Internal Audit Quality Research Articles

Evaluation of Learning Management Standards to Improve Higher Education Quality Standards Through Internal Quality Audits

Independent evaluation is required through an internal quality control system through internal quality audit activities. This study evaluated the achievement of learning management standards, inhibiting factors, and recommendations for improving education quality standards at Palembang Polytechnic. This type of qualitative research uses observation methods, structured interviews, and literature studies. The research instrument is the author directly involved in the research. The informants in this study were determined using a purposive technique: three research informants. The study’s results obtained data on implementing internal quality audits on learning management standards that have not been implemented. An effective internal quality management model is needed as a platform or application that supports collecting, storing, and managing data and information on website-based internal quality management system services to support fast, precise, and efficient internal quality management system integration.

Internal audit quality and accounting information comparability: Evidence from China.

This study employs the impact and mechanism of internal audit quality on the comparability of corporate accounting information. Using manually collected internal audit data, the study focuses on non-financial listed companies of A-share market spanning from 2007 to 2022 in China. The findings are as follows: (1) Internal audit significantly enhances the comparability of accounting information, the higher the quality of internal audit, the more pronounced its contribution. This conclusion remains robust after conducting endogeneity tests. (2) Mechanism testing reveals that internal audit enhances accounting information comparability through two channels: mitigating agency costs and improving financial information transparency. (3) Moderation effect test proves that the quality of internal control and the high-tech industry will strengthen the positive relationship between internal audit and comparability of accounting information, while the degree of industry competition and the level of capital occupation by major shareholders will weaken the positive relationship.

Promoting audit transparency in higher education through an internal academic quality audit application

This study aims to design and develop a web-based application for Internal Quality Audit at Universitas Ibnu Sina, replacing the conventional audit process which is currently in use. The previous manual audit process resulted in inefficiencies and increased the risk of errors. Key challenges identified include limitations in human resources, time, and funding, as well as the low effectiveness of the audit process. In order to address these issues, the proposed information system facilitates the distribution of online checklists and document uploads, thereby expediting the verification and reporting audit results. This research adopts the System Development Life Cycle (SDLC) approach in its development, utilizing methods that include use case diagrams, activity diagrams, sequence diagrams, and database design. These methods enhance interaction and workflow within the audit team. Testing results indicate that the system functions to the expected specifications. Furthermore, this study demonstrates that implementing a web-based system can accelerate reporting, improve the structure and documentation of audits, and support efforts to enhance academic quality at the university. Implementing this system is expected to increase efficiency and accuracy in the academic quality audit process at Universitas Ibnu Sina.

Internal auditor competence and internal control: Improving internal audit quality to prevent fraudulent financial statements

Internal auditor competence and internal control: Improving internal audit quality to prevent fraudulent financial statements

Implementation of Internal Quality Audit at IKesT Muhammadiyah Palembang

The Internal Quality Assurance System (SPMI) in universities has an important role in the implementation and improvement of the quality of educational services provided by universities. One of the ways to evaluate the fulfillment of the higher education standards in question is through the Internal Quality Audit (AMI) process. The implementation of AMI at IKesT Muhammadiyah Palembang has been carried out well and has had a positive impact on improving the quality of higher education implementation and has also referred to SPMI and the PPEPP cycle. The Quality Assurance Institute (LPM) reported the results of the AMI training to the Rector of IKesT Muhammadiyah Palembang and invited all leaders of faculties, study programs and work units to present the results of the AMI that had been implemented, with this the rector can know where the weaknesses and shortcomings need to be improved and improved in order to create Good University Governance (GUG).

