Audit Function Research Articles

Literatur Riview : Audit Operasional Untuk Mengukur Efektivitas Dan Efisiensi Pengelolaan Investasi Pada Dana Pensiun Inti

This research aims to determine the implementation of operational audits and measure the effectiveness and efficiency of investment management at INTI Pension Fund. Through this research, the author conducted an operational audit using secondary data in the form of Investment Reports and INTI Pension Fund Audited Financial Statements from 2016 to 2020. This study was conducted using a literature review method by examining and analyzing 10 articles. Based on the results of the research and literature review, it can be concluded that the audit results show that the investment management at INTI Pension Fund complies with the Investment Guidelines; however, there are still some weaknesses. It can be concluded that the investment management was not effective in 2018-2020 because the return on investment (ROI) did not meet the targets set in the Investment Direction, which were 7.43%, 6.68%, and 7.68%, respectively, whereas it should have been 9%.

Explaining different usages of policy monitoring in the EU

ABSTRACT The EU increasingly relies on forms of policy monitoring. While functioning policy monitoring remains the ‘critical underlying assumption’ of many approaches such as (performance) auditing, the European Semester or sector specific approaches such as the Energy Union, it remains underexplored. Monitoring has been portrayed as a technical exercise, but we contend that it may be used in different ways. To explain under what conditions different usages are pursued, this article proposes a new typology to explain different usages of policy monitoring, based on combinations of the level of (dis)agreement on policy goals and instruments, and (un)certainty about the effectiveness and the implementation of the policy instruments. The paper then presents a plausibility probe of our typology in two policy areas: agriculture and climate change/energy. We find that many, but not all, expectations of our model bear out; future research should explore additional substantial policy areas and the impact available resources have on the quality of monitoring.

Internal Audit in the function of preventing corruptive activities in the public sector of the Federation of Bosnia and Herzegovina

Abstract The public sector of the Federation of Bosnia and Herzegovina (FBiH) from the aspect of complexity and comprehensiveness, includes all levels of government established within the state government, public companies, and the insurance system including: pension, health and social. The importance of performing duties and obligations in a transparent manner, and the possibility of detecting warning factors for corrupt activity are especially important in the public sector. Corrupt activities at all levels of the state structure of Bosnia and Herzegovina (BiH), as well as fraudulent behaviour and abuses within it, are precisely the consequences of the complexity of the state system, and the impossibility of efficient and rational use of public funds. Adequately organized, in accordance with the law, and accepted as such by employees within a certain public sector organization, internal auditing contributes to more efficient operations and prevention of corrupt practices. The aim of the subject research is to look at the process of functioning of the internal audit in the public sector of FBiH in the field of prevention of corrupt activities. The results of the research indicate the non-functioning and non-establishment of the internal audit in the manner specified by law, as well as the inadequate implementation of its recommendations, degrading and derogating its role, importance and contribution in the prevention of corrupt activities in the public sector of FBiH.

Security testing as part of a digital assurance toolkit

The role of IT audit and other digital assurance functions is to provide comfort to stakeholders regarding risks and the controls that have been implemented by management to safeguard an organisation. This paper discusses the misalignment between digital assurance activities and security testing. When performing security testing from an assurance perspective, it is common for the discussion with management to focus on the number of findings, not necessarily the impact. From a security testing perspective, a single finding could result in a business compromise, or multiple low findings could be chained together to result in a more significant business impact. Citing example findings across multiple sectors and geographic locations, the paper details what security testing results often look like, related challenges in an assurance context, the difference between security testing and other assurance activities, how to get management buy-in, and key recommendations on how best to use security testing as part of a digital assurance toolkit, with the caveat that scarce specialist skills are required.

Analisa Audit Internal Terhadap Kinerja Keuangan Berdasarkan Literatur Review Terindeks Sinta

This study aims to discover the consistency in previous research indicating the positive influence of internal audit on company financial performance. Qualitative methodology with a literature review approach is employed to strengthen arguments with information collected from articles published in national journals. The research identifies several factors influencing the relationship between internal audit and financial performance, including management roles, financial reporting quality, and external environmental factors that can moderate this relationship, providing a more comprehensive understanding of the impact of internal audit on company financial performance.

