Management Audit Research Articles

PENGARUH PROFITABILITAS, ENVIRONMENTAL MANAGEMENT SYSTEM, KEPEMILIKAN INSTITUSIONAL DAN KOMITE AUDIT TERHADAP CARBON EMISSIONS DISCLOSURE

This study aims to analyze the effect of profitability, environmental management systems, institutional ownership, and audit committees on carbon emission disclosure. The research population is energy companies registered on the Indonesia Stock Exchange in 2019-2021. The sample selection used a purposive sampling technique and resulted in 47 companies as the final sample. The results of this study show that the environmental management system and audit committee significantly affect carbon emission disclosure. In contrast, profitability and institutional ownership do not significantly affect carbon emission disclosure.

The Impact of the Implementation of Internal Audit Tasks According to Standard 2300 on the Efficiency of the Performance of Industrial Companies Listed on Amman Stock Exchange

Purpose: To determine the impact of the implementation of internal audit tasks in according to standard 2300, with its dimensions (identifying information, analysis and evaluation, documenting information, supervising the task) on the efficiency of the performance of industrial companies listed on the Amman Stock Exchange, and to achieve the objectives of the study.
 
 Methodology: The descriptive approach was used Analytical. The study population consisted of internal auditors in industrial companies listed on the Amman Stock Exchange, which numbered (56) companies, and the study sample consisted of (160) questionnaires distributed to workers in the job of (internal auditor, director of internal audit and head of the internal audit department) in the Jordanian industrial companies listed on the Amman Stock Exchange, from which (124) questionnaires were retrieved. In addition to (2) an incomplete questionnaire, all the information contained therein. Thus, the study sample consisted of 122 individuals. To test the hypotheses of the study, the researcher used the SPSS program ، through the simple regression test and the Three-way Anova test. The study reached results there is a statistically significant relationship to determine the information, analysis and evaluation on the performance efficiency of the industrial companies listed on the Amman Stock Exchange. 
 
 Findings: While showed, there is no statistically significant relationship to document information and supervise the task on the performance efficiency of industrial companies listed on the Amman Stock Exchange.
 
 Further research: In view of the results, the study recommended the need to support the internal audit department in Jordanian industrial companies.and More studies are needed.

The Impact of Audit Committee Skepticism and Reward Power on Auditor Communications with the Audit Committee

ABSTRACT Auditing standards emphasize the importance of strong auditor communications with the audit committee to enhance financial reporting quality. This study examines the effects of audit committee skepticism and reward power, two pervasive audit committee characteristics, on auditor communications with the audit committee. Drawing on accountability theory, we predict and find that greater audit committee skepticism and reward power induce the auditor to communicate more information and report on a more timely basis. Seventy-nine audit partners and managers participated in an experiment where we manipulate between-subjects high or low audit committee skepticism (quantity of probing questions) and high or low reward power (exercising full authority to hire/compensate the auditor versus relying on management). Participants responded to a realistic case regarding an inventory obsolescence issue. A follow-up experiment with 30 participants indicates significant mediation for accountability. The findings underscore the importance of audit committee skepticism and reward power in enhancing auditor communications.

The Digital Transformation of Auditing and the Evolution of the Internal Audit

This book discusses the digital transformation of auditing and its impacts on internal audits. It poses the question of whether digitalization significantly impacts internal audit practices and methodologies, information technology/information system audit, IT governance, and risk management. Internal audit, particularly IT audit, addresses corporate strategy and alignment, corporate governance, IT governance, agility, risk management, and compliance

UTILIZING THE VAL IT 2.0 FRAMEWORK TO ASSESS THE EFFECTIVENESS OF INFORMATION TECHNOLOGY INVESTMENTS FOR IMPLEMENTATION OF THE E-PROCUREMENT SYSTEM IN PT XYZ LIFE INSURANCE

Investments made by business organizations in the field of Technology and Information are a form of investment that is not measurable when the return on investment will be achieved if it is not accompanied by an appropriate IT investment utilization strategy. PT XYZ Insurance has implemented digital transformation in several of the company's operational activities. The Procurement Division at PT BNI Life Insurance has used the e-procurement system since 2019. The Procurement Division of PT XYZ Life Insurance in implementing the e-procurement system will try to be evaluated using the VAL IT 2.0 method. The implementation of VAL IT is one of the frameworks that can be used to conduct an information technology governance management audit or IT Governance. The VAL IT 2.0 Framework analysis used in this study's conclusion to determine the state of the e-procurement system's implementation as part of operational technology management at the company PT XYZ Life Insurance yielded results showing that the highest average GAP Maturity Level is found in the Portfolio Management domain analysis at 1.11, which is different from the level or value 5 of the expected maturity level. PT XYZ Life Insurance must identify all potential e-procurement programs that could be part of the company's IT investment portfolio and prioritize e-procurement programs based on their alignment with strategic objectives, potential value, and risk considerations.