The Influence of Internal Control and Client Importance on Audit Quality with Time Budget Pressure as a Moderating Variable

This study aims to empirically examine the influence of internal control and client importance on audit quality, with time budget pressure as a moderating variable. The data used in this study was sourced from a questionnaire survey distributed to respondents in March via Google Forms. Respondents were selected using purposive sampling, with criteria including junior auditors, senior auditors, and Managing Partners (leaders) from audit firms (KAP) in Bogor, Jakarta, Bali, and East Java. The final sample used in this study was 50 observations. The results of this study show that client importance has a negative effect on audit quality. Internal control has a positive effect on audit quality. Time budget pressure moderates the relationship between client importance and audit quality in a positive direction. Time budget pressure moderates the relationship between internal control and audit quality in a negative direction. Time budget pressure itself has a positive effect on audit quality. Keywords: Internal Control, Client Importance, Kualitas Audit dan Time Budget Pressure

Information System Audit Experience and Accountability to Internal Audit Quality

The purpose of this research to determine the experience of information system audits and accountability for audit quality at the Inspectorate Bandung. Data expected to be a solution quality of internal audits. Obtained through a survey by distributing questionnaires. According to the issue, they do not have competent experience and accountability in carrying out quality audits. Have 30 samples out of 60 observed in population field. Using descriptive and verification methods. Statistical data processing SPSS. The results show that: (1) Information systems audit experience has no direct effect on audit quality and (2) Accountability has a direct effect on internal audit quality.

Greenwashing and financial performance of firms: the moderating role of internal audit quality and digital technologies

Greenwashing and financial performance of firms: the moderating role of internal audit quality and digital technologies

Exploring the Implementation of “Merdeka Belajar Kampus Merdeka” in Indonesian Islamic Universities

“Merdeka Belajar Kampus Merdeka” (MBKM) is an Indonesian government program launched to improve students’ skills and competencies, both hard and soft skills. This study aims to analyze the implementation strategy of the “Merdeka Belajar Kampus Merdeka” (MBKM) program in Islamic Religious Colleges (PTKI) in Indonesia. Using a qualitative approach and a multi-case study method, this study examines the implementation of MBKM in Islamic religious colleges in Indonesia. Data were collected through in-depth interviews, observation and documentation. Data were analyzed using multi-case analysis techniques, starting from single case analysis/individual case and continuing with cross-case analysis/cross-case analysis. After being analyzed, data validity was checked through the degree of certainty, transferability, and trustworthiness. The results of this study indicate that implementing MBKM in PTKI uses a curriculum overhaul and adaptation strategy. The curriculum overhaul is implemented through learning innovation programs, collaboration, learning opportunities, eight program learning opportunities, character education, and curriculum models. Implementing curriculum adaptation is carried out through the ease of opening new study programs, study program accreditation, and the right to study outside the program for three semesters. The MBKM program is evaluated internally through internal quality audits and externally through national and international accreditation.

The stronger the ability, the greater the destructiveness? CEO ability and stock price crash risk

The impact of CEO ability on corporate behavior is dual-faceted. Based on the “rent-seeking hypothesis”, this paper focuses on the “dark side” of CEO ability and suggests that CEO ability may hurt corporate behavior. Using the DEA method to measure CEO ability and selecting Chinese A-share listed companies from 2007 to 2017 as a sample, we examine the relationship, mechanisms, and boundary conditions between CEO ability and stock price crash risk. Our study finds that CEO ability exacerbates stock price crash risk positively. Mechanism tests based on CEO tenure, agency conflict, and litigation risk reveal that CEO ability intensifies stock price crash risk for alleviating career concerns, seeking private gains, and risk avoidance, supporting the “rent-seeking hypothesis”. Boundary condition tests based on internal and external governance environments show that internal control quality and external audit supervision can play a governance role in mitigating the exacerbating effect of CEO ability on stock price crash risk. The conclusions are of significant importance for companies, relevant departments, and global market participants to strengthen governance and supervision to prevent the negative impact of CEO ability on stock prices, thereby promoting the stable development of global financial markets.

