Audit Function Research Articles

The challenges of policy oversight for the European Parliament: how the committee system is adapting in its scrutiny of budgetary expenditure

ABSTRACT In its scrutiny role the European Parliament (EP) makes wide use of several informational resources, including Commission evaluations and European Court of Auditors’ performance audits. These crucial inputs into deliberative processes of parliamentary oversight enable committees to monitor the performance of policies financed by the EU budget. Effective scrutiny is fundamental for the throughput legitimacy and financial accountability of EU policy and law making. Traditionally the EP’s Budgetary Control Committee (CONT) has scrutinised ECA reports across all policy domains. However, during the eighth and ninth legislatures (2014-2024), direct contact has been forged between the standing committees and ECA for the presentation of audit findings, allowing committees a more retrospective perspective on policy performance. Arguably, greater engagement and understanding of budgetary control helps the EP as co-legislator deliver improved regulation and better designed policy instruments. This article explores the evolving nature of EP-ECA committee relations and institutionalisation of new scrutiny arrangements.

Leveraging Internal Audit and Blockchain to Mitigate Academic Fraud and Enhance Institutional Sustainability: A General Strain Theory Perspective

Purpose: With application of general strain theory, this study investigates how internal audit function and blockchain technology can be leveraged to ensure the sustainability of higher education institutions (HEIs) by combating faculty credential fraud. Faculty members with fake credentials pose a significant threat, jeopardizing the quality of education, eroding public trust, and hindering the institution's ability to attract qualified students and faculty. Methodology: A comprehensive review of existing literature and reports related to faculty credential fraud, internal audit practices, and blockchain technology is conducted. The study considers the effectiveness of internal audit and blockchain solutions in addressing faculty credential fraud within the context of HEI sustainability. Study also provides practical solutions for the development and implementation of blockchain specifically related to HEIs and defines specific measures to be taken by internal audit function towards preventing such frauds. Findings: The study reveals that faculty credential fraud poses a significant threat to the sustainability of HEIs. When faculty lack the qualifications they claim, it undermines the quality of education students receive. This can lead to a decline in student enrollment, reputational damage, and difficulty attracting qualified students and faculty, ultimately jeopardizing the institution's long-term viability. Internal audit plays a crucial role in identifying and preventing fraudulent credential use. Blockchain technology, on the other hand, offers a secure and transparent platform for verifying faculty credentials, combating document forgery, and ensuring the qualifications of teaching and research staff. Novelty: This study offers a unique perspective by integrating internal audit and blockchain technology as a comprehensive solution to address faculty credential fraud. By implementing these tools, HEIs can significantly enhance faculty credential verification processes, improve data security, and uphold the trust and credibility of their academic staff. Practical Implications: This research suggests practical measures for HEIs. These include adopting proactive measures like enhanced credential verification procedures, data analytics for identifying inconsistencies, employee education on ethical practices, and implementing blockchain-based credential verification systems. These measures collectively contribute to a more sustainable educational environment with qualified faculty delivering quality education.

Forensic Auditing and Financial Performance of Kenyan Counties

Forensic Auditing and Financial Performance of Kenyan Counties

Pengaruh Motivasi Auditor dan Kompleksitas Tugas terhadap Kinerja Auditor Pemerintah Daerah: Studi pada Inspektorat Aceh

This study aims to analyze the influence of auditor motivation and task complexity on the performance of government auditors. Auditor motivation is considered a crucial factor that can drive work efficiency and effectiveness, while task complexity contributes to determining an auditor's ability to optimally complete their tasks. This research was conducted on employees of the Aceh Inspectorate, encompassing 82 individuals from various positions, including Inspectors, Secretaries, Assistant Inspectors, functional auditor officials, and other staff. The study employed a quantitative approach with a census method, where the entire population was used as the research sample. To test the hypotheses, Structural Equation Modeling (SEM) was utilized, allowing simultaneous and in-depth analysis of variable relationships. SEM was chosen for its ability to test causal relationships and provide accurate estimations regarding the influence of variables in the study. The findings indicate that auditor motivation has a direct and significant effect on auditor performance, with a greater contribution than task complexity. High motivation has been proven to enhance the efficiency and effectiveness of auditors' work. Task complexity also has a significant impact, though its contribution is moderate (value of 0.417). However, the study also revealed that other factors, such as integrity, professionalism, and auditor independence, influence auditor performance, even though they were not the primary focus of the research. This study emphasizes the importance of enhancing auditor motivation and managing task complexity, as well as integrating other factors into further analyses to provide a holistic understanding of the factors affecting the performance of government auditors.

