Audit Function Research Articles

Internal Auditor’s Performance In Sas Parts Companies

Auditors’s performance currently faces challenges in gaining public trust. Many factors are considered to influence, while several previous studies still show inconsistent results. The aim of the research is to identify the influence of independence, worksexperience and ethics’s code on performance of internal auditors at SAS PARTS companies. This quantitative research’s data gained from questionnaires. The research’s population were 40 auditors spread across branch offices in Indonesia. The saturation sampling techniques used in this research. The method to analyze data was multiple linear regression. Indications of the research’s results as follows: 1. Independence does not affect internal auditor’s performance. It can be shown from the third question item which states that the lack of auditee assistance in collecting audit evidence has an impact on auditor performance. Auditor performance is not solely shown by auditor independence. 2. Work experience does not influence internal auditor’s performance, this is because the majority of respondents work less than 3 years which causes their lack on experience in carrying-out assignments. 3. The Ethic’s code affects the performance of internal auditor because of the existence of a code of ethics as a guide for the auditor to know what is allowed and not to be done, in order to improve the internal auditor’s performance. 4. Independence, work experience, and code of ethics simultaneously (together) affect the performance of auditors at SAS PARTS Company. There has never been any other previous research on this research object of SAS PARTS Company about internal auditor’s performance.

Analysis of The Effect of Indendence and Organizational Commitment on Auditor Performance at The Jayapura City Inspectorate Office

This study aims to obtain empirical evidence and analyze the effect of organizational commitment on auditor performance at the Jayapura City Inspectorate Office. This research is a type of research that tests hypotheses that aims to examine the relationship between the dependent variable, namely auditor performance, with the independent variables of organizational commitment and independence. In data collection, questionnaires were used as the main instrument through field studies at the Jayapura City Inspectorate Office of Papua Province. Research is descriptive with a quantitative approach, focusing on analyzing numerical data to get accurate conclusions. The research period was carried out for 3 months, from November 2023 to January 2024, involving all auditors at the Jayapura City Inspectorate Office. The results showed that increasing organizational commitment and auditor independence at the Jayapura City Inspectorate Office significantly contributed to improving auditor performance

ASSESSING THE IMPACT OF INTERNAL AUDIT ON ORGANIZATIONAL SUCCESS

Aim of the study: This research aims to assess the relationship between internal audit and organizational success in the form of corporate goal achievement. Design/Methodology: Under the quantitative research approach, the descriptive research design has been adopted. The reliability, correlation and the regression analysis techniques have been used for data analysis. Multivariate analysis techniques are used to extract a small number of latent variables from a large number of observed variables. Findings: The results suggest that the compliance audit, operational audit, and financial audit, as well as the information technology audit, have a direct impact on organizational success. In a simple way, the internal audit has a direct impact on organizational success. Practical Implications: This research work will help the policy makers in the Saudi Authority for intellectual property (SAIP) to make effective policies that increase the effectiveness of the internal audit. This work also contributes to the available literature showing the relationship between the success of the organization and the internal audit. Originality/value: This study is one of the early and the fewest research works conducted by the Saudi Authority for intellectual property (SAIP), and it is also one of the early studies conducted by using primary data analysis. Keywords: Organizational Success, SAIP, Audit, Internal Audit, Operational Audits, Financial Audit Paper Type: Research Article

Quality Governance Design Good University Governance In The Education Sector: a Literature Review of Concepts Performance Models and Audit Practices From a Risk Management Perspective

This research outlines the research methodology used in a literature review on the Quality Governance Design of Good University Governance (GUG) in the education sector, with a focus on the GUG concept, performance models, and audit practices from a risk management perspective. The GUG concept is a vital framework for enhancing the quality and effectiveness of higher education institutions such as universities, with principles of transparency, accountability, participation, and ethics as its core components. This concept also emphasizes the importance of innovative ideas and the leadership capabilities of university leaders in facing global changes. Furthermore, this research discusses relevant performance models, including the Balanced Scorecard (BSC) and Key Performance Indicators (KPIs), which assist universities in measuring their performance through financial, customer, internal process, and growth and learning perspectives. These models help universities become more focused, transparent, and accountable in their governance. Audit practices, both internal and external, are also essential elements in higher education risk management. Internal audits help identify operational, financial, and reputational risks, while external audits ensure compliance with accreditation standards. Audit practices help universities manage risks efficiently and strengthen transparency and accountability in educational governance. This research also illustrates the integration of the GUG concept in higher education, including internal and external quality assurance, program accreditation, and sustainable quality improvement. Previous research indicates that many factors influence the quality of university governance, including government influence, leadership, and quality assurance priorities.

