Audit Institutions Research Articles

PENGARUH KEPEMILIKAN INSTITUSIONAL, KOMISARIS INDEPENDEN, KOMITE AUDIT, KEPEMILIKAN MANAJERIAL, DAN KUALITAS AUDIT TERHADAP INTEGRITAS LAPORAN KEUANGAN

This study aims to determine the effect of institutional ownership, independent commissioners, audit committees, managerial ownership, and audit quality on the integrity of financial statements in service industry companies listed on the Indonesia Stock Exchange (IDX). The research period used is 5 years, namely the 2015-2021 period.
 The population of this study includes all service industry companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2021 period. The sampling technique used purposive sampling technique. Based on the predetermined criteria, 7 companies were obtained. The type of data used is secondary data obtained from the Indonesia Stock Exchange. The analytical method used is multiple linear repression analysis using SPSS version 25 software.
 The results of the study show that partially the variables of Institutional Ownership and Audit Quality have no effect on the Integrity of Financial Statements, Independent Commissioners, Audit Committees, and Managerial Ownership have an influence on the Integrity of Financial Statements. Simultaneously, the variables of Institutional Ownership, Independent Commissioners, Audit Committees, Managerial Ownerships, and Audit Quality has an effect on the Integrity of Financial Statements.
 

Identificación técnica y cuantificación económica del daño ambiental como herramienta efectiva del ejercicio del control fiscal

The technical identification and economic quantification of environmental damage caused by human activities is a crucial objective for audit institutions worldwide. This is vital to highlight the importance of natural heritage, especially considering the contrast between economic development and environmental sustainability, a concept that has prevailed since the 1987 Brundtland Report and continues to be valid with the 2030 Agenda. The health and well-being of living beings depend directly on the state of conservation of nature. In 2020, the Office of the Comptroller of Bogota implemented a pilot methodology using biophysical indicators to identify environmental damage. This study focused on domestic and industrial wastewater discharges into the Bogotá River. The results showed significant degradation of ecosystems and a negative impact on the social and economic conditions of the affected areas in the middle and lower basins of the river. Between 1991 and 2019, there was a decrease in conservation status from 5 to 3.5 on a scale of 1 to 10, reflecting a loss of 1.5 points. Restoration of this damage, if started now, will require 12 years and a cost of 10.5 billion pesos.

ОБ ОСОБЕННОСТЯХ ТАМОЖЕННОГО АУДИТА В РОССИЙСКОЙ ФЕДЕРАЦИИ

This scientific study was carried out in order to identify the peculiarities of the introduction of customs audit into the practice of customs authorities and participants in foreign trade activities. The article considers aspects of the implementation of the audit in the prac- tice of customs authorities, which is associ- ated with certain problems that need to be solved in order to successfully implement the task of forming the institute of customs audit, set out in the Strategy for the Development of Customs Authorities of the Russian Fed- eration until 2030 The work provides a regu- latory and right-wing audit framework and an experiment on the implementation of cus- toms audit, on the basis of which the cus- toms audit institute is formed. The result of the work is the identification of the specifics of the implementation and problems of the practice of conducting customs audits by auditors.

Role of information management in implementing the Green Deal in the EU and the US

The global climate crisis poses an existential threat to the natural ecosystem and the entire humanity, while new effects (Covid-19, war in Ukraine, etc.) and factors increase the risk to national security and public stability in the EU countries and beyond. The most important global challenge of our time has prompted the formation of climate change management policies around the world; international agreements have been concluded for this purpose. In 2015 the Paris Agreement was signed and the United Nations General Assembly approved the United Nations Agenda for Sustainable Development until 2030. The goal 13 "Take urgent action to combat climate change and its effects" and tasks for the implementation of this goal were established and approved by the EU legal acts. The European Green Deal was initiated to define the EU's vision of creating a climate-neutral economy by 2050. Those interested in climate change and the green course often raise the question of whether everything possible has been done to prevent (stop) or eliminate climate "erosion" processes. To climate change sceptics, these documents or efforts may seem excessive (and expensive), but it is important to determine whether the full-fledged, comprehensive or targeted communication is available in the EU, whether the dissemination of public information about the processes of the green deal is sufficient and what the management of this information entails. This is because information management is one of the most important components of the successful implementation of the Green Deal. The supreme audit institutions of the EU countries conducted assessment of EU countries in preparation for the implementation of the Sustainable Development Goals (SDGs). The assessment of the public's knowledge and understanding of the EU green deal was performed using a uniform, approved and generally accepted control model. The article aims to analyse the role of information management in implementation of the Green Deal in the EU and the US by distinguishing the 2020-2022 period of global COVID-19 pandemic based on a Lithuanian case study.