Various Factor Affecting External and Internal Auditor Performance: Analytical Perspectives of Employees Working in Karachi Audit Firm and Companies

Various Factor Affecting External and Internal Auditor Performance: Analytical Perspectives of Employees Working in Karachi Audit Firm and Companies

Patience is Key: The Time It Takes to See Benefits from Continuous Auditing

SYNOPSIS Despite research showing numerous benefits of continuous auditing, uptake by internal audit functions has been quite slow. Using a case study approach and field data from a multinational company, we study two possible reasons for the slow uptake of continuous auditing: (1) the time it takes for continuous auditing to result in measurable reductions in audit risks and (2) that not every type of risk is equally likely to improve from continuous auditing. In our case company, it takes three years (on average) before observing significant risk reductions from implementing continuous auditing. We also find that the benefits of implementing continuous auditing vary by risk factor, ranging from no improvement to 51.6 percent for each additional year of continuous auditing use. These findings can provide internal auditors with a realistic expectation of the benefits and limitations, as well as the timetable for realizing benefits, when adopting continuous auditing. Data Availability: The data used in this study cannot be made publicly available due to confidentiality agreements with the participating organization. JEL Classifications: M42; G32.

Advancing a Holistic Framework for Classifying SAI Performance Audit Impact Factors: Integrated Scientific Assumptions

The article raises the problem of the need to reconceptualize the framework of the impact factors of the performance audit performed by Supreme Audit Institutions (SAI). The research aims to identify performance audit impact factors and propose an expanded, comprehensive framework. To implement the aim, the integrative method of scientific literature analysis is employed. Throughout the study, a systematic exploration of scientific literature is conducted to identify and organize hypothetical and previously researched impact factors discussed by scholars. The identified factors are aggregated according to their characteristics, meaning, or nature, and are divided into ten pillars: accountability, context, legitimacy, political overtones, quality of the performance audit, social relations, stakeholders, logic of public administration, the multifunctional activity of performance audit, and the individual. The broader framework of performance audit impact factors created will be beneficial for further research into managing these factors, enhancing evaluation opportunities, enabling performance auditors to mitigate associated risks, and capitalizing on the positive properties of these factors.

The Mediation Effect of Audit Assessment on Audit Competency and Digital Audit to Audit Work Performance Effectiveness

The relationship between auditor competency and the use of digital audit has been recognized as a potential factor that could enhance audit evaluation and enhance auditor performance. This study examines the direct impact of audit competency and digital audit variables on the efficiency of auditor work performance. It also explores the role of audit assessment as a mediator in these connections. The data used in this study is obtained from external auditors. A survey was conducted in Malaysia to determine the direct impact of audit competence and digital audit on the efficiency of audit work carried out by the external auditor. Based on the findings, it appears that increasing the efficiency and effectiveness of auditors' work performance was largely dependent on their competency as well as their usage of modern digital audits. Further investigation reveals the impact of audit competency and digital audit on audit assessment, which is a necessary process for enhancing the performance effectiveness of the external auditor. This research enhances our understanding of audit assessment as an essential tool for evaluating audit proficiency and the auditor's competency and effective utilization of digital audit in evaluating the auditor's work performance.

Does internal audit function outsourcing policy matter for environmental, social and governance performance score? Evidence from Bursa Malaysia

Purpose Anecdotal evidence indicates the internal audit function may be crucial in supporting the implementation of ESG practices and reporting. However, thus far, no study has been empirically conducted to check how and why internal audit function might affect ESG performance. This study aims to address this gap by examining whether the internal audit budget is positively related to the ESG performance of Malaysian listed firms. It also explores whether the sourcing arrangement of the internal audit function can moderate the internal audit budget – ESG nexus. Design/methodology/approach The secondary data for the paper is extracted from two main sources, namely, the Thomson Reuters Eikon database and firms’ annual reports that were downloaded from the Bursa Malaysia website. The final sample consists of public firms listed on Bursa Malaysia over the period 2010 to 2019. Multivariate tests are used to examine the linkage between the variables. Findings The results show that the relationship between the annual internal audit budget and ESG performance is contingent on the sourcing arrangement of the internal audit function. Specifically, the results show that the annual internal audit budget has a positive impact on ESG performance for firms with an in-house internal audit function but not for firms outsourcing an internal audit function to external providers. Overall, the results suggest that the annual internal audit budget promotes ESG performance for firms performing their internal audit activities internally. Practical implications The findings of this paper provide a strong motivation for authorities in Malaysia to develop new policies and rules aiming at ensuring that internal audit departments are adequately resourced to function effectively, thereby promoting corporate ESG performance. Moreover, the findings may be useful in informing the board of directors and other policymakers that establishing an in-house internal audit department assists in advancing corporate sustainability performance. Social implications The findings of this paper suggest that investors, creditors and other stakeholders should link ESG reporting with the attributes of the internal audit function and outsourcing arrangement when evaluating firm performance. The total annual costs allocated to the internal audit function coupled with the outsourcing arrangement by an external provider should be considered for the overall assessment of the ESG performance and provide additional warranty towards corporate goals’ achievement and sustainability for the society. Originality/value This study extends previous studies on the determinants of ESG performance by focusing on two crucial aspects of the internal audit function: the annual budget and the outsourcing arrangement, a hitherto largely unexplored mechanism by the existing literature.