The Influence of Intellectual Intelligence, Eional Intelligence and Role Stress on Auditors' Performance Using Spiritual Intelligence and Religiousity as A Moderation of Research in The Riau Province Indonesia Inspectorate

The research aims to develop a conceptual model of local government auditor performance with intellectual, emotional intelligence, role stress on auditor performance with spiritual intelligence and religiosity as moderation (empirical study at the Riau Province inspectorate). Sample of 123 Inspectorate auditor respondents in Riau Province, Indonesia. SEMwarpPLS software. The results of research on intellectual intelligence, emotional intelligence and role pressure have a positive effect on auditor performance. Meanwhile, the spiritual intelligence moderating variable cannot strengthen intellectual and emotional intelligence on auditor performance and the spiritual intelligence moderating variable can weaken the role of stress on auditor performance. Then religiosity as a moderating variable can influence emotional intelligence and stress can weaken auditor performance. On the other hand, religiosity as moderation cannot strengthen the influence of intellectual intelligence on auditor performance

THE IMPACT OF DIGITAL TECHNOLOGIES ON THE ORGANISATION OF PERFORMANCE AUDITS OF STATE PROGRAMMES

The paper examines the impact of digital technologies on the organisation of performance audits of government programmes. Digital technologies provide ample opportunities for transforming public administration, with each new stage of their development. The magnitude of changes associated with the transition to digital government has prompted many to think and think about «digital era public administration» as a core concept in public administration, evolving largely in a digital transformation.The purpose of the study is to examine new digital trends and the impact of digital technology on the organisation of performance audits of government programmes.Using general scientific methods of knowledge (analysis, synthesis, induction, deduction, method of comparison), the impact of digital technologies on the organisation of the audit of the effectiveness of the implementation of state programmes is considered.In the course of the study, the authors propose the use of «breakthrough» digital technologies that facilitate the implementation of results-based management principles, which will save budgetary resources, increase efficiency in their use, and broaden the list of strategic objectives pursued by the public authorities.The study determined that the introduction of digital technology could contribute to a significant reduction in the cost of maintaining apparatuses. With the active deployment of artificial intelligence and automated decision-making technologies, governments could expect between and 30 percent time savings within five to seven years. The results of the analysis show that the active use of digital technologies implies the expansion of methods for analysing and evaluating the implementation of government programmes, including as part of performance and efficiency audits of their implementation.It is concluded that the application of digital technologies can be an «engine» for further implementation of public administration by results. To this end, the development of new government information systems must consider the benefits of ‘breakthrough’ digital technologies as much as possible.

Auditor certification and long-run performance of IPO stocks

This study establishes a significant positive relation between high quality auditors and long-run post-IPO equity performance. IPOs associated with high-ranked auditors benefit from superior information quality irrespective of underwriter rank, manifesting in significantly better post-IPO equity performance. The auditor certification effect is robust and persists longer than the underwriter certification effect. IPOs, regardless of the underwriter rank, benefit significantly from the auditor reputation effect. Further, the auditor certification effect is more pronounced: (a) when underwriter certification is weak (‘substitution effect’), and (b) in the presence of greater information asymmetry. VC backed IPOs perform significantly better; however, VC reputation has no effect, after controlling for auditor rank and underwriter certification. Our conclusions are reinforced by a battery of robustness checks, including the use of alternative methodologies to address endogeneity, audit quality proxies, performance metrics, model specifications, and validity tests.

The Role of Internal Auditors in Implementation Social Environmental Governance

The aim of this study is to know how big the role of the auditor is in raising awareness of the application of sustainability reporting and the extent to which information is disclosed on the aspects of Environment, Social and Governance (ESG). Several previous studies were used as objects reviewed. The result underscores the multifaceted contributions of internal auditors, ranging from providing assurance on ESG disclosures and conducting due diligence on business partners to engaging in consulting activities and fostering a sustainable supply chain. This practice emphasizes that ESG-related expertise within Internal Audit Functions (IAFs) is crucial for promoting ESG maturity and effective reporting. Collaboration between internal and external auditors is vital to maintain independence and objectivity, ensuring the quality and reliability of ESG-related information. The trend of integrating ESG considerations into audit processes aligns with the broader global shift toward responsible business practices, and it positions internal auditors as valuable contributors to corporate governance and stakeholder trust. As ESG gains prominence, the internal auditor's ability to navigate the complexities of ESG metrics and controls becomes a competitive advantage, reinforcing their role as a key player in achieving sustainable and responsible business outcomes.