The Medical Education Planetary Health Journey: Advancing the Agenda in the Health Professions Requires Eco-Ethical Leadership and Inclusive Collaboration

Climate change and the declining state of the planet’s ecosystems, due mainly to a global resource-driven economy and the consumptive lifestyles of the wealthy, are impacting the health and well-being of all Earth’s inhabitants. Although ‘planetary health’ was coined in 1980, it was only in the early 2000s that a call came for a paradigm shift in medical education to include the impact of ecosystem destabilization and the increasing prevalence of vector-borne diseases. The medical education response was, however, slow, with the sustainable healthcare and climate change educational agenda driven by passionate academics and clinicians. In response, from about 2016, medical students have taken action, developing much-needed learning outcomes, resources, policies, frameworks, and an institutional audit tool. While the initial medical education focus was climate change and sustainable healthcare, more recently, with wider collaboration and engagement (Indigenous voices, students, other health professions, community), there is now planetary health momentum. This chronological account of the evolution of planetary health in medical education draws on the extant literature and our (an academic, students, and recent graduates) personal experiences and interactions. Advancing this urgent educational agenda, however, requires universities to support inclusive transdisciplinary collaboration among academics, students and communities, many of whom are already champions and eco-ethical leaders, to ensure a just and sustainable future for all of Earth’s inhabitants.

A Comparative Analysis of the Institutional Quality Evaluation Processes in Turkish, European, and American Higher Education Systems

Changing economic, cultural, political, and social conditions worldwide have a big impact on higher education. Under the influence of changing conditions, the functional scope of higher education institutions has expanded and new functions have been added. In addition to these changes, the demand for higher education institutions is increasing day by day in terms of education, research, and service to society. The expanding functions of higher education and its deepening impact on society call for quality activities of higher education institutions. Therefore, institutional quality evaluation processes are carried out in higher education institutions. This study aims to analyze and compare institutional quality evaluation processes applied in Turkish, European, and American higher education systems. The findings obtained are important as they will contribute to the Higher Education Quality Council of Türkiye, quality commissions in higher education institutions, and other researchers who will conduct scientific studies on this subject. It is a descriptive and qualitative study whose sample consists of institutional quality evaluation agencies from Türkiye, England, Norway, Finland, and the United States of America. The data in the study were collected and analyzed by applying the document analysis method. The findings indicate that institutional external evaluation or audit models are used in Türkiye, England, Norway, and Finland while an institutional accreditation system is used in the USA. Although the quality evaluation processes applied are generally similar in terms of basic objectives, assessed dimensions, assessment approach, people involved in the implementation of the assessment, and assessment type, there are differences in aspects such as the management, coordination, and recognition practices of the countries’ higher education systems. Taking into account national circumstances, the institutional quality evaluation processes in the Turkish higher education system should be organized and implemented in a systematic way to ensure quality higher educational practice.

Corporate Governance and Tax Management

This study aims to examine the effect of corporate governance on tax management which is proxied by a cash effective tax rate. The corporate governance mechanisms used are institutional ownership, audit committees, independent commissioners, and external auditors. The population in this study is manufacturing companies listed on the Stock Exchange after the imposition of a flat tax rate of 25%, in period 2015 to 2018. This study uses purposive sampling criteria so that the samples obtained are 48 companies. The type of data used in this study is secondary data. The data analysis technique in this study uses multiple linear regression analysis. The results of this study indicate that institutional ownership has a significant positive effect on tax management; the audit committee has no significant negative effect on tax management; independent commissioners have insignificant negative effect on tax management, and external auditors have significant positive effect on tax management

