Implementation Of Audit Research Articles

RESEARCH ON VALUE-ADDED INTERNAL AUDITING IN ENTERPRISES BASED ON VALUE CHAIN THEORY

With the continuous development of the market economy, the business environment of enterprises has become increasingly complex. As a critical component of corporate governance, internal auditing plays a vital role in regulating business operations. However, traditional compliance-based internal auditing can no longer meet the development needs of modern enterprises. Researching value-added internal auditing to provide more effective value-added services for enterprises has become a significant topic in current internal auditing research and practice. Based on value chain theory, this paper introduces the concept of value-added internal auditing, explores the differences between traditional internal auditing and value-added internal auditing, analyzes existing problems in the implementation of value-added internal auditing in enterprises, and proposes a framework for constructing a value-added internal auditing system through organizational restructuring, institutional improvement, and the optimization of operational mechanisms. KEYWORDS: Value Chain, Internal Auditing, Value-Added Auditing

Do government environmental audits reduce air pollution? Evidence obtained from Lanzhou.

This study investigates the effectiveness of government environmental audits in mitigating air pollution. Specifically, it focuses on a pilot project conducted in Lanzhou City by the former Ministry of Environmental Protection. The research employs a regression discontinuity design to empirically assess the impact of these audits on air quality. The study utilizes a regression discontinuity design to evaluate the impact of the government environmental audits. The primary outcome variable is the Air Quality Index (AQI). The analysis includes extensive robustness checks, such as sensitivity testing for optimal bandwidths of key pollutants, adjusting for precipitation levels, and conducting various robustness tests to ensure the reliability of the results. The findings reveal a significant decline in the AQI following the implementation of the environmental audits. The AQI decreased from 31 to 25 during and after the audit period. Additionally, the study observed a notable increase in precipitation levels, suggesting potential environmental improvements. Robustness tests further confirm the reliability of the regression results. The research outcomes demonstrate the effectiveness of government environmental audits in reducing air pollution. By supervising local governments in the implementation of environmental protection policies, these audits contribute to improved air quality. The findings highlight the importance of targeted interventions and policy enforcement in addressing environmental challenges.

Audit Internal (Kas dan Teller ) pada Lembaga Keuangan Perbankan

Internal audit is an important procedure performed to assess internal controls in financial institutions, particularly in cash management and tellers. The purpose of this audit is to provide protection to the bank's financial assets and ensure that an effective supervisory system is in place. In this study, the authors evaluated the effectiveness of internal audit in detecting and preventing fraud, as well as ensuring compliance with applicable regulations. The methods used include qualitative and quantitative analysis to collect relevant data and support the research findings. Systematic implementation of internal audit can improve the security and reliability of bank operations. Internal auditors play an important role in identifying risks and providing significant improvement recommendations. This research also emphasizes the importance of training for auditors to improve their ability to perform their duties, thus adding value to the organization. Thus, internal audit serves not only as a control tool, but also as an important line of defense in maintaining the integrity of bank reports and operations.

ANALISIS PEMERIKSAAN PAJAK DALAM MENINGKATKAN PENERIMAAN PPH PASAL 25 DI KANTOR PELAYANAN PAJAK PRATAMA MEDAN BARAT

The purpose of this study was to determine how the tax audit in increasing tax revenue of ITA 25 at KPP Pratama Medan Barat. This research uses qualitative methods. Data collection is done by interview and documentation techniques. The techniques used in this research include descriptive analysis where existing data will be collected and grouped and then analyzed. The results of this research show that the tax revenue of KPP Pratama Medan Barat has decreased and has not reached the specified target. The causes of not achieving the revenue target for the implementation of tax audits at the KPP Pratama Medan Barat are due to uncooperative taxpayers, lack of understanding of taxpayers, limited inspection teams.

Implementation of Legal Quality Audit on Electronic Civil Trial Procedures (E-Court)

Currently, electronic court (e-court) systems are being implemented in several countries. The Supreme Court in Indonesia has also been adopted e-court for legal administration tasks, such as determining judicial panel compositions. A qualitative approach is proposed to explore the implementation itself. The concept and characteristics of the Special Legal Quality Audit System for electronic justice arrangements (E-court) encourage the realization of an effective and fair Civil Justice System. The concept in this context is a philosophical aspect that serves as the source of the Legal Quality Assurance Paradigm, including: defect-free (deficiency), customer satisfaction, and continuous improvement without end. This concept is elaborated in parameters that are measured or evaluated to determine the quality level and make improvements to increase the level of quality. The quality parameters used by the researcherinclude: product reliability, minimal cost, accessibility, security, service friendliness, systematicity, and keeping pace with global developments.