Audit Quality Review Within Quality Assurance And Improvement Programs (QAIP): A Scoping Review

This scoping review highlights the importance of Quality Assurance and Improvement Programs (QAIP) in enhancing the quality of internal audit functions. It emphasizes the need for effective QAIP implementation to ensure that internal audits adhere to professional standards and provide significant value to organizations. The study population includes academic literature on QAIP implementation and its impact on internal audit quality assessment. The data were sourced from electronic databases such as Emerald, Science Direct, Taylor & Francis, and Wiley Library. The findings emphasize the crucial role of QAIP in improving internal audit functions and the necessity of effective QAIP implementation to ensure adherence to professional standards and provide significant organizational value. Further empirical research is needed to enhance the theoretical understanding of QAIP implementation and its implications for internal audit quality assessment.

Pengaruh Tata Kelola Perusahaan, Komite Audit, Dan Kualitas Audit Terhadap Kinerja Perusahaan

Corporate governance, audit committee, and audit quality are important factors that can influence company performance. Good corporate governance can create an effective internal control system, increase transparency and maintain company accountability. The audit committee, as part of corporate governance, plays a role in overseeing the financial reporting process, evaluating the internal control system, and monitoring external audit performance. High audit quality can increase stakeholder confidence in the company's financial reports and provide guarantees for the accuracy and reliability of financial information. This research aims to analyze the influence of corporate governance, audit committee, and audit quality on company performance. Corporate governance variables are measured using corporate governance scores, while audit committee variables are evaluated based on the characteristics and effectiveness of the audit committee. Audit quality is assessed by the reputation and experience of the external auditor. Meanwhile, company performance is measured using financial ratios such as return on assets (ROA) and return on equity (ROE). This research uses data from companies listed on the Indonesia Stock Exchange (BEI) during a certain period. Data analysis was carried out using the multiple linear regression method to test the influence of independent variables on the dependent variable. It is hoped that the findings of this research will contribute to the development of corporate governance practices, audit committee management, and improvement of audit quality in Indonesia, as well as provide insight for companies in efforts to improve their financial and operational performance.

The effects of board compensation on the voluntary establishment of an internal audit function

PurposeThis study examines the effects of board members’ compensation on the voluntary establishment of an internal audit function in publicly listed firms. While previous studies have identified some individual determinants related to the voluntary establishment of an internal audit function, the existing evidence on how board members’ compensation affects voluntary use of internal audit is, at best, ambiguous, scarce and incoherent.Design/methodology/approachBoard compensation is a central incentive instrument in the classic principal–agent relationship between the owners and board members. The theme is empirically examined by using data compiled from Finnish publicly listed companies for the period 2015 to 2018. Since the dependent variable of the study is a binary variable, the logistic regression method was chosen as the statistical method of the study.FindingsOur results unequivocally show that generous compensation of the board members increases the likelihood of establishing an internal audit function. Thus, we conclude that good corporate governance can be improved through generous compensation of board members.Originality/valueIdentifying the determinants of internal audit is vital to better understand the mechanisms that facilitate firms' improvement of internal control and risk management in terms of voluntarily adopting an internal audit function, and the implementation of good governance in general. Although numerous determinants of internal audit have been identified in previous studies, this study showed that one of the key determinants has so far been overlooked; namely, the remuneration of board members.

Pengaruh Profesionalisme, Komitmen Organisasi, Locus Of Control dan Etika Profesi Pada Kinerja Auditor

Accountant has important role on supplying a reliablle finance information for all stakeolder. To support auditor success its very important for the auditor themself to has hight quality and reliable perfomance. To assess auditor performance in public accountant are based on the auditor performance. An auditor when implamanting their duty are requred to produce a good performance. A good audit quality can be generated if an auditor is able to pay attention to the factors that influence it. Professionalism, organizational commitment, locus of control (internal) and professional ethics are some factors that may affect audit performance. This study aims to obtain empirical evidence of professionalism, organizational commitment, locus of control (internal) and professional ethics on audit performance.The location of this research was conducted at seven Public Accounting Firm in Bali Province with total sample of 66 auditors. The sample was chosen using saturated sampling technique. Data collection in this research using survey method with questionnaire technique. Data analysis technique used is Multi linear regression technique. This study show a valid result on instrument test and clasic asumtion test. Based on the analysis conducted, professionalism, organizational commitment, locus of control (internal) and professional ethics have significant and positive effect on audit performance. This study conclude that if the auditors are be able to increase their profesionalism, organizational commitment, locus of control (internal) and professional ethics their audit performance will increase al well.