Institutional Proprietorship, Audit Committee Size, and the Reputable Auditor Selection: Evidence from Indonesia

This study is presented to investigate the effect of institutional proprietorship and audit committee size on the propensity of the companies to select outside auditors affiliated with the big four and know the accuracy of prediction based on these determinants. Following several previous scholars, this study uses the company size as the control variable. Furthermore, the logistic regression model and matrix classification are employed to answer the research intention by employing the Indonesian non-financial companies in the LQ45 index from 2014 to 2018 as the population. Moreover, to search for the total samples of 21 and take them from the populace, this study uses the Slovin formula with an inaccuracy border of 10% and a simple random sampling technique. Once examining the data, this study finds that institutional proprietorship and audit committee number positively affect the corporate propensity to choose the auditor affiliated with the big four. Similarly, this tendency happens in the firm size as the control variable. Additionally, the accuracy of grouping prediction of the firms using reputable and non-reputable auditors based on these determinants is 90.50%, 95.2%, 90.5%, 85.7%, and 85.7% for 2014, 2015, 2016, 2017, and 2018.

Reorganisation and Strengthening of the Indian Public Audit System – Reforms Overdue


 The objective of this study is to ascertain whether the Comptroller and Auditor General of India (the Supreme Audit Institution of India) functions as per its given mandate, and whether it requires any reorganisation and further strengthening. There is conflict of interest in keeping the accounts for States and auditing them by CAG, with potential scope to adversely impact the quality of both accounting and auditing. Further, ever since 1976, CAG continues to perform entitlement functions for employees of a majority of States, without any statutory authority, thus incurring irregular expenditure. With the present level of audit coverage, all the auditable units by CAG could not be covered in a way that can provide an assurance as to the completeness and timeliness of audit. The susceptibility of public finance to the political regime, the meagre rate of expenditure (about Rs. 32 for checking of financial transactions worth Rs. 1,00,000), and significant recovery of public money at the instance of audit provide adequate justification for strengthening of audit with more human resources. Thus, reorganisation of the institution of CAG to make it an exclusive audit institution, along with strengthening it (with adequate human resources) would better serve the objective of its creation.

Pengaruh Profitabilitas Dan Mekanisme GCG Terhadap Nilai Perusahaan Dengan Pengungkapan CSR Sebagai Variabel Intervening

This research aims to examine the effect of profitability, intuitional ownership, audit committee and independent commissioners. This study uses firm value as the dependent variable and profitability, institutional ownership, audit committee and independent commissioners as independent variables, also corporate social responsibility (CSR) disclosure as an intervening variable. The sample used in this research was obtained by purposive sampling method. Based on existing criteria, during the period 2016 - 2020 obtained 15 companies that were sampled in this study. Of the 15 companies that met the sample criteria for a total period of five years, we obtained a total of 75 data. Using the help of the EViews 10.0 program, data analysis techniques began with a descriptive statistical test, continued with the classic assumption test, logistic regression analysis, analysis multiple linear regression panel data and the last was analysis of intervening variables. The results of this research indicate that the profitability and institutional ownership have a negative and not significant effect on corporate social responsibility (CSR) disclosure, while the audit committee and independent commissioners directly has a positive and not significant effect on corporate social responsibility (CSR) disclosure. Profitability directly has a positive and insignificant effect on firm value, while institutional ownership, audit committee and corporate social responsibility (CSR) disclosure directly have a negative and significant effect on firm value and independent commissioners directly has a positive and not significant effect on firm value. Profitability, institutional ownership, and independent commissioners indirectly through corporate social responsibility (CSR) disclosure does have a significant effect on firm value, while the audit committee indirectly through corporate social responsibility (CSR) disclosure does not have a significant effect on firm value. Profitability, institutional ownership, audit committee, independent commissioners, and corporate social responsibility (CSR) disclosure can explain 94.3% of the tax aggressiveness and the remaining 6.7% are explained by other variables not examined in this research.