The Role of Internal Audit in Enhancing Performance: A Case Study of Mirwais Neeka Institute of Higher Education, Kandahar, Afghanistan

The Internal Audit is a systematic process of analyzing risk, its likelihood and impact and taking necessary steps to avoid and control risks by its various control measures particularly in educational institutions. The prime objective of this research is to study and explore the specific impact of the internal audit function on the performance of Mirwais Neeka Institute of Higher Education in Kandahar. This study investigates how the internal audit function at Mirwais Neeka Institute contributes to the institution’s overall performance by examining audit processes, stakeholder perceptions, and tangible outcomes. The population for this study consists of administrators, faculty, students, and relevant staff of Mirwais Neeka Institute of Higher Education involved in or affected by internal audit processes and purposive sampling technique has been used for selecting representative sample of 40 respondents from the population. The analysis employs descriptive statistics, correlations, and Ordinary Least Squares Regression to determine the relationships between internal audit functions and organizational performance. The study concludes that internal audit functions are crucial in enhancing risk mitigation, operational efficiency, and performance measurement, thus significantly impacting the performance of Mirwais Neeka Institute. The research provides valuable insights for administrators and policymakers, emphasizing the need for robust internal audit practices to improve institutional performance. Future research could explore additional factors influencing organizational performance and delve deeper into the specific components of internal audit functions driving performance improvements.

Determinants of Internal Auditor Effectiveness and Its Impact to the Quality of Financial Reporting in Supporting Achievement of Sustainable Development Goals (SDGs) at Religious Universities in Indonesia

Objective: This study was conducted to determine the effect of personality, competence, objectivity, and performance on the effectiveness of internal auditors, and their impact on the quality of financial reporting in supporting the achievement of Sustainable Development Goals (SDGs). Methods: This study used a descriptive quantitative method where data were collected by circulating questionnaires to 84 state religious universities in Indonesia with a sample of 299 respondents. Data analysis was carried out using the Partial Least Square-Path Modeling (PLS-PM) approach. Results and Discussion: The results of the study prove that there is a positive and significant effect of personality, competence, objectivity and work performance on the effectiveness of internal auditors, personality is an intangible resource that can improve the function of the internal auditor framework, competent, skilled and experienced auditors can improve their audit performance and efficiency. The role of internal auditors in higher education that has been carried out so far is only as a verifier, reviewing budget absorption, reviewing the implementation of faculty and institutional activities, and has not conducted a comprehensive audit of financial statements as carried out by the inspectorate of the ministry of religion and the Supreme Audit Agency so that the achievement of Sustainable Development Goals (SDGs) cannot be maximized. Research Implications: This research is a development of knowledge that is expected to contribute to the development of Internal Audit science, especially in the public sector in this case the internal control unit of religious universities in Indonesia. Originality/Value: Personality variables are a development of Al-Bawwat at al's research (2021) where in previous researchers, Openness to experience, emotional stability, conscientiousness and extraversion became a variable while in this study each became an indicator, added with two other indicators, namely perseverance and trust (Sharma, 2018); Cherry & Susman (2023).

Analisis Bibliometrik dengan VOSviewer: Penelitian dalam Audit Manajemen Lingkungan

Environmental management audits are an important element in managing the company's sustainability and performance. The main objective is to analyze the development of research on environmental management audits using a bibliometric approach with the VOSviewer tool. The study identifies key trends, collaboration patterns, and evolving themes in the environmental audit-related literature. Publication data was obtained from Google Scholar using the keyword "environmental audit," which was then analyzed using the Publish or Perish and VOSviewer tools. The study identified a total of 989 papers from 1922 to 2024. The results of the analysis showed that keywords such as "audit," "environmental," and "company" dominated the research network, with clusters reflecting the relationship between audit, sustainability, and company performance. The study also shows an increased focus on corporate transparency and social responsibility. Despite challenges such as differences in regulations and organizational capacity, environmental audits have great potential to improve sustainability practices. This research opens up opportunities to explore the role of auditors and audit committees in improving the transparency of sustainability reports.

