Audit Institutions Research Articles

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

Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Dengan Profitabilitas Sebagai Variabel Moderasi Pada Perusahaan Food And Baverage Yang Terdaftar Di BEI Tahun 2017-2021

This research was conducted to find out and analyze the effect of Good Corporate on firm value with profitability as a moderating variable. The population used in this study are food and beverage companies listed on the IDX in 2017-2021. The sample was determined using a purposive sampling method and a sample of 120 was obtained. The type of data used in this study was secondary data obtained from www.idx.co.id. Data analysis was carried out using descriptive statistics, testing the SPSS version 16.0 program. The results of the study found that Institutional Ownership and Audit Committee have no effect on firm value, Managerial Ownership, Institutional Ownership, and Audit Committee moderated by profitability (ROA) have no effect on firm value. While Managerial Ownership affects the value of the company.
 Keywords: Managerial Ownership, Institutional Ownership, Audit Committee, Profitability, Firm Value

Impact of Revised Margin Negative Guidelines in Breast Cancer on Survival: Single Institution Audit

Impact of Revised Margin Negative Guidelines in Breast Cancer on Survival: Single Institution Audit

Faktor-Faktor Yang Mempengaruhi Integritas Laporan Keuangan

The aim of this research is to examine the influence of institutional ownership, independent commissioners, audit committees and managerial ownership on the integrity of financial reports. Financial account integrity, which is measured by the market price of shares divided by the book value of shares, is the dependent variable. Meanwhile, institutional ownership is measured by the number of shares owned by the institution in the number of outstanding shares, independent commissioners are measured by the number of independent commissioners in the number of commissioners, audit committees are calculated by the number of audit committee members, and managerial ownership is measured by the number of shares owned by management in the section with number of shares distributed. The research population is companies listed on the Indonesia Stock Exchange (BEI) from 2018 to 2022. Purposive sampling was used to determine the research sample, and 18 companies were obtained with a total of 90 observations. Multiple linear regression analysis is used as an analysis technique. Based on the findings of this research, institutional ownership, audit committee and managerial ownership have no effect on the integrity of financial reports, but independent commissioners have a good and significant effect on the integrity of financial reports.

DETERMINANTS OF AUDIT AND FORENSIC ECONOMIC EXAMINATION IN THE SYSTEM OF FINANCIAL CONTROL OF LOCAL BUDGETS

Strengthening the fight against economic crimes and fraud in local budget institutions requires improvement of financial control. The article is devoted to the issue of ways and content of introduction of audit and forensic economic examination tools into the internal control system. The research method chosen was an empirical assessment of the state and prospects for improving the control system through a questionnaire. The structure of the questionnaire included grouping of questions into four sections. Questions of informational nature are included in the first section, characteristics of internal control and audit are included in the second section of the questionnaire. The third section contained the issues of contact with external control and audit institutions, and the fourth section assessed the potential capabilities and intentions to use internal and external audit tools and forensic economic expertise. The quality of the survey was ensured by its preliminary pilot testing. The selection of respondents from local government institutions in the five oblasts ensured representation in the survey. Technically, the questionnaire was distributed through open official work emails of representatives of institutions using Google form, which ensured open distribution and anonymity of responses. The paper analyses the results of the responses, which showed the state of the internal control system and the directions of its development. The study provides a comparative assessment of the state of the internal control system and the availability of internal audit services in local self-government institutions. The publication considers the results of questionnaires on the state of interaction between local self-government institutions and external auditors in terms of audits of annual financial statements and consulting. It also identifies the extent of the need to supplement the internal control system with external audit tools. The author identifies differences in assessments of the needs for interaction with external auditors and forensic experts, and substantiates the directions for improving the internal control system of local budget institutions. It was also suggested that the effectiveness of control in preventing, detecting and combating fraud should be strengthened based on foreign experience of cooperation with external auditors and forensic experts.