Public sector audit and the state's responsibility to “leave no‐one behind”: The role of integrated democratic accountability

AbstractAchieving the United Nations (UN) sustainable development goals (SDGs) at country and local levels—and ensuring “no one is left behind”—requires that nation states commit to solving complex social and societal challenges through collaborative, democratic means. Technocratic and bureaucratic procedures alone are insufficient. In addition to satisfying international actors, governments must discharge integrated democratic accountability through inclusive stakeholder engagement with and between diverse and locally embedded social actors and institutions. Democratic accountability requires recognizing and preserving social complexity and plurality mediated through public dialogues between actors and institutions. Concurrently, global initiatives like the SDGs offer opportunities for the UN's member states to show their sincerity to international principles and standards while engaging with local practices that promote democratic means of resolution and policy implementation. This research analyzes how public sector audit can potentially support and hold a government accountable for its international pledges to SDGs, including stakeholder engagement. In India, the public sector auditor has proactively undertaken a performance audit on that government's “preparedness to implement SDGs.” This research demonstrates how the government is held accountable for its policies and actions on SDGs, through analyzing the interrelated actions of India's two key democratic institutions—the Supreme Audit Institution and Public Accounts Committee. We make recommendations for improving state accountability for SDGs through national level policies, mechanisms and processes of stakeholder engagement and dialogues. At an international level, we argue for the UN to develop more effective mechanisms to hold governments accountable for policies and progress on their SDG commitments. Such mechanisms could include regular progress and performance audits and monitoring both nationally and internationally. These could contribute to improved leadership and integrated policy‐making across layers and levels within a nation state. We also highlight the areas for further research.

Research on the Audit of Public Health Emergencies: A Case Study of The Online Audit of the COVID-19 Epidemic in Wuhan

Since COVID-19 outbreak, governments at all levels across the country have devoted huge amount of money to the epidemic prevention and control, in order to effectively cope with the emergency and to ensure that the effective use of funds, the public put forward higher request to the effective use of fiscal funds, to some extent also regulations to Social supervision department, in particular, the audit department has put forward higher requirements. Therefore, this paper investigated the online audit of COVID-19 outbreak in Wuhan to study its role in the process of epidemic prevention and control. This paper mainly analyzes the organizational structure of audit institutions and the status of online audit through sampling survey of audit staff in Wuhan and college students and other positions, and analyzes various problems in online audit work from multiple perspectives and puts forward solutions based on questionnaire survey and statistics. For some preventable emergencies, we can use data capture to analyze and predict the existing situation to strengthen the effect of prevention; We can also use the government's financial data on public expenditure to judge whether enterprises can independently face the public health crisis in the future. In addition, we also put forward some suggestions to deal with the problem of late information disclosure under the pandemic, and reduce the audit risk.

THE EFFECT OF GOOD CORPORATE GOVERNANCE ON FINANCIAL PERFORMANCE IN THE LQ45 INDEX LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2017-2021 PERIOD

This study aims to determine how the influence of Good Corporate Governance with indicators of institutional ownership, independent commissioners, and audit committees on the financial performance of LQ45 companies for the 2017-2021 period. The method used in this study is a descriptive method with a quantitative approach. Sources of data used in this study are secondary data sources. Statistical analysis used in this study is multiple linear regression analysis. Based on the results of the analysis, it can be seen that institutional ownership has a significant positive effect on financial performance (ROA), while the independent board of commissioners and audit committees have a significant negative effect on financial performance (ROA). Companies must balance share ownership between management and institutions so that there is no majority or minority party, all are responsible for making policies so that both can increase the value of the company.

PENGARUH TATA KELOLA PERUSAHAAN DAN KUALITAS AUDIT TERHADAP AGRESIVITAS PAJAK

The study aims to analyze the effect of corporate governance and audit quality on tax aggressiveness. The corporate governance incorporates the elements of institutional ownership, managerial ownership, independent commissioners, and audit committee. The population of this study consists of all companies listed on Indonesia Stock Exchange (IDX) between 2019 and 2020 including 454 observable samples selected through purposive sampling technique. This study utilized the secondary data from the financial statements and annual reports of all companies listed on the Indonesia Stock Exchange (IDX) between 2019 and 2020, analyzed by multiple linear regression utilizing application of Statistical Product and Service Solution version 25. The results indicated that tax aggressiveness can be reduced by increasing audit quality and managerial ownership. Meanwhile, tax aggressiveness was not affected by institutional ownership, independent commissioners, and audit committee. This study implies that increasing the number of managerial ownership and the quality of external audits alleviates tax aggressiveness.