Pengaruh Teknik Audit Berbantuan Komputer, Kinerja Auditor, dan Locus of Control Terhadap Kualitas Audit Syariah

The digital era has brought significant transformation in various aspects of life, including in the world of sharia auditing. Advances in information and communication technology (ICT) open up new opportunities to optimize the sharia audit process through computerization. This research aims to examine the role of technology, the number of information systems, and the level of technological integration in the development of the computerized sharia audit process. The purpose of writing this article is to build a hypothesis of the influence between variables to be used in further research. The results of this literature review article are that this research shows that computer-assisted audit techniques have no influence on audit quality. Meanwhile, auditor performance and locus of control have a positive and significant influence on audit quality.

Analisis Efektivitas Penggunaan Software Atlas Terhdap Pendukung Kinerja Auditor Di Kap Abc

This research was conducted to determine the effectiveness of using ATLAS software to support auditor performance as measured by quality and quantity. In this research, the methodology used is descriptive qualitative research based on theoretical studies, results of previous research, interviews and observations of KAP ABC auditors. From this research, ATLAS software has an influence on supporting auditor performance by detecting misstatements and applicable general standards, then ATLAS plays a role in the audit process with the help of technology that is automatically and integrated, resulting in effective audits. So it can be concluded that software ATLAS effective in supporting auditor performance.

The Role of Professional Ethics, Independence, and Work Experience in Auditor Performance

The objective of this study is to examine the impact of professional ethics, independence, and work experience on the performance of auditors at Regional Office 2 of PT Bank Negara Indonesia (Persero) Tbk in West Sumatra, Riau, and Riau Islands. This research is quantitative research with the intention to test models that reveal the relationship between research constructs, namely professional ethics, independence, work experience, and auditor performance. Interviews and questionnaires distributed to bank auditors using complete sampling approaches were utilized to gather data for this study. The employed analytical technique is multiple linear regression. Those findings demonstrated that (1) There is a relationship between professional ethics and auditor performance that is both good and significant; (2) Independence has a positive and significant influence on auditor performance; (3) A favorable and considerable influence on auditor performance is exerted by the auditor's previous work experience; and (4) Professional ethics, independence, and work experience together have a significant influence on auditor performance. This study has a number of implications is the importance of maintaining professional ethics, independence, and improving auditors' work experience to improve the quality of performance in conducting audits

The Relationship of Auditee and Auditor in Performance Audit: A Literature Review

This research aims to conduct a literature review of the relationship between auditees and auditors in public sector performance audits based on their roles. The literature review includes research from various countries in Europe, Asia, America, Australia, and New Zealand, indexed by Scopus through Scimago Journal & Country Rank. Several studies have found that the relationship is not always good. In a cooperative relationship, the auditor requires the auditee's cooperation but at the same time maintains objectivity. Although collaboration can improve audit results, it endangers and hinders auditor independence. Non-cooperative relationships within certain limits make the auditor take strategic actions to influence and control the auditee. This research has limitations because it generally discusses the relationship between auditees and auditors, and does not specifically use research with certain studies such as legitimacy theory or power frameworks, so this research has weaknesses in the focus of studies regarding the relationship between auditees and auditors

Pengaruh Media, Pelatihan Akademik dan Kenalan Auditor terhadap Stereotipe Auditor: Studi Empiris pada Mahasiswa Akuntansi di Perguruan Tinggi Negeri Kota Padang

The purpose of this study was to determine how the influence of media, academic training, and having auditor acquaintances on auditor stereotypes. The sample in this study were Accounting Students at State Universities in Padang City. Sampling was carried out using purposive sampling technique. The questionnaire was distributed to 332 Accounting Students at State Universities in Padang City. The statistical method used in this research is multiple regression analysis. The results of this study indicate that there is a significant influence of media, academic training, and having auditor acquaintances on auditor stereotypes. The major influence is on academic training as a source of knowledge information about perceptions of the auditor profession being the main information that can reduce the gap between public expectations of the auditor profession and the reality of auditor performance because students' views on audit responsibilities and other professional values change significantly after students take additional audit courses. The implication of this study is that when we have more information about a profession, it will improve our views about the profession and can increase students' intention to enter this profession.

Pemetaani Bibliometriki terhadapi Perkembangani Penelitiani Auditi Oprasionali Menggunakani VOSviewer

Accounting research and the use of operational auditing aims to trigger a signal that lies in the growth of the field of accounting research. Interpreting and explaining operational auditing and its use in the development of accounting research is the aim of this research. and the interaction phenomena of accountants as a result of this research.i Therefore, accounting research cannot be separated into subjects and objects of research. This research.i The literature review in this research provides insight into the application of operational auditing.i This study takes articles about operational auditing from 2017 to 2022. In 2019, there were 32 articles and the country that published the most operational audit articles was Indonesia. provide recommendations for further research. i Proposal for additional research, i search engines other than Google, i Scholar, i can add, i Scorpusi and other tools, i can add, i and the research period is 20 years