Audit Institutions Research Articles

THE ROLE OF SUPREME AUDIT INSTITUTIONS IN ACHIEVING SUSTAINABLE AGRICULTURE

The subject of this paper is the role of supreme audit institutions in achieving sustainable agriculture. Sustainable agriculture refers to ensuring food security and mitigating the negative impacts of agriculture on the environment. Governments around the world adopt various policies and strategies to promote sustainable agriculture. SAIs can audit the fulfillment of national goals, to check whether the government provides sufficient, safe and nutritious food, affordable for all, and whether food is produced in a sustainable way, without serious impacts on environmental resources.

The Role of Financial Audit Institution (LPK) and Financial Accountability of Provincial and Regency Council of Scout Movement throughout Bali

This study aims to investigate the extent of Financial Audit Institution (LPK) role in supervising, examining, and implementing financial management accountability within the Provincial and Regency Council of the Scout Movement throughout Bali. The method administered was descriptive research with a qualitative approach. Data analysis went through stages, namely: data collection, data reduction, data display, and conclusion drawing/verification. The results of the research show that: 1) The primary source of income for council was from the government; 2) LPK had been formed but had not been fully formed based on the Memorandum of Association/Articles of Association (AD/ART), it was necessary to improve the composition, qualifications and increase the members’ independence; 3) The significance of LPK was not optimal as there were no technical guidelines and implementation instructions related to financial audits issued by the National Council; 4) LPK was not paid, in other words working based on the concept of "ngayah" or voluntarily; 5) The LPK that had worked and carried out inspections and issued an Audit Report (LHP) is the LPK of Buleleng Regency Council with the scope of the examination not only on Financial Aspects, but includes examination on Functions, Human Resources, Infrastructure and Work Methods Aspects; 6) Council had implemented procedural accountability, process accountability, vertical accountability and horizontal accountability; 7) Council was expected to be able to optimize the role of LPK in the financial audit process and optimize the Council Business Entity to increase revenue from internal sources.

Pengaruh Corporate Governance dan Insentif Eksekutif terhadap Tax Avoidance

This study aims to examine the relationship between corporate governance and executive incentives on tax avoidance with profitability and leverage as control variables. This research is focused on manufacturing companies in the consumer goods sub-sector listed on the Indonesia Stock Exchange for the period 2015 - 2019. Determination of the number of samples in this study using panel data, so that a sample of 25 manufacturing companies was obtained with the data analysis method used was multiple regression analysis. The results of this study indicate that institutional ownership and audit committee have a negative and significant effect, profitability and leverage have a positive and significant effect, and executive incentives have a negative effect on tax avoidance.

The system of regulatory documents in the field of professional audit ethics: current state and areas for improvement

Subject. Auditors’ compliance with professional ethics is fundamental for the reputation of the profession as a whole. Ensuring their reputation is critical to the audit institution, because without it, auditing can be quickly replaced by competing forms, such as public assurance and artificial intelligence verification procedures. In this situation, it is more appropriate to prevent risks associated with the loss of auditors’ reputations than to eliminate their consequences, which may be catastrophic for the audit market as a whole. To achieve this, the norms of professional audit ethics should be unified, established by an authoritative party, understandable for both auditors and the general public, and their violation should be suppressed and strictly punished. In this regard, it is important to ensure an up-to-date, consistent, and centralised system of documents regulating these norms. The study is devoted to the modern organisational issues facing this system in the Russian Federation.Objectives. The aim of the study was to reveal the key current problems, from the authors’ point of view, in the organisation of the system of documents establishing the norms of professional ethics of auditors in the Russian Federation, which constitute threats to the Russian audit market, and to propose potential solutions.Methodology. The research results were obtained using analysis, synthesis, analogy, logical approach, classification, etc. The above methods and approaches were applied to the mandatory requirements for auditors contained in regulatory legal acts and other regulatory documents, the system of state regulation and professional self-regulation of auditing activities in the Russian Federation, and statistical materials of the Ministry of Finance of the Russian Federation characterising the Russian audit market. We also applied them to the established legal and auditing practices and current developments presented in specialised scientific literature.Results. We identified the issues related to the responsibility for updating the Code of Professional Ethics for Auditors and the Rules of Independence of Auditors and Audit Organisations; the prevalence of decisions of the Bank of Russia in the field of professional audit ethics in the financial market over these documents. We proposed a structure for the process of updating the Code of Professional Ethics for Auditors and the Rules of Independence of Auditors and Audit Organisations preserving the originally envisaged hierarchy of parties involved in the regulation of auditing activities.Conclusions. We came to the conclusion that there is no body responsible for updating the main documents containing mandatory requirements for auditors in terms of compliance with professional ethics; decisions of the Bank of Russia in the field of professional audit ethics in the financial sector take precedence over the relevant mandatory requirements at the federal level. We argued and proposed solutions to these problems for further professional and scientific discussion.

