Audit Report Research Articles

Effect of Firm Attributes on Financial Reporting Timeliness of Quoted Oil and Gas Companies in Nigeria

Published information may lose its relevance if there is undue delay in it being reported. However, around the world, delay in the auditing of financial statements have been identified as leading to an overall delay in their publication. The study investigates the effect of firm attributes on financial reporting timeliness of the eleven (11) listed oil and gas firms on the Nigerian Stock Exchange for the period 2011 to 2020. Sample of eight (8) companies were selected using purposive sampling technique after applying a single filter. The study used Ex-post facto research design. The variables considered were firm age, firm size, leverage and profitability. Financial Reporting timeliness was measured using audit report lag. Panel data were collected from the annual reports and accounts of the selected firms. The multiple regression analysis technique was used to analyse the data. The result of the study indicates that firm age, firm size and profitability significantly affect financial reporting timeliness while leverage does not influence financial reporting timeliness. Therefore, the study concludes that firm attributes especially firm age and profitability are good predictors of financial reporting timeliness. The study recommends that firms should grow their assets, strive to make profit and incur less debt as these factors are very important for investment and other decision purposes by the users of the information.

The interaction of blockchain technology, audit process, and the International Financial Reporting Standards

Purpose This study aims to provide a framework for the interaction of blockchain technology, the audit process and International Financial Reporting Standards (IFRS). Design/methodology/approach This study was conducted in three phases. In the first phase, a meta-synthesis method was used until 2020. Out of 87 papers, a total number of 15 were selected, and 72 were excluded after an initial screening. In the second phase, 11 interviews were held with experts with sufficient experience and expertise in blockchain technology, accounting and auditing. These interviews were held between 2020 and 2021. The sampling was purposive (targeted) in type, along with snowball sampling. In the third phase, a combination of questionnaire-based method and the fuzzy Delphi method was used. The research population for this phase consisted of accounting professors, members of the Iranian Association of Certified Public Accountants and accounting and technology professionals. Following the selection of the Delphi panel, 35 questionnaires were collected between 2021 and 2022 for analysis. Findings The results showed that in line with the interaction of blockchain technology, audit process and IFRS, 52 indicators were confirmed in eight components. Moreover, “Verifiability,” “Timeliness” and “Predictive value” were the most influential factors, respectively, according to the conceptual model. In addition, higher average scores of experts’ views were related to “Transparency audit reports” and “Increasing the quality of the auditor’s judgment”, respectively. Originality/value Blockchain is a complex subject, and there has been very little published research on the intersection of IFRS and blockchain technology. It is crucial for the audit profession and technology professionals to focus on the interaction of blockchain technology with the qualitative characteristics of information. This is an area that has not been thoroughly researched yet. The interaction of blockchain technology, improvements in the audit process and adherence to IFRS is a significant development in accounting and auditing.

PENGARUH GOOD CORPORATE GOVERNANCE, KONSERVATISME AKUNTANSI DAN UKURAN PERUSAHAAN TERHADAP MANAJEMEN LABA (Studi Empiris Pada Perusahaan Sektor Properti Yang Terdaftar Di Bursa Efek Indonesia Tahun 2018-2022)

This study aims to analyze the effect of Good Corporate Governance, accounting conservatism, and company size on earnings management (empirical study of property sector companies listed on the Indonesia Stock Exchange 2018-2022). This research method is quantitative. The object of this research is the annual report and audit report of Real Estate and property companies listed on the Indonesia Stock Exchange (IDX) for 2018-2022. The sampling method of this research is purposive sampling, with techniques based on judgment sampling considerations. The data used in this study are secondary. The data collection method is the documentation method. The analytical tool used in this research is multiple regression analysis with the help of the IBM Statistical Package for Sciences (SPSS) program version 26. The result of this study is that Good Corporate Governance has no significant effect on earnings management. Accounting conservatism hurts earnings management. Company size does not affect earnings management.