The Impact of Digital Transformation on Internal Auditing and Financial Performance of Iraqi Banks

This study investigates the extent to which regulatory systems for electronic accounting information systems, with conventional controls, are implemented in banks. The research employs a questionnaire divided into two main sections : the first section focuses on the personal characteristics of the study sample, while the second section is divided into eight themes. These themes cover the bank's commitment to deregulation of electronic accounting systems, regulatory controls on access to information, security and protection of files, documentation and development of the electronic accounting system, input and output controls, operations, and the risks associated with electronic accounting information systems. Key recommendations include improving control procedures, protecting software and hardware, and adopting clear regulations for responsibilities and powers within banks. The study underscores the importance of continuous internal audits and the development of efficient electronic accounting information systems to mitigate risks and enhance the overall performance of Iraqi private banks.

Investigating the Extent and Impact of AI Applications on Audit Firms Performance in Saudi Arabia

This study investigates the extent and impact of AI applications on audit firm performance in Saudi Arabia, focusing on operational efficiency and audit quality in the context of Vision 2030's digital transformation agenda. Data were collected from 35 audit firms through a structured questionnaire targeting senior auditors and managers, using a two-part survey that included demographic data and variables related to AI adoption, operational efficiency, and audit quality. Descriptive statistics and regression analysis were employed to assess AI adoption levels and examine its effects. The findings reveal that AI adoption among Saudi audit firms is in its early stages, with significant variability based on firm size and technological readiness. AI positively impacts operational efficiency through task automation and predictive insights, reducing manual effort and enhancing productivity. Additionally, AI improves audit quality by reducing errors and increasing consistency. However, the results emphasize that AI’s benefits are contingent on strategic integration, proper implementation, and effective training. This research provides valuable insights for audit firms and policymakers, highlighting the transformative potential of AI in modernizing the auditing landscape and achieving Vision 2030 objectives.

The impact of using ChatGPT on internal audit quality: a case study of a subsidiary of an oil group in Morocco

The integration of artificial intelligence (AI) has brought transformative changes across industries, including the field of internal auditing. With AI technologies evolving, internal auditors are exploring innovative tools to enhance audit quality and efficiency. This study investigates the impact of using ChatGPT on the quality of internal audits in a subsidiary of a major oil group in Morocco. To achieve this objective, we analyzed internal audit processes and evaluated how ChatGPT’s AI-driven capabilities influence audit performance. Data was collected from a sample of 23 auditors working within the subsidiary and analyzed using SPSS (linear regression). The results revealed that ChatGPT’s perceived utility was strongly correlated with improvements in internal audit quality, particularly in explaining technical elements and concepts that are outside the auditors’ typical training, thus enhancing the accuracy and depth of their analyses.

ANALISIS BIBLIOMETRIK AUDIT OPERASIONAL MENGGUNAKAN VOSVIEWER DI INDONESIA DENGAN PUBLISH OR PERISH

Operational audits serve to assess the effectiveness and efficiency of a company's activities, and provide recommendations for improvement. In an increasingly complex context, these audits have become essential to ensure that companies can meet stakeholder expectations and improve overall performance. This research focuses on a bibliometric analysis of operational auditing in Indonesia, using VOSviewer and Publish or Perish software to explore the characteristics of publications in this field. The main objective of this research is to identify research trends and patterns in the field of operational auditing through a bibliometric approach. The research data was obtained using the Publish or Perish (POP) application. The data collected was obtained from search results containing the keyword “operational auditing” obtained through Google Scholar. This study identified a total of 500 articles from 2000 to 2024. The results showed that the number of operational auditing studies conducted between 2000 and 2024 continued to increase. The analysis showed a close relationship between various keywords that reflect the main focus of the research, such as “technology audit” and “internal audit”.

