Audit Quality Research Articles

The Influence of Governance Mechanisms on the Quality of External Audits, Case of Moroccan Companies Listed on the Stock Exchange

The Influence of Governance Mechanisms on the Quality of External Audits, Case of Moroccan Companies Listed on the Stock Exchange

Impact on Timeliness in Financial Reporting in the Case of the Indonesia Stock Exchange

This quantitative study investigates the impact of capital structure and company size on the timeliness of financial reporting within Indonesia's industrial and real estate sectors listed on the Indonesia Stock Exchange from 2019 to 2021. Utilizing multiple regression analysis and Moderated Regression Analysis (MRA) with the Eviews program, the research finds that while capital structure does not significantly affect timeliness, company size positively influences it. However, auditor quality does not moderate either relationship. The results suggest that larger companies tend to adhere more closely to reporting deadlines, potentially due to their deeper understanding of regulations, while auditor quality does not alter this dynamic. Highlights: 1. Analyzes capital structure, company size impact on Indonesian financial reporting timeliness.2. Larger firms show significant association with timely reporting.3. Auditor quality doesn't moderate capital structure, company size influence. Keywords: Timeliness of financial reporting, Capital structure, Company size, Auditor quality, Indonesia Stock Exchange.

The Influence of the Use of Audit Technology and Auditor Competency on Audit Quality in Public Accounting Firms

The Influence of the Use of Audit Technology and Auditor Competency on Audit Quality in Public Accounting Firms

The Impact of ESG Information Disclosure on Audit Quality (Review)

The Impact of ESG Information Disclosure on Audit Quality (Review)

Partnership Disparity and Audit Quality

This study explores the effects of partnership disparity within Chinese audit firms on audit quality using novel data on their partnership arrangements. The results indicate a U-shaped relationship between the partnership disparity extent and the violations assessed by regulators, including financial misstatements of clients. Audit firms with mid-level unequal partnership structures achieve superior audit quality than their counterparts with either “flat” or “high-skewed” partnership structures. Additional analyses confirm the role of client complexity as the boundary condition and indicate that the geographical remoteness of audit firms asymmetrically moderates partnership disparity. These results are robust to different audit quality proxies and alternative research designs including change analyses and after controlling for the effects of engagement partners. This study contributes to research on diversity and performance in the partnership context. This approach opens the “black box” of power-related culture in audit firms and carries managerial implications for the managing partners and audit regulators of audit firms.

Trends and Future Research in Corporate Governance: A Bibliometric Analysis (2014-2024)

This study aims to elucidate current trends in corporate governance literature through a bibliometric analysis of papers published in Scopus from 2014 to 2024, encompassing 577 selected articles. Employing VOSviewer and R Studio, the analysis provides a comprehensive overview of publication trends, thematic evolution, and key contributors across three distinct time periods. The study reveals significant keywords like audit committee, board of directors, and corporate social responsibility, emphasizing the scrutiny of corporate governance mechanisms and codes. Clusters delve into governance management systems, such as board composition and audit quality, offering insights into firm performance and new code exploration. These clusters serve as valuable resources for future research, guiding investigations, and advancing knowledge in corporate governance. Additionally, the thematic evolution of trends over the past decade underscores the dynamic nature of research interests, informing scholars' agendas and contributing to the field's advancement. This study holds significant implications for academia, practitioners, and policymakers in corporate governance.

Mandatory audit partner rotation and stock price crash risk: causal evidence from a natural experiment

PurposeThis study aims to examine whether mandatory audit partner rotation is associated with future stock price crash risk.Design/methodology/approachThis study makes use of a regulatory change from the Ministry of Finance of China and the China Securities Regulation Commission, which requires mandatory rotation of audit partners since 2004, as a natural experiment to establish causality and applies a difference-in-difference research design.FindingsAudit partner rotation leads to a significant decrease in future stock price crash risk in the departing partner’s final year of tenure preceding mandatory rotation, consistent with peer monitoring argument of mandatory rotation. Inconsistent with other arguments, including client-specific knowledge, fresh perspective and auditor independence, no significant effect takes a place in the incoming partner’s first year of tenure following mandatory rotation. Mechanism analysis documents that mandatory audit partner rotation reduces stock price crash risk by improving audit quality and constraining managerial empire building.Originality/valueThe results shed new light on the capital market consequence of mandatory audit partner rotation and the cause of stock price crash risk.

