Audit Recommendations Research Articles

The role of transparency and professional assistance in regional financial management in the Indonesian regional governments

This study aims to analyze the extent of the role of transparency and professional assistance, particularly by the Financial and Development Supervisory Agency (BPKP) in the management of regional finances toward the implementation of follow‐up audit recommendations. Using data from provincial, city, and district governments in Indonesia in 2014–2016 in Indonesia, with a final sample of 1494 observations. The results of the study indicate that the level of transparency can play a role in increasing the level of suitability of the implementation of follow‐up audit recommendations that have been given by external auditors (the Supreme Audit Board/BPK) to the Regional Governments in Indonesia. However, although at the Provincial Government level, a positive influence was found on the existence of BPKP's assistance on the follow‐up of audit recommendations, this did not apply at the district and city level, because it was found that districts and cities that received BPKP assistance had lower audit recommendations compared to districts and cities that do not get BPKP assistance. The results of this study have implications for the strategies and policies (discretion) of Local Government officials in order to improve the suitability of the implementation of follow‐up audit recommendations. Therefore, the Central Government needs to encourage and facilitate increased transparency and implementation of follow‐up audit recommendations to the Regional Government, to optimize the achievement of governance reform goals in Indonesia, especially in order to realize accountability in regional financial management.

Is imperfect evaluation a deterrent to adoption of energy audit recommendations?

PurposeEnergy-efficiency leads to productivity gains as it can lower operating and maintenance costs, increase production yields per unit of manufacturing input and improve staff accountability. Implementation of energy-efficient technologies amongst industries, the factors influencing them and the barriers to their adoption have been the subject of several studies during the past three to four decades. Though energy-use behaviours of individuals or households are sufficiently explored, industrial energy conservation behaviour is scarcely studied. This study identifies the relationship between the different behavioural elements to open up a door for behaviourally informed intervention research.Design/methodology/approachTotal interpretive structural modelling technique was used to determine the relationship between different elements of the behaviour of energy managers. Expert responses were collected to understand the relationship between the behavioural elements, through telephone interviews.FindingsThe study identified the relationship between the behavioural elements and found imperfect evaluation as the key element with the highest driving power to influence other elements.Research limitations/implicationsThe authors postulate that a behaviourally informed intervention strategy that looks into the elements with high driving power such as imperfect evaluation, lack of focus on energy-saving measures and the lack of sharing energy-saving objectives can lead to: an increase in the adoption of energy efficiency measures and thereby a reduction in the energy efficiency gap; greater productivity gains and reduced greenhouse gas (GHG) emissions; Preparation of M&V protocol that incorporates behavioural, organisational and informational barriers.Social implicationsVarious policy level interventions and regulatory measures in the energy field which did not address the behavioural barriers are found unsuccessful in narrowing the energy-efficiency gap, reducing the GHG gas emissions and global warming. Understanding the key driving factor of behaviour can help to design an effective intervention strategy to address the barriers to energy efficiency improvement.Originality/valueUnderstanding the key driving factor of behaviour can help to design an effective intervention strategy to address the barriers to energy efficiency improvement. This study argues that through the systematic analysis of the imperfect evaluation of energy audit recommendations, it is possible to increase the adoption of energy efficiency measures that can lead to greater productivity gains and reduced GHG emissions.

Australian guideline on wound classification of diabetes-related foot ulcers: part of the 2021 Australian evidence-based guidelines for diabetes-related foot disease

