Management Audit Research Articles

Satisfaction with human resource practices, job dedication and job performance: the role of incentive gamification

PurposeWhile the potential of human resource practices (HRPs) for promoting performance is widely recognized, even though crucial, employees’ assessment of HRPs remains under-researched, especially in emerging economies. Hence, the purpose of this research is to examine the influence of employee satisfaction with HRPs on job performance through the mediating role of job dedication (JD) and the moderating role of incentive gamification.Design/methodology/approachThe current research adopts a quantitative method. Specifically, using a questionnaire survey, 418 valid responses collected (through purposive sampling) via cross-sectional method from the employees of Nigerian Information and Communication Technology (ICT) firms were used to test the research hypotheses empirically.FindingsThe results revealed that satisfaction with HRPs has a positive influence on job performance. Satisfaction with human resource practices has a positive influence on job dedication. Job dedication has a positive influence on job performance. The link between employees’ satisfaction with human resource practices and job performance is mediated by job dedication. The link between satisfaction with human resource practices and job dedication is moderated by incentive gamification, that is, the positive link is stronger when incentive gamification is high. The link between satisfaction with human resource practices and job performance is moderated by incentive gamification, that is, the positive link is stronger when incentive gamification is high.Originality/valueThe current study highlights the importance of employees’ assessments of human resource practices, which may be used to promote employee dedication, which in turn results in improved performance. The findings are helpful to open the black box of the impact of satisfaction with HRPs on job performance. The results also offer important new valuable guidance for practitioners and will aid the management of human resource practice design, audits, and communication.

Transforming Infrastructure Project Management: Integrating Blockchain and Predictive Analytics for Enhanced Audit and Risk Management

Transforming Infrastructure Project Management: Integrating Blockchain and Predictive Analytics for Enhanced Audit and Risk Management

The role of managerial hierarchy in the moral reasoning of local government managers

AbstractFalling public trust in Australia's institutions warrants revisiting how public sector managers approach ethical decision‐making. This study presents the findings of in‐depth interviews with 35 local government managers in Australia and seeks to understand how managerial hierarchy influences the moral reasoning of managers. Through the lens of social learning and moral development theoretical perspectives, the findings indicate that local government managers do engage in different types of moral reasoning when presented with hypothetical ethical dilemmas, and their managerial status plays a pronounced role in shaping the content of that reasoning. We also find support for differences in moral reasoning across gender, which appear more evident at lower levels of management. Through providing an in‐depth analysis of managerial hierarchy and ethical decision‐making, the findings from this study can be used to guide organisational and individual managers’ ethics training and development.Points for practitioners The declining public trust in public administrators warrants regular risk management audits of internal and external environments of public sector organisations to identify potential or existing ethical challenges that require a response. Moral reasoning and ethical decision‐making are context specific and include the ethical climate of the organisation. We find support for the importance of organisational leadership visibly ‘walking the talk’ when it comes to ethics. While management hierarchy is seen to influence moral reasoning, or the deliberations when arriving at a decision, there is widespread acceptance of the basic tenets of abiding by the law and being truthful. Therefore, organisational ethical policies and codes of conduct should clearly articulate the legal implications, and consequences of any breaches. A one‐size‐fits‐all approach to ethics training is not advised. We find that moral reasoning differs with managerial experience. A case is made to account for training tailored at different managerial levels, along with scenario‐based training and mentoring from higher levels of management.

Enhancing Procurement Integrity: Key Factors Influencing Internal Audit Effectiveness in Tanzania Public Procurement

This paper analyses the effects of internal audit competence, independence, and procedures on internal audit effectiveness in the procurement process in the public sector of Tanzania. The study is quantitative, and data were collected through questionnaires from accounting officers, senior management officers, audit committees, and internal audit units in public sectors. A total of 318 responses were collected. A Partial Least Structural Equation Modelling (PLS-SEM) technique was applied using R-studio to analyse the collected data, assess the model and test hypotheses. The findings revealed that internal audit characteristics procedures, independence and competence influence internal audit effectiveness in procurement. The study findings provide useful insights for policymakers, academics, and internal audit practitioners on the effect of the characteristics of internal audits in improving the effectiveness of internal audits in procurement in Tanzania.