The Effects of Good Corporate Governance on Company Valuation with Profitability as a Moderating Variable in the Automotive Sub-Sector Companies and Their Components Listed on Indonesia Stock Exchange

Company valuation is the sale value of a company as a business that is currently operating. There are many factors affecting company valuation, including public ownership, institutional ownership, audit committee and board of commissioners. This quantitative research aims to analyze the effect of public ownership, institutional ownership, audit committee and board of commissioners on company valuation with profitability as a moderating variable in automotive and automotive component sub-sector companies listed on the IDX from the 2017-2022. The research population is automotive companies listed on the Indonesia Stock Exchange from 2017 to 2022, totaling 12 companies. The duration of the research is 6 years (2017-2022) and 72 observations are obtained. The data are analysed using linear regression analysis and interaction analysis techniques. align="justify">The results prove that public ownership does not significantly affect company on valuation. Institutional ownership does not affect company valuation. Audit committee does not significantly affect company valuation. However, the board of commissioners has a significant positive effect on company valuation. Based on the results of the moderation regression interaction test, profitability cannot moderate the effect of public ownership on company valuation but it can moderate the effect of institutional ownership, audit committee and independent board of commissioners on company valuation. Keywords: good corporate governance, company valuation, profitability

PENGARUH GOOD CORPORATE GOVERNANCE, LEVERAGE, DAN UKURAN PERUSAHAAN TERHADAP PROFITABILITAS PADA PERUSAHAAN FOOD AND BEVERAGE YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI) PERIODE 2018-2022

This study aims to determine the effect of good corporate governance, leverage, and company size on profitability. The population in this study are food and beverage companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2022 period. This type of research is a type of quantitative research. The sampling technique used was a side purposive technique. The research sample consisted of 15 companies with a total of 75 data studied. The data used is secondary data obtained from the Indonesia Stock Exchange (IDX). The data analysis method used was multiple linear regression analysis using the SPSS version 23 program. The results showed that the board of independent commissioners had a significant positive effect on profitability (ROA), leverage (DER) and firm size had a significant negative effect on profitability (ROA), while institutional ownership and audit committee have no effect on profitability (ROA). Keywords : Institutional ownership, independent board of commissioners, audit committee, leverage, and company size.

PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI SEBELUM DAN SEMASA PANDEMI COVID

