Audit Function Research Articles

Internal Audit Engagement and Risk Management in Public Sector Organizations: Does It Really Exist?

Business entities have undergone a shift in the internal audit function towards a more consultative role. Conversely, in public sector institutions like universities, it is not widely recognized. This study investigates how the new paradigm shift in Internal Audit Engagement in Risk Management impacts the Efficiency of Internal Audit. This study introduces Management Support as a moderating variable in the relationship between the two variables. The study included a sample of 51 internal auditors at PTN BLU. Snowball sampling is employed for sampling, and a questionnaire is used for data collection. The data analysis employed Moderated Regression Analysis (MRA). The results indicate that the first hypothesis is confirmed: Internal Audit's participation in Risk Management impacts the Efficiency of Internal Audit. The second hypothesis is confirmed: Management Support influences the relationship between Internal Audit Engagement in Risk Management and Internal Audit Effectiveness. Management support has a substantial impact on the relationship between the two, accounting for 61.1%. This study confirms that cooperation between internal audits and public entity management can enhance the internal audit's effectiveness.

Performance audit as an advanced form of public administration

Since the introduction of the principles of results-based budgeting into the global practice of public administration at the beginning of the twentieth century, the role of such an indicator as the effectiveness of the functioning of public institutions has increased every year, which led to the emergence and development of such a tool of public audit bodies as a performance audit. Having originated in the middle of the twentieth century in Western countries, performance audit has over time become one of the key tools of independent public audit bodies aimed not at finding violations, but at eliminating both fundamental and less global problems in the activities of executive authorities. At the same time, the principles on which the performance audit is based can be applied in their activities not only by state audit bodies, but also by representatives of the executive authorities of various states, such as financial control bodies, executive authorities and state organizations. The basis for the proper functioning of state institutions in the rapidly changing world of our time are public administration and control systems based on the principles of permanent search for shortcomings and improvement of processes at the state and municipal levels.

Factors affecting team performance of external auditors in Iran: A Delphi–interpretive structural modelling approach

Factors affecting team performance of external auditors in Iran: A Delphi–interpretive structural modelling approach

The Effect of Operational Audit and Internal Control on Raw Material Inventory Management

Economic developments in this era are in line with world developments which give rise to competition between companies and require company management to make the best decisions. The aim of this research is to analyze how much influence operational audits and internal control have on raw material inventory management. In this research, a quantitative method was applied where data was collected using a questionnaire, which was then processed using the SPSS data analysis tool. The research target was employees who worked at the house property company at PT Baritana Indah Persada Medan, with a total sample of 60 respondents. The data analysis methods applied in this research include descriptive statistics, classical assumption analysis, multiple linear regression, classical assumption analysis, hypothesis testing and coefficient of determination. The findings of this research reveal that there is a significant relationship between raw material inventory management and operational audits and internal controls to smooth the company's operations well.

Determinants influencing fraud detection: Role of internal auditors’ quality

Frequent occurrences of fraud take place due to poor fraud prevention and detection. The purpose of this study is to ascertain the impact of internal audit effectiveness and continued professional commitment to fraud detection with internal auditors’ quality as a moderating variable. Seventy-eight questionnaires were distributed to internal auditors and supervisors at the Inspectorate of Riau City, Indonesia, who had at least two years of experience. Structural equation modeling (SEM) 3.0 software was used for the data analysis. According to the study’s findings, the effectiveness of internal control (β = –0.932; p < 0.05) and the effectiveness of internal auditors (β = 1.149; p < 0.05) both have an impact on fraud detection. However, ongoing professional commitment (β = 0.069; p > 0.05) has no impact. Quality of internal auditors does not affect the relationship between the effectiveness of internal audits (β = –0.190; p > 0.05), the effectiveness of internal control (β = 0.114; p > 0.05), continued professional commitment (β = 0.018; p > 0.05), and fraud detection. The findings of this study can be used as guidance for management to enhance the performance of internal auditors and for considerations and assessments for fraud detection in the public sector.