BackgroundWound classification systems are useful tools to characterise diabetes-related foot ulcers (DFU) and are utilised for the purpose of clinical assessment, to promote effective communication between health professionals, and to support clinical audit and benchmarking. Australian guidelines regarding wound classification in patients with DFU are outdated. We aimed to adapt existing international guidelines for wound classification to develop new evidence-based Australian guidelines for wound classification in people with diabetes and DFU.MethodsRecommended NHRMC procedures were followed to adapt suitable International Working Group on the Diabetic Foot (IWGDF) guidelines on wound classification to the Australian health context. Five IWGDF wound classification recommendations were evaluated and assessed according to the ADAPTE and GRADE systems. We compared our judgements with IWGDF judgements to decide if recommendations should be adopted, adapted or excluded in an Australian context. We re-evaluated the quality of evidence and strength of recommendation ratings, provided justifications for the recommendation and outlined any special considerations for implementation, subgroups, monitoring and future research in an Australian setting.ResultsAfter the five recommendations from the IWGDF 2019 guidelines on the classification of DFUs were evaluated by the panel, two were adopted and three were adapted to be more suitable for Australia. The main reasons for adapting, were to align the recommendations to existing Australian standards of care, especially in specialist settings, to maintain consistency with existing recommendations for documentation, audit and benchmarking and to be more appropriate, acceptable and applicable to an Australian context. In Australia, we recommend the use of the SINBAD system as a minimum standard to document the characteristics of a DFU for the purposes of communication among health professionals and for regional/national/international audit. In contrast to the IWGDF who recommend against usage, in Australia we recommend caution in the use of existing wound classification systems to provide an individual prognosis for a person with diabetes and a foot ulcer.ConclusionsWe have developed new guidelines for wound classification for people with diabetes and a foot ulcer that are appropriate and applicable for use across diverse care settings and geographical locations in Australia.

ЕКОНОМІЧНА СУДОВА ЕКСПЕРТИЗА ЯК ДОКАЗ У РОЗСЛІДУВАННІ ПОДАТКОВИХ ЗЛОЧИНІВ

The increase in the number of violations of tax legislation on the payment and settlements of taxes and fees in Ukraine, as well as the complication of the forms and means of committing such violations, necessitate a detailed study and improvement of the theoretical and methodological foundations of forensic audit. In addition, the lack of a forensic audit of settlements related to certain types of taxes and fees, among the certified and recommended for use in the Register of forensic audit methods, determines the relevance and timeliness of the research topic. The purpose of this article is to substantiate theoretical and methodological provisions and develop practical recommendations for the forensic audit of settlements related to the payment of taxes and fees. The article uses the following research methods: induction and deduction, analysis and synthesis, abstract-logical, cause-and-effect relationship. The results of the study are: study of the dynamics of tax crimes in Ukraine in recent years; substantiation of the main types of tax violations that are objects of forensic audit; determination of the features of the methodology of forensic audit of settlements related to the payment of taxes and fees; generalization of the evidence base, which is the basis for a forensic audit of settlements related to the payment of taxes and fees; development of a general algorithm for forensic accounting expertise of settlements related to the payment of taxes and fees, in the context of the main stages: preparatory, organizational, research, final. Attention should be paid to the generalization of the main procedures used at the research stage, in the context of the main types of tax settlements during conducting an expert study of adjusted tax revenues, tax expenses; calculation and payment of value added tax, personal income tax, and environmental tax. The results of the study should contribute to the further development and improvements of the theoretical and methodological foundations of forensic audit of settlements related to the payment of taxes and fees, a full and comprehensive study of the actual circumstances of the case, and also aim to create opportunities to increase the certainty of the conclusions of forensic auditors.

CURRENT ISSUES REGARDING MANDATORY AUDITING UNDER QUARANTINE RESTRICTIONS

Under quarantine conditions, there are many issues related to the life support of the country. Entrepreneurs and business owners had to ensure that work was properly organized. Even today there are many developments in accordance with current legislation and international experience in the pandemic, but not enough attention is paid to mandatory audit in Ukraine (its organization by both business owners and auditors). Under quarantine restrictions, there are many questions about the organization of business owners and employees, it is necessary to follow the rules dictated by the pandemic. Therefore, the problem arose of how to minimize risks during the audit and maximize the organization of the auditors and enterprises. In the study the author made an attempt to disclose theoretical issues and give practical recommendations for mandatory audit in quarantine.