How important is integration to the successful ‘roll out’ of specialist hospital discharge schemes for people who are homeless?

In 2021, we published research funded by the UK National Institute for Health Research that demonstrated the effectiveness and cost effectiveness of specialist hospital discharge schemes for people who are homeless. A key finding of the research was that areas that had a specialist homeless hospital discharge scheme had fewer delayed discharges and could reduce their emergency readmissions among homeless patients by 14%. This positive outcome attracted the attention of national health policy makers who allocated £16 million funding to 17 local authority areas to “roll out” new schemes. This paper reports the preliminary findings of an implementation evaluation. We assess how important integration was in those areas that successfully translated the evidence about “what works’ into practice. This presentation is targeted at academics and commissioners of integrated care.
 The evaluation employed a positive deviance (appreciative enquiry) methodology. This approach seeks out exceptionally performing sites, investigates the underlying factors contributing to the successful behaviours and strategies, and plans an appropriate means to replicate these with the aim to effect a change. The rationale behind appreciative inquiry is that solutions to common problems mostly exist within clinical/practice communities rather than externally with policy makers or managers.
 The first step of the evaluation was to collect audit (performance) data from the 17 local authorities taking part in the programme. Audit data was then used to select three case studies sites that demonstrated high performance against key metrics such as having a shorter length of stay in ‘step-down’ services (longer stays being indicative of housing shortages and difficulties maintaining flow through the system). In the case study sites, reflective interviews and focus groups then sought to establish what factors underpinned this successful implementation. This included interviews with a range of key stakeholders including people with lived experience of homelessness and transitions out-of-hospital (over sixty stakeholders in total).
 Integration was found to be a key factor in understanding successful implementation at many different levels - from building the initial strategic vision to delivering quality in frontline service delivery. Often this was ‘relational’ integration where building social networks in strategic places was the main factor in determining routinization and sustainability. Often boundary spanning was key where ‘homeless commissioners’ needed to cross the divide into the unfamiliar world of health service commissioning. Relational working required a dedicated project manager with highly developed skills in business planning, evaluation and policy literacy to negotiate the many hurdles that stood in the way of the routinization of specialist care. Successful sites also involved people with lived experience of homeless in meaningful rather than tokenistic activities, integrating their knowledge of services and practice to ensure compassion was at the forefront of practice. Taking an in-depth qualitative perspective on successful implementation is important as very few of the 17 test sites managed to sustain their new services once the initial programme funding had run out.

ENVIRONMENTAL AUDIT IN THE ENTERPRISE MANAGEMENT SYSTEM

The purpose of the article is to study the organizational and methodological principles of conducting an environmental audit in order to develop directions for increasing the effectiveness of the environmental management system at the enterprise. The relevance of conducting an environmental audit as a component of the enterprise's environmental management system is determined. The important role of organizing an environmental audit and determining existing environmental risks in the company's activities is indicated. The historical aspects of the formation of environmental audit are highlighted. The description of the environmental management system (EMAS) and the specific features of its activity are given. The regulatory and legal framework, which is guided by the auditor when conducting an audit, is defined. The purpose and tasks of conducting an environmental audit are revealed. The functions of environmental audit are defined. The essence of mandatory and voluntary environmental audit is considered. The types of environmental audit are characterized from the point of view of the purposes of its implementation: verification of compliance with legal requirements, audit within the scope of environmental insurance, audit during the passage of environmental certification, audit for the purpose of investment evaluation, audit of enterprises that cause damage to the environment. The requirements for an environmental audit are determined (independence, comprehensiveness, documentation, practical orientation) and the characteristics of the principles of its conduct are given. The peculiarities of the formation of an information array for conducting an environmental audit, which is grouped by the components of sustainable development (economic, ecological and social), are highlighted. The stages of the audit of the environmental sphere of the enterprise's activity have been established (preparatory, main, final). Emphasis is placed on drawing up an audit opinion, which provides the results of an audit on the compliance of the enterprise's environmental policy with current legislation and other issues that provide information on the effectiveness of the environmental activities of the business entity. Environmental audit methods used by auditors during an environmental audit are specified. The advantages provided to the business entity by conducting an environmental audit are determined.