Real earnings management, CEO experience, family ownership, and external audits: A meta-analysis

This article analyses the relationship between real earnings management (REM) and corporate governance variables, including family ownership, external audit quality, and CEO experience. The studies analysed were published between 2006 and 2021. The Sarbanes-Oxley Act of 2002 and the implementation of international financial reporting standards have led companies to reduce the use of accrual earnings management (AEM), and instead adopt real earnings management. However, many authors claim that using REM might harm a company’s long-term wellbeing, which accentuates the need to study the determinants of REM. The variables analysed in this paper are extensively covered in the literature, however, there is still ambiguity regarding their relationship with REM due to conflicting findings; some studies indicate a positive relationship, while others show a negative one. To resolve this ambiguity, meta-regression analysis is employed. The results indicate a positive relationship between family ownership and REM. This highlights the need to explore other forms of ownership to determine the most effective ownership structure that does not increase REM. This is of interest to legislators. The results provide no evidence to support the statistical or economic significance of CEO experience and external audit in relation to REM.

The Influence of Internal Audit and Risk Control on Crisis Management in the Tourism Industry in Indonesia

This research investigates the complex interactions between Internal Audit, Risk Control, and Crisis Management in the dynamic landscape of Indonesia's tourism industry. Using a quantitative approach, this study employed Structural Equation Modeling with Partial Least Squares (SEM-PLS) to analyze survey data collected from stakeholders in the industry. Descriptive statistics showed positive perceptions of Internal Audit and Risk Control, with room for improvement in Crisis Management effectiveness. Measurement model assessment established reliability and construct validity, paving the way for robust structural model analysis. The results show that Internal Audit and Risk Control significantly and positively influence Crisis Management. Practical implications include customized strategies for optimal crisis resilience, while policy recommendations underscore the importance of a standardized framework. Despite its limitations, this study contributes valuable insights to the crisis resilience literature, offering a nuanced understanding of the dynamics of Indonesia's tourism sector.

Study on the reform dilemma and reform path of administrative examination and approval bureau

The transformation of government functions is the key to comprehensively deepening the reform in China, and the reform of the administrative examination and approval Bureau has played an important role in the process of implementing the "separation of audit management". This kind of reform can effectively promote the construction of our country service-oriented government, has the important rule of law significance. As a new thing, the Administrative examination and approval Bureau, which originally served as a service center, has faced a series of difficulties in the process of promoting reform, including the fuzzy scope of examination and approval items, the lack of professional quality of examination and approval personnel, difficulties in departmental coordination, the unclear division of examination and approval and supervision, and the lack of effective supervision. There are many reasons behind these difficulties, such as conflict of interest, unitary reform mode, restriction of administrative management system and lack of consensus on the direction of reform. In order to overcome these difficulties, a series of measures can be taken, such as promoting local legislation, improving the professionalism of examination and approval personnel, promoting information sharing, and strengthening internal and external supervision, so as to better promote the reform of administrative examination and approval bureaus.

Environmental Auditing and its Importance for Socio-Environmental Management in Organizations

Objective: To analyze the importance of environmental audit for the effectiveness of the socio-environmental management of companies. Methodology: The research consisted of a systematic review of scientific articles on the SciELO and Google Academic platforms, using specific keywords related to environmental audit and socio-environmental management. The inclusion criteria selected only scientific articles in Portuguese, available entirely on the internet and published between 2018 and 2023, excluding other types of studies and those that did not directly address the relationship between the themes. Results and data analysis: The analysis of the texts highlights the importance of environmental audits for organizations, highlighting their essential role in socio-environmental management. These audits not only identify areas of risk and ensure compliance with regulations, but also promote continuous improvements and an organizational culture focused on sustainability. In addition to boosting operational efficiency and reducing costs, they strengthen reputation and confer competitive advantages in the marketplace. While the disadvantages, such as associated costs, are recognized, the benefits of audits are considered crucial for the sustainable success of companies. Conclusion: Thus, it is concluded that environmental audits emerge as indispensable tools to mitigate environmental risks, promote sustainability and ensure competitiveness, meeting the growing social and legal demands. It highlights the need for future research to deepen the understanding of environmental audits and their practical applicability in different organizational contexts, emphasizing the importance of incorporating environmental responsibility into the strategic vision of companies.