On the legal regulation of environmental audit

This article discusses the issues of legal regulation of environmental audit as a procedure for independent assessment of the environmental activities of enterprises and organizations and the negative impact of business entities on the environment. Attention is also paid to the goals and objectives of this legal mechanism as one of the types of preventive regulation in the field of environmental protection. The subject of the research were acts of a normative and non-normative nature containing any norms on environmental audit: the Federal Law "On Environmental Protection", decrees of the President of the Russian Federation, international and Russian standards. Special attention was paid to the issues of mandatory environmental audit, due to the fact that different authors divide environmental audit into such types as voluntary and mandatory, by analogy with financial audit. In order to study this legal mechanism, we have reviewed the laws and regulations of the Russian Federation, as well as international standards, and conducted a comparative analysis of them. It is shown that despite the obvious advantages of conducting an audit – both for the organization itself (reducing external costs, identifying and eliminating the causes of environmental offenses) and for maintaining a favorable environmental quality, this mechanism practically does not work in Russia due to the lack of detailed legal regulation. Based on the results of the review of legal acts in which there are norms on environmental audit, it can be noted that such norms are only declarative in nature, do not have any implementation mechanisms. In terms of mandatory and voluntary audits, it is concluded that there are no requirements for mandatory environmental audit in Russian legislation. At the same time, the lack of regulation of the mechanism for the implementation of environmental audit and the requirements for the procedure for its conduct create certain difficulties for enterprises making decisions on voluntary environmental audit.

Evaluating the impact of risk management and risk-based internal audit on fraud detection in local governments

One of the leading indicators for improving fraud detection capability is the evaluation of the implementation of risk management and risk-based internal audit and information technology systems. This study aims to evaluate how risk management and risk-based internal audits influence fraud detection capabilities in local government when integrated with information technology systems. SPSS 26 was utilized for data analysis. The paper uses a quantitative approach, collecting primary data with questionnaires distributed among 200 auditors and 70 supervisors across four districts in West Java. A purposive sampling approach based on self-selection was used. The findings show that the ability to detect fraud is significantly and positively influenced by the implementation of a risk-based internal audit (sig 0.000 < 0.05) and risk management process (sig 0.000 < 0.05). On the other hand, the risk management framework (sig 0.107 > 0.05) has a negative and insignificant effect on improving fraud detection capability. In addition, the relationships between the risk management process (sig 0.006 < 0.05) and fraud detection capability were found to be moderated by information technology systems. However, information technology systems are unable to moderate the relationship between risk-based internal audit (sig 0.563 > 0.05) and risk management framework (sig 0.115 > 0.05) on fraud detection capability. Therefore, risk management and risk-based internal audits are able to detect fraud, and information technology systems can strengthen the risk management process with the ability to detect fraud. AcknowledgmentThe authors would like to thank the University of North Sumatra, especially the Research Institute, for its support and the Ministry of Education and Research through the Directorate of Research, Technology, and Community Service program for providing intellectual assistance and funding for this project in the PMDSU grant (number: 91/UN5.4.10.S/PPM/KP-DRTPM/2024).

The Influence of Sustainable Risk Management on the Implementation of Risk-Based Internal Auditing

Risk management exerts a significant influence on the competitiveness of an organization and its operational processes. It presents opportunities for expansion, foresight, and the need to promote sustainability. Many organizations have executed comprehensive risk management processes. Moreover, internal audit has increasingly attracted managers’ attention, forming the basis of modern governance methods. The aim of this study is to examine, from the viewpoint of the agency, the impact of the role of internal auditors, training in risk management, and management support on risk management. Following this, the work examines risk management in terms of the risk-based auditing implementation that is performed by Saudi public organizations. This study encompassed 234 completed and therefore valid questionnaires from the manager and assistance of the internal audit department, internal auditors, accountants, and managers employed in Saudi public organizations. The data collected have been analyzed utilizing Smart Partial Least Squares (SmartPLS). This study’s findings confirmed that there is a significant association between the role of internal auditors in risk management, training in risk management, and between management support and risk management. There is also a significant association between risk management and the implementation of risk-based internal auditing. This study’s findings have significant ramifications for those in charge of public-sector organizations, and sustainability, aiming to enhance the dependability and trustworthiness of the internal audit process and other aspects of financial reports and audits in general. Currently, there is a dearth of published research on the factors that influence risk management and also on risk-based internal auditing. This study contributes to the emerging literature on this subject by examining Saudi public organizations; it also establishes empirical variables through a thorough review of relevant research. Conducted here is an empirical investigation that identifies the factors that affect risk management and then its influence on risk-based internal auditing implementation in the economic system of Saudi Arabia. By focusing on Saudi public organizations, this article highlights other countries that have similar systems of governance rules and procedures in their government-operated entities.