How Does Job Well-Being Optimize Audit Performance? The Moderating Effect of Passion.

Most prior studies found that job well-being and job performance are in a linear relationship. Audit firms are a type of highly professional organization. Based on the affective events theory, this study argues that job well-being can accelerate the improvement of audit performance thus forming a curvilinear relationship. Additionally, auditing is a job that demands highly professional skills and responsibility. This study argues that an auditor's passion for work can strengthen the relationship between job well-being and audit performance. The study employed a quantitative survey approach, collecting data from 178 auditors who are in a position of in-charge, deputy manager, and manager in the Big Four CPA firms in Taiwan. The empirical evidence confirmed that job well-being and audit performance are in a curvilinear relationship. In addition, the effect of job well-being on audit performance is greater in the presence of high passion and will diminish when the passion is low. According to the research results, the managerial implications for audit firms are provided.

Licensing and Auditor Performance: Evidence from the CPA Exam Reform in China

Licensing and Auditor Performance: Evidence from the CPA Exam Reform in China

Signifikan Etika Akuntan dalam Implementasi Audit Fraud

Like a professional accountant, in carrying out the audit function, he is obliged to comply with the work code of ethics and audit financial statements through ethical norms or applicable auditing standards. In carrying out work, an accountant must ensure that every action taken is in line with established moral standards. This code of ethics is based on the goal of maintaining public confidence in high quality services, regardless of who is performing those services. including their expert practice, fraud auditors are also obliged to implement the rules and ethics that are of interest to them, as a manifestation of the public's confidence in the integrity of the accounting profession. While performing all phases of a fraud audit, fraud auditors must still adhere to the applicable ethical rules. Basically, they must demonstrate an attitude of diligence and honesty in carrying out audit tasks to ensure objective and accountable results.

The Impact of Blockchain Technology on Accounting and Auditing Functions: Evidence from Saudi Arabia

The Impact of Blockchain Technology on Accounting and Auditing Functions: Evidence from Saudi Arabia

The Impact of Emotional Intelligence on Audit Quality through Job Stress: Evidence from Vietnamese Independent Auditors

Introduction: This study was conducted to examine how emotional intelligence can affect audit quality through its impact on job stress. Objectives: The aim of the study is to determine whether higher levels of emotional intelligence can reduce job stress and improve audit quality, taking into account the pressures that auditors face in Vietnam, such as tight deadlines and complex regulatory requirements. Methods: Using quantitative research methods, using a structured survey to collect data from 327 auditors, audit team leaders, audit department heads and directors of 125 independent auditing companies in Vietnam and using the SEM structure model on SPSS and AMOS 20 software to test hypotheses. Results: The results show that all dimensions of emotional intelligence (Assessing one's own emotions, Assessing others' emotions, Using Emotions, and Regulating Emotions) significantly reduce work stress and work stress, which in turn negatively affect audit quality. Conclusions: These findings are significant because they highlight the importance of emotional intelligence training and stress management interventions in improving auditor health and improving audit quality. By addressing work stress, audit firms can ensure better performance and higher audit standards in a fiercely competitive market like Vietnam, where Big4 audit firms account for 70% of the audit market share

Evaluating the Effectiveness of Senior Management Support for Shariah Audit Function in Malaysian Islamic Financial Institutions

Senior management holds crucial responsibility to ensure Shariah compliance over the daily operations and business activities in Islamic financial institutions (IFIs), at all times. This underscores an urgent need to strengthen the effectiveness of senior management function in managing Shariah non-compliance risks in the business activities of IFIs as mandated by Bank Negara Malaysia (BNM) in the Shariah Governance Policy Document (SGPD). Prior studies have demonstrated that various types of IFIs exhibit different levels of Shariah governance practices. However, extensive involvement of the senior management to effectively integrate Shariah compliance across all levels has been adequately examined. The main objective of this study is to evaluate the effectiveness of senior management support for Shariah audit function in Malaysian IFIs. The study employs quantitative methodology to gather the data using survey questionnaire distributed to the Head of Shariah audit in IFIs in Malaysia. Based on the findings, majority IFIs has established effective level of senior management support for the Shariah audit function especially in Islamic banks. However, the senior management support can be enhanced in terms of its function to establish the Shariah compliance culture and to provide adequate human resource for the Shariah audit function. The outcome of this study could enhance effective senior management support to ensure robust management of Shariah non-compliance risks in IFIs. The findings also contribute to further enhance the effectiveness of Shariah governance arrangement in various IFIs and encourage rigorous implementation of the Shariah compliance risk culture at all levels.