This study aims to obtain empirical evidence from Managerial Ownership, Institutional Ownership, Independent Board of Commissioners, and the Audit Committee which is an indicator of Good Corporate Governance as an independent variable, and other variables namely Leverage and Firm Size as control variables, and Pandemic Covid as a dummy variable, on the dependent variable namely Earnings Management in Manufacturing Companies sub-sector Food and Beverage listed on the Indonesia Stock Exchange (IDX). Discretionary accruals with the Kothari model used as a proxy for earnings management. The sample was obtained by purposive sampling method with predetermined criteria, and resulted 40 in manufacturing companies sub-sector food and beverage in the 2016-2020 period with a total of 200 data. Descriptive statistics and multiple regression were used as data analysis methods. The results of this study can be summarized as follows. The first regression analysis, namely before the covid pandemic period, showed that Institutional Ownership and Audit Committee had a significant negative effect on Earnings Management, while Managerial Ownership, Independent Board of Commissioners, Leverage, and Firm Size had no effect on Earnings Management. The second regression analysis, before and during the covid pandemic, showed that Managerial Ownership, Institutional Ownership, and Leverage had a significant negative effect on Earnings Management. Meanwhile, the Independent Board of Commissioners, Audit Committee, Firm Size, and the Covid Pandemic have no effect on Earnings Management. Based on this explanation, it can be concluded that the implementation of Good Corporate Governance in Manufacturing companies in the Food and Beverage Subsector can be said to be still relatively ineffective, because only Managerial Ownership, Institutional Ownership and Audit Committees in this study are able to carry out their duties effectively to minimize the practice of earnings management happened to the company.

A Brief Discussion of Audit Risks and Their Causes

As a crucial supervisory department overseeing economic operations, the audit department plays a pivotal role in safeguarding the healthy development of the country’s economy, exposing corruption, and effectively maintaining social and economic peace and stability. The work of auditing involves detecting existing issues, providing remedies, and consistently contributing to national governance. However, as the market economic environment undergoes continuous changes, legal systems advance, and the audit environment becomes more complex, audit risks have gradually gained prominence. The prevention of audit risks has increasingly captured the attention of audit agencies at all levels. This necessitates audit institutions to continually adapt to new challenges, comprehend risks, and exert effective control over them. This article delves into the causes of audit risks, exploring ways to effectively identify and respond to these risks within a complex and ever-changing environment. The objective is to ensure the objectivity and accuracy of audit reports, allowing the audit function to truly serve as an “immune” system, protecting public interests.

ASSESSING THE EFFECTIVENESS OF AUDITS IN PUBLIC ADMINISTRATION

Abstract The feedback supreme audit institutions (SAI) provide from their audits of public funds and property owned by the national and local governments is critical to the audited governments and public authorities, while also important information for both the professional and general public. The article seeks to assess the performance of the SAIs in the Visegrád Four (V4) countries by evaluating hypotheses that assess the effectiveness of the audits they conduct. Data for the analysis came from annual reports of the institutions and interviews conducted with their staff. The evaluation covers sixteen years (2005-2020) and the five hypotheses established in this article were assessed using the Pearson and Spearman correlation coefficients. In general, a conclusion could be drawn from the analysis that the volume of new audit findings was not influenced by the number of audits from previous years or the number of recommendations made therein. On the other hand, the relationship between the number of audits conducted and the number of criminal complaints filed was seen as statistically significant. The public sector works slightly differently in all countries, but the SAI needs to be able to identify and point out the most significant systemic issues concerning the various areas of the state economy. Keywords: public administration; audits conducted; audit findings; Supreme audit office, Visegrád Four (V4) countries.

Andragogy in Ethics Education for Auditors

BPK RI has a vision to become a trusted audit institution that plays an active role in realizing quality and beneficial state financial governance. To strengthen this vision, a regulatory framework regarding discipline and a code of ethics has been established; however, there are still several cases of ethical violations by auditors. This is dangerous for institutions and can reduce public trust in the results of BPK audits. One strategy for building character with integrity is to develop education and training that is comprehensive and in accordance with the needs of examiners in dealing with ethical dilemmas in the field. This study applied a descriptive qualitative method. It described a lot of research using literature studies. Andragogy has a different character because adults already have well-developed ideas within themselves and have confidence that they can also implement these ideas. Characteristics of Andragogy learning in ethics education must be independent, experience and knowledge-oriented, have clear goals, be relevant to everyday contexts, have a practical nature, not just theory, and be collaborative. BPK RI needs to develop a learning model that places more emphasis on exploring experiences related to auditor ethical dilemmas in the field with the norms that apply in the code of ethics. There are still few journals that discuss ethics education for auditors and this study does not discuss in more depth regarding the system for taking action against disclosure of fraud. This research can provide input and information for leaders and policy makers in preparing a grand design for preventing fraud and can be input for the management to improve its capabilities in the context of education and training programs related to ethics.