Re-audit of upper endoscopy in Assiut University Hospital

Background Audit is an attempt to improve the quality of medical care by measuring the performance in relation to desired standards, whereas re-audit demonstrates improvements that have been made. Patients and methods A prospective study was performed through a medical audit of 100 patients at the endoscopy unit of El-Rajhi Hospital University between January and December 2017. Revision of upper endoscopy, including indications, preparations, and complications, was done. Results The mean age was 59 years. The most frequent comorbidities were liver cirrhosis (70%) and diabetes mellitus (25%). All patients were indicated for endoscopy, as the majority (70%) of patients required urgent upper endoscopy secondary to upper gastrointestinal tract bleeding in contrast to the previous study as 4% of patients were not indicated. There was an increase in the percentage of complications in our study owing to the increased percentage of postband ulcers (92%) in comparison with the previous study (90%). Conclusion Improvement in our practice was noticed after recommendations of the previous audit regarding preparation and indications. It is important that a re-audit takes place following the implementation of changes.

Internal audit stigma impairs internal audit outcomes

Prior research finds that the internal audit function (IAF) plays a critical role in organizations, yet there is still a stigma toward the profession. We examine how this stigma affects internal audit outcomes, using three different data sources: survey results from parts of Europe (113 observations) and the United States (124 observations) for the year 2017 and an experiment (65 observations) in 2018. We find that when internal auditors in parts of Europe and the U.S. believe there is a negative stigma about internal auditing, they report negative work outcomes, including less ability to add value, less influence in the organization, more resistance to implementing their recommendations, and more pressure to change audit findings. Our experimental results confirm the survey findings and provide further evidence that negative stigma causes participants to perceive less value in internal audit reports and that internal audit recommendations are less influential in decision-making. Taken together, the results suggest that negative perceptions of internal audit have a significant impact on the profession

Financial reporting, public services and local executives’ re-electability in Indonesia

This study aims to analyze the effects of audit findings, follow-up of audit recommendations, quality of financial reporting and public services on the incumbent electability. Using subnational ele...

Determinants of Successful Implementation of Audit Report Recommendations: The Case Office of the Federal Auditor General in Northern Branch

This study was carried out in order to investigate the Determinants of successful implementation of audit report recommendation in Office of federal Auditor General Audited Government Organization Northern branch in Bahir Dar. Data collection was achieved through questionnaires and the study of documentary materials. The primary data were supplied to 5 respondents focusing purposively on all audit team leaders and audit manager. The secondary data were generated from the annual summarized audit reports of 265 previously audited government organizations prepared by Office of federal Auditor General in Northern branch. The test of hypotheses and other analysis of data were done using SPSS, version 20. The tests revealed that among others, conflicts of interest, lack of follow up, employee instability and management resistance are the significant factors affecting successful implementation of audit recommendation in Northern branch. That means they are the principal factors hindering the implementation of audit report recommendation. In addition, it is found that management & employee negligence and remoteness would likely have negative in-significant effect on the implementation of audit in Northern branch. The study recommends efforts should be made to establish and strengthen follow up for previous audits, create awareness for the legal punishment related to conflict of interest and design proper information exchange system during employee turnover to improve implementation of audit recommendation. Also, regulatory authorities should exercise legal measure for management negligence and resistance for the successful implementation of audit recommendation.

Accountability in the Ghanaian local governance structure: probing the role of external auditing

The roles of external auditors have been under the spotlight due to the strategic positions they occupy to ensure accountability by public sector managers. This study examines the role of the external auditors in the accountability regime of the Ghanaian local governance structure. The study analyzed the annual reports of the Auditor General (AG) on all the metropolitan, municipal, and district assemblies (MMDAs) in Ghana from 2010 to 2018 through a content analysis method. The analysis revealed that Ghanaian audit activities had mainly focused on internal control effectiveness, cash management, contract management, revenue management, expenditure management, payroll management, and procurement management. However, the study found that the focus of the external auditors kept expanding as the years progressed. The evidence showed that the auditors excluded performance audits in their scope of work. The findings of the study further revealed that the MMDAs had recurring, repetitive, and common audit queries, comprising cash; procurement and stores; contract and tax irregularities. Besides, the audit recommendations were in response to the specific audit queries on the various financial and operational irregularities. Based on the analysis, the study concludes that the external auditing in Ghana has marginally contributed to accountability in the MMDAs. The study recommends that the scope of the external audit should include performance auditing.

A Model for Identification of Internal Audit Quality Criteria From the perspective of professional experts

A Model for Identification of Internal Audit Quality Criteria From the perspective of professional experts

Use of Prospective Audit and Feedback to Reduce Antibiotic Exposure in a Pediatric Cardiac ICU.