Government Audit Quality: Audit Expectation – Performance Gap

This paper seeks to explore the audit expectation and performance gap in the Indonesian government audit. This research utilized a qualitative approach involving three methods of data collection namely interviews, focus group discussions, and document analysis with a total of 32 government auditors of the Indonesian Supreme Audit Institution (BPK-RI). The data from all methods were analyzed through a qualitative thematic analysis framework. This research found that there are three types of occur in the context of Indonesian government audit quality namely deficient performance, deficient standards, and reasonableness gap.

TO THE PROBLEM OF INSTITUTIONAL AUDIT OF PUBLIC AUTHORITIES IN UKRAINE

The purpose of the article is to justify the need to introduce an institutional audit of public authorities in Ukraine as one of the responses to modern challenges in the system of public management and administration. In the research there were used methods of a systematic approach to studying the concept of institutional audit, as well as methods of analysis, generalization, systematization, and forecasting to describe the components of the institutional audit’s ecosystem. Іnstitutional audit is singled out from among other types of audits; the need to increase the institutional capacity of public authorities in Ukraine is justified; the components of institutional audit are considered; communication ability is researched as an important component of the object of institutional audit in the modern realities of Ukraine; the advantages of involving the public in the procedure of institutional audit in Ukraine are considered. It has been established that in the modern realities of Ukraine, institutional audit doesn’t have sufficient methodological and legal support, and what is available is scattered among various laws, regulations and even types of audits. The need to systematize the legal foundations of institutional audit and to strengthen the theoretical and methodological basis of its conduct is proven. Keywords: institutional audit, institutional capacity, organization, effectiveness, efficiency, communication, public authorities.

Could Size Moderate Managerial Ownership, Institutional Ownership, and Audit Quality of Tax Avoidance Occurs in Southeast Asia’s Banking?

This study aims to determine the effect of managerial ownership, institutional ownership, and audit quality on tax avoidance and to determine the role of firm size as a moderator in strengthening or weakening the influence of the three independent variables on tax avoidance. The population used in this study is the financial statements and annual reports of banking companies in Southeast Asia which are available on the stock exchange sites of each country and the official websites of related companies in the 2015-2019 period. The sampling technique is used a purposive sampling method with the final result of as many as 144 units of analysis. Analysis of the data used is Multiple Linear Regression Analysis to determine the independent influence variables on dependence and Moderation Regression Analysis to determine the role of moderating variables. The result shows that managerial ownership and audit quality do not affect tax avoidance, while institutional ownership can negatively affect tax avoidance. Moderation analysis shows that firm size can affect independent institutional ownership variables and audit quality on tax avoidance. However, managerial ownership does not affect tax avoidance.

INSTITUTIONAL AUDIT OF EDUCATIONAL INSTITUTIONS AS AN IMPORTANT COMPONENT OF ENSURING THE QUALITY OF EDUCATION IN UKRAINE