Techno-economic-environmental analysis based on life cycle carbon accounting and pollutants audit for cleaner production of electrolytic manganese

The electrolytic manganese metal (EMM) industry faces significant environmental challenges, including substantial resource and energy consumption, severe pollution, and high CO2 emissions. This study introduced a novel approach for developing collaborative strategies aimed at mitigating pollutants and CO2 emissions. Through the implementation of life cycle carbon accounting and critical pollutant audits, a process enhancement program incorporating 17 advanced technologies was developed. Aligned with the principles of cleaner production, this project effectively mitigates the environmental burden at the source and offers viable solutions for addressing prominent emissions, such as manganese residue and acid fog. Furthermore, the marginal abatement cost curves demonstrate the economic practicality and applicability of these measures. This study provides a strategic blueprint for achieving sustainable green development in China’s EMM industry and offers valuable guidelines for formulating relevant environmental policies.

Pelaksanaan Prosedur Pengujian Asersi LPPDK Pada Audit Dana Kampanye Tahun 2024 Oleh KAP LMR

This research aims to determine the implementation of campaign finance audit procedures and evaluate their conformity with applicable quality standards. The case study was conducted at the Public Accounting Firm (KAP) Luthfi Muhammad & Partners. The data source was obtained from interviews with partners, the head of the audit implementation team, and members of the campaign fund auditors of KAP Luthfi Muhammad & Partners. The research results showed that KAP Luthfi Muhammad & Partners did not make direct visits to the clients concerned when collecting the required reports and supporting evidence because it was done via the SIKADEKA website. At the stage of auditing campaign funds, KAP Luthfi Muhammad & Partners has referred to KPU regulations and applicable audit standards. Namely PKPU No. 18 in 2023.

Peranan PT IMC Ship Management Selaku Auditor Internal Terhadap Safety Management System di MV. Dewi Shinta Manggala

Internal audit activities are carried out to meet and implement the Safety Management System (SMS) rules so that safety on board ships is implemented in accordance with the ISM Code. In addition, an internal audit conducted by a shipping company can minimize the findings of an external audit of the Safety Management System (SMS). The purpose of this research is to find out the implementation process, obstacles and solutions for the implementation of MV internal audit. Dewi Shinta Manggala. The method carried out in this study is qualitative descriptive. Data collection was carried out by in-depth interviews, observations, and documentation. The results of the study show that the obstacles faced in the obstacles experienced in the internal audit process are the unsuitable time between the ship's schedule and the auditor resulting in delays, crew ratings that are not optimal in implementing the Safety Management System (SMS), and the crew's understanding of the Safety Management System (SMS) on board the ship which is considered to be still lacking. So that the efforts that must be made, namely the company's internal parties communicate well with each other, the company gives strict sanctions to crews who do not optimally implement SMS, the company requires crews to attend SMS training.

Prospective Regulation of Private Sector Legal Compliance Audits Through the Draft National Legal Guidance Law as A Manifestation of Good Corporate Governance

Various private-sector legal issues show how the quality of legal compliance is lacking. Legal and business entities have not considered decision-making in business transactions or other actions that risk-reducing investor interest. The massiveness of legal audit problems is an urgency to identify legal deviations from the start to measure legal compliance to avoid criminal, civil, and administrative sanctions. However, reviewing the current implementation of legal audits is limited to asset valuation and financial statements, and even then, it does not require private institutions to carry out audits periodically, so they are carried out by certain companies only. This research uses a normative method that refers to laws and regulations accompanied by literature studies in the form of books, journals, and other literature to find prescriptive ideal ideas. The results show that the implications of legal compliance audits stem from a legal vacuum over the audit mechanism, standardization of honorarium, and legality of legal auditors. The National Law Development Agency (BPHN) must collaborate to formulate a private sector legal compliance audit in the Draft Law on National Law Development to realize Good Corporate Governance (GCG). The author recommends an ideal legal compliance audit model like the Government Accountability Office (GAO) in the United States.

La responsabilidad civil y la ética en la inteligencia artificial: una revisión sistemática de las ideas del período 2018-2023

The research reviewed theoretical studies published between 2019 and 2022 on civil liability and ethics in the development of artificial intelligence (AI), analyzing 490 documents from various databases. The need to establish regulatory mechanisms to ensure accountability in the development of AI applications was identified. In response, the implementation of internal and external audits with reports accessible to users is proposed. This would contribute to increasing the reliability of applications, especially those with the potential to impact fundamental rights. The aim of the manuscript is to highlight the importance of these regulatory mechanisms in addressing the ethical and legal challenges associated with the development of AI, thus promoting greater transparency and accountability in this rapidly evolving field.