The Effect of Internal Audit on the Quality of Financial Reports at PT PLN (Persero)

This research is aim to know influence of assessment of internal audit performance to internal control system, influence of applying of internal audit to internal control system, and influence of assessment of performance and applying of internal audit both of internal control system. The research has been done by questionnaires internal auditor. The respondent are auditor’s who worked in company of bankings residing in Bandung 45 responders. To analyze data researcher used SPSS 20 Version. Partially, internal audit performance and internal audit applying variable have influence significance of internal control system.

The development of knowledge management implementation at the Financial and Development Supervisory Agency (BPKP)

The Financial and Development Supervisory Agency (BPKP), a pivotal public sector entity tasked with internal audit functions, recognizes the paramount importance of effectively managing auditors' experience and expertise. This study aims to delineate the Knowledge Management (KM) implementation stages within BPKP, a topic scarcely explored in Indonesian public-sector research. This study uses an abductive approach with a case study method by explaining a series of events over time with theory-based analysis. The results showed that the KM implementation in BPKP was carried out in four stages: preparation at the local level by conducting change management, work culture development, and initial research; implementation at the local level; implementation at the national level with a focus on the development of process, human, and technology aspects; and national development focuses on laying the groundwork for KM culture. There are KM implementation steps carried out by BPKP but not explained in the theory proposition: change management and developing a work culture that supports KM processes, initial research, benchmarking, and KM implementation regulations. BPKP needs to assess the maturity level of KM to determine the focus areas that need to be improved. This study contributes conceptually to KM frameworks tailored for public sector entities.

Literatur Review: Pengaruh Audit Kinerja terhadap Akuntabilitas Publik dengan Pengawasan Fungsional sebagai Moderator

A performance audit is an audit activity systematically and objectively based on the type of evidence to assess the efficiency, effectiveness, and economics of the audited entity's operations to improve unit operations and achieve good public accountability. This research aims to get to know more about how much influence public sector audit performance has on public accountability through functional oversight that acts as a moderator. This research is a qualitative research type, in which public sector organizations are the object of the research being studied. Conducting research methods in the form of a literature review by analyzing books and scientific writings that have the same title and discussion, so that there are 3 journals taken randomly. This study found that there is a significance between Performance Audits on Public Accountability and Functional Supervision in moderating performance audits on Public Accountability.

“Light of Clarity”: M.N. Muravyov and His Project of the Provincial Governments Reform

The article examines the project of the reform of provincial government and, in general, the local government system, proposed by M.N. Muravyov in 1843. Summarizing his rich gubernatorial experience, Muravyov saw the reason for the slowness and ineffective work of provincial boards in the excessive bureaucratization of their work, the huge fl ow of papers, as well as the loss of control and audit functions in relation to lower departments. The methods proposed by Muravyov for solving those problems can be reduced to three main principles: 1) It is necessary to establish fast and effi cient clerical work; 2) The provincial administration is obliged to exercise vigilant and strict control over both the progress of “paper work” and the offi cials themselves, promptly punishing them for slowness; 3) In order for the bureaucratic machine to work smoothly and without failures, strict administrative centralization is necessary. Muravyov's proposals, however, were not heard, and the reform of provincial governments carried out in 1845, failed to overcome the old systemic vices

The role of large shareholders in goodwill impairment decisions – Evidence from China

Our paper examines how large shareholders manage goodwill impairment to inflate earnings as well as the role of audit functions in this setting. The influence of large shareholders on corporate decisions is well documented, however, overlooked in goodwill literature. Using data from China, we find that a higher ownership percentage held by large shareholders associates with a lower likelihood of recording goodwill impairment as well as a reduced impairment amount, suggesting that goodwill impairment is intentionally avoided or decreased by large shareholders. We further find that the presence of big4 auditors mitigates such relationship.

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.

Accountability Competence on Internal Audit Quality: Auditors of District/City Inspectorates in West Java

ABSTRACK
 This research aims to analyze organizational commitment, auditor motivation, auditor competence and the performance of the government internal audit of audit quality in Inspektorat Kota/Kabupaten Se Jawa Barat. The population in this study is the internal auditor who works in the city/district inspectorate throughout west java. The population is 514 respodents with 226 samples. Sampling used purposive sampling and data analysis using SEM (Structural Equation Model) with PLS application program. The method used by the researcher is quantitative with a causality approach. Data collection was carried out by distributing questionnaires. The results of this study indicate that organizational commitment doesn’t have a direct or indirect effect on audit quality. Motivation doesn’t have a direct effect on audit quality but must go through performance as an intervening variable on audit quality, while auditor competence has direct influence or through performance mediation variables on audit quality.