The Effects of Regulated Auditor Tenure on Opinion Shopping: Evidence from the Korean Market

We examine the impact of regulated auditor tenure on the shopping for favorable audit reports. We predict that these regulations may affect auditors’ willingness to acquiesce and clients’ incentives to engage in opinion shopping. We draw from the unique Korean setting where both mandatory audit firm retention and mandatory rotation were implemented for all public firms in a staggered manner. Based on hand-collected audit reports, we identify harmful language in explanatory paragraphs. We define favorable audit reports as those with unqualified opinions and without any harmful explanatory language. We find that opinion shopping for favorable audit reports appears to subside after mandatory retention but increases after mandatory rotation, with the positive impact of mandatory retention offset by the negative impact of mandatory rotation. We add to the literature by examining the impact of regulated auditor tenure on opinion shopping and highlighting the potential unintended consequences of these regulatory attempts.

CONDUCTING AN INDUSTRIAL SAFETY AUDIT AT OIL AND GAS FACILITIES

In modern conditions, it has become necessary to partially shift responsibilities for supervision and control of industrial safety without deterioration of quality from the state to business. Large-scale oil and gas companies have a great demand for an independent assessment of industrial safety at hazardous production facilities, due to a significant increase in financial costs for eliminating the consequences of accidents at hazardous production facilities of I and II hazard classes. The state is interested in controlling a new type of activity and expanding the regulatory framework for industrial safety. President of the Russian Federation Vladimir V. Putin signed Federal Law No. 637-FZ dated December 25, 2023, which amends the Federal Law «On Industrial Safety of Hazardous Production Facilities» and some other legislative acts. One of the key innovations is the introduction of the Institute for Audit of Industrial Safety Management Systems. This article analyzes the best existing practices of conducting industrial safety audits in large-scale oil and gas companies of the Russian Federation. Particular emphasis was placed on identifying the advantages and positive aspects of implementing such activities in organizations like Rosneft, Gazprom and Lukoil. The issues of assessing the compliance of hazardous production facilities in the oil and gas complex with the requirements of legislation in the field of industrial safety by conducting an industrial safety audit were raised. The purpose of the work is to develop a step-by-step algorithm for conducting an industrial safety audit for oil and gas facilities. The industrial safety audit algorithm includes four steps: preparation for the audit, documentary analysis, full-scale audit, and registration of the results. The result of an industrial safety audit is an audit report drawn up at the final meeting of auditors and customers, based on documentary and in-kind inspections. This document is necessary for the management of the enterprise and the supervisory authorities of the Russian Federation. Industrial safety audit provides a number of significant advantages that help organizations to identify deviations from mandatory requirements established in the field of industrial safety. This makes it possible to detect violations in a timely manner and promptly take the necessary corrective measures to eliminate the identified problems. As a result, effective audit contributes to improving the overall safety level at enterprises, preventing possible risks and reducing the possibility of emergencies.

Barriers to Effective Cellulitis Management in a Primary Care Setting: An Audit Report

Barriers to Effective Cellulitis Management in a Primary Care Setting: An Audit Report

Key Audit Matters Between Auditors and Auditees in Middle East and North Africa

This study investigates the impact of auditor- and auditee-specific features on key audit matter disclosures in auditors’ reports. It focuses on client factors, including debt, profitability, financial distress, and audit factors, including auditor size, rotation, and opinion. A direct extraction of audit reports from different markets in Middle East and North Africa covering three years from 2020 to 2022 was carried out. A content analysis of the annual reports regarding key audit matters, client-specific characteristics, and auditor characteristics was performed in this research. The results of this study show that key audit matters are not correlated to profitability and financial distress, while the debt ratio is significantly related to the number of key audit matters. The results also indicate that audit rotation and opinion have a significant explanatory effect on key audit matters as the coefficients of both independent variables are positive and statistically significant while the size of the audit firm is not related to the number of key audit matters.

A short report of a Scottish audit of disability and child protection medical examinations

AbstractA Scottish national child protection audit has shown that practitioners can have differing understanding of the term ‘disability’ and are variable in their own recording of disabilities. It was apparent from the audit that disability was more likely to be recorded for older children than those under five. The audit found that an abuse allegation is less likely to be substantiated for disabled children by a Child Protection Medical Examination. For disabled children in our sample, there was a ‘substantiation of abuse rate’ of 33%, which was less than the 56% rate for non‐disabled children. The differences in rates encourage us to consider what is an appropriate response when disabled children may have experienced harm and abuse. The audit highlights the vulnerability of disabled children to abuse and indicates the need to equip practitioners with the skills, competencies and confidence to engage with and support this vulnerable group.