School Committees' Effectiveness in the Context of School-based Management Policy

The background of this research is the granting of broad educational autonomy to schools, which is a big concern for the government of Indonesia. School-based Management (SBM) appears as an alternative to the new paradigm of education management offered. One of the characteristics of SBM is inseparable from the participation of the community. School Committee is a forum for parents, communities, stakeholders, and entrepreneurs in school development and can bridge the interests of all the parties. To date, not many School Committees have been able to play an effective role in supporting the implementation of education in schools. One of the contributing factors is that the institutional design is not seriously empowered into an independent and professional institution. This study aimed to examine the effectiveness of school committees in school-based quality improvement management. The study method is qualitative descriptive. Data were collected through interviews, observation, and documentation. Validation of the collected data was done through triangulation techniques. The results showed that thematically the author underlined four important things, namely: first, the school committee has effectiveness as a consideration partner, material support, financial, thought and energy, and learning mediator; second, quality improvement strategies can be achieved through efforts to improve school subject competence and involvement in competitions; third, to measure the results of achievements, an education quality management audit is carried out, and; fourth, the budget as one of the determining factors in achieving school goals and objectives must be optimized by utilizing the flexibility of implementing Law No. 23 of 2014 and optimizing available resources. This research has implications for considerations in the preparation of internal school strategies to prioritize school needs and recommendations related to budget policies and inventory of school components.
 Keywords: effectiveness, School Based Management, School Committee

Public Financial Management (PFM) Laws and Audit Quality in Ghana: The Moderating Role of Auditor-Client Relationship

Purpose: This study examines the extent to which public financial management (PFM) laws contribute to audit quality in the public sector and how the auditor-client relationship moderates this effect. 
 Design/Methodology/Approach: This study used a quantitative survey research design to collect data from about 400 public sector auditors working with Ghana's Supreme Audit Institution (SAI), the Audit Service, by adopting the contextual factor of the IAASB's framework for Audit Quality using the PLS-SEM method of analysis.
 Findings: The study found that in the Public Sector, Public Financial Management (PFM) laws positively influence audit quality, while auditor-client relationships also negatively contribute to audit quality. 
 Furthermore, it was also established that the auditor-client relationship negatively moderated the relationship between Public Financial Management (PFM) laws and audit quality.
 Implications/Research Limitation: The results of this study extend and add to the growing empirical studies on Public Financial Management (PFM), audit quality and the field of public sector auditing. However, the study will be limited to only public sector auditors working with Ghana's Supreme Audit Institution (SAI), the Audit Service.
 Practical Implication: The study results have the prospect of encouraging policy-makers to strengthen the independence and improve the capacity of the State Auditor (i.e. Ghana Audit Service) through appropriate PFM laws that seek to improve auditor-client relationships through relevant compliance and enforcement mechanisms.
 Originality/Value: This study is the first to directly examine how the Public Financial Management (PFM) laws contribute to audit quality in Ghana and how the auditor-client relationship moderates this effect. 
 Nevertheless, this study differs from other prior empirical research on the basis of the method employed and the context of the study.

The Impact of Auditing Centralization on Carbon Productivity: Evidence From China’s Vertical Management Auditing Reform

The Impact of Auditing Centralization on Carbon Productivity: Evidence From China’s Vertical Management Auditing Reform

Enterprise risk management in the insurance industry: Trends and future directions

The research aims to describe the state of enterprise risk management (ERM) in the insurance sector. It highlights emerging trends in the application of risk management in the insurance sector and thereby reports the prominent research gaps and new avenues for research in ERM. The research adopts a systematic literature review (SLR) approach, using 187 research papers spanning 44 years (1977–2021). The paper identifies the fact that most ERM and insurance sector research is performed in North America and Europe, while developing economies in Asia and Africa lag. The paper establishes a three-way relationship between ERM, risk management (RM) and risk-based capital (RBC) where RM is a subset of ERM and RBC is a driver of ERM. The research shows that very few studies are conducted on risk culture, three lines of defence and the role of chief risk officers. The determinants of ERM identified are board, firm size, audit and risk management committee and corporate governance. The determinants identified for firm value are return on assets, return on equity, profit, Tobin's Q, among others. This research provides a way for academicians, practitioners and policy makers to design effective strategies for implementing ERM in organisations.