Impact of Internal Control and Audit Quality on Corporate Investment Efficiency - Focus on Chinese Listed Companies

Impact of Internal Control and Audit Quality on Corporate Investment Efficiency - Focus on Chinese Listed Companies

Digital Transformation, Emotional Intelligence, and Organizational Culture Toward Internal Audit Quality: Conceptual Framework

This paper investigates the interplay between digital transformation, emotional intelligence (EI), and internal auditing quality within Saudi public institutions, with a focus on the mediating role of EI and the moderating role of organizational culture. The advent of digital transformation has significantly influenced internal auditing practices, necessitating an adaptation to new technologies and methodologies. Emotional intelligence is identified as a crucial factor in enabling audit teams to effectively manage the challenges and opportunities presented by digital transformation, enhancing communication, decision-making, and adaptability. Organizational culture further influences this relationship by providing a supportive environment that facilitates the adoption of digital innovations and the development of EI among audit personnel. The findings suggest that a synergistic approach, incorporating digital transformation initiatives with the development of EI and fostering a conducive organizational culture, can significantly enhance the quality and effectiveness of internal auditing in Saudi public institutions. This study contributes to the understanding of how digital transformation, EI, and organizational culture interact to improve internal auditing practices, offering valuable insights for policymakers and practitioners aiming to optimize internal audit functions in the face of ongoing digital advancements.

Budaya Mutu (Quality Culture) Universitas Ibnu Chaldun Jakarta

The objective study aims to describe in full and comprehensively related to the implementation of quality culture at Ibnu Chaldun University in Jakarta, the oldest Islamic Higher Education institution in Jakarta. Quality culture is expressed by starting with the development of the Internal Quality Assurance System, independently conducting Internal Quality Audit and External Quality Audit by authorized institutions, Independent Accreditation Institutions, according to the Study Program and the National Accreditation Board for Higher Education. This research was conducted using the Research and Development (R&D) method, developing the Borg and Borg stages, namely the ten Borg steps for Research and Development (R&D), so that in the end the researcher concluded that Quality Culture was created from the commitment of all parties to implement, implement and control the Internal Quality Assurance System in all institutional units that work continuously and collaboratively, so that sustainable quality is created to get the best.

TAX COMPLIANCE CONTROL AND AUDIT OF TRANSFER PRICING TRANSACTIONS

The article presents the authors' vision of the features and mechanism of tax compliance control and audit in the management of transfer pricing operations. Effective interaction between business entities and tax authorities in the process of controlling and auditing transfer pricing transactions should be based on the principles of compliance with the help of two tools – assessment of the quality of transfer pricing policy and internal control system (as a result of interaction of internal and external control systems) and assessment of the quality and effectiveness of internal audit of transfer pricing (as a result of interaction of internal control and audit systems). In accordance with the above, tax compliance control and audit becomes a new element of the established system of monitoring of controlled transactions of a business entity, which proposed to understand as the use of tools to confirm the quality and effectiveness of internal control and audit systems of transfer pricing transactions of a business entity by a tax authority, which certifies the taxpayer's commitment and responsibility to comply with tax legislation in terms of compliance with the arm's length principle. Confirmation by the tax authorities of the quality of the transfer pricing policy and internal control and audit system of the entity should be based on the developed, tested and approved system of assessment parameters. Confirmation of the assessment of the quality of the transfer pricing policy and internal control system will demonstrate the responsible position of the taxpayer based on tax compliance with the transfer pricing legislation in accordance with the arm's length principle and will increase the level of trust in it on the part of the tax authorities. In turn, the introduction of such a tool as an internal transfer pricing audit quality assessment into the process of monitoring-controlled transactions will allow the company to submit and use the results of its internal audit in assessing transfer pricing risks to form its tax rating and assess the need to include it in the audit plan. This tool assumes that the internal audit system is sufficient to timely detect violations of tax legislation in the field of transfer pricing in accordance with the arm's length principle.

Internal Audit Practices and Financial Reporting Quality of Listed Manufacturing Firms in Nigeria: The Role of Audit Committee

The purpose of this study was to investigate the moderating role of audit committee on the association between internal audit practices and quality of financial reporting of listed consumer goods manufacturing firms in Nigeria. The study used cross sectional and correlational research designs with a population of twenty-one (21) while a sample of ten (10) listed consumer goods manufacturing firms were used for the study. Primary data from structured questionnaires were used for data collection after validity and reliability tests while the responses obtained from the questionnaires were analysed using univariate, bivariate and multivariate analysis of data.. The findings indicate a positive and significant relationship between internal controls, audit risk assessment, internal audit independence on quality of financial reports. The study further revealed that audit committee moderates the association between internal audit practices and quality of financial reports. On the basis of the findings, the study concluded that audit committee moderates internal audit practices and financial reporting quality of listed consumer goods firms in Nigeria. Consequently, the study recommended amongst others that Internal audit departments of Consumer goods manufacturing firms should adopt and employ internal control measures like segregation of duties, restricted access through using access passwords that are frequently changed in evaluating earning per share, this gives opportunity to professional to study, understand, and apply new development on auditing procedures and dissemination of relevant financial information which will enhance financial reporting quality.

