ISA 200 and clause 12 ISA 240). It has been established that the principle of professional skepticism requires the auditor the in-depth assessment of the risks of material distortion of financial statements, obliges to make assumptions on the presence of opportunities for fraud in the business entity's activity in each audit, regardless of the positive characteristics of the management staff. The knowledge of such assumptions requires the auditor to make hypothetical judgments in the form of a version., the audit plan is prepared based on the judgments.

Long-term audit staff scheduling and planning: A case study of Brazilian civil aviation authority

This paper provides a customized optimization approach for the long-term audit staff scheduling problem of aviation approved training organizations (ATO) in Brazil. We formulate the problem as a set covering problem by considering both auditors’ assignments and ATO’s arrangements to minimize the total cost of staff traveling. However, the developed formulation is difficult to solve for real-world instances due to the exponential number of decision variables. Further, the formulation is inflexible enough to incorporate peculiarities of each real-world problem. Towards decreasing the problem complexity, allowing to incorporate several real features, a two-phase method is proposed. First, we group the companies to be audited in fewer groups as possible, generating fewer travels. Second, we assign auditors to the groupings of companies generated. A case study is conducted with real data from the Brazilian Civil Aviation Authority regarding audits conducted on aviation organizations. The results show the model can be used during the planning phase of audits, including scenario analysis with different parameters to support decision-makers.

Peranan Audit Internal Untuk Menunjang Efektivitas Pengendalian Internal Persediaan Barang Dagang Pada PT Intan Pariwara Branch Office Metro

This study aimed to determine the role of internal audits in supporting the effectiveness of internal inventory control at PT. Intan Pariwara Branch Office, Metro. The method used in this research is qualitative with a descriptive approach. The data subject is the administration section and the Warehouse section. Data obtained by researchers through interviews and questionnaires distributed directly to research subjects. Data analysis used the miles method: data collection, data reduction, data presentation and drawing conclusions. This study's conclusion explains that the internal audit's role in inventory control has not carried out internal audit activities under good fieldwork standards: not fully implementing audit planning, program auditing, and audit procedures. And inventory control is not adequate. The completeness of invoices evidences this for issuing goods and receiving goods that are not arranged and stored properly so that it impacts stock.

THE IMPLEMENTATION OF A MANAGEMENT AUDIT ON HR RECRUITMENT TO ASSESS THE EFFECTIVENESS OF EMPLOYEE PERFORMANCE

The purpose of this study was to determine the effect of audit planning, recruitment and selection and placement of human resources on the performance of company employees at Pt Indo Taichen Textile Industry. The population of this study includes all parts and divisions of Pt Indo Taichen Textile Industry. The sampling technique used was purposive sampling technique. The type of data used is primary data from interviews and observations to companies and secondary data obtained from company audit reports. The analytical technique used is multiple linear regression analysis using SPSS 26 software. The results showed that the planning audit partially had a significant positive effect on employee performance, the recruitment audit partially had no significant effect on employee performance, and the selection and placement audit partially did not have a significant effect on employee performance. The results of this simultaneous study indicate that the Human Resources (HR) audit affects improvements in improving the performance of company employees, because companies that have carried out audits can find out what HR programs have not been fulfilled, repaired and improved again by the Company.

Analysis of Risk-Based Internal Audit Planning Implementation and Its Impact on Audit Quality: Case Study at the Inspectorate of Surakarta, Indonesia

This study aims to determine the implementation of risk-based audit planning in the Inspectorate of Surakarta and its impact on audit quality. In addition, this study also identifies factors that hinder the implementation of the risk-based audit plan. The approach used in this research is a qualitative approach with a case study method. This study concludes, firstly, that the risk-based audit planning at the Inspectorate of Surakarta consists of the strategic planning stage, annual audit planning, and individual audit planning assignments. Second, the Inspectorate of Surakarta has encouraged the identification and risk assessment process for local government agencies through the preparation of a risk register, which has been well documented. But the Local Government Agency is taking a long time to send the Inspectorate its risk register. Furthermore, the impact of risk-based audit planning at the Inspectorate of Surakarta on audit quality can be seen from the value of the results of the external peer review in 2022, with the category "Good." In addition, risk-based audit assignments are able to narrow the scope of audits on high-risk programs and activities and save audit time. Factors that hinder the Surakarta City Inspectorate in implementing risk-based audit planning in terms of annual planning include the inadequate quality of risk management in OPD, delays in compiling risk registers in the Local Government Agency, and changes in nomenclature.