The Effect of Competence and Independence on the Audit Quality of Tomohon City Inspectorate Apparatus

The Effect of Competence and Independence on the Audit Quality of Tomohon City Inspectorate Apparatus

PENGARUH PROSEDUR, FEE DAN PROFESIONALISME AUDIT TERHADAP KUALITAS AUDIT DENGAN REMOTE AUDIT SEBAGAI VARIABEL MODERASI STUDI EMPIRIS PADA KANTOR AKUNTAN PUBLIK DI JAKARTA SELATAN

This study aims to determine Procedures, Audit Fees and Professionalism on Audit Quality with Remote Audit Moderating Variables (Study at Public Accounting Firm in South Jakarta). This research method is included in quantitative research with the type of primary data source and uses attribution theory and positive accounting theory. The population in this study were public accounting firms in the South Jakarta area and the samples in this study were partners, supervisors, managers and seniors who worked at public accounting firms in the South Jakarta area. The number of samples in this study were 92 respondents. Data analysis in this study used the SmartPLS (Partial Least Square) Version 4.0 data analysis method. Procedures have a significant effect on audit quality, audit fees have a significant effect on audit quality, and professionalism has a significant effect on audit quality. Meanwhile, remote audit has no significant effect on moderating the relationship between procedures and audit quality, remote audit is unable to moderate the relationship between audit fees and audit quality. In addition, remote audit is able to moderate the relationship between professionalism and audit quality.

Factors Affecting Risk-Based Audit and Quality Audit

There are various issues that are associated with audit quality, which can often lead to audit failures. The State Audit Office of Vietnam (SAV) needs assistance in improving its audit quality. This study was conducted to provide empirical evidence about the correlation between the risks of audited entities, the competitive ability of state auditors, and audit quality. The study also seeks to establish the moderating effect of risk-based auditing on the relationship between the abovementioned factors and audit quality. The research data was collected from 221 state auditors and analyzed using SEM linear structure analysis with SmartPLS 4.0.8.5 software. The research findings suggest that the risk of the audited entity and the competitive ability of state auditors positively and significantly impact the application of RBA, which contributes to the assurance of audit quality in SAV. Therefore, the practical application of RBA, which involves accurately identifying the risks of audited entities, helps to improve audit quality and efficiency. This study contributes to the theory of audit quality in the public sector, which is diverse and inconsistent due to various economic and political factors such as corruption and reputation. Doi: 10.28991/ESJ-2024-08-03-010 Full Text: PDF

Pengaruh Accounting Disruption Pada Kualitas Audit Dimediasi Beban Kerja Audit

This study aims to prove the effect of accounting disruption on audit quality with audit workload as an intervening variable at the Public Accounting Firm in Malang City. This research method uses quantitative research methods. This study uses primary data with data collection techniques through distributing questionnaires to 56 research samples using the convenience sampling method . The results of this study indicate that accounting disruption has a positive effect on audit quality directly and has a negative effect on audit workload. Audit workload has a negative effect on audit quality and there is an effect of accounting disruption on audit quality through mediation of audit workload. Changes in information technology in the field of corporate accounting make it easier for auditors to track audit evidence so as to improve audit quality.

Individual Auditor Turnover and Audit Quality—Large Sample Evidence from U.S. Audit Offices

ABSTRACT We examine the relationship between audit quality and office-level auditor turnover. Using resumes of over 106,000 Big 4 auditors, we find that audit offices with higher turnover have a greater likelihood of client annual report restatements. This detrimental effect is more pronounced when the departing auditors are more experienced and when the office faces tighter human capital constraints and is primarily attributable to voluntary turnover. Further, such negative effect is borne mostly by complex clients and intangible-intensive clients but is weakened for clients with greater product similarity to the client portfolio of the audit office. Last, the impact of office-level turnover on audit quality persists after controlling for firm-level turnover. Our findings inform the current policy debate on whether and to what extent audit firms should disclose auditor turnover as a potential indicator of audit quality. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M42.

Factors Influencing the Audit Quality of the Municipalities

The study aims to analyze the Audit Quality (AQ) factors that were perceived to be necessary by the accountants and internal auditors in municipalities of Palestine. A survey of 309 accountants and internal auditors from 155 Palestinian municipalities was conducted. The questionnaire data was statistically analyzed using Smart PLS3 software. The study discovered that auditor ethics, independence, and competence were the most significant elements in determining AQ. Meanwhile, Internal Auditing (IA), Accounting Basis (AB), and the Laws and Regulations (LR) have a moderate effect. However, the least crucial factors were Audit Fees (AF) and Audit Firm Size (AFS). The study is limited by the survey questionnaire method’s general limitations and the perceptions of accountants and internal auditors. It offers evidence on AQ from Palestine, helps the audit firms distinguish their marketing and service delivery strategies, and understands the AQ aspects sought by those clients. Moreover, the study provides the municipal councils and the regulators of the municipalities with greater knowledge on how to select the best auditors and maintain internal control measures, notably IA and the use of the accrual basis in accounting procedures. Since the findings are generally consistent with previous studies, more emphasis can be placed on the effectiveness of municipal internal control.

Does audit quality affect the probability that a female auditor has chaired the audit team? Empirical evidence from Italian public HEIs

Purpose: Focusing on Italian public higher education institutions (HEIs), this study examines whether an increase in remarks in unqualified audit reports increases the likelihood that a female auditor has chaired the audit team issuing such reports. Design/methodology/approach: To answer its research question, the paper re-gresses the gender of the audit team chair with, among other factors, the number of remarks in the unqualified audit reports that are assumed to be a measure of audit quality. Findings: The results show that in Italian public HEIs, it is more probable that au-dit reports characterised by high audit quality (i.e., those with more remarks) are issued by audit teams chaired by female auditors. Originality/value: These findings contribute to existing knowledge and have im-plications for practice. They might be explained by the innate qualities of women as well as by environmental factors such as limited litigation risk characterising both the country and the sector investigated. So, they do not contradict either the Institutional Logic perspective or the Ethics of Care Theory, according to which the environment and the aptitude to manage conflict differ between men and women.