The Impact of Audit Quality on Earnings Management: Evidence from Listed Companies in Sri Lanka

Earnings Management (EM) is related to the manipulation of reported income through accounting practices and decisions. With the occurrence of numerous financial collapses and failures, the reliability of the audit function has been challenged, as auditors play a critical role in expressing an opinion on the financial statements. This study investigates the impact of Audit Quality on EM in Sri Lankan listed companies. This study employs Modified Jones model to examine earnings management practices through Discretionary Accruals (DA). The selected proxies of audit quality which are Length of Audit Tenure, Audit Firm Size and Auditor Independence are the independent variables. The data is collected from annual reports for the financial periods 2015 - 2020 and audit reports for the financial period 2012 - 2020 of listed companies on the Colombo Stock Exchange (CSE). This study employed descriptive statistics, correlation analysis, and multivariate analysis to analyze the data. Based on the quantitative analysis, the results demonstrated that the association between audit firm size and earnings management in Sri Lankan listed companies is negative and significant. It was found that the level of EM between companies using Big 4 auditors and those using non-Big 4 auditors is much lower. This study revealed that auditor independence and EM have a significant negative association. It was suggested that independent auditors have a greater ability to regulate and identify EM activities through company management. Further, this study exposed that there is an insignificant association between the length of audit tenure and earnings management. These findings are useful to shareholders in appointing or reappointing auditors. Furthermore, this study enables stakeholders, including regulatory bodies, to examine the presence of EM practices in listed companies of CSE.

Auditor rotation impact on auditor independence and its implication on auditor performance

This study aims to determine how much auditor rotation affect auditor independence and its implications for auditor performance. The method used in this study are descriptive and verification methods with path analysis, data processed using the SPSS program. The results of this study indicate Auditor Rotation Affect Auditor Independence and Auditor Independence Has Implications for Auditor Performance, with the reason, if the auditor rotation is carried out consistently, the level of auditor independence is high so that the auditor's performance is optimal.. The higher the independence, the better the auditor's performance. People are increasingly trusting to use the services of a public accounting firm. Independence is the backbone of the auditor's profession, auditor rotation in many countries is important to implement such as in Jordan, Libya and other developing countries. Auditor performance is a tool to measure auditor performance, which begins with instilling attitudes that are not controlled by other parties, one of which is through audit0r rotation, auditor rotation is needed as a basis to prevent a special relationship between management and the auditor as a result of long assignments.

THE INFLUENCE OF LEVERAGE, PROFITABILITY, AND COMPANY SIZE WITH MODERATION OF AUDIT QUALITY ON COMPANY VALUE

Companies in the D222 sector in Indonesia have the potential to dominate the global market. This study aims to explore how the value of companies in this sector is shaped by financing policies, such as leverage, and their ability to generate profits, namely profitability. Additionally, the research investigates the influence of company size on firm value. The urgency of this research is highlighted by the crucial role of audit performance in driving strategic efforts by companies to enhance their value. Sampled from the years 2020-2022 and drawn from companies listed on the stock exchange, the population consists of 26 companies. Purposive sampling was employed to select a sample of 19 companies in the D222 sector. The data was analyzed using multiple regression in SPSS version 27. The findings suggest that financing policies, specifically leverage, do not significantly impact firm value, whereas the ability to generate profits, namely profitability, has a significant positive effect on firm value. Company size does not seem to affect the increase in firm value. However, the role of Audit Quality as a moderator yields varying results. In terms of the relationship between financing policies, namely leverage, and firm value, Audit Quality does not appear to strengthen it. Similar results are found concerning the relationship between the ability to generate profits, namely profitability, and firm value. However, Audit Quality seems to enhance the relationship between Company Size and Firm Value. These findings provide valuable insights into the interplay of these factors within the processed food industry in Indonesia, aiming for dominance in the global market.