A reference model for auditing organisational resilience

There is a growing interest in the organisational resilience. The internal audit function can contribute to growing and maintaining organisational resilience by including the topic in the internal audit plan. Auditing it requires a reference model. The study described used a mixed methods approach to develop a reference model for auditing organisational resilience. Six relevant hard and soft (behavioural) elements of resilience are determined: people, culture, strategy, processes, governance and regulation. The internal audit function can use the tool to assess attention areas to include in the audit scope and formulate a specific reference framework for the organisation.

An Overview of Quality Audit: A Boon for Pharmaceutical Sector

This review article covers a combination of aspects of the sole entity which defines the quality of products in the pharmaceutical sector. Quality audit is one of the essential elements of ISO 9001 quality system standards. It assures that an organization has distinctly defined a quality system to manufacture the quality products and work according to it. Concession or negotiation in quality of pharmaceutical products would directly impact the health of patients so audits are performed at specified time interval to ensure the quality as it is benefaction for the companies towards gaining loyalty from customers, maintain regulatory standards, long term revenue and profit. Regulatory bodies have their standard assessment tools termed Audits and Inspection, which reviews and evaluates various records, systems, and procedures followed in an organization. Most of the articles glorify that the quality audits mainly involve documented examinations and verification of all the processes and activities routinely performed, leading to ensure the required quality standards. The article is a result of a collection of data about the principles and objectives of quality audit and the benefits it provides to the respective firm by following the proper audit plan, procedures, corrective actions, and follow up making us aware of methods of gathering information for an audit, a brief knowledge of audit closure meetings, reports and basic criteria for selecting the auditor. Auditors play an important role to guarantee their organization’s consistency with pharmaceutical United States Food and Drug Administration and current Good Manufacturing Practices guidelines and other quality standards like ICH Q10. The article also describes the deficiencies occurring during and after the audit and a case study regarding the audit. The figures represented in the given article comprises the basic principles of audit, types of audits, steps of conducting an audit efficiently, audit management, and flow cycle of audit which gives an overall idea of the running of audit in a consistent manner to check the product meets the regulatory requirements, expected results and patient’s compliance.

Mengelola Audit pada Tahap Perencanaan

Abstract: Purpose): This study aims to review the conformity of the implementation of financial report audit planning carried out by the XYZ Public Accountant Office with auditing standards, and get an overview of how good audit planning practices are considering the risk and management aspects of the engagement are taken into account. Methodology: The method used is descriptive qualitative combining literature studies and field studies. Public Accountant Office (KAP) XYZ (pseudonym) domiciled in Tangerang was used as the object of the case study. Results: The results show that the policies and procedures for planning audits of financial statements at KAP XYZ are generally in accordance with auditing standards and pay attention to risk, but due to time and cost factors there are exceptions to the involvement of members in planning and the use of specialists in conducting audits. Limitations: The limitations of this study are the relatively short field period, by only focusing on the study on the audit planning stage. Contribution: This study can be a comparison for auditors and KAPs, especially how the stages of planning activities are carried out, knowing their weak points (for example in the case that team members are not optimally involved in planning, even though they are executors of the audit program). In general, the study is also useful scientifically, namely linking aspects of management (management) with auditing practices at the planning stage. Keywords: 1. Audit 2. Planning Stage 3. Managing 4. Risk

Auditor's responses to changes in risk

This paper examines whether auditors plan engagements to be the same‐as‐last‐year (SALY) and if they respond to changes in risk both before and during audit engagements by varying engagements from planned. These are important questions considering audit standards require the assessment of risk and general concerns about audit quality and fee pressure. We provide new insights using a proprietary database containing both quoted and reported audit hours and fees. We find that the basis quoted audit hours and billing rates (i.e., audit plans) are prepared on is not SALY. However, as there is little difference for audit hours, we conclude that they are based‐on‐last‐year (BOLY). Changes in audit characteristics are associated with the variance between quoted and reported audit hours and billing rates. In addition, auditors with higher reputational risk quote more audit hours and have a higher quoted average billing rate and further increase them from quoted.

