Management Audit Research Articles

Financial management audits for school quality improvement in Indonesia: A comprehensive literature review

The purpose of this study is to examine financial management audits of educational institutions to improve the quality of schools in Indonesia. This literature review involves several key steps: identifying and narrowing the research topic; searching for relevant literature sources including books, articles, journals, and other documents; reading and understanding the contents of these sources; compiling and analysing the collected data; and finally, drawing conclusions from the research. This study's findings underscore the critical importance of financial audits for educational institutions in ensuring compliance with laws and regulations, enhancing transparency and accountability, boosting the efficiency and effectiveness of financial management, preventing fraud, and securing the sustainability of these institutions. Financial audits serve a crucial role in the improvement of educational quality in Indonesia by fostering accountability and transparency in budget usage. Regular audits require institutions to meticulously account for financial transactions, mitigate the risk of fund misuse, and promote effective fund allocation. This suggests that bolstering financial audit practices in Indonesian educational institutions can significantly elevate educational standards.

Empowering Auditors to Pursue Fraud during Evidence Evaluation

SYNOPSIS Auditors struggle to respond skeptically to fraud, diminishing audit quality. This problem is particularly prevalent during the evidence evaluation phase of the audit, when auditors perceive intense time constraints. Theory suggests that employees who feel empowered overcome constraints and produce higher quality work. We predict and find support for our empowerment theory-driven judgment model. Specifically, as auditors in the evidence evaluation phase feel more empowered, they assess fraud risk higher when fraud is present, leading them to indicate a greater need for more work and, ultimately, recommend more effective audit procedures. In further support for our theory, we find that as auditors feel more empowered, they perceive audit constraints as less restrictive. Regulators advocate for increased auditor vigilance against fraud, and this study contributes to research and practice by identifying an audit management strategy—empowerment—that successfully improves auditors’ fraud pursuit during evidence evaluation.

PENGARUH PERGANTIAN MANAJEMEN, UKURAN PERUSAHAAN, AUDIT FEE, DAN REPUTASI AUDIT TERHADAP AUDITOR SWITCHING

This study aims to examine the effect of management change, firm size, audit fees, and audit reputation on auditor switching which are used as the dependent variable. The data used is secondary data obtained from the financial reports of companies in the Industrial Sector listed on the Indonesia Stock Exchange (IDX) from 2018 to 2020. This sample consists of 40 companies selected using a technique known as purposive sampling. . Using multiple linear regression analysis, the relationship between variables is investigated in this study. This research was processed using SPSS Version 25. The results of this study, partially Management Change, company size, Audit Fee, and Audit Reputation have a positive effect on Auditor Switching. Simultaneously all variables have a positive and significant effect on profitability

PENGARUH KOMITE AUDIT, KEPEMILIKAN MANAJERIAL, UKURAN PERUSAHAAN, DAN LEVERAGE TERHADAP INTEGRITAS LAPORAN KEUANGAN DENGAN KULITAS AUDIT SEBAGAI VARIABLE MODERASI (STUDI EMPIRIS PADA PERUSAHAAN NON-CYCLICALS DAN CYCLICALS DI BEI PERIODE 2018-2022)

The purpose of this research is to test and share empirical facts regarding the influence of audit committees on theintegrity of financial statements, industrial aspects of management ownership, leverage and audit quality. The purposeof this research is to determine the influence of audit committees, management ownership, industry size and financialreporting integrity with audit quality as a moderating variable The expected results of this research can be summarizedas follows: audit committees have a significant positive influence on the integrity of financial reports; corporateresponsibility has a significant positive effect on the integrity of financial reports, industrial aspects do not have amaterial impact on the completeness of financial reports. Leverage has no significant effect on the integrity of financialreports; Audit quality does not moderate the influence of the audit committee on the integrity of financial reports; Auditquality moderates the influence of corporate responsibility on the integrity of financial reports, audit quality does notmoderate the influence of industry aspects of the completeness of financial reports, audit quality does not moderate theinfluence of leverage on the completeness of financial reports.

