Governance Audit Research Articles

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Internal audit is an important part of corporate governance. Internal Audit as an independent and objective supervisor of operating processes, giving opinions to improve the efficiency of risk management processes, control processes and governance processes. Thereby, providing the Board of Directors and leaders with an independent view to promote cooperation, monitoring and early warning about new risks, improving the efficiency of business processes to add value and improve operations, while playing a catalytic role and fostering an internal corporate culture of risk management and compliance. In this article, the author mentions the three lines model and compares the three lines model with the previous three lines model of defense to identify challenges internal audit in joint stock companies. The research results make recommendations to enhance the role of internal audit in governance in order to minimize risks, fraud, and bring more value to businesses at Joint stock companies.

Government audit supervision, financialization, and executives' excess perks: Evidence from Chinese state-owned enterprises

In recent years, the phenomenon of corporate financialization has become increasingly prevalent in China. This paper uses data from Chinese state-owned listed firms from 2006 to 2018 to investigate whether large-scale financial investments by companies facilitate executives' excess perk consumption, and whether government auditing, as an important component of the national governance system, can play a governance role in this behavior. The results show that corporate financialization behavior significantly exacerbates executives' excess perks, and government auditing can mitigate the effect of corporate financialization on executives' excess perk consumption. We find that increased cash flow is the mechanism by which financialization behavior positively affects executives' excess perks. Furthermore, this study reveals that the implicit corruption of state-owned enterprise executives through corporate financialization is primarily based on compensation psychology, which will reduce the effectiveness of monetary compensation contracts. However, government auditing can effectively constrain this influence.

"Impact Of Corporate Governance Practice And Audit Quality On Capital Structure Decisions And Financial Performance "Evidence from Egypt

"Impact Of Corporate Governance Practice And Audit Quality On Capital Structure Decisions And Financial Performance "Evidence from Egypt

Influence of corporate characteristics and Good Corporate Governance toward the risk management disclosure

This research study aims to obtain empirical evidence to the influence of company characteristics (firm size, profitability, leverage and liquidity) and good corporate governance (audit committee, board size, and public ownership structure) toward the risk management disclosure. This research study uses the Index of Enterprise Risk Management (IERM) as the parameter of risk management disclosure. This research study uses secondary data, the population of Property and Real Estate companies listed on the Indonesia Stock Exchange (IDX) in 2013-2015. The sampling technique was conducted using purposive sampling, which produces 70 listed companies’ samples during the years of observation. The analytical method of this study uses multiple regression analysis of Econometric views 8. This research study concludes that partial testing shows that firm size, audit committees and board size are positively and significantly related to risk management disclosure. Profitability, leverage, liquidity have no significant influence on risk management disclosure. Hypothesis testing uses multiple linear regressions. Data are obtained using Eviews version 8 software application. Data analysis model done with multiple regression model aiming to examine the influence of audit committee size, board of commissioner size, firm size, profitability, and leverage toward risk management disclosure Based on the research study result that has been analyzed statistically using multiple linear regressions, it can be concluded that variables of firm size, leverage, audit committee, and board of commissioner size positively and significantly affect corporate risk management disclosure. Meanwhile, variables of profitability, liquidity, and public ownership do not positively and significantly affect risk management disclosure.

Auditing large language models: a three-layered approach

AbstractLarge language models (LLMs) represent a major advance in artificial intelligence (AI) research. However, the widespread use of LLMs is also coupled with significant ethical and social challenges. Previous research has pointed towards auditing as a promising governance mechanism to help ensure that AI systems are designed and deployed in ways that are ethical, legal, and technically robust. However, existing auditing procedures fail to address the governance challenges posed by LLMs, which display emergent capabilities and are adaptable to a wide range of downstream tasks. In this article, we address that gap by outlining a novel blueprint for how to audit LLMs. Specifically, we propose a three-layered approach, whereby governance audits (of technology providers that design and disseminate LLMs), model audits (of LLMs after pre-training but prior to their release), and application audits (of applications based on LLMs) complement and inform each other. We show how audits, when conducted in a structured and coordinated manner on all three levels, can be a feasible and effective mechanism for identifying and managing some of the ethical and social risks posed by LLMs. However, it is important to remain realistic about what auditing can reasonably be expected to achieve. Therefore, we discuss the limitations not only of our three-layered approach but also of the prospect of auditing LLMs at all. Ultimately, this article seeks to expand the methodological toolkit available to technology providers and policymakers who wish to analyse and evaluate LLMs from technical, ethical, and legal perspectives.