Auditor interventions that reduce auditor liability judgments

Prior research documents jurors do not always respond consistently, or favorably, to auditors' quality-intended efforts. Counterintuitively, in some instances, doing more has led to greater liability, not less (Reffett, 2010). We hypothesize (and find) that proactive engagement of the corporate audit committee will reduce counterfactual thinking, and the proactive use of a forensic specialist at the audit planning stage will reduce negative intention-attributions. We further hypothesize these interventions, in turn, will reduce negative affect toward the auditor and negligence judgments. Our research leverages counterfactual thinking, attribution, and blame theories, and the use of affect as information. Additionally, we build on recent research that finds proactive preventive actions and the presence of a strong, active audit committee can reduce auditor liability judgments (Alderman & Jollineau, 2020; Frank, Grenier, & Pyzoha, 2021). Unlike Reffett (2010), we find that auditor's incremental efforts can reduce, rather than increase, negligence judgments. Our scenarios differ from those of Reffett in the timing and nature of auditor interventions and the root causes of the audit failure. We contribute to ongoing research examining the effects of auditor choices on jurors' judgments.

TÜRKİYE’DE BAĞIMSIZ DENETÇİLERİN İÇ DENETÇİ ÇALIŞMALARINDAN FAYDALANMASI ÜZERİNE BİR ARAŞTIRMA

Uluslararası Denetim Standartları kapsamında bağımsız denetim risk odaklı bir yaklaşım ile yürütülmektedir. Bu anlayış çerçevesinde iş süreçlerinde finansal tablolarda önemli yanlışlığa sebep olabilecek yapısal riskler belirlenir, işletmenin bu riskleri yönetebilmek için geliştirdiği kontroller tespit edilir ve bu kontrollerin test edilmesi suretiyle de önemli yanlışlık riski değerlendirilmiş olur. Bağımsız denetçinin uygulayacağı müteakip denetim prosedürlerinin kapsam ve içeriği belirlenmiş olan önemli yanlışlık riskine göre şekillenir. Uluslararası İç Denetim Standartları çerçevesinde yürütülen bir iç denetim çalışmasında da iş süreçlerindeki riskler ve ilgili kontroller değerlendirilir, mevcut ve potansiyel riskler için öneriler geliştirilir ve bu değerlendirme sonucunda denetim planındaki öncelikli alanlar belirlenir. Farklı bakış açılarıyla yürütülüyor olmasına rağmen, her iki denetimde de risk odaklı bir denetim anlayışı vardır ve özellikle iş süreçlerinin incelenmesi, risklerin ve kontrollerin belirlenerek test edilmesi aşamalarında benzer çalışmalar yürütmektedirler. Dolayısıyla, bağımsız denetçi ve iç denetçi arasındaki işbirliği, verimliliği artıracak, kaynak israfını önleyecektir. Bağımsız denetim standartları, bağımsız denetçilerin iç denetçi çalışmalarından faydalanmaları konusunda gerekli düzenlemeleri yapmıştır. Bu çalışma ile Türkiye’de denetim şirketleri üzerinden bir anket çalışması yapılarak bu işbirliğinin ne düzeyde olduğu, bağımsız denetçilerin iç denetçi çalışmalarından denetim sürecinin hangi aşamasında ve ne kapsamda faydalandığı ortaya konmaya çalışılmıştır.

Detection and evaluation of fraud during the public sector audit

The activities of public sector institutions are an area, which is sensitive to the fraud risks. This is due to the significant use of budget funding, the existence and access to state property. Fraud and corruption are serious threats to the functioning of the public sector because of the potential financial and reputation damage and consequences from fraud for the institution. The application of international standards and best practices of public sector audit will allow to detect and prevent cases of fraud. It will help to save budget funds and state property. The research is based on the results of scientific works of domestic and foreign scientists, texts of international auditing standards on public sector audit (ISSAI) and national regulations of Ukraine. The study used cases of fraud with budget funds basing the information from the reports of the Accounting Chamber of Ukraine for 2018-2021. Therefore, there may be no direct visible evidence of fraud, and the auditor should pay attention to identifying fraud risks, including third parties’ testimonials, to consider the results of previous public audits, to provide interviews with management and employees of organization. The general procedure for detecting fraud during a public sector audit is determined in paper. It includes the range of steps, that should be done by public sector auditor: fraud risk assessment at the audit planning stage; identification of transactions for which audit procedures should be performed; audit evidence gathering, assessment of their sufficiency and acceptability and conducting additional procedures (if necessary); consideration of audit evidence and the formation of an opinion on the existence of fraud facts; communication on the information to those who are endowed with the highest authority at the object of audit; consideration of competent authorities to be informed of the existence of fraud at the object of audit. This will help to structure the audit work during the public sector audit and to determine the logic of the auditing process based on the assessed risks of fraud, and to achieve results of auditor procedures, that could be evaluated.