DETERMINANTS OF GOOD CORPORATE GOVERNANCE, CAPITAL STRUCTURE AND ACCOUNTING CONSERVATISM IN INFLUENCING THE FINANCIAL PERFORMANCE OF IPO COMPANIES

This study aims to examine and analyze the effect of GCG proxied in institutional ownership, managerial ownership, board of commissioners, independent commissioners, and audit committees, as well as capital structure and accounting conservatism on financial performance. This research uses a type of research with a quantitative approach with an ex post facto design. A sample of 44 companies going public in the manufacturing sector listed on the Indonesia Stock Exchange (IDX) using the purposive sampling method. The data analysis method used in research is multiple regression for testing research hypotheses. The results showed that institutional ownership, independent commissioners, and audit committees had no significant effect on financial performance. Managerial ownership, the board of commissioners, capital structure, and accounting conservatism have a significant effect on financial performance. The combination of institutional ownership, managerial ownership, board of commissioners, independent commissioners, audit committee, capital structure, and accounting conservatism have a joint or simultaneous effect on the company's financial performance.

Assessment of clean audit outcomes as an effective determinant of good service delivery: a case study of Midvaal Local Municipality

The Office of the Auditor-General in South Africa conducts audits of local government institutions, among other public-sector entities, to assess the current financial condition of municipalities and provide audit opinions for a certain fiscal year. Municipalities are obligated to maintain clean audits to avoid financial fines. However, the significance of clean audit outcomes lies in their ability to ensure successful service provision to the citizens. The Auditor-General's municipal audit findings reveal that several municipalities obtain clean audits, notwithstanding their inadequate performance in terms of service delivery. South Africa has a few municipalities that have successfully achieved desirable audit outcomes, with Midvaal Local Municipality being a notable example of consecutive clean audits. This study aims to evaluate whether the clean audit outcomes of Midvaal Local Municipality may serve as reliable indicators of effective service delivery within the municipality. The article utilizes a literature review and an online qualitative questionnaire survey with open-ended questions as approaches for collecting data. The article's findings highlight that the municipality has implemented effective management processes, also known as internal controls, which enable Midvaal to deliver services to its citizens in an effective and efficient manner. This management techniques may effectively determine the quality of service delivery within the municipality. They have a favorable impact on the municipality's financial viability, which directly results in clean audit conclusions.

Antiemetics Commonly Prescribed in Children Undergoing Dental Treatment Under General Anaesthesia- A Retrospective Cohort Study

Background: Postoperative nausea and vomiting (PONV) are the most widely recognized unfavorable impact of pediatric anaesthesia and medical procedure Numerous antiemetic drugs are utilized for preventive treatment. They have different biochemical collaborations and inconveniences, yet there is still a weakness about which drugs are best with the least side effects. Aim: The aim of the current study is to find the antiemetics commonly prescribed in children undergoing dental procedures in general anaesthesia. Materials and Methods: The retrospective study was led in a private dental school, Chennai, India. Moral endorsement was obtained from the Institutional audit board before the beginning of the review. Information was gathered from DIAS (Dental Information Archiving Software) and the board framework records of the children under 18 years old who were treated under broad anaesthesia between September 2020 and February 2021 which was placed in the systemic way. A comfort test of 100 children going through dental treatment under general anaesthesia who were endorsed with antiemetics were remembered for the review. Information gathered with following boundaries like age, gender, antiemetics given. The classification of information was done in excel sheets and imported to SPSS. Results: Among 100 children treated under general anaesthesia, 56 were males and 44 were females. As a total count male were higher with a percentage of 56% when compared to females with 44%. 65% of ondansetron and 35% of metoclopramide antiemetic drugs were commonly prescribed in children undergoing dental treatment in general anaesthesia. Conclusion: There is high-certainty evidence that ondansetron drugs decrease vomiting, and moderate - assurance evidence that metoclopramide drugs probably reduce vomiting.