Management Audit to Assess the Effectiveness of Sales Management at PT. XX

Background: Companies use marketing management audits to evaluate the effectiveness of their marketing function and determine competitive strategies to maintain their survival. Objective: This report presents a management audit of the marketing function at PT. The aim of this study is to assess the efficacy of the marketing function implementation and identify areas for improvement, in order to provide suggestions and recommendations. The research methodology involves a descriptive qualitative approach using a case study method, which includes observation, documentation, interviews, and questionnaires. The assessment was based on a comparison of criteria, causes, and effects. According to the research conducted, it can be inferred that the implementation of the marketing function has not been as effective as desired. According to the research conducted, it can be inferred that the implementation of the marketing function has not been as effective as desired. According to the research conducted, it can be inferred that the implementation of the marketing function has not been as effective as desired. It was found that there are several internal and external factors that could be considered weaknesses for the company.

Analysis of The Factors That Influence Auditor Switching in Bank Companies Listed on The Indonesian Stock Exchange in 2017-2021

Auditor switching is a change of KAP or auditor made by the company for a reason or there are certain factors from the company and from the auditor itself. Auditor Switching in Indonesia is one of the regulations required by the Indonesian government as an effort to maintain auditor independence. This study aims to analyse the effect of audit opinion, institutional ownership, management change, and financial distress on auditor switching. The results of this study reveal several important findings. First, Audit Opinion has an insignificant influence on auditor switching this is because in general the sample of banking companies mostly get an unqualified opinion. Second, Institutional Ownership has an insignificant influence on auditor switching because the high proportion of institutional ownership in a banking company does not guarantee auditor switching. Third, Management Change has a significant influence on auditor switching because management wants a KAP that can meet management's needs in managing the company. Finally, Financial Distress has a significant influence on auditor switching because when a company experiences financial distress, the company will make a change of KAP. The potential bankruptcy experienced by the company causes company management to try to prevent bankruptcy which results in liquidation.

Incidental pulmonary nodules may lead to a high proportion of early-stage lung cancer: but it requires more than a high CT volume to achieve this

ABSTRACT Background The management of pulmonary nodules plays a critical role in early detection of lung cancer. Computed tomography (CT) has led to a stage-shift towards early-stage lung cancer, but regional differences in survival rates have been reported in Denmark. This study aimed to evaluate whether variations in nodule management among Danish health regions contributed to these differences. Material and Methods The Danish Health Data Authority and Danish Lung Cancer Registry provided data on CT usage and lung cancer stage distribution, respectively. Auditing of lung cancer stage IA patient referrals and nodule management of stage IV lung cancer patients was conducted in seven Danish lung cancer investigation centers, covering four of the five Danish health regions. CT scans were performed up to 2 years before the patients’ diagnosis from 2019 to 2021. Results CT usage has increased steadily in Denmark over the past decade, with a simultaneous increase in the proportion of early-stage lung cancers, particularly stage IA. However, one Danish health region, Region Zealand, exhibited lower rates of early-stage lung cancer and overall survival despite a CT usage roughly similar to that of the other health regions. The audit did not find significant differences in pulmonary nodule management or a higher number of missed nodules by radiologists in this region compared to others. Conclusion This study suggests that a high CT scan volume alone is not sufficient for the early detection of lung cancer. Factors beyond hospital management practices, such as patient-related delays in socioeconomically disadvantaged areas, may contribute to regional differences in survival rates. This has implications for future strategies for reducing these differences.