Corporate Governance Implications for Sustainable Performance: Focus on Leading Energy Producers in Denmark, Estonia, Latvia, Lithuania, and Sweden

This paper aims to evaluate corporate governance in relation to enterprise performance indicators in order to enhance it. The intention is not only to align with the interests of shareholders, but also to foster competitive, sustainable, and inclusive growth. For this purpose, the leading energy producer in each of the five countries—Denmark, Estonia, Latvia, Lithuania, and Sweden—was investigated to evaluate their corporate governance performance. An analysis was conducted, employing regression analysis, Pearson correlation, and descriptive statistics. The influence of corporate governance on the performance of chosen enterprises was examined, utilising specifically developed models. The findings reveal that the corporate governance variables are diverse, and financial metrics exhibit significant variability, reflecting the complexity of the energy industry. The research results confirm that larger and more varied boards positively impact the performance of state-owned power suppliers and increase their net income. The presence of independent members was also found to contribute to the net income growth of state-owned power suppliers. However, the study indicated that the frequency of audit meetings does not necessarily increase earnings. Still, larger audit committees can contribute to CG decision-making processes concerning debt management. The results also implied the need to consider the qualifications of the board members and its composition for proper power interruption management to minimise the frequency and duration of power outages. Therefore, it must be of pivotal focus for respective corporate governance duties. In this respect, the need for more specific and regular assessments was also found to be justified regarding industry-specific challenges related to power system disruptions. Customer-centric strategies should deserve relevant attention as well. The enforcement of the management audit function could be a solution. Consequently, assessing the governance structures and decision-making processes must be systematic for energy producers due to the business dynamics leading to the revaluation of the evolving challenges and possible solutions aimed at the competitive and sustainable development of the energy sector.

TURKISH COURT OF ACCOUNTS: ANALYZING FINANCIAL AUDIT, DIGITALIZATION, AI IMPACT

Countries’ audit institutions play a critical role in financial management and accountability. These institutions perform tasks such as financial accountability, detection of corruption and errors, evaluation of government performance, accountable public administration, transparency and legal oversight, and prevention of legal violations, contributing to public trust. The Court of Accounts Presidency is the supreme audit institution of the Republic of Türkiye. This study sequentially addresses the audit process and procedure of the Court of Accounts, the impact of digitization, information technologies, and artificial intelligence on the audit process. Additionally, an evaluation of the institution’s technology and information infrastructure is conducted. A detailed assessment is presented regarding the Court of Accounts’ use of the Court of Accounts Data Analysis System (VERA), Unified Data Transfer System (BVAS), and Audit Management Program (SayCap). The institution’s technology and information infrastructure related to big data and big data analytics are evaluated based on the institution’s reports and documents. Finally, evaluating the potential integration of artificial intelligence into these systems is considered highly beneficial. For human resources in the field to be more proficient in current technologies, implementing artificial intelligence, big data, and big data analytics in the audit domain of public institutions is seen as highly advantageous. Additionally, it is strongly recommended that educational institutions training audit professionals incorporate courses on data analytics, big data, big data analytics, machine learning, and artificial intelligence into their curricula.

Sistem Informasi Manajemen Audit Trio Motor Banjarmasin (Studi Kasus : General Affair)

The study discusses the development of the Audit Management Information System (SIMA) at PT. Trio Motor, a company selling cars and motorcycles, also serving as the Main Dealer for Honda motorcycles in South Kalimantan and Central Kalimantan. SIMA addresses branch separation and reduces fraud in audits. Its goal is to streamline data collection, storage, analysis, and enhance planning, execution, and reporting efficiency. The research formulates design, creation, and implementation issues of SIMA for spare part audits. SIMA scans real-time part numbers, shelf locations, generates H3 format reports, and conducts synchronized warehouse audits. It aims to design, create, and utilize SIMA as a spare parts audit tool. The benefit lies in improving spare parts stock opname data collection. SIMA uses UML for database design, SQLServer for storage, and is developed with codeigniter 3 and bootstrap. It offers user access levels: Super Admin, Auditor Manager, Auditor, General Affairs, and Warehouse. Recommendations suggest ongoing development for complexity, features, and regular maintenance to prevent bugs. This research is crucial in aiding PT. Trio Motor's Audit Division for efficient and effective spare parts audits, reducing fraud risk.