Ergonomic Interventions in the Implementation of Risk-Based Audit to Overcome Dysfunctional Auditor Behavior

It is undeniable that auditors are expected to develop a strong audit plan to produce value-added audit reports. Given the preceding, current practice in auditing shows that many auditors use Risk-Based Audit (RBA) to determine an appropriate audit scope. RBA could effectively guide auditors to define audit scope based on the assessed risk. However, RBA does not consider human factors in performing audits. Consequently, most auditors encounter time budget pressure in meeting tight audit deadlines. Such an issue could adversely affect auditors' productivity and health. On the other hand, ergonomics is a discipline that focuses on human capabilities in completing tasks. The study also guides employees to adapt to the job while improving their well-being and increasing the quality of work results. Therefore, this study aims to intervene the principles of RBA with ergonomics. RBA consists of three stages: risk assessment, response, and reporting. The authors have concluded that ergonomics could intervene in RBA in the risk response step once the risk level is determined in the risk assessment phase by conducting a literature review study. Therefore, the auditors should balance the time budget allocation based on the assessed audit risk (low, moderate, or high). As the entity's risk is high, the audit team should be given an extended time allocation and vice versa. The findings suggest that auditors should develop an appropriate time budget scheme for specific audit procedures based on the assessed risks resulting from RBA implementation.

Implementation of Information Security Audit for the Sales System in a Peruvian Company

Technology has been updated over the last few years, and this has been generating a worldwide impact as currently, in this pandemic, several companies have been victims of information theft through hacks, as some companies do not have audits so that they can protect their information. The management of computer security audits in companies is very important to detect possible risks and manage business control by applying continuity management in each disaster. The article's main objective is to implement an audit plan and information security through ISO 27001 for a sales system to improve computer security. The literature review is on the definition of several processes that are part of our implementation development. Our methodology employed five stages of project management (Start, Planning, Execution, Monitoring and control, and closure), explaining the procedure and definition of each stage. The case study is the development of each stage that identifies the risks and obtains a solution to any threat. The results are the treatments of the risks carried out in the company, explaining the compliance with the clause and controls of ISO 27001 in the company. Finally, the analysis of the indicators of each policy of the company to know the improvement the company Domingez.

Concurrent 19. Presentation for: Developing an in-depth understanding of PFAS to deliver an effective remediation strategy

Presented on Wednesday 18 May: Session 19 Esso Australia Resources Pty Ltd and BHP Petroleum (Bass Strait) Pty Ltd own a range of offshore and onshore hydrocarbon production facilities, which have been operated by Esso Australia Pty Ltd (Esso) for over 50 years. The Longford Fire Training Ground (FTG) is located adjacent to the Longford Plants and has been utilised by Esso for many years to train personnel in practical hydrocarbon firefighting skills, including applying firefighting foams to extinguish liquid hydrocarbon pool fires. In line with historical standard oil-field practices, per and polyfluoroalkyl substance (PFAS) containing firefighting foams were used at the Longford FTG. In response to the reported use of these foams and the potential for contamination associated with historical site operations, the Longford premises were the subject of recent environmental audit and clean-up plans with oversight by an EPA Victoria auditor. Esso engaged a broad range of experts to complete the environmental investigation and develop a remediation action plan that complied with the PFAS National Environmental Management Plan. Key aspects of this project included: understanding the location and setting, with respect to geological conditions and groundwater impacts; development of remediation objectives and strategy; identification of practical remediation methods including short-term and longer-term measures to mitigate priority PFAS sources within the FTG; and a planning framework for future management of the premises. This paper shares how a responsible operator applies a disciplined and scientifically based environmental approach to further the state of knowledge on practical PFAS remediation methods and achieve a sustainable environmental outcome in the communities that they operate in. To access the presentation click the link on the right. To read the full paper click here

