Audit Standards Research Articles

Financial Statement Audits and Data Breaches

Financial statement audits for public companies require auditors to test the internal controls over the client’s information systems that are material to the financial reporting process. Given the increasingly integrated nature of corporate data and control systems, a standard audit may have a positive effect on client firms’ other information systems, such as those that help prevent data breaches. In this paper, I provide evidence on whether and how auditors help prevent data breaches. Using plausibly exogenous improvements in auditing due to regulatory inspections and auditors’ cross-client learning, I find a decreased likelihood of data breaches among these auditors’ clients. Institutional insights gathered from interviews with accounting firm partners and industry professionals suggest two mechanisms for the role of auditors in preventing data breaches: the provision of relevant information and incentives for internal controls. Collectively, the findings provide evidence that improving accounting information systems can have a positive impact on nonaccounting systems. This paper was accepted by Ranjani Krishnan, accounting. Funding: I gratefully acknowledge financial support from Columbia Business School, the University of Chicago Booth School of Business, the Deloitte Foundation, and the Bradley Fellowship awarded by the Stigler Center for the Study of the Economy and the State. Supplemental Material: The data files are available at https://doi.org/10.1287/mnsc.2023.01357 .

Investigating the Structural Model of Whistle Blowing System on Government Procurement Fraud: Examining Mediating Effect of Investigative Audit

This study aims to develop a fraud disclosure model in government procurement in Indonesia through a whistle blowing system with an investigative audit as a mediator. Disclosure of fraud is the result of an investigative audit. The effectiveness of the implementation of investigative audit procedures will be achieved if the auditor has the ability to carry out each stage in the audit standard. To maximize the performance of investigative audits, a system is needed to uncover fraud. The whistleblowing system is expected to be an effective tool to reveal fraud in government procurement. The research was conducted by distributing questionnaires to respondents electronically by sending a google form link containing a list of questions to auditors at the Supreme Audit Agency (BPK) and internal auditors at the Financial and Development Supervisory Agency (BPKP) throughout Indonesia. The results of the study found that the use of a whistle blowing system could increase the effectiveness of investigative audits on government procurement. Another finding is that investigative audits can reduce the disclosure of government procurement fraud. The effectiveness of the whistle blowing system in reducing the level of disclosure of government procurement fraud does not occur directly, but must be mediated by a good investigative audit. The results of this study indicate that the reporting of government procurement fraud cases on the whistle blowing system must be followed up with a thorough investigative audit so that disclosures of government procurement fraud cases can be traced better. Additional analysis in this study shows that although the functions of external auditors and internal auditors are different, the level and type of disclosure of government procurement fraud do not differ.

A Review of Literature to Derive Best Practices for Big-Data Audits in Saudi Context

In 2014, leading scholars in the field of big data auditing outlined a research agenda to explore these impacts, setting the foundation for further investigation. This paper explores the impact of big data on audit evidence, particularly in the context of Saudi Arabia’s transition to a more diversified economy under Vision 2030. This paper also seeks to synthesize current research and establish best practices for auditors in Saudi Arabia, emphasizing the importance of adapting audit processes to a growing economy that increasingly generates vast amounts of data. In recent decades, auditing practices have undergone substantial transformation by broadening the scope of audit goals and incorporating diverse, non-traditional sources of evidence, such as unstructured data from social media or IoT devices. These new data sources, while increasing audit accuracy and depth, pose challenges regarding data reliability and integrity. Over the past decade, many of these research questions have been addressed, particularly in relation to how big data enhances auditors' abilities to detect fraud, improve audit quality, and provide more accurate risk assessments. By implementing AI algorithms and advanced analytics, auditors can gain deeper insights while also addressing key concerns such as data veracity, compliance with International Financial Reporting Standards (IFRS), and the guidelines set by the Saudi Organization for Certified Public Accountants (SOCPA). As Saudi Arabia's economy diversifies and becomes more data-driven, understanding and integrating big data into audit practices will be essential for maintaining high audit standards and supporting economic growth.

Fall prevention among adult surgical patients in Tabriz, Iran: a best practice implementation project.