Artificial intelligence co-piloted auditing

This paper proposes the concept of artificial intelligence co-piloted auditing, emphasizing the collaborative potential of auditors and foundation models in the auditing domain. The paper discusses the future relationship and interactions of human auditors and AI, imagining an audit setup where auditors’ capabilities are enhanced through artificial intelligence across a variety of audit tasks. To exemplify the potential of this co-piloted audit paradigm, we illustrate a systematic fine-tuning approach to foundation models using Chain-of-Thought prompting. This study showcases how foundation models can work as collaborators flexibly with auditors, enabling the model to accurately identify transactions from instructions. This study provides a detailed description of the formulated prompt protocols and the corresponding responses generated by ChatGPT, ensuring reproducibility. We envision this work as an initial step towards the widespread implementation of co-piloted auditing, paving the way for more efficient, accurate, and insightful audit procedures.

The Influence of Asset Valuation, Asset Inventory, and Legal Audit on Asset Optimization

This study aims to fill a gap in the asset management literature by analysing the impact of asset inventory, legal audits, and asset valuation practices on asset optimization. The study involved 106 employees who participated in the completion of the questionnaire. The data was analysed using multiple regressions to test the proposed hypothesis. The results showed that asset inventory has a significant influence on asset optimisation. Asset inventory aims to ensure that company assets are recorded completely and accurately. A legal audit has a significant effect on asset optimisation. The implementation of legal audits to ensure regulatory asset control can increase asset optimisation. Asset valuation has a significant effect on asset optimisation. Consistent and proper asset valuation helps determine market value or tax needs. This research makes an empirical contribution to asset management theory, showing that planning, procurement, operation, and maintenance of assets are necessary to achieve optimisation. The findings provide a foundation for companies to balance policies and best practices to sustainably increase asset value. In addition, these findings are expected to be a reference for further research in the field of asset management and provide practical solutions for other companies facing similar problems.

Initiation of the Dutch Inguinal Hernia Audit (DIHA): A survey on support for registration, obstacles, and possible areas of improvement

Abstract BACKGROUND: Quality assessment and improvement of surgical procedures can be achieved by clinical audits that provide feedback on benchmarking of surgical outcomes. The Dutch Institute for Clinical Auditing (DICA) has successfully initiated registries with a clear impact on healthcare quality. Currently, there is no Dutch national inguinal hernia (IH) audit. This survey aimed to investigate the opinions of Dutch surgeons regarding the registration of IH care and explore potential obstacles in the implementation of a Dutch Inguinal Hernia Audit (DIHA). MATERIALS AND METHODS: A web-based survey was sent to all (>2,000) members of the Dutch Surgical Society, including surgeons and residents. RESULTS: Two-hundred sixty-seven respondents replied between April 14 and June 26, 2022 (hospital distribution: 36% small peripheral, 44% large peripheral, 11% academic, 2% specialized clinic). Almost two-thirds (60%) agreed that the quality of IH care should be improved. Similarly, nearly two-thirds (59%) answered that this improvement could be achieved through registration of surgical outcomes. Those opposed to registration stated fear of increased administrative burden and that the quality of care is already adequate. The majority of respondents agreed that chronic postoperative inguinal pain (CPIP; 81%) and recurrence rate (81%) should be used as quality indicators of IH surgery and registered as patient-reported outcome measures (PROMs). CONCLUSION: The majority of respondents agree that the quality of IH care could potentially be improved by implementing a national IH registry, with registration of CPIP and recurrence rate as quality indicators. Collecting these PROMs in a digital, automated format will facilitate successful implementation by minimizing administrative burden.

More Incentive, Less Pollution: Environmental Responsibility of Local Cadres and Environment Governance

SYNOPSIS In this paper, we study how the environmental responsibility of local cadres shapes their environmental governance. Using the staggered implementation of the government environmental audit in China as a quasi-experiment, our difference-in-differences estimation shows that, after strengthening the environmental responsibility of city leaders, pilot cities experience a significant increase in fiscal environmental expenditure and a reduction in air pollution. The effect is more pronounced among cities whose leaders have stronger promotion incentives, but less pronounced among cities with higher economic costs on pollution governance. In addition, firms located in pilot cities exhibit a significant increase in environment-related investments and green patent applications, which is motivated by government-awarded environmental subsidies. Overall, our results shed new light on the role of the environmental responsibility of city leaders in environmental governance and provide policy implications to promote environmental, social, and governance (ESG) practice and sustainable transition in a top-down approach. Data Availability: Data will be made available on request.