Supreme Audit Institution Recommendations and the Legal System: The Case of Indonesia

Abstract The audit recommendations of the Indonesian supreme audit institution (Badan Pemeriksa Keuangan, BPK) acquired new significance after the collapse of the authoritarian state in 1998 and constitutional amendments in 1999–2002 that reformed the regulation and institutional governance of public sector audit in Indonesia. However, while the reform of public sector audit regulation was carried out through a strong adoption of private sector audit standards and the Westminster SAI model, the BPK retained some of its Napoleonic legacy. This syncretic organisation led to confusion about the BPK’s role and position in the Indonesian legal system. Using a historical and case study approach, this paper analyses the relationship between the BPK’s audit recommendations and the Indonesian legal system. It argues that it is important for the BPK to develop auditing standards that take full account of higher rules, administrative law, and national interests, or at least not to adopt and abolish auditing standards that are counterproductive to its judicial function – not merely to accommodate private international law instruments developed by private non-state actors operating outside the legal framework of a sovereign state.

ІНСТИТУЦІЙНИЙ АУДИТ ЯК ВАЖЛИВИЙ ІНСТРУМЕНТ ЗАБЕЗПЕЧЕННЯ ЯКОСТІ ОСВІТИ

The article highlights the problem of implementing an effective model of quality assurance in general secondary education institutions, based on a combination of mechanisms for external evaluation of the activities of an educational institution and procedures for self-assessment of the results of its functioning. The emphasis is placed on the need to conduct an institutional audit of general secondary education institutions as a necessary component of the system of external evaluation of educational and management processes of an educational institution and the internal system of quality assurance for education, as well as verification of compliance by an educational institution with the requirements of legislation in the field of education. The legislative interpretation of the quality of education and the components of the quality assurance system, as well as institutional audit as one of the components of external verification and assessment of the quality of general secondary education, which results in the effective functioning and sustainable development of an educational institution, is considered. The article reveals the essence of institutional audit and defines the procedure for its conduct in general secondary education institutions. It is noted that the institutional audit is carried out by the Ukrainian State Education Quality Service and its territorial bodies within their powers, in accordance with specially developed procedures according to a clearly defined list of areas, requirements, criteria and evaluation indicators. The main directions of institutional audit in general secondary education institutions are considered. The priorities of building a modern institutional audit on the basis of innovation, transparency, openness, high quality, independence, and partnership with other educational institutions are emphasized, which is a prerequisite for ensuring the quality of educational services in general secondary education institutions and a guarantee of effective development of the educational sector in Ukraine.

DIDACTIC ALGORITHM FOR DEVELOPING AN INDIVIDUAL EDUCATIONAL TRAJECTORY

The article reveals a didactic algorithm for developing an individual educational trajectory. It is outlined that according to the requirements of the educational legislation in Ukraine, all students of education have the opportunity to form an individual educational trajectory, which determines the personal path of realizing personal potential and is formed taking into account abilities, interests, needs, motivation, opportunities and their experience. In the conditions of martial law, the individual educational trajectory was considered as compensation for the educational losses of education seekers and one of the ways to ensure equal access to education. It was established that the individual educational trajectory is a tool that allows you to adjust the educational process to the needs and capabilities of each student, taking into account his individual characteristics, capabilities and limitations. This is an effective mechanism that will provide conditions for pedagogical support and support for the development of personality with its uniqueness and originality. It was determined that the presence of individual educational trajectories in an educational institution is an indicator of the quality of the educational process, which is evaluated during the institutional audit of the State Education Quality Service. The idea of the student's educational route in European countries is characterized. It has been proven that learning according to an individual educational trajectory should become a didactic system that implements individual programs, content, forms, means, pace, forms of control and evaluation. The didactic algorithm for the development of an individual educational trajectory, consisting of several stages, is specified: analysis of the needs and capabilities of students; definition of educational goals; selection of educational materials and methods; training planning, implementation of an individual educational trajectory; evaluation of results.