The study of the place of management audit in the structure of the types of services provided based on the disclosure of information about them on the official websites of audit and consulting groups of the Russian Federation

The study of the place of management audit in the structure of the types of services provided based on the disclosure of information about them on the official websites of audit and consulting groups of the Russian Federation

Remote Audit Quality, Audit Efficiency, and Auditors’ Job Satisfaction: Implications for Audit Firms and External Auditors

SUMMARY In the aftermath of the COVID-19 pandemic, remote and hybrid audits have become institutionalized in the external audit profession. However, the impact of remote/hybrid audits on audit success (i.e., audit quality, audit efficiency, and auditor job satisfaction) is not clearly understood. Recruiting external auditors (including audit associates, audit seniors, audit managers, and audit partners) with an average of three to five years of auditing experience, Li, Goel, and Williams (2023) found that working remotely is associated with high audit efficiency. They also found that in comparison to on-site audits, remote audits show increases in technology reliance, professional skepticism, workload, fatigue and frustration, risk-seeking attitudes, and team monitoring rigidity and decreases in auditor–client communication and cooperation efficiency. Furthermore, Li et al. (2023) identified situational and dispositional factors that become critical in remote/hybrid audits. We summarize the key findings of their paper and provide actionable suggestions for audit practitioners. Data Availability: Data are available upon request. JEL Classifications: M42.

تطبيق دروس السلامة المستفادة من قطاع الطيران المدني التجاري على صناعة النفط والغاز

Commercial aviation safety-related protocols and initiatives have received considerable interest from several industries due to the widely recognition of their effectiveness as an ultra-safe industry. And yet, it’s not clear how to adopt these protocols in oil and gas sector. Thus, this article provides a typology of these protocols to apply to the oil and gas sector. This paper examines seven examples of error counter measures used in commercial aviation safety. Examples are Crew Resource Management (CRM) and Line Operations Safety Audit (LOSA) methodology. This would help in developing a conceptual typology that might potentially apply to the oil and gas industry. The initiatives examined in this article fall into twofold themes: concepts that seek to increase collective awareness of safety values; and concepts that promote safety by design. The results of this research revealed that all task checklists, joint safety briefings, and the confidential safety reporting system are protocols that help users routinely enhance workplace safety. However, initiatives such as the sterile cockpit system and LOSA approach in frontline operations fall under the responsibility of middle and upper management to ensure safety performance. Examining and discussing the proposed typology with the sector’s safety experts and front-line professionals before the implementation process would highlight any unanticipated challenges, and therefore proactively reduce them to promote an organizational safety culture in the oil and gas sector which enables operational cost reduction and mitigates loss-time injury. Finally, this study outlines that it is possible to benefit from aviation safety standards in the oil and gas sectors and achieve higher safety performance. Keywords: Oil & Gas Safety; Occupational Safety; Safety Management; Safety Culture; Aviation Safety; Threat and Error Management.