Short and Medium Term Outcomes of Open and Laparoscopic Assisted Oesophageal Replacement Procedures

Aim of the StudyWe describe the short- and medium-term outcomes following open and laparoscopic assisted oesophageal replacement surgery in a single tertiary paediatric surgical centre. MethodsA retrospective review (institutional audit approval no. 3213) on patients who underwent open or laparoscopic-assisted oesophageal replacement (OAR vs. LAR) at our centre between 2002 and 2021 was completed. Data collected (demographics, early complications, stricture formation, need for oesophageal dilatations, and mortality) were analysed using GraphPad Prism v 9.50 and are presented as median (IQR). Results71 children (37 male) had oesophageal replacement surgery at a median age of 2.3 years (IQR 4.7 years). 51 were LAR (6 conversions). Replacement conduit was stomach (n = 67), colon (n = 3), or jejunum (n = 1). Most gastric transpositions had a pyloroplasty (46/67) or pyloromyotomy (14/67). Most common pathology was oesophageal atresia (n = 50 including 2 failed transpositions), caustic injury (n = 19 including 3 due to button battery), stricture of unknown cause (n = 1), and megaoesophagus (n = 1). There were 2 (2.8 %) early postoperative deaths at 2 days (major vessel thrombosis), 1 month (systemic sepsis), and one death at 5 years in the community. The rate of postoperative complications were comparable across LAR and OAR including anastomotic leak, pleural effusions, or early strictures. More patients with caustic pathology needed dilatations (60 % vs 30 % in OA, p = 0.05). ConclusionsOutcomes of open and laparoscopic-assisted oesophageal replacement procedures are comparable in the short and medium term. Anastomotic stricture is higher in those with caustic injury. Level of EvidenceIV.

The Process of Institutional Strategic Planning the Level of the Ministry of Labour and Achievement of Public Policies Objectives

The paper is presenting the main results of the research on the Supreme Audit Institution reports regarding the institutional strategic plans realised by Ministry of Labour from Romania. The adoption of performance budgeting implies a shift in the focus of budget process, from the management of inputs to a focus on the results of spending and the achievement of policy objectives.The adoption of performance budgeting implies a shift in the focus of the budget process from the management of inputs to an emphasis on results and the achievement of policyobjectives.

Does increasing auditors' independence lead to more forceful public auditing? A study of a Canadian internal audit reform

AbstractThe value of auditing as an instrument of accountability depends upon the independence of auditors. However, the extent to which auditors feel free to review the operation, compliance, and performance of public programs and objectively communicate findings to stakeholders has rarely been assessed. A Canadian public service reform in 2006 introduced institutional safeguards to bolster the independence of departmental internal auditors, but left legislative auditors working for the Auditor General's Office (i.e., Canada's Supreme Audit Institution) unaffected. We analyze and compare 2677 audit reports written by internal and legislative auditors before and after the reform. After the reform, the language used by internal auditors became more assertive and evaluative, but not more critical. This suggests that the safeguards had a meaningful impact on how auditors perform their accountability function but that factors other than independence may be driving their willingness to be more adversarial and critical when communicating audit findings.

감사원의 독립성과 정치적 중립성

Since long time ago, Korean people have taken a skeptical view of the independency and political neutrality of the Board of Audit and Inspection as a constitutional institution because the Presidents in Korea have often repeated to indirectly expel the existing commissioners before the completion of their tenures after the President started his or her term and appoint his or her close aids as the commissioners of the Board.
 Recently, just after the new Administration had recommended the early retirement of the chairpersons of the Anti-Corruption and Civil Rights Commission and Communications Commission before the completion of their tenures, the Board of Audit and Inspection started the inspection of the two Commissions to seemingly oppress the chairpersons. These incidents aroused the public response which demanded the extensive reforms for the Board of Audit and Inspection in Korea.
 For the above reasons, this paper will, at first, examine the provisions concerned with the independency and political neutrality in the Constitution and the Board of Audit and Inspection Act. And then, it will reveal the problems in administering the Board of Audit and Inspection concerned with its independency and political neutrality and compare with the Supreme Audit institutions in U.K., U.S.A., Germany, Japan and France. Finally, this paper will suggest the reform measures to secure the independency and political neutrality of the Board of Audit and Inspection in Korea through the revision of the Constitution.