The moderating effect of the effectiveness of the internal audit function on the relationship between CAATS and corporate governance and the quality of financial reports in commercial banks: Evidence from the Kingdom of Saudi Arabia

This study sought to determine how CAATS, corporate governance (CG), and EIAF positively and directly influence the quality of financial reports (QFR). In addition to identifying the moderating effect of EIAF on the links between CAATS, CG and QFR in Saudi commercial banks. To this end, data was collected from 293 participants, including administrative managers, board members, internal auditors, certified public accountants, and staff members from the audit and internal audit departments as well as the accounting departments. Using structural equation modelling (SEM) via SmartPls, data was analyzed. The study showed that QFR is positively and significantly affected by CAATS, CG, and EIAF. Moreover, EIAF does not moderate the effect of CAATS and CG on QFR. Hence, this study enriches accounting literature and has implications for both practitioners and policymakers.

Internal Audit Governance Factors and their effect on the Risk-Based Auditing Adoption of Commercial Banks in Jordan

IntroductionThis paper aims to explore the impact of internal audit governance factors on the risk-based auditing adoption of commercial banks in Jordan. The population targeted in this paper were managers of the accounting and finance departments in the commercial banks listed on the Amman Stock Exchange. MethodsUsing the purposive sampling method, 339 responses were obtained in the final sample, which constituted a validity rate of 73.7%. Structural equation modeling (SEM) was adopted as a statistical approach for hypotheses assessment. ResultsThe findings of this paper confirmed the positive impact of internal audit governance factors, including internal audit attributes, audit committee attributes, risk management system, and internal control system, on risk-based auditing adoption. ConclusionA set of recommendations was provided to bank managers, such as enhancing the Board's supervision and monitoring of the internal audit function's actions by encouraging Board members to grasp risk-based auditing thoughts and the value it delivers to the Bank.

The Role of Performance Audit Using Analysis SWOT in Achieving Programmatic Accreditation of Government Colleges (Applied Research)

The research aims to provide theoretical frameworks on the study's variables (performance audit and software accreditation) and highlight the elements of performance audit and how to use them in obtaining software accreditation for colleges of management and economics through the intermediate role of analysis SWOT. The deductive approach was used to switch from the general aspect related to identifying what software accreditation and what performance audit and its elements to reach the aspect of activating performance audit elements in achieving software accreditation for colleges through the intermediate role of S analysis SWOT. Also, the inductive approach was adopted to switch from the special one related to the research problem observation to the general aspect by circulating recommendations for activating the performance audit elements to complete the program accreditation activities on time. The most important conclusion of the research is the lack of a comprehensive description of activities that develop teaching abilities, nor an extensive description of pedagogical approaches, methods and teaching aids of study programs, which is an obstacle to developing the quality of education and teaching and improving the teaching staff performance. There is a lack of a description of how to include the expectations of stakeholders, the labour market, graduates, students, society, and policymakers in the curriculum and define learning goals. There is also a lack of a clear description of how to achieve integration between executive education programs, study programs, and scientific contributions. The most important recommendations include a comprehensive description of activities that develop teaching abilities of pedagogical curricula, methods and teaching aids for study programs, which is an obstacle to the development of the quality of teaching and teaching, improving the performance of the teaching staff. Include a description of how to include stakeholders' expectations, the labour market, graduates, students, society, and policymakers in the curriculum, and define learning goals in strategic plans; include a clear description of how to integrate executive education programs, study programs, and scientific contributions.