Contribution of physical health, sense of personal agency, and use of social media on the psychological well-being of government internal auditors

The crisis due to the Covid-19 pandemic has harmed the community's physical health, psychological and social well-being. This study aimed to determine the effect of physical health, sense of personal agency, and use of social media on PWB in government internal auditors. The design used in this study is a quantitative correlational approach. This study's results indicate an influence between physical health and a sense of personal agency on PWB in internal government auditors. Physical health affects 23%, while the sense of personal agency is 72%. By calculating all the biopsychosocial model variables, it can be concluded that the sense of personal agency has a more significant influence on PWB than physical health and the use of social media on internal government auditors.

Examining the Auditors� Acceptance of Big Data Analytics Technology Platform: Evidence from Government Auditors in Indonesia

Examining the Auditors� Acceptance of Big Data Analytics Technology Platform: Evidence from Government Auditors in Indonesia

STUDY OF THE EXPERIENCE OF DIGITAL TRANSFORMATION OF EDUCATION WITHIN THE EUROPEAN UNION

The article is devoted to consideration of the problems and trends of strengthening the economic and social potential of the country through quality management of state finances, which is a priority task of the state and its institutions in the conditions of increasing the use of state resources and overcoming the consequences of the global financial and economic crisis. The financial stability and security of the country, the effectiveness of state policy, the level of the population's quality of life, the achievement of social -economic goals of the state. Therefore, in the process of ensuring the quality of management and the use of state resources, the role of state financial control institutions, the effectiveness of the tools and methods they use in the process of activity is important (without exaggeration). The experience gained in this direction proved the low effectiveness of the tools used and proved the need to improve state financial control and audit. The need for careful study and implementation into practical activity of the positive experience of building a state control system existing in developed countries, one of which is the Kingdom of the Netherlands, is justified. There are three levels of control in this country, and all the functions necessary for the state (in particular, regarding financial control) are first determined in the state administration system, and then they are distributed among the bodies, which makes it possible to clearly distinguish the powers and competences of different bodies, including controlling The procedure for introducing internal control systems in every institution and organization of the Netherlands, merging internal audit units into the Central Government Audit Service under the Ministry of Finance, and introducing mechanisms to further limit the minister's influence on implementation deserve attention for the implementation of positive experience in the practical activities of the state financial control bodies of Ukraine. control, the existence of an independent external financial control body (audit court), cooperation and exchange of information between the Central Government Audit Service, the Court of Auditors, the Institute of Internal Auditors, the Netherlands Organization of Accountants, private audit firms, the European Commission (in matters of control over EU funds), and also with universities that train personnel in the relevant field. Keywords: digitalization, educational environment, digital technologies, education system, digital competence, digital skills, digital education, digital transformation.

Impact of Audit and Financial Factors on Audit Report Lag: Evidences from Indonesian

Financial report relevance, which is one of the qualitative features of financial reports, can be affected by audit report lag. Less pertinent is the audited financial report of a local government the longer the audit report is delayed. Thus, the user of a local government financial report may experience negative consequences. This study’s objective was to examine empirical evidence about the influence of audit results, auditor switches, local government size, leverage, and profitability on local government audit report lag in Indonesia. This study utilized 506 out of 514 local governments (districts and cities) in Indonesia during 2017 and 2018, with a total sample size of 1,012. This study utilized secondary data collected from 2017 to 2018 audit reports of the Supreme Audit Institute – SAI (BPK). The data was collected from the electronic database services of the Information and Documentation Executive Authority (E-PPID) at http://e-ppid.bpk.go.id. The Purposive Sampling Technique was used to acquire the sample, and the data was analyzed using Ordinary Least Squares (OLS). According to the research, audit findings, local government size, and leverage influenced local government audit report latency, but auditor changes and profitability had no significant effect. Many variables, including audit opinion, audit quality, auditor experience, the quantity of capital expenditures, special allocation funds received by local government, and the qualifications of the local government report compiler, might be investigated further. In addition, splitting municipal governments depending on island location would provide for an intriguing extra audit report lag study.