THE ROLE OF SUPREME AUDIT INSTITUTIONS IN THE DEVELOPMENT OF A GREEN ECONOMY TO ACHIEVE SUSTAINABLE DEVELOPMENT GOALS

Problems related to the development of green economy exist in all countries of the world. These problems are particularly relevant in developing countries, whose economic growth depends on the extraction of carbon fuel minerals. The purpose of this study is to identify the problems hindering the development of green economy and the role of the supreme audit institutions in solving these problems. In recent years, the Supreme Audit Institutions (SAI) have become increasingly convinced of the value of interaction with civil society to achieve sustainable development goals as a way to increase government accountability and audit quality. Despite the constant cooperation with civil society in the course of daily activities, it becomes more important than ever during global emergencies, such as the COVID-19 pandemic. The issue raised is relevant for Kazakhstan as well. The article provides a literary review on the topic, on the basis of which a conclusion is made about the desire of the SAI to increase its public utility with the help of an audit according to the prevailing evidence. However, we have proposed measures to enhance this role by taking a more substantial part in energy reporting.

STATE AUDIT IN THE FIELD OF ASSESSING THE EFFECTIVENESS OF THE USE OF NATURAL RESOURCES: WORLD EXPERIENCE

Against the background of globalization of trends in the transition to «green» technologies and the economy, the increase in related costs, the relevance of assessing the effectiveness of audit activities in the environmental sphere is also increasing. In this regard, the article examines the world experience in organizing and conducting a state audit of the efficiency of the use of natural resources. In particular, the authors consider the methodological approaches of the supreme audit institutions of foreign countries that occupy high positions in international ratings of environmental protection and the use of resource-saving technologies. As a result of the study, it was revealed that most of the external state audit bodies do not conduct an audit of the use of natural resources, not in the form of a separate type of audit, but as an audit of efficiency. In some cases, these audits combine elements of an efficiency audit and a compliance audit, as well as a financial audit. At the same time, in the structure of the efficiency audit elements used in the activities of the supreme audit institutions of the countries under study, «economy», «efficiency» and «efficiency» can be distinguished, with the exception of the experience of Canada, whose audit management adds «environment» and «sustainable development». Based on the results of the analysis, the authors formulated conclusions in the context of considering the possibility of adapting the best best practices of the Supreme Audit Institutions in domestic conditions in the field of assessing the effectiveness of the use of natural resources and environmental protection measures in general.

Real‐time audit of public agencies: Utility, controversy and lessons for an emerging practice

Real‐time audit is the auditing of actions as they occur and the publishing of findings before the audited action was completed. It is an emerging practice of Supreme Audit Institutions (SAIs) in many countries, and it marks a stark departure from the traditional ‘after‐the‐fact’ auditing practice. Real‐time audits have been widely used in the auditing of COVID‐19 relief programmes in many countries. Whereas in the United States and many other countries, this practice became popular only in recent years, Israel's SAI in Israel has been conducting real‐time audits since the 1970s. The article surveys SAI practices in various countries regarding the timeliness of the auditing of public agencies and presents the pros and cons of real‐time audits based on an analysis of the Israeli experience. We conclude by outlining several issues that SAIs should consider before choosing to conduct a real‐time audit.

Citizen-Centred Governance: What Role of Supreme Audit Institute (SAI) Nigeria

Citizen-Centred Governance: What Role of Supreme Audit Institute (SAI) Nigeria

44-Year Temporal Trends and Causes of Maternal Mortality at the Lagos University Teaching Hospital, LUTH, Lagos, Nigeria (1976-2019)