The Impact Of Audit Fee, Size Of Public Accounting Firm, Company Size, And Leverage On The Communication Of Key Audit Matters (Implementation Of The First Year Of KAMs Adoption In Independent Auditors' Reports In Indonesia)

Auditing standard 701 "Communicating Key Audit Matters (KAMs) in the Independent Auditor's Report" will be implemented in Indonesia in 2022. The communication of KAMs aims to increase the transparency of financial statements for users. This study examines the effect of audit fees, Size of public accounting firm, company size and leverage on the communication of Key Audit Matters (KAMs). The research population is companies that are listed on the Indonesia Stock Exchange and report audited financial statements for the fiscal year 2022. The sample was selected using purposive sampling method. The research data was processed using the Multiple Linear Regression method using IBM SPSS Statistics software ver. 25. This study proves that audit fees (sig 0.000 < 0.05) and Size of public accounting firm (sig 0.000 < 0.05) have a positive and significant effect on communicating KAMs. While company size (0.188 > 0.05) leverage (0.378 > 0.05) has no significant effect on communicating KAMs. Based on the results of the study, it is hoped that companies can consider an adequate audit fee budget and choose a Public accounting firm whose competence is in accordance with the conditions of the company to be able to increase the communication of KAMs. Thus, companies can increase investor and other stakeholder confidence through the communication of KAMs as an effort to demonstrate commitment to transparency and good corporate governanc

The Effect of Audit Quality and Financial Performance on Audit Delay (Empirical Study on LQ45 Companies in 2021-2023)

The financial report is an information medium that is very useful for stakeholders. The financial statements owned by the company can be used for stakeholders to make decisions. Financial statements presented by companies must be audited because audited financial statements can increase the confidence of financial statement users. One of the important factors in financial statements is timeliness. Financial statements can be very useful if financial statements are presented on time, therefore the financial statements presented must be timely so that decision-making can also be taken appropriately. The purpose of this study is to see what factors can affect audit delays. Audit delay is the time difference between the closing date of the book and the date of signing the auditor's report. The sample in this study is companies with the LQ45 index, because LQ45 index companies are companies that have a healthy financial condition. Data will be taken from the Indonesia Stock Exchange website for 3 years. Data analysis will be carried out using SPSS by performing the Classical Assumption Test and the Multiple Linear Regression Test. The targeted output is journal publication in accredited national journals. Keywords: Audit Delay, Profitability, Leverage, Audit Quality

The Implementation of the KAM Reforms in Saudi Arabia: Stakeholder Perspectives on the Audit Expectations Gap

ABSTRACTThis exploratory study investigates the implementation of key audit matters (KAM) in audit reports under ISA701 to better understand how KAM disclosures may help narrow the audit expectations gap. The study draws on findings from semi‐structured interviews with 28 professional stakeholders from the Kingdom of Saudi Arabia (KSA). The study's aim was to explore the relationship between KAM disclosures and the audit expectations gap considering audit quality concerns. Our findings reveal that (i) financial statement users report that they better understand what the auditor does, which enhanced their confidence in the audit process; and (ii) at least some financial statement users report that KAM disclosures provide new information about companies' risks that management was not already providing. We further report that many interviewees (particularly Big Four external auditors) indicated that the KAM reforms did not enhance audit quality in KSA. Interestingly, a small number of non‐Big Four auditors believed that KAM disclosures have enhanced audit quality. The key message is that the KAM reforms did not necessarily improve audit quality but that they are perceived to have played a role in further narrowing the audit expectations gap and reducing the need for communication, thus creating market efficiencies.

The Influence of Profitability, Liquidity, Solvency and Company Size on Audit Report Lag in Infrastructure Sector Companies Listed on the IDX in 2019-2022

The amount of time the auditor took to complete the audit report, as measured from the book's closing date to the audit report's release date, is known as the audit report lag. The goal of this research was to assess the impact of profitability, liquidity, solvency, and firm size on audit report lag in infrastructure companies listed on the Indonesia Stock Exchange between 2019 and 2022. This is a type of quantitative study that employs a sample selection methodology known as purposive sampling. There are 32 company samples selected from 69 companies. Multiple linear regression was used to examine the data in this study. IBM SPSS 25 is the statistical processing application that was used. The findings of this study's analysis show that both profitability and solvency have a major impact on audit report latency. While liquidity and business size have no substantial impact on the audit report latency of Indonesian Stock Exchange-listed infrastructure companies.