Sustaining Government Internal Auditor Performance: A Mixed Method Study

Both public and private organizations in the modern era greatly value the services of auditors since the outcomes of their decisions can reveal an organizations transparency. To ensure no errors are made when evaluating an organization, an auditor needs to be competent and independent in attitude. This study aims to analyze and examine the factors that influence time budget pressure, independence, and competence on internal auditor performance in BPKP North Sumatera. Research is being conducted using an applied mixed-methods approach. All BPKP North Sumatera auditors are included in the research population for both the qualitative and quantitative sections. Purposive sampling was used to select six audit managers and staff for the qualitative section research sample and to select fifty-five people for the quantitative section study sample. The data was analyzed with Partial Least Squares-Structural Equation Modeling (PLS-SEM). The results of this study indicate that time budget pressure, independence and competence have significant effects on the internal auditor performances. Meanwhile, motivation had no effect on the performance of the internal auditor in BPKP North Sumatra. Motivation is proven to be able to mediate the effect of independence on auditor performance. Motivation is unable to mediate the effect of time budget pressure and competence on the internal auditor performances in BPKP North Sumatera. The study findings suggest that internal auditors should be considered when evaluating government sector audits and that they should be provided with information to help government internal auditors maintain and enhance audit quality.

Exploring the Interplay of Corporate Governance, Family Ownership, and Shariah Compliance on Firm Efficiency

The contemporary study identified a gap in sympathy for how Shariah compliance and family ownership moderate the impacts of corporate governance and firm efficiency. Therefore, the objective of the investigation of the connection between different facets of corporate governance and business efficiency, with a specific objective, is to investigate the moderating effect of Shariah compliance and family ownership linking corporate governance and firm efficiency. The panel data was taken from the Pakistan Stock Exchange, which had 475 non-financial listed firms from 2014 to 2024. The panel data was analyzed via OLS regression, and various diagnostics assessments were used to estimate and analyze the data precisely. In addition, SEM via SmartPLS was used to evaluate the moderation effect using the bootstrapping method. The results show that audit committees, management ownership, and board independence all significantly increase firm efficiency, but Shariah conformity and family ownership show intricate moderating impacts. The originality of this research resides in its thorough examination of how contextual elements and corporate governance interact to affect company success, offering investors, business executives, and legislators insightful information.

The connectivity of internal audit and risk management research

The connectivity of internal audit and risk management research

Management changes drive auditor switching in Indonesian companies

This study investigates the influence of audit opinions, management changes, and company growth on auditor switching, with financial distress as a moderating variable, in transportation and infrastructure companies listed on the Indonesia Stock Exchange from 2018 to 2021. Using purposive sampling, 48 companies were selected, resulting in 192 data points analyzed using Partial Least Square (PLS). Results show that management changes significantly impact auditor switching, while audit opinions and company growth do not. Financial distress does not moderate these relationships. The findings underscore the importance of management changes in auditor decisions and suggest further research should explore additional factors and extend the study period for more comprehensive insights. Highlight: Management Changes: Significantly impact auditor switching. Audit Opinions and Growth: No significant effect on switching. Financial Distress: No moderating effect on studied relationships. Keyword: auditor switching, management changes, financial distress, audit opinions, company growth

Enhancing the internal auditors' effectiveness in jordanian companies: The impact of cloud-based accounting usage and the moderating role of digital proficiency

The main aim of this research was to explore how the digital proficiency of internal auditors impact the relationship between adopting cloud-based accounting and the digital efficiency of internal auditors in Jordanian-listed industrial firms. 98 questionnaires, gathered from internal audit managers in these companies, underwent analysis using Statistical Package for Social Sciences (SPSS) using descriptive-analytical methods. Results indicated that adopting cloud-based accounting significantly influences the effectiveness of internal auditors in these Jordanian-listed industrial companies. Moreover, the study found that the digital proficiency of internal auditors positively affects how much cloud-based accounting adoption impacts their effectiveness. These findings hold importance for regulators and decision-makers, offering insights to shape potential new regulations aimed at enhancing the use of cloud-based accounting in internal audit departments within Jordan's industrial sector. This could ultimately help internal auditors in overseeing public funds. Given the extensive impact of cloud technology on modern business, it's crucial to understand how these innovations can improve the precision and benefits of internal audit functions. Exploring the factors that drive the implementation of cloud technologies in internal audit is also essential. Notably, this study represents the initial attempt to examine existing research on the role of cloud-based accounting in enhancing internal audit effectiveness concerning the digital proficiency of auditors within Jordan's industrial sector.