ABSTRACT Background: Nigeria has committed to global initiatives aimed at improving maternal and child health. Institutional audit of maternal mortality over a long period can provide useful information on the trends in maternal death and the impact of interventions. Aim: To evaluate the trends in annual deliveries, maternal mortality ratio and causes of maternal death at a tertiary institution in Nigeria over a period of 44 years (1976–2019). Materials and Methods: We conducted a temporal trend analysis of annual births, maternal deaths, maternal mortality ratio (MMR), and ranking of causes of maternal deaths at a Teaching Hospital, in Southwest Nigeria using available data from 1976 to 2019. Overall and segmental annual percent change (APC) of the observed trends were conducted using Joinpoint version 4.5.0.1 software. Results: Over the 44-year study period, 1323 maternal deaths occurred at approximately 30 maternal deaths per annum. There was a four-fold increase in MMR from 881/100,000 total births in 1976 to 3389.8/100,000 total births in 2019, at an average increase of 3.1% per annum. (APC: 3.1%; P value < 0.001). The leading causes of maternal mortality were hypertension, sepsis, haemorrhage, and abortion, which together contributed to more than 70% of maternal deaths. All the leading causes of maternal deaths except abortion had constant ranking during the study period. Conclusion: The four-fold increase in MMR at our hospital from 1976–2019 is worrying and may suggest that previous efforts at reducing maternal mortality in our institution did not lead to significant improvement toward the attainment of Sustainable Development Goal 3 (SDG3). The hospital increasingly managed complex cases especially the unbooked patients who were referred to the hospital as a last resort.

Pengaruh Kepemilikan Institusional, Kepemilikan Manajerial, Komite Audit dan Ukuran Perusahaan Terhadap Penghindaran Pajak Pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia

This study aims to determine and examine the effect of Institutional Ownership, Managerial Ownership, Audit Committee and Company Size on Tax Avoidance in Banking Companies listed on the Indonesia Stock Exchange. Data collection uses secondary data obtained from financial reports accessed through www.idx.co.id. by using purposive sampling technique. The population in this study are banking companies listed on the Indonesia Stock Exchange for the 2021-2022 period, totaling 47 companies. However, the samples used in this study were 25 companies with 50 financial statements. The method used to analyze the data is multiple linear regression analysis. The results showed that partially institutional ownership has a negative effect on tax avoidance, managerial ownership has a positive effect on tax avoidance, audit committee has a negative effect on tax avoidance, and firm size has a negative effect on tax avoidance. Simultaneously institutional ownership, managerial ownership, audit committee and company size have a significant effect on tax avoidance in banking companies.

Changes of Civil Liability Risks of Audit Institutions under the Special Representative Litigation System——Take the Kangmei fraud case as an example

The new Securities Law proposes the concept of a special representative litigation system, increasing the efforts to protect the legitimate rights and interests of investors who are infringed upon, and the civil legal liability risks of audit institutions increase accordingly. To promote the healthy and orderly development of securities market and audit industry, this paper will take the Kangmei’s fraud case, the first case in which the special representative litigation system is applied, as the starting point, and analyze the civil legal liability of the audit institution in the case, so as to explore the changes of the civil legal liability of the audit institution under the special representative litigation system, and then put forward enlightenment and suggestions for the audit institution to achieve risk reduction.

The importance of independent audit and ethics in prevention of risk in businesses

Purpose- Regarding risks that express the possibility of loss of financial, physical, human and intellectual resources of businesses, not only due to their effects on the existence of the relevant businesses; At the same time, due to its devastating effects extending to international economies, it has become necessary to make institutional and legal regulations at national and international levels. Since the focus of the regulations is on "independent auditing and ethical rules", examining this issue constitutes the purpose of the study. Methodology- The method of the study is to consider the audit institutions and concepts developed for the prevention of risk in the historical development process, to reveal the importance of independent auditing and ethical principles in terms of stakeholders and the social environment, and to evaluate the subject in a whole, based on the literature. Findings- In preventing risks; It has been determined that audit activities are carried out under three headings: public audit, internal audit and independent audit. In independent auditing, which provides assurance regarding the reliability of financial data and statements, ethical principles are a prerequisite for ensuring the public interest. When we look at the historical roots of the concept of independent auditing and ethical principles; The emergence of financial reporting and auditing scandals behind the sudden bankruptcies of international companies such as Enron, World Com, Xerox, Lucent in the USA and Parmalat in the EU has shaken the trust in capital markets, company management, financial reports, independent audit companies and auditors. The need to re-establish public confidence in the markets and to introduce regulations regarding the transparency, honesty and financial information disclosure responsibility of public companies necessitated institutional structuring and regulations. In this context, the Treadway commission, established in 1985 in the USA, prepared the Sarbanes-Oxley Act (SOX) in 2002, and based on this law, the Public Company Accounting Oversight Board (PCAOB) was established to monitor the accounting sector in order to protect the interests of public company investors. International Supreme Audit Institutions have published the Code of Ethics Standard (ISSAI 30). In parallel, the Public Oversight Institution (KGK) and Capital Markets Board (SPK) in Turkey published the "Corporate Governance Principles". Conclusion- In order to prevent risks, independent auditing based on ethical principles, on the one hand, ensures the protection of stakeholders and public interest; On the other hand, it will contribute to the successful continuation of the activities of the related enterprises. The trust and transparency to be provided in the investment environment will be the guarantee of the development of national and international economies in general and the increase of social welfare and the dynamic of development. Keywords: : Risk, audit, ethics JEL Codes: M12, G10