Multisectoral action towards sustainable development goal 3.d and building health systems resilience during and beyond COVID-19: Findings from an INTOSAI development initiative and World Health Organization collaboration.

This article is part of the Research Topic 'Health Systems Recovery in the Context of COVID-19 and Protracted Conflict'. As the world faces global health crises such as pandemics, epidemics, climate change and evolving disease burdens and population demographics, building strong and resilient public health systems is of critical importance. The need for an integrated approach to building health system resilience; the widening of inequalities; and fears of vulnerable populations being left behind are critical issues that require Supreme Audit Institutions (SAIs) enquiry as independent public oversight bodies. Each country has a Supreme Audit Institution with a remit to audit public funds as an effective, accountable, and inclusive institution. Government audits are key components of effective public financial management and Good Governance. SAIs contribute to the quality of government engagement and better state-society relations through their work. As SAIs provide independent external oversight and contribute to follow up and review of national targets linked to the Sustainable Development Goals (SDGs) in their respective countries, they can play an important role in national recovery efforts. WHO and INTOSAI Development Initiative (IDI) have been collaborating in facilitating SAIs' audits of strong and resilient national public health systems linked to the national target of SDG 3.d in 40 countries across Africa, Americas, Asia and Oceania between 2021 and 2022. This paper aims to convey key lessons learned from the joint multisectoral collaboration for facilitating the 3.d audits that can contribute to building health systems resilience in ongoing recovery efforts. The collaboration included facilitation of the audits through professional education and audit support using a health systems resilience framework. The 3.d audits are performance audits and follow IDI's SDG Audit Model (ISAM). Following the ISAM implies that the SAI should focus on a whole-of-government approach, policy coherence and integration, and assess both government efforts at 'leaving no one behind' and multi-stakeholder engagement in implementing the chosen national SDG target linked to 3.d. WHO's Health Systems Resilience team has supported IDI and SAIs by delivering training sessions and reviewing working papers and draft reports of the SAIs from a health systems resilience perspective. IDI has provided the technical expertise on performance audits through its technical team and through in-kind contributions from mentors from many SAIs in the regions participating in the audit. In the 3.d audit, SAIs can ask how governments are acting to enhance capacity in some or all of the following, depending on their own national context and risk: forecasting, preventing and preparing for public health emergencies (PHEs) and threatsadapting, absorbing and responding to PHEs and threatsmaintaining essential health services in all contexts (including during emergencies/crises). The audits are expected to highlight current capacities of health systems resilience; the extent to which a whole-of-government approach and policy coherence have been utilised; and government efforts related to multistakeholder engagement and leaving no one behind in building health systems resilience related to progressing towards achieving the national target linked to 3.d by 2030. An overall positive achievement noted was that undertaking a complex health audit in the middle of a pandemic is possible and can contribute to building health systems resilience and recovery efforts. In their review of audit plans, draft summaries, and other work by the SAIs, both WHO and IDI have observed that SAIs have used the training and supplementary materials and applied various parts of it in their audits. This collaboration also demonstrates key considerations needed for successful partnership across multisectoral partners at global, regional and national levels. Such considerations can be applied in different contexts, including socioeconomic and health system recovery, to ensure whole-of-society and whole-of-government action in building health systems resilience and monitoring and evaluation to maintain and accelerate progress towards the national target linked to SDG3.d, health security and universal health coverage (UHC), as well as broader socioeconomic development.