We sought to determine whether a prospective audit and feedback intervention decreased antibiotic utilization in a pediatric cardiac ICU and to describe the characteristics of prospective audit and feedback audits and recommendations. Before-after study. Pediatric cardiac ICU of a freestanding children's hospital. All patients admitted to the cardiac ICU. A prospective audit and feedback program was established in our hospital's pediatric cardiac ICU on December 7, 2015. The antimicrobial stewardship program audited IV antibiotics, communicated prospective audit and feedback recommendations to the cardiac ICU, and regularly reviewed recommendation adherence. Mean monthly antibiotic utilization 18 months before ("preprospective audit and feedback"; from June 1, 2014 to November 30, 2015) and 24 months after ("prospective audit and feedback"; from January 1, 2016 to December 31, 2017) prospective audit and feedback implementation was compared. Antibiotic audit data during the prospective audit and feedback period were reviewed to capture the characteristics of prospective audit and feedback audits, recommendations, and adherence. Mean cardiac ICU IV antibiotic use decreased 20% (701 vs 880 days of therapy per 1,000 patient days, p = 0.001) during the prospective audit and feedback period compared with the preprospective audit and feedback period. There was no difference in mean cardiac ICU length of stay (p = 0.573), mean hospital length of stay (p = 0.722), or the rate of discharge due to death (p = 0.541). There were 988 antibiotic audits and 370 prospective audit and feedback recommendations (37% recommendation rate) during the study period. The most commonly audited antibiotic category was broad-spectrum gram-negative agents and the most common indication for use was sepsis. Broad-spectrum gram-positive agents were more likely to be associated with a recommendation. There was a significant reduction in antibiotic use following implementation of a prospective audit and feedback program in our pediatric cardiac ICU. Over one-third of antibiotics audited in our cardiac ICU were associated with a prospective audit and feedback recommendation, revealing important targets for future antimicrobial stewardship efforts in this population.

Factors influencing the implementation of the auditor general’s recommendations in South African municipalities

Background: The establishment of democratic local government in South Africa in 2000 decentralised the decision-making powers from the centre to the periphery. Municipalities are accountable for their own financial preparation and the planning of their budgetary processes. Notwithstanding the enormous investment in terms of resources, empirical studies and municipal audit reports revealed that most of the South African municipalities were not taking corrective action on the issues of irregularities raised in prior year audits; hence, some of the weaknesses and problems remained unresolved or were recurring yearly.Objectives: To identify and discuss the factors that influence municipalities’ failure to implement audit recommendations given by the Auditor General of South Africa (AGSA) efficiently and effectively.Methods: The research methodology used in this study was mainly qualitative and relied heavily on robust literature study and the review of key official documents, such as reports on local government performance.Results: The main findings of this study are that factors influencing implementation of audit recommendation include availability of resources and time, lack of audit action monitoring processes, absence of authority, staffing problems and sometimes the poor quality of audit recommendations.Conclusion: To deal with these problems, the study recommends a number of practical strategies. These include regular progress monitoring, improving the quality of the AGSA’s recommendations and the amendment of the Public Audit Act to empower the auditor general. Most importantly, the study recommends the establishment of a monitoring and evaluation (ME) unit to regularly track progress for proper implementation of audit recommendations in the South African municipalities.

Percepção dos auditores e auditados sobre as práticas de auditoria interna como direcionamento na decisão gerencial

Esta pesquisa tem por objetivo analisar a percepção dos auditores e auditados de uma empresa do ramo petrolífero localizada em Mossoró-RN, quanto ao trabalho da auditoria interna para o processo de decisão gerencial. O estudo teve abordagem descritiva e qualitativa, a qual foi desenvolvida por meio de levantamento. Para esse fim, realizou-se a aplicação de questionários com os auditores e auditados de uma empresa petrolífera. De posse dos resultados, observou-se que a empresa é bem estruturada no que diz respeito ao setor responsável pelas auditorias internas. Contatou-se ainda que a preparação do auditor, a qualidade das recomendações de auditoria e a orientação sobre o risco foram considerados como fatores de influência sobre a qualidade do serviço de auditoria interna, sob a ótica dos auditores internos e auditados. Por fim, identificou-se percepção positiva sobre a contribuição da auditoria interna para a melhoria do desempenho dos processos, a melhoria da estrutura de controles internos e a melhoria da gestão de riscos da empresa.