Causes of Audit Report Lag with Reputation of Audit Firm as a Moderating Variable

Audit report lag is an important problem because it can cause delays in submitting financial reports by companies to the OJK. This study examines the effect of audit opinion, profitability, and company size on audit report lag with Reputation of audit firm as a moderating variable in non-primary consumer goods companies listed on the IDX. The sample used in this study were 78 non-primary consumer goods companies listed on the IDX 2018-2022. The data analysis method used in this research is panel data regression analysis and moderation regression analysis. The results of this study indicate that audit opinion and profitability have a negative effect on audit report lag, while company size has no significant effect on audit report lag. Reputation of audit firm is able to strengthen the effect of profitability on audit report lag and weaken the effect of company size on audit report lag and but is unable to moderate the effect of audit opinion on audit report lag.

Audit report lag and the cost of equity capital

Audit report lag and the cost of equity capital

The Role of Audit Committee to Decrease Audit Report Lag

This study aims to investigate the role of the audit committee as a moderator in reducing audit report lag, with independent variables being audit complexity, board size, and board meetings' impact on audit report lag. The sample comprises 96 infrastructure sector companies listed on the Indonesia Stock Exchange for the years 2022-2023.The findings reveal that the audit complexity (ACX) variable does not significantly positively influence audit report lag, while the board size (BOS) variable does not significantly negatively affect audit report lag. However, the board meetings (BOM) variable shows a significant negative impact on audit report lag. Furthermore, the audit committee (ACOM) strengthens the influence of audit complexity (ACX) on audit report lag and also enhances the influence of board size (BOS) on audit report lag. However, the audit committee (ACOM) does not strengthen the influence of board meetings (BOM) on audit report lag. In summary, this study sheds light on the moderating role of the audit committee in reducing audit report lag, highlighting the varying effects of audit complexity, board size, and board meetings on audit report timeliness within the IDX infrastructure sector.

Artificial Intelligence's Impact on the Quality of External Auditor Reports in Saudi Domestic and International Audit Companies

This study investigates how external auditors perceive using artificial intelligence (AI) in the Kingdom of Saudi Arabia (KSA). It examines how external auditors perceive the impact of artificial intelligence on audit quality. It also seeks to determine whether local and foreign external auditors have different perspectives on AI's application and how it affects audit quality. Data were gathered using a questionnaire distributed to 44 regional and 20 international companies to accomplish research goals. The auditing manager, audit partners, senior auditors, and other staff members with possible accounting and auditing experience were among the participants. SPSS was used to analyze the data; in our analysis, we used descriptive analysis, validity and reliability testing, and data analysis to test our hypotheses. This investigation reveals that the perceived impact of artificial intelligence (AI) on audit quality does not vary significantly between domestic and foreign audit firms. Regarding audit quality, the perceived contributions of all audit firms—local and foreign—are equal. It also adds to the importance of using AI and how it will enhance the quality of firms and reduce any act of fraud. Lastly, it recommends that firms contribute to training employees on using AI to face and compete with the changes and challenges happening around the world.

Promotion of good governance within local government: a case of municipal public accounts committee in South Africa

The aim of this article was to explore the role of Municipal Public Accounts Committee (MPAC) in promoting good governance, with the contextual setting being Blouberg Local Municipality. There is general consensus among academics, practitioners and policy makers alike in South Africa that the allocation of functions and responsibilities of municipal council and that of executives are often not clear, thus creating confusion in the officialdom and weakening oversight structures including MPAC. Hence the qualified audit reports in four consecutive years in Blouberg Municipality (see Auditor General, 2016-2021), signals internal failure not only to improve the municipal financial health status but to promote good governance generally. Methodologically, the study adopted qualitative designs and used interviews as instrument to collect data from key members of the committee. Consequently, the study revealed many underlying weaknesses, but the critical one was the demonstrable poor capacity within the committee which is twofold; (1) lack of expertise to facilitate oversight and (2) insufficient budget to enable performance of the Committee. Essentially, these challenges affect the proper functioning of MPAC which is constitutionally bestowed the responsibility of holding the executive accountable and guard against any misappropriation of municipal funds. The study recommended a number of solutions to improve the state of MPAC in the municipality, amongst them were that, council should develop an integrated reporting mechanism framework to conduct an oversight role which can be done with the assistance from experts in governance. The committee’s programme of action must also be funded, sufficiently.