Effect of Competence, Whistleblower, and Probity Audit on

Purpose: The aim of this study is to examine the effect of competence, whistleblower, and probity audit on the detection of fraud in the procurement of goods and services, with emotional intelligence as a moderator.. Theoretical framework: The theory used in this study to derive hypotheses is based on the Agency Theory and Goal Setting Theory. Agency theory (Jensen and Meckling, 1976) describes a contract between owners and managers to manage and control company assets to maximize the owner's welfare. Goal Setting Theory (Locke and Latham, 2002) states that important factors that influence individual behavior can be seen in the efforts made by individuals to achieve a goal and individual commitment to that goal. In this theory, the auditor entrusted by the principal (the people) is considered capable and able to produce a higher quality audit and the auditor works in the interests of the principal, so the auditor is considered an agent of the principal. Government auditors represent the principal (the people) and have the task of supervising, evaluating, and examining program activities that have been implemented, especially the use of funds for the procurement of goods/services. Design/methodology/approach: This research is correlational descriptive research. The population in this study were auditors at BPKP Representatives and inspectorate of south sulawesi province. There are 2 types of data used in this study, namely primary data and secondary data. The analytical model used to test the hypothesis is Moderated Regression Analysis (MRA). Findings: The results of the study show that competency, whistleblower, and probity audit have an effect on the detection of fraud in the procurement of goods and services. In addition, emotional intelligence can moderate the influence of competence, whistleblowing, and probability audits on the detection of fraud in the procurement of goods and services. Research, Practical & Social implications: The results of this study can be a reference for further research regarding the determinants of fraud detection. This also has implications for the government to be able to consider the factors that exist in this study which are considered to have a good effect in increasing the detection of fraud in the process of procurement of goods/services to encourage the establishment of good governance government. Originality/value: This research is very important to obtain a governance model in the agency tasked with conducting state financial audits.

The Effect of Psychological Empowerment on Job Satisfaction Auditors with OCB as a Moderating Variable

The purpose of this study is to find out whether OCB strengthens or weakens the direct relationship between the Psychological Empowerment variable and the Auditor Job Satisfaction variable at the BPKP Representative of Central Sulawesi Province. This study takes auditors, thereby describing an alternative explanation of the influence relationship between each variable, which is a novelty in this study. The aims to determine the effect of psychological empowerment toward job satisfaction with Organizational Citizenship Behavior as a moderating variable at BPKP Representatives of Central Sulawesi. Based on the results of the fit test model, it can be concluded that the average path coefficient (APC) index is 0.370 with a p-value of 0.002 less than 0.05. The average R-squared index is 0.833 with a p-value of 0.001 less than 0.05. The AVIF value is 2,317 < 5.0. Based on the hypothesis test, it is obtained that the H1 test on the Psychological Empowerment variable (X) affects the job satisfaction variable (Y) with an average path coefficient index of 0.370 with a p-value of < 0.002 less than 0.10. The results of hypothesis testing H2 by looking at the indirect effect on the output of warpPLS 7.0, show that the p-value is 0.49. This value is greater than the significance level of 0.10. The test results on the H2 hypothesis mean that Organizational Citizenship Behavior (Z) cannot moderate the relationship between Psychological Empowerment (X) and Job Satisfaction (Y). The suggestion and research contributions are the impacts of OCB behavior are significantly large for the progress of organizations, companies, agencies, and institutions. This behavior is supported by a family atmosphere and climate that is still embraced by most Indonesians so that although there is no remuneration for services from organizations, companies, agencies, or institutions. It is expected that there will be an appreciation in the form of respect which can be used as a basis for promoting employees (especially government auditors) who have OCB behavior.

Auditing and compliance in public procurement – an empirical assessment

Purpose This study aims to empirically evaluate the effectiveness of government auditing of local authorities’ compliance with the procurement rules. Design/methodology/approach A diff-in-diff approach is used where the measure of compliance is (changes in) the incidence of private litigation under the Public Procurement Act, in audited vs non-audited municipalities. Further, semi-structured interviews were conducted with chief procurement officials. Findings No statistically significant effect is found. While strong effects of audits can be ruled out, the statistical results and the interviews do not, however, contradict a modest but long-lasting effect. Originality/value Few studies have addressed the effect of public procurement auditing on compliance. This study develops an empirical framework and presents empirical results.