Board Size as a Mediator in the Relationship Between Corporate Social Responsibility and Audit Quality: Insights from Europe

Board Size as a Mediator in the Relationship Between Corporate Social Responsibility and Audit Quality: Insights from Europe

Improving management of intravenous maintenance fluids in the emergency department of a university hospital.

Intravenous (IV) fluid therapy is a known source of iatrogenic complications. Guideline implementation can be used to educate and guide physicians on adequate fluid management. In the emergency department (ED), a complex and interruption-driven environment, workload is high and active documentation is required to facilitate audits of fluid management quality. Fluid management was evaluated in the ED records of adult non-critically ill patients admitted to a tertiary care center before (PRE: 1/12/2016-31/3/2017) and after (POST: 1/12/2018-31/3/2019) implementation of an educational intervention aiming to optimize IV fluid therapy in November 2018. First, the appropriateness of the 24-hour IV maintenance fluid prescription was evaluated, as prescribed by the emergency physician. Second, factors associated with appropriate prescribing were assessed, as well as the quality of fluid management documentation practice. Prescription appropriateness and documentation quality were evaluated retrospectively using a structured audit instrument and additional review by experts. A total of 237 patients (2.3%) were included in the PRE-intervention group and 253 patients (2.4%) in the POST-intervention group. The expert panel evaluated 214 prescriptions in 82.3% of patients (PRE: 99, POST: 115), and appropriateness increased significantly (19.2% vs. 61.2%, p=0.002). A higher odds of an appropriate IV maintenance fluid prescription was determined, attributed to the intervention (adjOR=2.580; 95% CI 1.363-4.884) and in patients having a prehospital intervention (adjOR=1.914, 95% CI 1.022-3.586). Appropriateness of fluid management documentation did not significantly improve after the implementation of the intervention (15.6% vs. 16.2%, p=0.858). The IV fluid prescriptions' appropriateness was significantly higher after guideline implementation. However, documentation quality of fluid management was poor in the studied ED records. Active stewardship programs are warranted to further monitor fluid management quality in the ED.

Clinical audit of the image quality and customised contrast volume using P3T contrast injection software versus standard injection protocol in CT coronary angiography

IntroductionThe implications of shorter scan time and lower tube voltage in the dual-source CT coronary angiography (CTCA) scan protocol necessitate the adaptation of contrast media (CM) injection parameters. This audit evaluates the coronary arteries' vascular attenuation and image quality by comparing the personalised patient protocol technology (P3T) contrast injection software with standard injection protocol. The secondary aim is to determine the relationship between CM volume and the patient's weight. MethodologyA Siemens Somatom Definition Force CT Unit was used to scan 30 sets of patients between August 2020 and October 2020. Patients were selected retrospectively and separated into Standard Injection and P3T injection protocols. An experienced radiologist blinded to the groups reviewed the coronary vessels' contrast enhancement and image quality. ResultsOverall, the mean HU of all the main coronary artery vessels obtained from P3T injection software reached above 350 HU and was diagnostically sufficient. The mean attenuation at the proximal region of RCA in the 80–99 kg weight category was significantly higher in the P3T injection software than the standard injection protocol (p < 0.001). The CM volume proposed by P3T injection software for 40–59 kg was approximately 57 ± 5 mls, while 75 ml was used for the standard injection protocol. ConclusionP3T injection software in CTCA resulted in an adequate diagnostic attenuation of coronary arteries (>350HU) in all weight groups, most effectively in the higher weight group, while maintaining diagnostic image quality. Further, the P3T software reduces CM volumes in lower-weight patients. ImplicationsP3T software enables reducing CM volume in lower-weight patients while improving vascular enhancement in CTCA scans in higher-weight patients.

Audit of Quality of General Practitioner (GP) Referrals to a Local Memory Service in South Sefton

Audit of Quality of General Practitioner (GP) Referrals to a Local Memory Service in South Sefton

Kualitas Audit: Kajian dari Perspektif Kompetensi, Independensi dan Etika Pada KAP Jojo Sunarjo dan Rekan Cabang Pekanbaru

This study aims to determine the importance of the role of competence, independence, ethics on audit quality at KAP Jojo Sunarjo and Partners Pekanbaru Branch. The research method used is a quantitative method with a descriptive approach. The data used in collecting data is a questionnaire. The results show that competence, independence, and ethics play a role in improving audit quality at the Jojo Sunarjo and Partners Public Accounting Firm, Pekanbaru Branch. Competence is the most urgent thing to improve audit quality.

Effect of Audit Market Concentration on Pricing and Audit Quality. Evidence from an Emerging Economy

Effect of Audit Market Concentration on Pricing and Audit Quality. Evidence from an Emerging Economy