Falling out of bed is the most common unintentional cause of injury among patients and is a major safety problem in health care facilities. Current practices for fall prevention may not always be aligned with established best practices, leading to variability in patient outcomes. This uncertainty underscores the need to assess and improve compliance with best practice guidelines for fall prevention. This project aimed to improve fall prevention in the surgical ward of a general hospital in Tabriz, Iran. This study was guided by the JBI Evidence Implementation Framework. A baseline audit was conducted using eleven audit criteria representing best practices for fall prevention. After the implementation of improvement strategies, a follow-up audit was conducted to evaluate changes in practice. The results revealed significant improvements, notably, fall risk assessment upon admission (87% to 92%), fall risk assessment upon ward transfer (39% to 79%), patient participation in fall risk assessment (26% to 68%), reassessment upon change in condition (53% to 74%), communicating fall prevention information to at-risk patients and their families/caregivers (42% to 63%), engagement of patients (100% to 100%), implementation of targeted strategies (89% to 92%), post-fall assessment and interventions (82% to 87%), revising patient fall risk status and reviewing care management plan (41% to 74%), fall prevention information to patients and their families/caregivers upon discharge (44% to 66%), and person-centered education of health care professionals (77% to 81%). The use of standard clinical audit tools in hospitals can improve the quality of patient care and increase the effectiveness of interventions by identifying weaknesses in the patient care process. http://links.lww.com/IJEBH/A283.

A Comparative Analysis of Independent Audit Sectors in Turkiye And Uzbekistan

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

Quality of neonatal health care in comprehensive specialized hospitals, Amhara Region, Ethiopia: a retrospective study with neonatal death audit

BackgroundNeonatal health is one of the targets for the sustainable development goals (SDGs) that aim to reduce neonatal mortality to at least as low as 12 per 1 000 live births in 2030. However, the world is not on track to achieve this target. The problem has worsened in many low-income countries, including Ethiopia, due to a fragile health system, as well as health crises such as the COVID-19 pandemic, conflict, food insecurity and climate change. According to the Mini Ethiopian Demographic Health Survey, neonatal mortality is unacceptably high in Ethiopia in general, and in Amhara region in particular. Despite these facts, there is a paucity of information on the quality of neonatal health service provision in comprehensive specialized hospitals in Amhara region. Therefore, this study is aimed at assessing the quality of neonatal health services in terms of outcome (neonatal mortality) and its causes in comprehensive specialized hospitals in Amhara region.MethodsA multi-center retrospective study was conducted (from September 1–30/2022) on 315 neonates in four comprehensive hospitals with chart review. Data were collected through death audit with standardized neonatal death audit tool. Data were entered into Epi-data 3.1 and exported to SPSS 20 for analysis. Descriptive analysis was used to describe and summarize the data in an informative manner.ResultsFrom 315 neonatal deaths, about two-thirds, 205 (65.1%), were from rural areas. Nearly half, 151 (48%), of the mothers had complications and delivered outside a health facility. About 36 (11.4%), 45 (14.3%), and 21 (6.7%) neonates’ mothers had 1st, 2nd, and 3rd delays, respectively. About 59 (19%) of mothers had membrane rupture before the onset of labor and 23 (7.3%) had meconium-stained liquor. Almost three-fourths, 226 (71.7%), of the deaths were low birth weight (< 2500 gram). About 25 (8%) of neonates had congenital anomalies, 65% of them had fast breathing and 54.6% were preterm.ConclusionHigher proportions of neonatal deaths were observed among neonates with rural residence, low birth weight, mothers’ complications and neonates admitted for fast breathing. Histories of abortion, complications, congenital anomalies, and the 3 delays contributed to neonatal deaths.

Effect of Audit Firm Characteristics on Audit Quality of Quoted Deposit Money Banks in Nigeria

This study investigates how the characteristics of audit firms are associated with audit quality in deposit money banks situated in Nigeria. The core explanatory variables employed or adopted were audit fees, audit tenure, and audit rotation on audit quality. The study adopted an ex-post factor research design. The population of the study consists of twelve (12) quoted deposit money banks on the Nigerian Exchange Group (NGX) as of 31st December, 2022, and twelve (12) banks were taken as the sample size using census sampling technique. The study period is from 2013 to 2022. The data were collected from the annual reports and accounts of the selected banks. Data collected were analyzed using descriptive and inferential statistics, and the hypotheses were tested using feasible generalized least squares regression analysis. The empirical findings revealed that audit fees and audit rotation have a positive and significant effect on audit quality, while audit tenure has a negative and significant effect on audit quality. On the basis of the findings, the study concludes that audit fees and audit rotation are important ingredients in achieving good audit quality. Establishing rotation programs with auditing should be implemented by all organizations seeking better planned undertakings of tasks regarding finance. The study recommended that banks should make use of standard audit firms like the Big 4 so as to get better audit quality, and there should be a good policy for audit rotation for the banks in order to achieve better audit quality.