Antibiotics: easier to start than to stop? Predictors of antimicrobial stewardship recommendation acceptance

ObjectivesAcceptance of prospective audit and feedback antimicrobial stewardship programme (ASP) recommendations has been shown to vary, but the drivers of recommendation acceptance are not well understood. We sought to identify the factors associated with recommendation acceptance at a large community teaching hospital. MethodsData from an ASP recommendation registry were collected from 2010 to 2018. Variables included data about the infection, the prescriber, and the recommendation, categorized by whether they increase, decrease, or are neutral to antibiotic exposure. The primary outcome was acceptance of ASP recommendations. Adjusted odds ratios and 95% confidence intervals were estimated using logistic regression models with random intercepts in order to account for clustering by prescriber. ResultsOver the 8-year period, a total of 11 014 evaluable recommendations were made to 146 prescribers, and 9058 (82.2%) were accepted. The most common recommendations were: reduce duration (n = 2796; 25%), stop antibiotics (n = 2184; 20%), de-escalate (n = 1876; 17%) and increase duration (n = 1176; 11%). Acceptance by service ranged from 70% (n = 843/1196) (surgery) to 86% (n = 6378/7444) (general medicine). In the multivariable analysis, compared to recommendations that have a neutral impact on antibiotic exposure, recommendations to decrease antibiotic exposure had lower odds of acceptance (aOR 0.73; 95%CI 0.64–0.84) while recommendations to increase exposure were associated with greater acceptance (aOR 2.00; 95%CI 1.62–2.45). Other factors associated with increased acceptance included the presence of the ASP physician during rounds and making the recommendation verbally. ConclusionsRecommendations to decrease antibiotic exposure had lower odds of acceptance than those to increase antibiotic exposure. This study presents important considerations for ASPs with prospective audit and feedback programmes aiming to evaluate and increase the impact of their recommendations.

Peculiarities and Consequences of Different Angiographic Patterns of STEMI Patients Receiving Coronary Angiography Only: Data from a Large Primary PCI Registry.

Background. Inappropriate cardiac catheterization lab activation together with false-positive angiographies and no-culprit found coronary interventions are now reported as costly to the medical system, influencing STEMI process efficiency. We aimed to analyze data from a high-volume interventional centre (>1000 primary PCIs/year) exploring etiologies and reporting characteristics from all “blank” coronary angiographies in STEMI. Methods. In this retrospective observational single-centre cohort study, we reported two-year data from a primary PCI registry (2035 patients). “Angio-only” cases were assigned to one of these categories: (a) Takotsubo syndrome; (b) coronary embolisation; (c) myocardial infarction with nonobstructive coronary arteries; (d) myocarditis; (e) CABG-referred; (f) normal coronary arteries (mostly diagnostic errors); and (g)others (refusals and death prior angioplasty). Univariate analysis assessed correlations between each category and cardiovascular risk factors. Results. 412 STEMI patients received coronary angiography “only,” accounting for 20.2% of cath lab activations. Barely 77 patients had diagnostic errors (3.8% from all patients) implying false-activations. 40% of “angio-only” patients (n = 165) were referred to surgery due to severe atherosclerosis or mechanical complications. Patients with diagnostic errors and normal arteries displayed strong correlations with all cardiovascular risk factors. Probably, numerous risk factors “convinced” emergency department staff to call for an angio. Conclusions. STEMI network professionals often confront with coronary angiography “only” situations. We propose a classification according to etiologies. Next, STEMI guidelines should include audit recommendations and specific thresholds regarding “angio-only” patients, with specific focus on MINOCA, CABG referrals, and diagnostic errors. These measures will have a double impact: a better management of the patient, and a clearer perception about the usefulness of the investments.