Developing an in-depth understanding of PFAS to deliver an effective remediation strategy

Esso Australia Resources Pty Ltd and BHP Petroleum (Bass Strait) Pty Ltd own a range of offshore and onshore hydrocarbon production facilities, which have been operated by Esso Australia Pty Ltd (Esso) for over 50 years. The Longford Fire Training Ground (FTG) is located adjacent to the Longford Plants and has been utilised by Esso for many years to train personnel in practical hydrocarbon firefighting skills, including applying firefighting foams to extinguish liquid hydrocarbon pool fires. In line with historical standard oil-field practices, per and polyfluoroalkyl substance (PFAS) containing firefighting foams were used at the Longford FTG. In response to the reported use of these foams and the potential for contamination associated with historical site operations, the Longford premises were the subject of recent environmental audit and clean-up plans with oversight by an EPA Victoria auditor. Esso engaged a broad range of experts to complete the environmental investigation and develop a remediation action plan that complied with the PFAS National Environmental Management Plan. Key aspects of this project included: understanding the location and setting, with respect to geological conditions and groundwater impacts; development of remediation objectives and strategy; identification of practical remediation methods including short-term and longer-term measures to mitigate priority PFAS sources within the FTG; and a planning framework for future management of the premises. This paper shares how a responsible operator applies a disciplined and scientifically based environmental approach to further the state of knowledge on practical PFAS remediation methods and achieve a sustainable environmental outcome in the communities that they operate in.

Analysis of planning for the audit of the cooperative's financial statements at the Cooperatives Assisted by the Department of Cooperatives and MSMEs in Bandung City

This study aims to determine whether the procedures and planning for the audit of the financial statements of the cooperatives under the supervision of the Public Accounting Firm are by the Auditing Standards. This research method uses a descriptive qualitative method by analyzing the cooperative financial statement data that has been audited by the Bandung City Cooperative Service based on interviews and other field findings. Primary data obtained directly from the results of interviews with the staff of supervision and auditing, and secondary data in question can be in the form of audit planning documentation of financial statements, which are summarized in the Audit Work Paper and general guidelines for auditing financial statements (Audit Manual) of the Bandung City Cooperative Office. This research at the Department of Cooperatives, Micro, Small, and Medium Enterprises in Bandung City is located on Jl. Kawaluyaan No. 2 Jatisari, Buahbatu District, Bandung City. After conducting an analysis based on interviews and documentation, the Bandung City Cooperative Service does not yet have an audit plan used as a guide in carrying out supervision and examination of the financial statements of Cooperatives in the City of Bandung. The inspection or audit should be carried out by a Public Accounting Firm and a public accountant because the task of the Bandung City Cooperative Service is only to collect cooperative data that will be examined. So after analyzing the financial statement audit planning according to SPAP, it can be seen that the design of the Bandung City Cooperative financial statement audit planning is not by the financial statement audit planning according to SPAP.

Risk identification, assessment and management in the Greek public hospitals: The contribution of the board of directors and internal audit

Research Question: Our study examines the development of a reliable internal audit plan in the Greek public hospitals, focusing on how to identify, assess and evaluate the relevant risks by the Boards of Directors. Data: We use an exceptional database drawing information from a large sample of Greek hospitals based on a structured questionnaire for the period from September 1, 2015 to March 31, 2017. Tools: As our primary source of data we conduct interviews with CAEs of Greek hospitals’, while secondary data sources come from corporate governance codes, COSO framework for ERM, Greek corporate governance laws, regulations, best practices and published articles. Findings: Taking into account the financial crisis of the last ten years in Greece as well as the pathogenesis of the healthcare system, we note the poorly organized risk management in Greek hospitals. The results show that the financial crisis had a direct impact on the way risk management of public hospitals operates. Furthermore, we observe denial of the application and implementation in the form of formal guidelines to the members of the hospitals’ Board of Directors. Contribution: Research findings can have a catalytic effect on hospital management and those who implement public policies.