Digital engineering audit management strategy based on machine learning combined with wireless communication network

In response to the evolving landscape of the modern era, the requirements for engineering audit have undergone significant changes. To achieve efficient audit tasks and obtain accurate and reliable results, the integration of machine learning and wireless network technology has become essential, leading to the emergence of digital and information-based audit modes. This paper focuses on the development of a digital audit system that combines engineering audit management fusion with machine learning and wireless network technology. Such an approach reflects the dynamic shift in internal audit functions and objectives, providing clear guidelines for the future of digital audit management. By harnessing the power of machine learning and wireless networks, the digital audit system effectively addresses challenges associated with data management, sharing, exchange, and security during the audit process. Through seamless integration, it enables comprehensive electronic and digital management of internal and audit business processes. This research explores the platform’s functionalities and its potential application, using actual audit data for analysis. The proposed digital audit system showcases superior real-time data querying performance, heightened accuracy in checks, and enhanced retrieval capabilities. The simulation results validate the system’s efficacy, highlighting its ability to deliver true and dependable audit outcomes. By embracing digital transformation, the engineering audit field can harness the potential of cutting-edge technologies, thus paving the way for a more efficient, reliable, and future-ready approach to audit management.

Auditing during COVID-19: Evidence from Ghana and Norway

ABSTRACT This study investigates how auditing changed during the COVID-19 pandemic in two countries, Norway and Ghana. The two countries reflect different levels of digital infrastructure and of government support. We interviewed 23 audit partners and managers during the pandemic (February 2020 to May 2023). The analysis of the responses using the theory of adaptive governance reveals three key findings related to audit adaptation during the 39 months of the pandemic. First, we find an increase in auditors’ and clients’ willingness to work digitally. In Ghana, the digitalization may be done by scanning documents and uploading them to a shared drive or by using a Shared Service Center (SSC). Second, we find an increase in audit fees over time as inflation increased during the pandemic. Finally, as the pandemic progressed, a shortage of audit staff became a major concern in both countries as auditors left the profession for other jobs. Data Availability: Data are available from the authors upon request. JEL Classifications: M42.

Influence of performance auditing on strategic decision making in organizations

Management auditing is a comprehensive process aimed at evaluating and improving the effectiveness, efficiency and sustainability of an organization. For this purpose, various methodologies are used, such as COSO II, Balanced Scorecard, ISO 9001 Standard, Systems Approach Model and FODA Analysis. These tools have proven to be effective in revealing deficiencies in key areas and proposing concrete corrective measures. The present study focuses on answering the question of how to improve strategic decision making in organizations. To this end, the influence of management auditing is analyzed and improvements are proposed to optimize it. The research is conducted through a qualitative approach, using the inductive method and documentary analysis. The results of the research conclude that the influence of management auditing on strategic decision making is fundamental. This is due to the fact that this audit allows optimizing the internal processes of the organization, thus contributing to its sustainable development and growth.

“Et tu, Bruté?”: Do audit committees besmirch investors’ desire for increased disclosures?

AbstractThis paper presents the results of a content analysis of the comment letters submitted in response to the SEC concept release on the enhancements of audit committee disclosures. The comment letters were drafted by investors and a cross‐section of various governance actors or practitioners, such as audit committees, management, legal advisers, and auditors. Hence, the letters provide insights as to how these different groups interpret the proposed revisions and try to adapt them according to their needs and context. The comment letters are analyzed through the framework of the behavioral theory of boards and corporate governance, which arguably better explains the analysis results over the traditional agency theory framework. The theory examines governance actors’ interactions and behavioral processes and asserts that the corporation is a nexus of stakeholders’ coalitions, who render decisions primarily through engaging in political bargaining rather than through evaluating investor needs. Results show that, while investors are urging enhanced disclosures, audit committee respondents are against the suggested improvements. These results are consistent with the behavioral theory of boards and corporate governance but inconsistent with an agency theory perspective.

Assessing nuclear medicine practices: a critical evaluation of QUANUM through a quality improvement perspective and its wider relevance.

Quality Management Audits in Nuclear Medicine (QUANUM) is an initiative conceived by the International Atomic Energy Agency to enhance global standards in Nuclear Medicine practices. Acknowledging the intricate regulatory frameworks and the necessity for multidisciplinary collaboration, QUANUM has gained global acceptance, demonstrating widespread implementation and positive impacts on patient care. This manuscript critically evaluates the QUANUM program through the lens of quality improvement (QI), by employing established and validated QI tools. Our analysis identifies areas of conformance, underscores key strengths inherent to QUANUM, and pinpoints further learning opportunities for continuous enhancement. Additionally, we assert that the insights derived from scrutinizing this global project within Nuclear Medicine, have valuable implications for departments aspiring for establishing good quality management systems, thereby contributing to the improvement of patient care.