Examination of the Strategies Put in Place by Lagos State Public Procurement Agency in the Implementation of Public Procurement Law

This paper examined the strategies put in place by Lagos State Public Procurement Agency in the application of public procurement policy. The paper adopted both primary and secondary sources of data, and primary data were collected via the administration of questionnaires on the respondents. Study population of 1,020 comprised the members of staff from ministries, and agency that supervises the execution of procurement policy in the Lagos State Public Procurement Agency (LSPPA). Proportionate random sampling method was adopted in selecting a sample size of 154 respondents representing 15% of the study population. Secondary data were got from books, academic journals, official document of LSPPA and the internet. Data collected were analysed using percentage, frequency, and (RII) Relative Importance Index. The results of the study revealed that the strategies put in place by Lagos State Public Procurement Agency; such as establishment of a threshold (52.6%, rank 7th), constitution of contract performance audit committee (63%, rank 9.5th), supervision of the deliveries (69.5%, rank 9.5th), and creation of a procurement officer’s desk (57.8%, rank 8th) were not adequately substantial strategies put in place in monitoring the execution of public procurement policy in Lagos state. Moreover, the paper revealed strategies that were mostly substantial which were put in place by Lagos State Public Procurement Agency in the implementation of public procurement law, such as composition of technical review committee (79.9%, rank 1st), appraisal of procurement plan for procuring entities (73.3%, rank 2nd), setting of fair pricing standards and benchmarks (61%, rank 6th), strategic oversight on the contracts (65.6%, rank 5th), keeping of contractors’ database for proper identification (65.6%, rank 4th), publication of details of major contracts in the State (69.5%, rank 3rd) significantly improved accountability, proficiency, efficacy among the ministries selected. The study therefore, concludes that the strategies put in place by LSPPA, Lagos State Public Procurement Agency in the implementation of public procurement law in the state is considerable, and appropriate which ensures that procurement law of the State is followed. It was further evident from six claims affirmation as against four claims that refuted it respectively.

Hispanic worker attitudes toward pig euthanasia on U.S. farms.

On-farm pig euthanasia considers aspects of animal welfare and industry economics. Guidelines are available about the euthanasia process, but the agricultural workforce is highly diverse and guidelines do not consider cultural barriers. Euthanasia requires the ability to identify compromised pigs, technical skills, and willingness to euthanize pigs. In addition, timely euthanasia is part of the Common Swine Industry Audit (CSIA) and, thus, can lead to failed audits if not performed as required by the audit standards. The United States (US) swine industry employs a high percentage of Latin American workers, some US residents/citizens, and others through non-immigrant North American Free Trade Agreement (NAFTA) visas. These workers vary in their level of education and swine industry experience. Proper training of this workforce and identification of the barriers associated with performing timely euthanasia are critical to promote improved welfare practices. The objectives of this study were to: (1) develop a survey instrument to identify Hispanic caretaker attitudes toward pig euthanasia, (2) assess and describe swine caretakers' attitudes toward pig euthanasia using the developed survey instrument, and (3) determine the demographic and psychological barriers associated with performing pig euthanasia. Participants (n = 163) were surveyed from 16 farms across the State of Iowa. The on-farm survey was administered for two days in a period of 60 min per day. The results for demographics and the swine management survey data indicated that employees with less time working on the farm showed less knowledge of the CSIA, lower perceived ability to identify compromised pigs that needed to be euthanized, lower willingness to pecrform euthanasia on their own, and preferred not to have the responsibility of telling others when to euthanize pigs (p < 0.001). Secondary traumatic stress and transgressions were significantly correlated scales, associated with burnout, betrayals, and worker satisfaction (p = 0.022). Furthermore, individuals identifying as female had higher secondary traumatic stress scores (p = 0.026) and lower compassion satisfaction scores (p = 0.015). This data suggest that there are demographic, psychometric, and training-related factors correlated with Hispanic caretakers' feelings about pig euthanasia. The results of this study could be used to further improve and develop targeted training programs for Hispanic caretakers for early identification of compromised pigs and timely euthanasia, which could benefit human well-being, animal welfare, and the swine industry audit performance.

Qualitative analysis of the effectiveness of audit committees and internal audit functions in the public sector: the case of public establishments in Morocco

This article examines corporate governance and the performance of the audit committee, as well as the functions of internal audit in the public sector of an emerging economy such as Morocco. Both of these functions are crucial for corporate governance, ensuring optimal service delivery by local authorities, particularly public institutions. The study, based on stakeholder theory, qualitatively analyzes corporate governance and the effectiveness of audit committees and internal audit units in the Moroccan public sector. The results suggest good corporate governance with the presence of audit committees and internal audit functions in the public sector. However, the inefficiency of audit committees and internal audit units is highlighted, attributed to the lack of guidance, non-implementation of recommendations, and insufficient resources in the Moroccan public sector. To enhance performance, it is recommended that leaders take into account the findings of audit committees and internal audit units, endorsing and incorporating their conclusions into action plans implemented by management. Audit committees should strengthen their oversight of internal audit functions to ensure their effectiveness. The presence of effective audit committees and internal audit units in the public sector reflects competent and efficient utilization of resources for the benefit of all stakeholders.