Good Corporate Governance and Financial Performance

This study aims to examine the effect of good corporate governance mechanisms on financial performance in manufacturing companies in the consumer goods sub-sector listed on the Indonesia Stock Exchange for the 2019-2021 period. The mechanism of good corporate governance is proxied by Managerial Ownership, Institutional Ownership, and Audit Committees. Financial Performance is proxied by Return On Assets (ROA). Sampling Using the purposive sampling method, samples were obtained from as many as 30 companies. The technical data analysis used in this study is multiple linear regression analysis using the SPSS (Statistical Package for the Social sciences) version 25 assistance program. The results of this study show that institutional ownership and audit committees have a positive and significant effect on financial performance. While managerial ownership does not have a significant effect on financial performance.

An Empirical Analysis of Impact of Supreme Audit Institutions on the Audit Failures in Iraq

There is increased public outcry in Iraq on the government’s wastage of public spending, corruption, high recurrent expenditures and ineffective budget performance by different government entities. This led to increase in pressure on the Supreme Audit Institutions (SAIs) to reduce of audit failure in order promote economic development. This study aimed to examine the role of supreme audit institutions in reduce of audit failure and examine the Impact of Reduce Audit Failures on promote economic development. The target population in the present study is linked to auditors from the Federal Board of Supreme Audit of Iraq. The total number of Auditors 1734 Auditor. The sample size in this study is 317. PLS software version 4 was used to test the research model. The findings showed that the major contribution of SAIs efforts are preventing corruption, reduce of audit failures and supporting accountability, transparency, supporting a robust financial-management system and promote economic development. Therefore, it is crucial that SAIs become the linchpin of the integrity of the country, as they are responsible for auditing government income and expenditure, the watchdog over financial integrity and the credibility of information provided.

Exploring earnings management: Institutional ownership and audit size in Malaysia’s sustainability pathway

This study aims to investigate the relationships between discretionary accrual earnings management (DEM), real earnings management (REM), institutional ownership, and audit quality in Malaysian firms. The study's findings are expected to offer insights into how these factors may influence Malaysia's progress towards the Sustainable Development Goals. We examine the relationship between DEM and REM to identify the potential simultaneous use of earnings management strategies. Additionally, we explore the impact of institutional ownership and audit firm size on a company's earnings management practices. Using data from the Kuala Lumpur Stock Exchange (KLSE) spanning 2016-2018 we conducted statistical analyses, including ANOVA, t-tests, and multiple regression. There were notable correlations between DEM and REM, suggesting that these earnings management techniques are being used concurrently. Notably, institutional ownership and audit firm size played substantial roles in firms' earnings management practices. Companies with higher institutional ownership and larger audit firms tended to exhibit lower levels of DEM and REM. However, these factors did not appear to moderate the DEM-REM relationship. These findings have critical implications for regulators and policymakers in addressing earnings management practices and enhancing corporate governance in Malaysia. Focusing on institutional ownership and audit firm size may help curtail such practices, contributing to Malaysia's progress towards the Sustainable Development Goals. Future research should explore other potential moderating variables and distinctive corporate governance features that could also impact the DEM-REM relationship.

Manajemen Laba, Sales Growth, Good Corporate Governance dan Tax Avoidance

Tax avoidance practices carried out by taxpayers (companies) can cause losses to the country and can hinder national development. The research aims to obtain empirical evidence regarding the influence of earnings management, sales growth, and good corporate governance on tax avoidance. The research was conducted at basic industrial and chemical sector companies listed on the Indonesia Stock Exchange for the 2017-2021 period with a sample size of 120 observations determined using a purposive sampling technique. The data analysis technique used is panel data regression analysis with EViews 12 software. The research results show that earnings management and audit committees have a negative effect on tax avoidance and sales growth and independent commissioners have a positive effect on tax avoidance. Institutional ownership and audit quality have no effect on tax avoidance.
 Keywords: Tax Avoidance; Earnings Management; Sales Growth; Good Corporate Governance