Marketing Audit as a Tool for Assessing Business Performance

The aim of this article is to determine an approach to the practical implementation of a marketing audit of business performance in a competitive environment. The aim will be achieved with the involvement of the following methods: trend, comparative and rating analyses, the BCG matrix, the Brand Health Tracking, and Delfi methods. As a result of the conducted research, an approach to conducting a marketing audit of business performance in a competitive environment with an emphasis on the use of modern digital platforms and web resources was proposed. The proposed approach to the implementation of a marketing audit of business performance in a competitive environment involved the use of the BCG matrix to determine the positions of the four leading confectionery companies of Ukraine in terms of revenue volume and growth, as well as the market share. The online presence analysis evaluated the online presence of the studied companies and to analyse other related indicators. The conducted analysis gave grounds to provide relevant recommendations. The importance of implementing each of them was determined with the help of the Delphi method. The obtained results can be applied in practice in the activities of companies in order to improve the approach to the implementation of marketing audit as a tool for assessing business performance in a competitive environment. Academic novelty is the developed comprehensive practical approach to the implementation of marketing audit as a tool for assessing business performance relative to competitors using modern digital platforms.

AUDIT EXPECTATION GAP IN THE PUBLIC SECTOR: A REVIEW OF LITERATURE

The Audit Expectations Gap (AEG) is a well-known phenomenon in the private sector, and it has developed into an emergent issue that has gotten minimal attention from public sector researchers. Consequently, the AEG in the public sector has been the subject of only a small number of studies, all of which have been carried out pertaining to the financial or performance audit contexts. Subsequently, numerous scholars have defined and assessed the AEG in a variety of ways in a variety of studies using a variety of parameters. The main purpose of this paper is to develop a new synthesis of the extensive literature on the AEG concerning the public sector. Moreover, this study examines the literature on AEG definitions and meanings, diverse dimensions employed to measure AEG, various methodologies used, the reasons for AEG, and mechanisms for narrowing the gap. The relevant articles were mainly selected using related keywords namely “audit expectation gap” and “audit expectation-performance gap” blended with “public sector”, “government sector” or “performance audit” from the Google Scholar search engine and three selected databases from 1974 to 2021, as suggested by Quick (2020). The dominance of the quantitative method within the positivistic approach was found in the examination of the AEG in the Public Sector. Moreover, the Mann-Whitney U test was found to be the predominant analytical method in empirical studies that primarily utilized questionnaire surveys for data collection. The "society" side in the samples has been extraordinarily diverse, whereas the "auditor" end has always been dominated by the Auditor Generals. Further, AEG in the public sector is a multifaceted concept. Multiple causes for the AEG and various approaches to minimizing it in the public sector have been presented. As far as the originality of the study is concerned, this is the first time a literature review on AEG was performed in the public sector context. Further, all of the facets of AEG have been addressed, and research gaps and potential issues for future studies in the public sector are highlighted. Eventually, a novel definition was developed, contributing originality to the existing public sector literature on AEG.

Leveraging computer-assisted audit tools for corporate sustainability: Evidence from Ethiopia

The existing ample literature studied the factors for adopting computer-assisted audit techniques (CAATs) by internal and external auditors, frequently ignoring their impact on the quality of audits and companies’ efficiency. This study delivers new evidence on the kinds of CAATs utilized by internal auditors, examines their adoption impact on corporate sustainability, and studies the moderating impact of company characteristics. This study used data from internal auditors in Ethiopia gathered using a survey, and the study hypotheses were tested using the partial least squares-structural equation modeling (PLS-SEM) technique. The study found a moderate utilization of CAATs by internal auditors in executing their activities. The result also revealed a highly positive impact of internal auditors’ CAAT utilization on fraud discovery in the acquisition process. The study found that the intensity of this relationship is impacted by the companies’ characteristics of management commitment. However, the size and type of the company are not impacting it. This study finding complements prior studies and helps practitioners make decisions that can improve CAAT utilization in internal audit functions for a high level of companies’ sustainability.