BSPED audit of clinical standards for differences of sexual development (DSD)

BSPED audit of clinical standards for differences of sexual development (DSD)

The Impact of Organizational Factors and Environmental Factors on the Adoption of Computer Assisted Audit Tools and Techniques (CAATTs) by SME in Sri Lanka

The study investigates the low adoption of Computer-Assisted Audit Tools and Techniques (CAATTs) in developing countries, focusing on environmental and organizational factors that influence technology adoption in firms, particularly small audit firms in Sri Lanka. Key variables identified include Clients’ AIS complexity firm size as organizational factors and, perceived support from professional accounting bodies firm size, and top management commitment as environmental factors to CAATT adoption. The objective is to assess the impact of organizational and environmental factors on CAAT adoption by SME in Sri Lanka. The population comprises 71,126 small audit firms listed as Small and Medium-Sized Enterprises (SMEs) as of December 31, 2021, according to the Accounting Auditing Standards Monitoring Board in Sri Lanka. A sample size of 40 small audit firms was selected from this population. Data collection involved distributing questionnaires among auditors, with analysis conducted using the SPSS version 23. Correlation analysis reveals a positive correlation between all variables and CAATT adoption, while regression analysis demonstrates the impact of AIS complexity, perceived support from professional accounting bodies has a high impact on CAAT adoption by SME. The findings suggest that organizational factors such as AIS complexity and Perceived Support from professionals play a significant role in CAATT adoption among small audit firms. In conclusion, the study highlights the importance of considering organizational factors, such as in promoting CAATT adoption. These findings provide valuable insights for enhancing audit productivity and reducing costs in developing countries like Sri Lanka.

ThP7.16 - Multidisciplinary management of elderly patients undergoing emergency laparotomy: an audit at a small district general hospital

Abstract Aims The National Emergency Laparotomy Audit (NELA) suggests early involvement of the multidisciplinary geriatrician team for preoperative care of elderly patients aged over 80, or 65 and frail. Methods we audited our unit against the NELA guidelines for elderly patients. We looked at all emergency laparotomies carried out at our hospital over a 6 month period against the audit standards as set out by NELA. Results A total of 55 laparotomies were carried out in 6 months. 17 patients fit the criteria of patients needing early geriatrician involvement. Of the 34 patients aged 65 and above, 22 patients had their frailty score recorded in the notes (64%). Less than 10% of patients had early geriatrician input. Overall, six patients (11%) died within 30 days of their initial operation, and all were aged over 65. Conclusions we must take the perioperative care of elderly patients seriously and work with the Geriatric Medicine teams for early perioperative review, including accurate clinical frailty score assessments. We will initiate a project with the Geriatric Medicine department to implement an Elderly Laparotomy Perioperative Pathway for these patients.

EP403 - Departmental Engagement in NELA AUDIT and Royal College Standards of Risk Assessment

Abstract Aims A review of Theatre cases to assess compliance with the ‘National Emergency Laparotomy Audit’ (NELA) and associated guidelines. This study aims to review and ensure eligible NELA patients are being recognised. Further objectives are to verify if NELA scores are calculated and documented by an ST3+ and, in addition, if frailty is assessed as per Royal College and NELA Standards. Methods Data was retrospectively collected. Using ‘Epic’ EPR, all theatres from 01/05/23 - 01/12/23 were filtered for Emergency Laparotomy. These cases were manually reviewed for eligibility in NELA. 101 eligible cases were investigated to assess: documentation of NELA / Ppossum, grade of documenting Doctor, and frailty assessments / referrals. Results 39.6% of the sample had a NELA Score documented. While even fewer at 24.8% had NELA score documented correctly by an ST3+. While 61.4% of cases had a Ppossum Score documented, only 32.7% had both NELA &amp; Ppossum Documented. As per NELA and National Guidelines, only 38.6% of patients 65+ received appropriate assessments of frailty. Conclusion National Targets for the identification of NELA patients, risk assessments and frailty assessments when appropriate are not being met. Ultimately, this presents with increased risks to patients while also reducing the data set size from which national governing bodies can produce future improvements in surgical health care. Moreover, poor engagement with National Guidelines has negative implications for departmental funding. There is a large space for improvement through education and procedural change across multiple sites with subsequent follow up reaudit.

Impact Smart Applications To Enhance The Transparency and Accuracy Of Financial Auditing

The research aimed to analyze the impact of employing artificial intelligence and blockchain technologies in enhancing transparency and accuracy in financial audits.WeeThe research sought to understand how these technologies contribute to improving...ActivitiesAuditing by reducing human errors and enhancing confidence in financial statements.throughData was collected usingQuestionnaire from the research sample, and analysisResults through the statistical programSPSS v 26 and AMOS v 26,The most important conclusions of the research were that applicationsSmart provides the ability to quickly analyze large amounts of financial data, which improves the quality of auditing and decision-makingFinance. WowMRecommendations are a necessityStrengthening cooperation between regulatory authorities and banks to ensure the application of international auditing standards in light of the use of modern technology,The research contributes toAnalysis of the role of intelligent applicationsOhIn improving the accuracy and transparency of financial auditing using advanced technologies.whatHussein audits and detection of financial errorsWhich enhancesConfidence in financial reports by reducing errors and increasing accuracy using smart technology.

Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB’s Proposal on Firm Reporting

SUMMARY On April 9, 2024, the Public Company Accounting Oversight Board (the Board or PCAOB) issued a request for comment on its proposal Firm Reporting (PCAOB 2024). This comment letter summarizes the views of the participating members of the Auditing Standards Committee of the Auditing Section of the American Accounting Association. We commend the PCAOB for its efforts to promote audit firm transparency. Our comments include overall observations and perspectives on the Board’s economic analysis.

Pengaruh Self-Efficacy, Tekanan Ketaatan, Kompleksitas Tugas dan Pengalaman Auditor Terhadap Audit Judgment pada BPK RI Perwakilan Provinsi Jawa Timur

The research aims to know the impact of self-efficacy, obedience pressure, task complexity and auditor’s experience to audit judgment and was conducted at the BPK Representative of east java. using a quantitative approach and involved a sample of 62 auditors selected through basic purposive sampling and Slovin formula. Data analysis relied on Partial Least Square (PLS) software. The result of this research reveal that self-efficacy and auditor’s experience is have a positive effect to audit judgment. This is because an auditor who has a good level of self-confidence and experience will find it easier to face existing challenges. Meanwhile obedience pressure and task complecity has no effect to audit judgment. This is because an auditor, when feeling under pressure or facing a variety of tasks, always maintains his independence. Because in the State Financial Audit Standards relating to audit work, they must be free in attitude, mentality and appearance from personal and organizational interference that can affect their independence.

Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB’s Proposed Auditing Standard—Designing and Performing Substantive Analytical Procedures and Amendments to Other PCAOB Standards

Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB’s <i>Proposed Auditing Standard—Designing and Performing Substantive Analytical Procedures and Amendments to Other PCAOB Standards</i>

ANALISIS PROSEDUR KERTAS KERJA AUDIT BEBAN PADA PT. DEALER MERCEDES BENZ OLEH KAP KPS

The purpose of this research is to analyze the expense working paper procedure of PT Mercedes Benz Dealer which has been determined by KAP KPS. The method used in this research is descriptive qualitative using a case study approach. The data sources used in the research are primary data through interviews with one of the auditors at KAP KPS and secondary data. The procedures carried out in the load work papers consist of the Leadsheet Procedure, 12 Column Analysis Procedure, Predictive Salary Test Procedure, and Vouching Procedure. The results showed that the expense working paper procedures had been carried out in accordance with audit standards and there was no material misstatement of the presentation of expenses of PT Mercedes Benz Dealer

ANALISIS PROSEDUR AUDIT KAS DAN SETARA KAS PADA PT ABC OLEH KAP BUNTARAN &amp; LISAWATI

Audit of cash and cash equivalents is a procedure used to examine the fairness of the presentation of cash and cash equivalents balances in the company's financial statements. This study aims to determine whether the audit procedures carried out by KAP Buntaran &amp; Lisawati at PT ABC are in accordance with generally accepted standard audit procedures for cash and cash equivalents. The research method used is descriptive qualitative research method by presenting conclusions or results from the data collected based on a theoretical concept. The results showed the procedures carried out by KAP Buntaran &amp; Lisawati auditors during the examination of cash and cash equivalents at PT ABC. The conclusion of this study is that the inspection procedures for cash and cash equivalents carried out by KAP Buntaran &amp; Lisawati auditors are in accordance with generally accepted procedural standards, so that auditors are expected to be able to detect material misstatements during the audit of PT ABC

Prospective evaluation of a new audit standard: Expert rhetoric and flexibility in cost‐benefit analysis

Prospective evaluation of a new audit standard: Expert rhetoric and flexibility in cost‐benefit analysis

Research on the Application of AI Technology in Auditing

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

The Role of Internal Audit Practices in Improving The Quality of Financial Reporting for Commercial Companies. A Sample of Iraqi Commercial Banks

The research aims to explain the role of internal audit standards in improving the quality of financial reporting for the financial reports of the banks in the research sample. Accordingly, the deductive approach was followed for the theoretical side and the inductive approach for the practical side by employing standards for internal audit standards and their role in achieving quality in financial reporting for the financial reports of the banks in the research sample. The most important conclusions were that standards standards Internal auditing has a role in achieving and improving the quality of financial reporting for the Bank of Sumer first, then the Iraqi Gulf Bank secondly, and the Assyria Bank last. The most important recommendations were to document and confirm the application of the internal audit standards for the Bank of Assyria first and the Iraqi Gulf Bank secondly by virtue of the assessments of appropriateness standards, honest representation and the appropriate timing for presenting the financial statements within Bankers' reports.