40 A Retrospective Performance Audit of the West Yorkshire and Harrogate Cancer Alliance's EBUS-TBNA Service

40 A Retrospective Performance Audit of the West Yorkshire and Harrogate Cancer Alliance's EBUS-TBNA Service

Audit Internal terhadap Kecurangan dan Penyimpangan Keuangan Pemerintah Daerah

This study examines the role of Internal Audit in strengthening local government financial resilience by integrating the concept of financial resilience from various sources. The research found that Internal Audit can contribute to responding to and overcoming financial stresses by improving the effectiveness of internal control, compliance, operational efficiency, and risk management. Internal Audit not only responds to financial pressures, but is also proactive in fraud prevention and financial risk management. The research method used a qualitative case study approach, the research involved 15 internal audit practitioners from various government institutions. The holistic involves in-depth interviews, document analysis, and direct observation to dive into the internal audit practices conducted by respondents. The results show that effective internal audit practices not only have an impact on fraud detection and prevention, but also play a crucial role in improving the integrity of financial reporting and accountability of local governments. However, some obstacles, such as budget, personnel, and technology constraints, may affect internal audit performance. Improvement recommendations include greater investment in technology training, better budget allocation, and increased number of personnel in internal audit.

The Influence Of Professional Skeptism, Independence, Audit Fee, And Remote Audit Process On Auditor Performance

This study aims to analyze how much influence professional skepticism, independence, audit fees and remote audit processes have on auditor performance. The population in this study is KAP in Surabaya and Malang, 60 responden. The sampling method used in this study are saturated samples. Collecting data in this study by distributing questionnaires to respondents. The samples used in this study were 60 auditors who worked in 11 Public Accounting Firms (KAP) in the cities of Surabaya and Malang. The analytical method used is multiple linear regression analysis and processed using SPSS version 25. The results of this study indicate that partially professional skepticism and audit fees have a significant effect on auditor performance. Meanwhile, independence and the remote audit process have no significant effect on auditor performance. Simultaneously, professional skepticism, independence, audit fees and remote audit processes have a significant effect on auditor performance. This research is in accordance with auditing theory and has implications for how auditors' performance in KAP is more skeptical and independent, so that it can help auditors to be more vigilant in detecting fraud.

Substance Evaluation Study of Construction Safety Plan Implementation and It's Implementation

Padang State University has experienced rapid student enrollment growth, driving the need for new infrastructure. Most of the buildings have more than 3 floors, and one of the ongoing projects reaches a height of 32.05 meters with 6 floors, contributing to higher construction risks. This research was conducted to evaluate the implementation of Construction Safety Plans (CSP) on projects over the past two years in accordance with the Ministry of Public Works and Housing Regulation No. 10 of 2021 and the Circular Letter of the Ministry of Public Works and Housing No. 10 of 2022. Data collection methods for this study involved two approaches: compliance audits and performance audits. Compliance audits involved document-based inspections of CSP, while performance audits included on-site observations and project work evaluations. The research results revealed that the construction of the central information and library building achieved the highest CSP implementation rate, with compliance rates of 93.33% in compliance audits and 91.42% in performance audits. In contrast, the rehabilitation project for the Faculty of Sports Sciences and the Dean's office showed lower compliance rates, scoring 37.14% in compliance audits and 35.34% in performance audits. The study also found that project contract values correlated with CSP compliance levels. Higher contract values were associated with higher CSP compliance. Contractor qualifications also played a crucial role in ensuring compliance with safety regulations. Based on these findings, it is recommended that UNP exercise greater selectivity in contractor selection processes. This study highlights the importance of construction safety in construction projects.