Pengaruh Opini Audit, Financial Distress, Pergantian Manajemen terhadap Auditor Switching:


 This study aims to determine the effect of audit opinion, financial distress, and management changes on auditor switching. The dependent variable in this study is auditor switching, while the independent variables measured in the implementation of this research are audit opinion, financial distress, and management turnover. This type of research is quantitative research with a population obtained from BUMN companies registered on the BUMN website in 2020-2022. The sampling technique used was purposive sampling technique and produced 10 sample companies for 3 years of observation. The type of data used is secondary taken from the financial statements of state-owned companies. The analysis technique used in this study is logistic regression analysis using SPSS version 20. The results of the analysis in this study indicate that audit opinion, financial distress and management turnover have no effect on auditor switching. The coefficient of determination (R2) in this study is 7.9% while the rest is explained by variables with other models outside this study.
 Kata Kunci: Audit Opinion; Financial Distress; Change of Management; Switching Auditors

Analysis of Employee Performance of PT. Virgo Sejahtera Abadi

This study aims to determine the effect of Management Audit and Internal Control Systems on Employee Performance at PT. Virgo Sejahtera Abadi.This study uses quantitative data types and data sources are primary data. The population in this study were employees at PT. Virgo Sejahtera Abadi. Samples taken as many as 32 respondents using the saturated sampling method. Data collected through a questionnaire. The results of a partial study showed that the Audit Management was positive and significant influence on employee performance then the 1 (first) hypothesis on this study was acceptable. The results of the study in a partial Internal Control Systems are positively and significantly affected by Employee Performance, the 2 (second) hypothesis of the study is acceptable. The results of simultaneous research showed the Management Audit and Internal Control Systems positively and significantly impact the Employee Performance at PT. Virgo Sejahtera Abadi. The result of coefficient of determination of determination indicated that the Employee Perfomance can be explained by the variable Management Audit and Internal Control Systems, while the rest of the Employee Performance variables can be explained by other variables that are not researched in this study as training and culture work.

Effect of Management Change, Company Size, and Audit Opinion on Auditor Switching

This study aims to analyze the influence of management change, company size, and audit opinion on auditor switching. Using dummy variables for management change and audit opinion, and log total assets to measure company size, the research was conducted with purposive sampling, selecting 15 companies from the transportation sub-sector listed on the BEI between 2018 and 2021. Logistic regression was used for data analysis. The results indicate that management change, company size, and audit opinion do not significantly affect auditor switching. The findings offer valuable insights for investors and shareholders, emphasizing the importance of carefully examining financial reports, particularly audit results, to make informed investment decisions. For companies, the study highlights the need for meticulous decision-making when considering auditor switching. Additionally, for auditors, the research underscores the importance of maintaining independence by avoiding overly long-term relationships with clients. Future research could explore other variables and expand the sample size. Nonetheless, this study contributes valuable information to the field of auditor switching and its implications on various stakeholders

Pengaruh Locus of Control terhadap Dysfunctional Audit Behavior: Religious Control sebagai Pemoderasi

The purpose of this study is to obtain empirical evidence about whether locus of control, professional commitment, time budget pressure, client importance, turnover intention, and personality type (type A) has an influence on dysfunctional audit behavior moderated by religious control on the influence of locus of control and professional commitment on dysfunctional audit behavior. The population in this study are auditors who work in public accounting firms in Indonesia. The sample selection technique is purposive sampling. Based on the sample selection criteria, the number of samples collected were 86 auditors. Those data are analyzed using multiple linear regressions analysis. The result of this study shows that locus of control has a positive effect on dysfunctional audit behavior. It means that the higher the locus of control, the higher the probability of dysfunctional audit behavior. Auditors tend to perform dysfunctional audit behavior when they face pressure in doing their job. The pressure can come from time, superiors, supervisors, or audit managers which are external factors. Professional commitment, time budget pressure, client importance, turnover intention, locus of control moderated by religious control, and professional commitment moderated by religious control do not effect dysfunctional audit behavior. This study also showed that religious control does not moderate the relationship between locus of control and professional commitment with dysfunctional audit behavior.