STUDY OF FOREIGN EXPERIENCE OF THE BASIS OF CONSTRUCTION OF THE SYSTEM OF STATE CONTROL

The article is devoted to consideration of the problems and trends of strengthening the economic and social potential of the country through quality management of state finances, which is a priority task of the state and its institutions in the conditions of increasing the use of state resources and overcoming the consequences of the global financial and economic crisis. The financial stability and security of the country, the effectiveness of state policy, the level of the population's quality of life, the achievement of social -economic goals of the state. Therefore, in the process of ensuring the quality of management and the use of state resources, the role of state financial control institutions, the effectiveness of the tools and methods they use in the process of activity is important (without exaggeration). The experience gained in this direction proved the low effectiveness of the tools used and proved the need to improve state financial control and audit. The need for careful study and implementation into practical activity of the positive experience of building a state control system existing in developed countries, one of which is the Kingdom of the Netherlands, is justified. There are three levels of control in this country, and all the functions necessary for the state (in particular, regarding financial control) are first determined in the state administration system, and then they are distributed among the bodies, which makes it possible to clearly distinguish the powers and competences of different bodies, including controlling The procedure for introducing internal control systems in every institution and organization of the Netherlands, merging internal audit units into the Central Government Audit Service under the Ministry of Finance, and introducing mechanisms to further limit the minister's influence on implementation deserve attention for the implementation of positive experience in the practical activities of the state financial control bodies of Ukraine. control, the existence of an independent external financial control body (audit court), cooperation and exchange of information between the Central Government Audit Service, the Court of Auditors, the Institute of Internal Auditors, the Netherlands Organization of Accountants, private audit firms, the European Commission (in matters of control over EU funds), and also with universities that train personnel in the relevant field. Keywords: state resources, state financial control, state financial audit, efficiency, effectiveness, transparency.

A Case Study on Audit Failure of Accounting Firm

CPA audit, government audit and internal audit are all ways to supervise the operation and management of enterprises. Among them, CPA audit is a common way of external supervision. By issuing audit reports with appropriate opinions, CPAs can provide a higher level of reasonable assurance for the authenticity and objectivity of enterprise financial statements, which are of particular concern to the users of financial statements. However, the situation of financial fraud in listed companies is more and more serious, and the frequency of audit failure in accounting firms is also gradually increasing. This makes the public's trust in accounting firms gradually reduced, and the frequent "rollover" or even "thunderstorm" of listed companies also makes the capital market lose its due stability. Accounting firms are in urgent need of some countermeasures and suggestions to improve their audit quality and reduce the probability of audit failure. Taking Ruihua accounting firm as an example, this paper explains the concept and causes of audit failure, analyzes the current situation of the accounting firm industry and Ruihua accounting firm, studies several cases of audit failure of Ruihua, and finally puts forward some countermeasures to prevent audit failure. It provides some reference and suggestions for the audit industry to prevent audit failure.

Naturopathic Workforce: A Global Resource Toward the Declaration of Astana Goals-A Multimethods Study.

Introduction: The World Health Organization identified health to be the most important social goal and the 1978 Declaration of Alma Ata placed primary health care central to its attainment and the UN Sustainable Development Goals (SDGs) as the template. The Astana Declaration called on a change of focus in primary care, from treatment of specific diseases to the prevention and inclusion of both scientific and traditional knowledge. Such objectives require public-private partnerships in providing health care, including traditional and complementary medicine systems such as naturopathy that align. However, there is limited understanding of global regulatory frameworks and officially recognized training for naturopathy. Materials and Methods: This descriptive study employs an adapted mixed-methods explanatory framework to examine naturopathy regulation and education. Analysis merges data arising from a descriptive policy analysis of regulation from 36 countries and survey analysis from 65 naturopathic organizations from 29 countries. Results: Four types of workforce regulation were identified within 107 countries where naturopathy was practiced-statutory registration or occupational licensing, coregulation, negative licensing, and voluntary certification. No form of naturopathic regulation was most common. Higher graduate/postgraduate education and access to a broader range of practices were more frequently reported in countries where naturopathy is statutory regulated. Government audits were more frequently reported where naturopathy was statutory regulated or coregulated. Discussion: Naturopathic philosophy and practice align with primary health care goals outlined in the Declaration of Astana. The naturopathic workforce represents an untapped health care resource with a demonstrated track record of translating these aspirational goals into practice. However, naturopathy remains inconsistently regulated globally, serving as a significant barrier to partnering with other health system actors to attain the health-related SDGs. Workforce regulation for the naturopathic profession offers increased standards, reduced risks, integrative health workforce planning, and assistance to countries toward achieving the promise of the Declaration of Astana.