Pengaruh Penerapan Remote Audit pada Kualitas Audit Internal Pasca Pandemi Covid-19

Despite the challenges encountered in the field, audit quality within the scope of internal audit remains a top priority. The study outlines the ways in how remote audits impact audit quality and the approaches implemented by internal auditors to enhance audit quality. Examining the effect of remote auditing on audit quality is appropriate given the COVID-19 pandemic. This combination of auditor competence and time budget pressure to moderate the effect of remote audits on internal audit quality are also addressed in this study. Survey data is used in this study to measure how far APIP in East Java Province began using remote auditing after the epidemic. SmartPLS is used in the analytical method combined with the Structural Equation Modeling (SEM) model such as reliability and convergent validity test, discriminant validity test and PLS path algorithm and bootstrapping test. The research questionnaire's are measured using a Likert scale (1-7). Remote audits have a positive effect on improving internal audit quality, according to the result of a survey conducted towards 76 out of 100 internal auditors. But auditor competence and time budget pressure does not significantly moderate such a relationship. The research's conclusions have significance for practitioners looking to improve audit quality in remote audits and may benefit users of financial reports to comprehend the level of audit quality in remote audits

The Influence of Auditor Competence and Independence on Internal Audit Quality: The Mediating Role of Risk-Based Audit

The Influence of Auditor Competence and Independence on Internal Audit Quality: The Mediating Role of Risk-Based Audit

Local Government Internal Audit Quality: Input Factors, Individual Level (Study on Inspectorate Auditors in North Sulawesi Province)

Local Government Internal Audit Quality: Input Factors, Individual Level (Study on Inspectorate Auditors in North Sulawesi Province)

The impact of internal audit quality on fighting corruption in the Qatari public sector

The impact of internal audit quality on fighting corruption in the Qatari public sector

Internal Audit Practices and Quality of Financial Reports of Listed Consumer Goods Manufacturing Firms in Nigeria

The quality of financial reporting has remained an issue of significant concern among professional accountants, regulators, and other users of financial information. This is because financial reporting has been a principal means of communicating result of financial transactions and events which transpired within the organization. To that end, this study investigated the relationship between internal audit practices and financial reporting quality of consumer goods manufacturing in Nigeria. The research design used in this study was descriptive survey. The targeted population of this study consists of all the twenty-one (21) listed consumer goods manufacturing firms in the Nigerian Exchange Group (NGX) with a respondent total of two hundred and ninety (290). The sample size of the study consists of ten (10) consumer goods manufacturing firms that have branches in South-South, Nigeria using purposive sampling technique. The study employed primary data sourced from questionnaires administered to the respondents and two hundred and fifty-one (251) representing a response rate of 86.6% was used as sample size for the study. The study used content validity and Cronbach alpha reliability test was used to determine the statistical reliability of the instrument. Descriptive statistics such as frequencies, percentages, means, and standard deviations and spearman rank correlation were used in data analysis. Findings indicated that a positive and significant relationship between internal audit control mechanisms and timeliness of financial reports, a positive and significant relationship between internal audit risk management and timeliness of financial reports, and a positive and significant relationship between management support and timeliness of financial reports of consumer goods manufacturing firms in Nigeria. Based on the findings, this study concluded that, internal audit practices positively and significantly influence financial reporting quality of consumer goods manufacturing firms in Nigeria. The study recommended amongst others that consumer goods manufacturing firms in Nigeria should adopt the effective use of internal audit activities since it has positive and significant influence towards an improvement in financial reporting quality.