Penerapan Audit Manajemen Untuk Menilai Ekonomisasi, Efisiensi Dan Efektivitas Fungsi Pengadaan Barang Dan Jasa

This study discusses the management audit on the function of procurement of goods and services. Management audit is a tool for management audit is a tool that can be used by companies to measure the economy, effectiveness, and efficiency or evaluation of management activity programs. This study aims to assess the economization, efficiency, and effectiveness of the function of the procurement of goods and services at PT PLN ULP Ruteng. The scope of the procurement function includes the procurement organization, the procurement process which consists of: procurement planning, procurement implementation, payment and reporting. In this study, it is more specifically discussed about the audit of goods and services procurement organizations. Presidential Regulation No. 16 of 2018 states that the Government Goods/Services Procurement Policy Agency, hereinafter referred to as LKPP, is an institution tasked with developing and formulating policies for the Government's procurement of goods/services. This research is a qualitative research with a case study approach. Data collection techniques used are observation, interviews, and documentation. The method of data analysis is carried out with the elements of the management audit, the data obtained will be classified into the Criteria, Conditions, Causes, Effects groups. From the results of research on the procurement function in the organization of procurement of goods and services PT PLN ULP Ruteng it cannot be said to be effective and efficient. From the specified criteria, there are weaknesses in this program. The recommendations given by researchers to companies can be used as material to make improvements to these weaknesses.

PROCEDURES FOR IMPLEMENTING INTERNAL AUDIT IN THE MANAGEMENT SYSTEM DEPARTMENT OF PT PUPUK ISKANDAR MUDA ACEH UTARA

This practical work report contains internal audit implementation procedures at the Management System Department of PT. Pupuk Iskandar Muda. Meanwhile, the procedure for carrying out internal audits conducted by PT Pupuk Iskandar Muda consists of several starting from 1) Coordinating with the VP of the relevant work unit, 2) Making official audit team memos, 3) Appointing the head of the internal auditor team, 4) Making audit plans and schedules , 5) Opening of the audit, 6) Execution of the audit, 7) Closing of the audit, 8) Repair of discrepancies, 9) Monitoring of repairs, 10) Closing of the LKS, 11) Input of management review. There are several obstacles in the procedure for carrying out internal audits such as, Lack of Response from Internal Audit Management, just a waste of time, internal auditors are responsible for their main work, audit implementation is not effective.

The impact of female representation and ethnic diversity in committees on environmental, social and governance performance in Malaysia

Purpose This study aims to explore how females on committees (FOC) and committee ethnic diversity (CED) impact environmental, social and governance performance (ESGP). Design/methodology/approach This study examines 126 listed firms under the coverage of FTSE ESG Ratings in Bursa Malaysia between 2017 and 2019. This study applies partial least squares structural equation modeling (PLS-SEM) to examine the hypotheses. While the risk of common method variance is minimised using multiple data sources for the analysis, instrumental variable-free approach, i.e. Gaussian copula method which is implemented in SmartPLS 4.0 has been used to address the potential endogeneity of the model. Findings Empirical evidence demonstrates significant positive direct relationships between FOC and ESGP, as well as CED and ESGP. The argument of resource dependence theory and positive empirical results on the two direct relationships hold firm despite several committees being aggregated as one construct with the aim of providing different insights into the literature. Practical implications This study provides implications for firm leadership to consider reviewing the composition of committees by increasing female representation while striking a balance in the appointment of committee members of different ethnicities to enhance firm ESGP. Originality/value To the best of the author’s knowledge, this study adopts a holistic approach by capturing, for the first time, the female representation of audit, nomination, remuneration and risk management committees. These dimensions are further developed into a single quantifiable variable, presented as FOC. Similarly, the ethnic diversity of the respective committees is aggregated and developed into a single quantifiable construct: the CED. Unlike most existing studies that commonly use econometric software, the application of PLS-SEM in this study contributes to the limited body of corporate governance and ESG studies that use PLS-SEM.