Stan polskiej demokracji lokalnej w świetle standardów Rady Europy i mechanizmu kontroli przestrzegania Europejskiej Konwencji Samorządu Terytorialnego – aspekty polityczne

The Condition of Local Democracy in Poland in Light of the Council of Europe’s Standards and the European Charter of Local Self-Government Compliance Monitoring Mechanism. A Political Dimension
 In the article, I will discuss a model and a mechanism of the Council of Europe member states’ compliance with the European Charter of Local Self- Government, which was developed by the Congress of Local and Regional Authorities of the Council of Europe (CLRA). A case study analysis will be based upon investigation of three monitoring procedures launched on Poland so far. The main aim of my analysis is to examine a changing condition of local democracy in Poland as evidenced in periodical assessments carried out by CLRA’s Monitoring Committee. The conclusions resulting from both audit reports and recommendations of relevant Council of Europe bodies addressed to subsequent governments of the Republic of Poland will be assessed.

External Audit Effectiveness: The Case of the Office of Auditor General, Amhara National Regional State, Ethiopia

This study examines the external audit effectiveness of the OAG in the Amhara region. Using mixed methods approach, the overall results indicated that the commonly observed audit findings of the region for more than a decade include cash deficit, outstanding receivable and payables, uncollected revenues, abuse of payments, non-compliance with procurement rules and regulations, payment without supporting evidences, improper construction expenditures, and misuse of property. The major reasons for the prevalence of audit findings are lack of professional competency, high staff turnover, poor documentation or record keeping by auditees, poor communication or information exchange, absence of accountability, ignorance and deliberate fraud, and lack of responsibility and enforcement. The study results also confirmed that the external audit has not been effective to reinforce the public fund accountability in the region mainly due to absence of accountability and failure to act by oversight bodies (legislative, executive and judiciary bodies) and auditee’s management based on audit recommendations. The audited institutions do not take timely corrective measures based on recommendations of audit findings mainly due to lack of attention by oversight bodies, absence of proper action on perpetrators at all level of management, living with fear rather than questioning at all levels as well as poor internal control system of auditees. Keywords: Audit effectiveness, Audit findings, Cash Deficit, External audit, Office of auditor General of Amhara Region DOI: 10.7176/RJFA/11-9-08 Publication date: May 31 st 2020

The effect of audit findings and audit recommendation follow-up on the financial report and public service quality in Indonesia

PurposeThis study aims to analyze the effect of audit findings and audit recommendations follow-up on the quality of financial reports and the quality of public services in the context of applying accrual accounting systems to local government in Indonesia. This study also examines whether the quality of the financial report affects the quality of public services.Design/methodology/approachThis study employed cross-sectional regression using data from 1,437 observations from 491 districts/cities for 2014–2016. The data illustrates the conditions prior to the adoption of the accrual accounting system (2014), the initial year of application/transition period (2015) and the second year of the expected accrual accounting system (2016).FindingsThe results of the study indicate that, in general, the quality of financial reports affects the quality of public services. Regarding the implementation of audits in the public sector, it is also found that audit findings have a negative impact on the quality of financial report and the quality of public services, while audit recommendations follow-up plays a positive role in improving the quality of financial report and the quality of public services.Research limitations/implicationsThe implication of the results of this study is closely related to the efforts to realize the ultimate goal of the recent government reforms. In order to increase the quality of public services in the era of higher report requirements through an accrual accounting system, the government should focus on the quality of financial reports, audit findings and the audit recommendations follow-up.Originality/valueThis study provides new insight on the link between the public sector auditing and the quality of accounting in accrual implementation context and the quality of public services.

Reporting and Follow-Up Recommendations for Performance Audit in Sai in the Republic of Serbia

Abstract Development of an integrated audit approach in state auditing enabled, in addition to financial audit and audit of regulatory compliance, audit of the public sector’s entities performance at the same time. Thus performance audit (success, value-for-money) gets primacy within the scope of activity of the supreme audit institutions. The goal of such an activity is to point to the development and importance of auditing effectiveness in the State Audit Institution (SAI) in the Republic of Serbia, emphasising reporting on performance auditing, detected irregularities in the use of budgetary resources and recommendations made to the public sector entities by SAI, as well as following them up for the purpose of more effective management and use of state property and state funds.