Evaluasi Metode Audit Penghitungan Kerugian Keuangan Negara pada Badan Pengawasan Keuangan dan Pembangunan

This research aims to evaluate the audit method for Calculating State Financial Losses (PKKN) by the Financial and Development Supervisory Agency (BPKP). This research method is qualitative, with an evaluation approach using case studies at BPKP. The primary data used in this research are the results of interviews with BPKP auditors who have carried out PKKN audits and are experts in court. The trial decision document will be mapped based on case description themes, PKKN methods, and PKKN values. The secondary data used is a copy of the court decision on a criminal corruption case that was finalized and downloaded from the official website of the Supreme Court (MA). The implementation of the PKKN audit by BPKP is evaluated using a fraud theory approach, the REAL Tree concept, and applicable laws and regulations. The provision of expert testimony in court will be considered using the Daubert test. The results of this research are that the PKKN audit by BPKP does not follow the fraud theory approach because it does not create and test hypotheses. There is a PKKN method that differs from the REAL Tree concept because BPKP auditors apply the criteria for real and definite state financial losses (actual loss) without considering compelling interest as a time value of money concept. Providing expert information by BPKP auditors is different from the Daubert test because BPKP does not require monitoring and evaluating court decisions and does not carry out peer reviews of PKKN methods.

Deploying an asthma dashboard to support quality improvement across a nationally representative sentinel network of 7.6 million people in England

Every year, there are ~100,000 hospital admissions for asthma in the UK, many of which are potentially preventable. Evidence suggests that carefully conceptualised and implemented audit and feedback (A&F) cycles have the potential to improve clinical outcomes for those with chronic conditions. We wanted to investigate the technical feasibility of developing a near-real time asthma dashboard to support A&F interventions for asthma management in primary care. We extracted cross-sectional data on asthma from 756 participating GP practices in the Oxford-Royal College of General Practitioners Research and Surveillance Centre (RCGP RSC) database in England comprising 7.6 million registered people. Summary indicators for a GP practice were compared to all participating RCGP RSC practices using practice-level data, for the week 6–12th-Mar-2023. A weekly, automated asthma dashboard with features that can support electronic-A&F cycles that compared key asthma indicators for a GP practice to RCGP RSC could be created (https://tinyurl.com/3ydtrt85): 12-weeks-incidence 0.4% vs 0.4%, annual prevalence 6.1% vs 6.7%, inhaled relievers to preventer 1.2 vs 1.1, self-management plan given 83.4% vs 60.8%, annual reviews 36.8% vs 57.3%, prednisolone prescriptions 2.0% vs 3.2%, influenza vaccination 56.6% vs 55.5%, pneumococcal vaccination ever (aged ≥65 years) 90.2% vs 84.1% and current smokers 14.9% vs 14.8%. Across the RCGP RSC, the rate of hospitalisations was 0.024%; comparative data had to be suppressed for the study practice because of small numbers. We have successfully created an automated near real-time asthma dashboard that can be used to support A&F initiatives to improve asthma care and outcomes in primary care.

Benefits and Challenges of Digital Audit Implementation in the Malaysian Public Sector: Evidence from the Accountant General's Department of Malaysia

Purpose: The current study aims to investigate the important benefits or advantages of digital audit implementation perceived by the internal auditors of the Accountant General’s Department of Malaysia (AGD), and examine the significant challenges faced by the AGD auditors in implementing digital audit. Design/ Methodology/ Approach: A focus group discussion was conducted with AGD officers involved in digital audit implementation and a questionnaire survey was distributed to the AGD auditors to achieve the research objectives. All 124 auditors responded and returned the completed questionnaire. Thematic analysis was performed on the transcription of the focus group discussion while descriptive statistics of mean scores, standard deviations, and mean score ranking were utilised to analyse the questionnaire data. Findings: The top five ranked benefits of digital audit implementation perceived by the respondents were improving the quality of audit report, increasing the efficiency of audit, assisting auditors in identifying material misstatements, improving the quality of the audit processes and enhancing audit effectiveness. The top three challenges were requiring additional education and training to acquire the necessary digital skills, high implementation costs and the risk of data security (leakage) and confidentiality. Originality/ Value: The present study contributes to the existing limited empirical evidence on the fundamental advantages and challenges of digital audit implementation despite various conceptual discussions on the two implementation aspects.