Management Audit in Retail Companies (Review of Internal Control of Human Resources in the Franchise Department)


 This research adopts a qualitative approach with subject data and primary data sources. The research object is the Franchise Department of PT SAT, with the entire department's employees as the population. The study uses a saturated sample, which includes all 10 employees. The data collection methods used are Observation, Interviews, and Documentation. The data analysis method employs Data Reduction, Data Display, and Conclusion Drawing. The overall result indicates that the internal control of human resources in the Franchise Department of PT SAT is functioning well. However, there are some findings resulting from employee dynamics, such as resignations or job transfers, which lead to vacant positions that are then delegated to other employees. Additionally, there is a need for educational qualifications adjustment, even if an employee already possesses significant experience.

Risk management committee, political connection and audit pricing: Evidence from Malaysia

This study investigates the impact of risk governance mechanisms on audit pricing in a relationship-based context. Specifically, this study considers how the formation of a Risk Management Committee (RMC) and its characteristics affect audit pricing and what its moderating effects are on the relationship between political connection and audit pricing. This study uses 2,460 firm-year observations from 2012 to 2017, comprising data from non-financial firms listed on the Main Market of Bursa Malaysia, Malaysia’s stock market. A panel regression analysis was adopted in the main analysis, which generated mixed support for the hypotheses. Results showed that auditors charged higher audit fees to politically connected firms. Similarly, politically connected firms that have an RMC tend to pay more audit fees. RMC meeting frequency, size and expertise are associated with lower audit fees. Politically connected firms with an RMC with independent members and more diverse experts tend to pay lower audit fees. The findings from this study can provide guidance to policy makers and practitioners on the composition of the RMC when formulating future risk management legislation.

Enhancing the Competency Development Program for New Recruits: A Case Study at Internal Audit & Risk Management Function

The pandemic created unsettling vulnerability as organization accelerated the shift to digital operations. One bright spot is that asset misappropriation, while still a top category of fraud, was down in the last 24 months perhaps due to more employees working remotely, with limited access to company assets. At the same time, remote working increased risks beyond just digital security. Hence, it is important to have effective internal controls to identify and prevent any kind of fraud. The increasing need for recruiting strong internal audit and risk management functions especially in public company is due to several factors, including increased regulatory scrutiny, greater stakeholder demands for transparency and accountability, and the growing complexity of business operations. With the increasing number of public companies, there is a greater need for effective internal controls and risk management systems to ensure financial reporting accuracy, prevent fraud, and meet regulatory requirements. Internal audit and risk management improve governance, decision-making, and identify risks for organizations. Strong functions require adequate manpower, trained personnel, and resources for effective performance. Group Audit and Risk Management (GARM) in one of public company, working on Internal Audit and Risk Management (IARM). To ensure GARM fulfils its responsibilities as a corporate center, they define Key Performance Indicators (KPIs) that are reviewed semi-annually by the Board of Directors (BOD). Unfortunately, one of the KPIs related to advisory and supporting roles, namely supporting the fulfilment of Group IARM manpower requirements, has not been met since 2013. The purpose of this study is to identify the root cause of the decrease in new recruit manpower fulfilment requests from Internal Audit and Risk Management functions in subsidiaries company and enhance the existing competency program in order to increase participation from Internal Audit and Risk Management functions. Using design thinking method and conducting in depth interview author may determine framework to enhance the programs that are more relevant to the competency needs.

Institutional pressures and accountability processes in pursuit of sustainable development goals: Insights from Ghanaian indigenous oil companies

AbstractThis paper aims at exploring the institutional pressures and accountability processes in pursuit of sustainable development goals (SDGs) in indigenous oil companies in Ghana. Applying a qualitative research strategy, semi‐structured interviews with 20 company managers and other industry stakeholders were used to collect in‐depth and rich empirical data. In pursuit of the SDG agenda, the indigenous oil companies appear to be sensitive to both internal and external stakeholder pressure. However, the coercive pressures from regulators did not always result in the companies implementing actual change. Instead, coercive pressures from non‐governmental actors have taken on the role of ‘regulator’ of organisational practices. Also, internal forces of change were mainly the foreign partner's audit pressure and management commitment to enhance company reputation. Beyond the institutional pressures to incorporate SDGs into business practices, the finding adds fresh perspectives to the three logical steps of SDG accountability processes used by the companies to track their contribution to SDG implementation and reporting, namely: data collection, SDG performance measurement, and communication of SDG outcomes. Finally, the study discovers that the companies are making little progress towards the achievement of the SDGs because of financial limitations, rigid organisational environments that prevent change, and a lack of a standardised institutional framework. The findings suggest that in order for an organisation to gain legitimacy, its SDG agenda must incorporate the concerns of non‐governmental actors and local communities into its corporate decision‐making. Failure to meet the needs of these essential stakeholders may jeopardise the legitimacy of organisation which will threaten its survival.