Target energy management for sustainable molding companies: Consumption, saving, and enviro-economic investigation

The industrial sector is the world's leading energy consumer and CO2 emitter and yet has not received sufficient focus to reduce its energy consumption and adverse environmental impact. So, this paper addresses this gap by presenting industrial-based research on energy audit and target energy management for a sustainable bulk molding company in Alexandria, Egypt. The management focuses on the hot press hydraulic building section which consumes more than 30 % of the company's total energy. The sources of energy losses within this section are identified and quantified. Energy-saving measures including thermal energy management are proposed, implemented and valorized based on energy savings, cost and environmental impact. The yearly savings on energy consumption, energy bills and CO2 emission reduction for the molding machines are estimated. The results show that the main sources of molds' energy losses are in the preheat stage and convection and radiation from the hot mold surfaces. The maximum energy saving due to modifying the preheat stage duration is about 51 %. The gained energy reduction due to changing the mold insulation boards is about 17.5 % and 55.3 % during the preheat and production stages, respectively. Moreover, using double layer insulation boards with the mold insulation cage reduces energy consumption by about 69.5 %. The payback period falls between 1.53 and 6.11 months where these techniques for one machine can save 1229.3 $/year and reduce 16,651.598 kg/year CO2 emission. The study contributes to a broader understanding of how proactive insulation and thermal management can lead to significant energy and cost savings over a long-term period in industrial operations. Besides its contribution to sustainability goals: SDG7, SDG11, and SDG13, the study's approach proves its efficacity and can serve as a precedent for other industrial sites trying to enhance energy efficiency in their most energy-intensive areas.

The role of IT capabilities and managerial support in advancing digital transformation and internal audit: a literature review

Abstract This literature review focuses on concepts related to the role of information technology (IT) capabilities and managerial support in the context of advancing digital transformation and improving internal audit in the institutional environment. Through the synthesis of relevant academic sources, it is investigated how IT capacities and strategic management support influence the organizational ability to adapt to digital innovations. Special emphasis is placed on the complex dynamics that shape the interactions between these factors and their impact on institutional responsibility and performance. The results of the literature review illustrate the key mechanisms that support the digital transformation process, including the integration of technological systems, the development of digital competencies, and the role of management in providing resources and support. Further, a deeper understanding of the complexity of these interactions serves as a basis for further research in the field of digital transformation management and internal audit in an institutional context.

Studi Literatur : Analisis Pengaruh Penerapan Audit Manajemen Sumber Daya Manusia Terhadap Kinerja Karyawan

This research aims to determine the effect of implementing a Human Resource Management Audit on employee performance. This research was conducted using the literature study method by reviewing and analyzing 10 articles. This research also aims to measure the efficiency and effectiveness of Human Resources on Employee Performance. From the results of the study and literature analysis of the most results, it can be concluded that the implementation of human resource management audits has a positive and significant effect on employee performance.

#2041 Analysis of current real-world management of IgAN in five European countries