Gambaran Prinsip Good Governance dalam Kebijakan Gerakan Masyarakat Hidup Sehat

The presence of comorbid diseases has become a crucial concern in confronting the COVID-19 pandemic, underscoring the need for the implementation of GERMAS (Healthy Living Movement) policy as a preventive measure initiated by the government. GERMAS aims to control the increase in non-communicable disease cases, which have the potential to disrupt human resources and productivity, as well as negatively impact social and economic development. In its implementation, GERMAS must adhere to the principles of Good Governance to ensure transparency, community participation, accountability, effectiveness, efficiency, responsiveness, and consensus. This research aims to analyze Transparency, Participation, Accountability, Effectiveness and Efficiency, Responsiveness, and Consensus. This research employs a qualitative approach with a narrative method and in-depth interviews with 12 informants. While GERMAS has been implemented since the President's directive in 2017, there are still several challenges in enhancing its effectiveness. Analysis of Good Governance principles highlights issues such as lack of community participation, low transparency and inter-agency coordination, and insufficient attention to inactive GERMAS forums. Further research is needed to deepen understanding of GERMAS implementation in Kutai Barat, focusing on aspects such as inter-sectoral communication, community participation, and enhancement of accountability of relevant agencies. Concrete steps such as comprehensive performance audits and increased social media outreach can help improve policy implementation.

The Impact of Using Artificial intelligence on Auditors Performance in Saudi Business Environment

The Impact of Using Artificial intelligence on Auditors Performance in Saudi Business Environment

Effect of industry-specialist auditors, auditor's tenure, and auditor's size on the quality of disclosure in the UAE Stock Exchange

Having access to real-world information and accurate data is a key factor in improving auditor performance, which in turn impacts business performance and decision-making. Consequently, this research aims to determine how financial institutions' levels of experience impact the accuracy of the information they disclose. The present statistical population consists of all 127 businesses listed on the United Arab Emirates Stock Exchange. This type of research is categorized as applied studies in relation to the research methods used in the UAE stock market. Using a systematic deletion procedure, 46 companies were chosen based on the study's inclusion criteria. The findings revealed that in the UAE, the quality of financial information disclosure for companies listed on the UAE stock exchange is significantly affected by the auditor's decision-making experience, the duration of their job, and the size of the auditor.

Enhancing Internal Control Mechanisms in Local Government Organizations: A Crucial Step towards Mitigating Corruption and Ensuring Economic Development

Corruption poses a significant challenge to economic development and governance worldwide, with its detrimental effects permeating various levels of society. In the context of Greece, where corruption has been a longstanding issue, the role of internal audit mechanisms within local government organizations (LGOs) emerges as paramount. This paper presents a comprehensive analysis of the internal control landscape within LGO revenue departments, focusing on factors influencing its effectiveness and proposing strategies for improvement. Drawing upon survey data and regression analyses, this study highlights the crucial role of robust internal control mechanisms in combating corruption and fostering economic development. The findings underscore the importance of competent personnel, legislative compliance, interdepartmental collaboration, and technology utilization in enhancing internal control practices. Despite existing legislation, gaps in internal control implementation persist, including understaffing, inadequate procedures, and limited access to information. This study emphasizes the transformative potential of effective internal audit measures in mitigating corruption at the local level, thereby contributing to broader economic growth and societal well-being. Recommendations for strengthening the internal control structures within LGOs include the formal establishment of internal audit functions, adherence to professional standards, and the promotion of information system utilization. By addressing the corruption and inefficiencies within LGOs, this research underscores the pivotal role of institutional effectiveness in promoting transparency, accountability, and sustainable economic progress.

The Effect of Applying Internal Auditing Standards on The Effectiveness of Internal Control In Service Units: Iraq Case Study

Internal auditing is one of the functions that characterize the economic unit, as some researchers indicated that one year of internal auditing is equivalent to the work of three years of external auditing, Internal audit is an independent evaluation body located within the organizational structure of the economic unit and is considered one of the means of internal control. The researcher recommends the need to give the internal audit function in government institutions and sufficient attention as the basic function that can provide assurance services (financial audit, performance audit or operational audit, rapid response) and advisory services (evaluation services, facilitation services, treatment services) as well as its importance in Improving and strengthening guidance for service institutions.