Analisis Audit Operasional atas Persediaan Barang Consumable Studi Kasus pada PT. Pipa Mas Putih

This study aims to determine the impact of the implementation of an operational audit of the inventory of goods at PT. Pipa Mas Putih Duri. The data analysis method used in this research is the descriptive qualitative research method. Based on the results of the research that has been analyzed based on interviews and direct observation of the object of the research, PT. Pipa Mas Putih has carried out an operational audit properly, as evidenced by the fulfillment of the stages of the operational audit stages. Furthermore, PT Pipa Mas Putih Duri already has several procedures regarding the management of goods inventory. Based on the checklist carried out, the operational audit and inventory management at PT. Pipa Mas Putih Duri are already running well.Keywords: Operational Audit, Management, Inventory

Oversight and public finances in Mexico

The general objective of the research is to describe the impact of audit management on public finances and tax revenues. According to Organization for Economic Development Cooperation (OCDE, 2022), Mexico lags behind other countries in terms of tax revenue, and tax evasion is considered one of the factors that contribute to this situation. Evasion makes it possible to hide profits and avoid paying the corresponding taxes, which affects state finances and limits the government's ability to promote social programs and improvements. Fiscal policy is a fundamental tool for the economic development and financial stability of a country. In this context, an explanatory qualitative methodology was used, which generated evidence to conclude that auditing acts in Mexico have allowed an increase in tax revenues with a positive effect on public finances; however, still below the average collected by member countries of the OCDE. It is proposed to improve tax education by providing information on the rights and obligations of taxpayers and greater transparency informing how the proceeds are invested and training businessmen in the use of technologies to facilitate the payment of taxes.

The Implications of Digital Audit Practice, Management Support and Team Support on Auditor Performance

ABSTRACT Purpose: This study intends to examine whether Research Universities (RUs) provide more Integrated reporting (IR) disclosure levels than non-Research Universities (RUs) in Malaysia. The evaluation is supported by signalling and institutional theories. Design/Methodology/Approach: This research utilises quantitative content analysis of 16 public universities’ annual reports in Malaysia from 2016-2018. Findings: The result reveals that Malaysian RUs deliver better IR disclosure levels than non-RUs. RUs are expected to disclose a great deal as to communicate their accountability. Signalling theory shows that the RUs expose higher IR disclosure levels to signal their distinction and reputational edge in contrast to non-RUs. The hypothesis is in line with the institutional theory because RUs are compelled to report in a superior format because they are pressured to perform well and be ranked highly. Research Limitation: This study is limited to the accessible annual reports of Malaysian public universities. Practical Implication: The results provide insights for policymakers to adopt IR framework in the public sector, in this case - Malaysian public universities as to communicate the organizations' value creation to various stakeholders Originality/Value: This paper is among the few publications that study the financial reporting of public sectors in Malaysia, focusing on Malaysian public universities. Furthermore, this study is among the early studies investigating the trendy issue of the potential adoption of the IR approach in Malaysian public universities. Keywords: Integrated reporting, research universities, non-research universities, signalling theory, institutional theory

A study on scientific production published in accounting journals in Brazil

The present study analyzes the characteristics of scientific productions related to teaching and research in accounting in Brazil, highlighting the most pertinent themes and their relevance to the evolution of accounting science. A descriptive research was carried out using the database available in Periodicals with classification “A2” to “B3”. In this sense, we sought to identify in this work the state of the art in the light of accounting science on research and teaching, in the period of eleven years. The profile of academic production in teaching was developed on the themes academic performance, perception of students of the Postgraduate Program in Accounting Sciences, Sufficiency Exam, Teaching Accounting Sciences, History of Accounting, Academic Competencies, Accounting Theory, Accounting Profession, Course of Accounting Sciences, Learning Styles, Curriculum Structure and PBL. The topics covered in the accounting research were: Management Accounting, Corporate Governance, Performance Evaluation, Auditing, Controllership, Budget, Cost Management, Management Accounting, Scientific Journal and Costs. The results showed that the journals that received the most publications on the subject studied were: Revista Educação e Pesquisa em Contabilidade and Revista Contemporânea de Contabilidade. Most of the articles are researches that used a quantitative approach, and the most frequent data collection instruments were: Survey/Research and Bibliometric Research, both in teaching and in research in the accounting area.