The article analyzes the experience of conducting institutional audits of general secondary education institutions in Ukraine in 2019-2021.
 The research highlights the positive aspects of institutional audit, including: audit by independent state structures with the participation of trained experts who have undergone training organized by the State Education Quality Service of Ukraine; unification and publication on the Service’s website the assessment directions, requirements/rules for the organization of educational processes, criteria, indicators and assessment tools; synchronous use of a wide range of tools in institutional audit procedures; clear regulation and experts’ unconditional compliance with the audit procedure; evaluation of the activities of educational institutions in their interaction with the founders and territorial communities; taking into account the opinion of the participants in the educational process; focusing the institutional audit on providing consulting assistance to the institutions; non-interference of the experts in the educational process; the possibility of carrying out separate assessment procedures remotely; granting the right to the experts, managers and/or founders of educational institutions to record the evaluation and inspection procedures by means of audio, photo and video means; the possibility of using the results of an institutional audit to generalize educational information and track the trends in the development of the educational sphere throughout Ukraine.
 The main problematic aspects of the audit are considered, including: the lack of procedures for assessing the quality of education in the institutional audit; the lack of consistency of the criteria and indicators for evaluating educational and management processes with regard to the content of the professional competencies of the teacher and the head of the educational institution, defined by the relevant professional standards; the inability of the State Education Quality Service of Ukraine to audit a significant number of educational institutions; the complexity of the institutional audit toolkit for evaluating educational and management processes of educational institutions.
 It is emphasized that measures are being taken in the educational sphere to eliminate the mentioned negative aspects. In particular, the Ministry of Education and Science of Ukraine has approved the Procedure for accreditation and keeping a register of public professional associations and other legal entities that carry out independent evaluation of the quality of education and educational activities of general secondary education institutions, which will allow non-state structures to be involved in public accreditation of educational institutions. In order to provide assistance to the experts in the assessment of educational and management processes in the institutions of general secondary education, the State Education Quality Service of Ukraine has developed and implemented the EvaluEd information and analytical system.
 It has been concluded that the institutional audit should be supplemented with the procedures and tools for evaluating the quality of education. In addition, it is advisable to supplement the criteria and indicators for evaluating educational and management processes with the criteria and indicators that will make it possible to assess the language-communicative and emotional-ethical competence of the teacher, the competence of the education head regarding the organization of the activities of the educational institution on the basis of the external system of ensuring the quality of education, to more fully assess psychological competence of the teacher as well as the leadership and informational-digital competence of the head of the general secondary education institution.

The impact of ESG performance on audit fees - a study based on a two-way fixed effects model

With the continuous promotion of the construction of beautiful China and ecological civilization, the concept of sustainable and green development has become increasingly popular. In recent years, enterprises' environmental social and governance (ESG) performance has received widespread attention in China. This paper selects panel data of A-share listed companies in Shanghai and Shenzhen from 2011 to 2020 and uses a two-way fixed-effects model to explore the relationship between ESG performance of listed companies and audit fees. Robustness and endogeneity tests of the empirical structure are performed by replacing explanatory variables and regressing explanatory variables with a one-period lag. The effect of firm heterogeneity characteristics on the relationship between the two is further examined through subsample regressions according to the nature of enterprises and audit institutions. We find a strong negative association between ESG performance and audit fees, meaning that better ESG performance of firms in China leads to lower audit fees. Also, it is tested that the negative effect of ESG performance on audit fees is more significant when the firm is a non-state owned firm and when audited by Big Four accounting firms. The empirical results of this paper will well enrich the study on the impact of ESG performance on firms and broaden the research on the factors influencing audit fees.

Incidence and clinical profile of brain metastasis treated with whole brain radiotherapy in a tertiary hospital in eastern India: A retrospective audit.

Management of brain metastases (BM) is witnessing marked advancement worldwide and modern technologies with better outcomes are gradually being adopted in developing countries. However, data regarding current practice in this field is lacking from the Indian subcontinent prompting us to plan the current study. A retrospective, single institutional audit was performed on 112 patients with solid tumors metastasizing to the brain treated over the last 4 years at a tertiary care center in eastern India, of which 79 were ultimately evaluable. Demography, patterns of incidence, and overall survival (OS) were determined. The prevalence of BM was 5.65% among all patients with solid tumors. The median age was 55 years with a slight male preponderance. Lung followed by breast were the most common primary subsites. Multiple BM (54%), left-sided (61%), and frontal lobe lesions (54%) were the more common. Metachronous BM was found in 76% of patients. All patients received whole brain radiation therapy (WBRT). The median OS for the entire cohort was 7 months (95% confidence interval [CI]: 4 - 19 months). The median OS for lung and breast primaries were 6.5 and 8 months and for recursive partitioning analysis (RPA) classes I, II, and III the OS were 11.5, 7, and 3 months, respectively. Median OS did not differ by number of or other sites of metastases. The outcomes from our series about BM from solid tumors in patients from eastern Indian are in congruence to those available in the literature. Patients with BM are still largely treated with WBRT in resource-limited settings.