Abstract Background and Aims Immunoglobulin A nephropathy (IgAN) is the most common form of primary glomerulonephritis worldwide. Due to the often progressive nature of IgAN, patients generally face a poor prognosis if the condition is not appropriately controlled. Current treatment recommendations focus on disease management through the use of optimised supportive care, including use of an angiotensin-converting enzyme inhibitor (ACEi) and/or angiotensin receptor blocker (ARB). A physician questionnaire and patient chart review was conducted to investigate the real-world management of IgAN in five European countries. Method Between 21 December 2022 and 6 February 2023, physicians from France, Germany, Italy, Spain and the UK completed a questionnaire on IgAN management, and patient charts from their centres were analysed. Physicians included had to spend >40% of their time in a clinical setting, and have been in practice between 2 and 40 years. Physicians had to have ≥50 CKD stage 1–4 patients under their management, including ≥4 non-dialysis IgAN patients. Patient charts included in the analysis were required to be from patients ≥12 years of age, diagnosed with IgAN and not on dialysis, with an estimated glomerular filtration rate (eGFR) ≥15 mL/min/1.73 m2. Results A total of 261 physicians answered the questionnaire on IgAN management and completed chart audits on 473 of their most recently seen patients. Charts included in the audit were predominantly from male (71%), Caucasian (78%) patients. The mean age of patients was 47 years and 76% were in CKD stage 3 or later. At referral, 66% of patients were receiving an ACEi and/or ARB, 21% were receiving another antihypertensive agent and 6% were taking a sodium-glucose cotransporter 2 inhibitor (SGLT2i). Most patients (88%) had undergone ≥1 kidney biopsy. At the time of initial biopsy, average eGFR was 51.0 mL/min/1.73 m2 and proteinuria was 2.7 g/day. Of patients who had a biopsy, 73% had a mesangial hypercellularity (M), endocapillary hypercellularity (E), segmental glomerulosclerosis (S), tubular atrophy/interstitial fibrosis (T) and crescents (C) (MEST-C) score available. Due to biopsy results, 29% of patients initiated systemic steroids and 10% started an SGLT2i. On average, IgAN patients are prescribed five medications, with the number of medications increasing with age. The large majority of patients (92%) were taking an ACEi and/or ARB at the time of the most current visit; prescriptions with an ACEi and/or ARB included combination with an SGLT2i only (36%), with a systemic steroid only (10%), and with both an SGLT2i and a systemic steroid (5%). Less than half (41%) of patients were prescribed an ACEi and/or ARB alone. An ACEi and/or ARB were considered first-line therapy by 81% of physicians. Systemic steroids and SGLT2is were largely thought of as later line treatment options. The majority of physicians (66%) believed that their patients were completely adherent to their treatment regimen. Notably, over one-third (35%) of patients were on second-line therapy or later, with drivers of treatment change including increased proteinuria (31%), decreased eGFR (26%) and side effect management (15%). Over half (54%) of physicians were not completely satisfied with their patients’ overall response to treatment. Physicians anticipated that 74% of their patients would eventually progress to dialysis. Conclusion Many treating physicians are not satisfied with current treatment options for IgAN, with increasing levels of proteinuria, eGFR decline and side effects driving treatment change. Overall, this study indicates that there is a need for more effective and safe treatments for IgAN to prevent disease progression and improve prognosis.

E-learning in transfusion medicine: An exploratory qualitative assessment.

E-learning programmes are increasingly offered in transfusion medicine (TM) education. The aim of this study was to explore facilitators and barriers to TM e-learning programmes, including assessment of learning outcomes and measures of effectiveness. Participants selected from a prior survey and representing a diverse number of international e-learning programmes were invited to participate. A mixed methodology was employed, combining a survey and individual semi-structured one-on-one interviews. Interview data were analysed inductively to explore programme development, evaluation, and facilitators and barriers to implementation. Fourteen participants representing 13 institutions participated in the survey and 10 were interviewed. The e-learning programmes have been in use for a variable duration between 5 and 16 years. Funding sources varied, including government and institutional support. Learner assessment methods varied and encompassed multiple-choice-questions (n = 12), direct observation (n = 4) and competency assessment (n = 4). Most regional and national blood collection agencies rely on user feedback and short-term learning assessments to evaluate their programmes. Only one respondent indicated an attempt to correlate e-learning with clinical practices. Factors that facilitated programme implementation included support from management and external audits to ensure compliance with regulatory educational and training requirements. Barriers to programme implementation included the allocation of staff time for in-house development, enforcing compliance, keeping educational content up-to-date and gaining access to outcome data for educational providers. There is evidence of considerable diversity in the evaluation of e-learning programmes. Further work is needed to understand the ultimate impact of TM e-learning on transfusion practices and patient outcomes.