Best clinical practice experience at University of Gondar Comprehensive specialized Hospital Emergency and critical care Medicine department, A Case Study Under a resource limited set up

Abstract Background The emergency department (ED) is unique unstable environment where someone faces unscheduled and undifferentiated diseased patients, stressed families, unsettled staffs and unequitable resources.UoGCSH is the oldest in the Ethiopia and the only referral hospital for more than 13 million people from the five-zone north-west Ethiopia with 950 beds capacity. During the 2020 G.C a proposal paper was submitted to the administration bodies of the college and the hospital. The proposal was suggesting short term, mid-term and long-term quality improvement segments implemented in institutionally convenient manner. Objective To describe the transformation of emergency and critical care medical services at University of Gondar Comprehensive specialized hospital from scratch to the current status. Method A descriptive case study design was applied to narrate critical care service transformation at UoG Comprehensive Specialized Hospital. Since this case study is a data review from gathered secondary data, desk reviews of the emergency department, quality directorate data review, and the annual audit report review, there was no need for IRB approval. Result and recommendation After a year of renovation, we were able to organize a newly refurbished emergency room having a triage area with adequate reception space, Red resuscitation area with 10 beds (considering patient overflow), Orange with 18 beds, Yellow with 10 beds and floater area, isolation room, decontamination room, ED laboratory, main store, disaster store and piped oxygen system to all beds. we have gone a long journey in bringing those promised practices into demonstrable practice and finally replicable prototypic best practice. Even though we paced extra miles in achieving this status. Standard emergency room work flow implementation enable us to control the day-to-day patient and attendant crowding that impedes the anticipated medical treatment outcome and result in a significant dissatisfaction.Despite this achievement the trauma center establishment and high-quality patient care is recommended.

The Impact of Audit Quality on the Financial Performance of The Listed Jordanian Chemical Company Sector

The study aims to find out the impact of audit quality on the financial performance of the chemical company sector, to explore how audit quality, especially focus on auditor independence and the size of the audit committee, affects the financial performance (ROA, ROE, EPS) of the Jordanian chemical industries sector listed on the Amman Stock Exchange. In order to examine the data a questionnaire was distributed to study sample consists of (59) employees working within chemical companies, (48) from it valid for statistical analysis where the number of chemical companies reached (8). Ordinary Simple Linear regression method employed in the analysis of data. The study revealed that auditor’s independence has a positive and significant effect on financial performance of Chemical Company Sector. It was concluded that aspect of audit quality influence financial performance of Chemical Company. The study recommended Auditor’s independence should be increased greatly in order to enhance financial performance (ROA, ROE, EPS) of the Chemical Company Sector, by improving internal control of the company, also, Always Conduct integrity and appropriate usage tests for auditors. Shareholder should control the committee size, by controlling the audit committee members, which will reflect positively on the audit report quality.

Are material ESG issues making their way into key audit matters? An analysis of Colombian innovative companies

This study examines whether auditors are innovating in their audit reports by incorporating material environmental, social, and governance (ESG) issues from companies' sustainability reports into the Key Audit Matters (KAMs) section. Additionally, it assesses whether ESG performance influences this inclusion. Content analysis was conducted on the materiality matrices of sustainability reports and KAMs disclosures for 20 Colombian companies listed on the COLCAP index during the period 2019–2021. Using logistic regression analysis, we examined relationships between ESG scores and KAMs disclosure of material ESG issues. The results obtained show that auditors strongly emphasise governance but tend to overlook social and environmental issues within their KAMs. Furthermore, higher governance scores increase the likelihood of ESG consideration in the KAMs, while lower profitability and leverage also lead to greater ESG inclusion in the KAMs. This pioneering study offers an initial analysis of whether material ESG issues arising from sustainability reports also appear in KAMs disclosures, thus addressing a significant literature gap. The study findings suggest that auditors need appropriate guidance and enhanced competencies to perform holistic ESG risk evaluation, as the acceptance of integrated sustainability reporting is gaining momentum globally.