KEPEMILIKAN INSTITUSIONAL, LEVERAGE DAN FAKTOR LAINNYA TERHADAP MANAJEMEN LABA

The aim of this study is to obtain empirical evidence about the effect of institutional ownership, composition of independent commissioners, composition of board of directors, audit committee, audit quality, size of the company, leverage, and profitability toward earnings management. This study used a sample of manufacturing companies that listed in Indonesia Stock Exchange (IDX) for three years, 2019 to 2021. The number of sample which collected with purposive sampling method is 74 companies with 218 data as a total. The study uses multiple regression method to examine the effect of independent variables on the dependent variable earnings management. The result of this study indicates that composition of independent commissioners and composition of board of directors have negative effect on earnings management, meanwhile leverage and profitability have positive effect on earnings management. On the other hand, other independent variables such as institutional ownership, audit committee, audit quality, and size of the company have no effect on earnings management.

Supportive leadership and job satisfaction at the European Court of Auditors

This article draws on theories of person–organisation fit and leadership behaviour to explore how supportive leadership is related to communication practices, collaborative working practices and performance management practices and how these three practices, in turn, relate to public servants’ job satisfaction. A model of supportive leadership's direct and indirect effects on employees’ job satisfaction is empirically tested using responses to a survey administered to the European Court of Auditors (ECA) staff. The findings show that communication and collaborative working practices mediate the relationship between supportive leadership and job satisfaction. Supportive leadership positively relates to performance management practices, but these practices have no significant association with job satisfaction. While addressing a theoretical void in the field, this study also makes an empirical contribution by unveiling how a professional European public audit institution manages its human resources and the means it uses. Points for practitioners Elaborating on the relationship between leadership behaviour and person–organisation fit in the context of a supranational public entity helps to explain what motivates public servants. The relationship between supportive leadership and public servants’ job satisfaction is mediated by two organisational practices: communication and collaborative working practices. Transparent performance management practices do not mediate the relationship between supportive leadership and job satisfaction. Public sector organisations with professional staff can centre their human resource management around effective communication and collaborative working practices to ensure greater employee satisfaction in the workplace.

Development of Risk-Based State-Owned Enterprises Performance Audit Framework to Enhance Company Value

In the face of fierce economic competition among State Owned Enterprises (SOE), encouraging each company to grow its corporate value through the development of a risk-based performance audit framework may be the best option for SOEs in Indonesia. SOE management can make ongoing improvements and respond rapidly to market changes by detecting company performance risks. The purpose of this research is to develop an SOE risk-based performance audit framework in order to increase company value. The Analytical Hierarchy Process (AHP) method was utilized to create an effective and efficient performance audit framework based on expert justification. The study's findings indicate that the Supreme Audit Institution (BPK) strategy’s main priorities for the construction of the SOE risk-based performance audit framework include three important aspects: 1) synergy between BPK audits and SOE risk management and risk assessment by SOE internal auditors; 2) development and improvement of SOE risk management quality, and 3) effective risk assessment by SOE internal auditors. This strategy is supported by various major variables, including SOE risk management, risk assessment by SOE internal auditors, BPK audit scope, BPK audit standards, BPK audit guidelines, and BPK auditor competencies.