Analisis Faktor Faktor Yang Mempengaruhi Audit Delay Di Kabupaten/Kota Provinsi Sumatra Selatan Tahun 2016-2020

In the districts and municipalities of South Sumatra, this study seeks to ascertain the size of local governments, audit findings, audit opinions, leverage, and the degree to which regional finances depend on audit delays. 17 counties and cities in South Sumatra make up the study's population. 85 saturated samples from 17 districts and municipalities in South Sumatra were collected over a 5-year period and used in the study. Using document technology, data collection methods. Multiple linear regression analysis was conducted in this study using SPSS version 25. According to the findings of partial and concurrent investigations, regional government size (X1), audit findings (X2), audit opinion (X3), leverage (X4), and regional-level financial reliance (X5) had negligible or no effects on audit delays. &#x0D; &#x0D; Keyword: Audit Delay, Size of Government, Audit Findings, Audit Opinion, Leverage, and level of regional Financial Dependences

The influence of public sector audit digitalisation on local government budget planning: evidence from Brazil

PurposeThis article analysed how data collection systems (DCS) developed by governmental audit organizations (Court of Accounts) affect budgetary planning within local governments.Design/methodology/approachEighteen semi-structured interviews complemented by six time-lagged interviews via WhatsApp were carried out with the actors involved in the preparation and auditing of the Medium-Term Expenditure Framework (MTEF) in Brazilian local governments. Documents such as the structured layouts of Courts' DCS and the publicised MTEF prepared by local governments were also analysed.FindingsThe findings indicate that Courts' DCS structured layouts reduce local governments' budgetary planning autonomy in elaborating their MTEF. It happens as the Courts' main driver is to make MTEF information auditable and not to improve the usefulness of information by governments. As a result, the planning choices of the local governments end up limited, not by the general legislation but by the rules established by the computerized systems of the Courts.Originality/valueThe paper's originality relies on demonstrating that the digitalisation of audit processes ultimately affects local governments' practices through structured layouts for the data collection on MTEF information - that impose rigidity on the budget planning process of local governments. The authors highlight the role of public sector auditing organisations as potential catalysts of reforms; however, this should be considered cautiously since the drivers and motivations of the organisation that sponsors public financial management reforms matter for overall reform effectiveness.

The Analysis of Necessity to Bring in the Audit System in Non-profit Private Schools of Higher Education

After the publishing of the “Chinese private schools promotion law”, the private schools of higher education have to make a choice of whether to transfer to a non-profit private school to avoid the tax, however, the non-profit private school requires the investors to abandon all the profits on the school. To transfer the income, investors may consider the unfair related transaction. For the purpose of avoiding and recognizing the unfair related transaction, it is necessary to bring in the audit system, which includes the government audit, external audit, and the internal audit.

Minat Mahasiswa Berkarir Sebagai Auditor Pemerintah: Pengaruh Norma Subjektif, Marketability, dan Penghargaan Finansial

This study aims to examine the effect of subjective norms, marketability, and financial rewards on career choice as external government auditors. The method used in this sampling is using purposive sampling technique. In this study, 166 UNP accounting students class 2018 and 2019. This study uses multiple regression analysis with the help of the SPSS application. The results of this study partially prove that subjective norms, marketability, and financial rewards have a positive effect on students' interest in a career as external government auditors. The limitations of this study are that there is only one object of this research, This study uses a survey method in the form of a questionnaire which allows respondents to fill in the questionnaire not seriously so that it can lead to misleading results, and his research is only limited to 3 factors this allows the neglect of other factors that have a greater influence on career choice as an external government auditor.