Quality Control Audit Research Articles

Key audit matter disclosure and stock mispricing: Evidence from China

Stock mispricing refers to the situation where the stock price of a firm diverges from its intrinsic value, which can impair market resource allocation efficiency and hinder the healthy development of the capital market. This study aims to investigate the influence of key audit matters (KAM) disclosure on stock mispricing. Using a firm-level panel dataset from 2017 to 2022, we demonstrate that KAM disclosure can significantly reduce stock mispricing. This effect is achieved by mitigating information inefficiency and discouraging market speculation. Heterogeneity analysis reveals a more pronounced impact in firms with poor audit quality and deficient internal control systems.

Audit and quality assessment of national persian registry of cardiovascular disease(N-PROVE) in terms of comorbidities, angiography, and angioplasty characteristics in Iran.

The National Persian Registry of Cardiovascular Disease (N-PROVE) has been established to provide a comprehensive database of cardiovascular diseases in the Iranian community for further investigations and to develop national guidelines for the diagnosis, treatment, and prevention of cardiovascular disease (CVD). As with most clinical registries, a quality control audit is necessary to ensure a comprehensive and accurate registry; the current study aims to assess the validity and quality of the N-PROVE/Angiography/Percutaneous Coronary Intervention (PCI) registry. The current cross-sectional quality assessment study serves as an example of data quality assessment in N-PROVE on a sample of patients registered in the N-PROVE/Angiography/PCI registry since 2020. Accordingly, data of 194 patients, including comorbidities, angiography, and angioplasty characteristics, were collected from the N-PROVE/Angiography/PCI registry as the main database and reevaluated by a panel consisting of a cardiologist and two coronary intervention fellowships as a test database. The quality control of the population-based healthcare database, the N-PROVE/PCI, revealed that the average error rate in terms of comorbidities, angiography characteristics, angioplasty characteristics, and in total were 3.8%, 2.3%, 3%, and 3.03%, respectively. According to the findings of this study, the N-PROVE/PCI registry had an average error of less than 4% in the assessed dimensions, including comorbidities, angiography, and angioplasty characteristics. Therefore, this registry appears valid and may be used for contemporary epidemiological studies.

Evaluation of Audit Quality Control at the Surakarta City Inspectorate

Audit quality control is required to ensure and provide the assurance of audits that had applied with auditing standards and code of ethics.. The Government Internal Supervisory Appartus (APIP) considered the three lines model functions to provide independent for objective assurance and advice on all matters related for the achievement of organizational goals. Therefore, APIP is obliged to apply the Guidelines for Quality Control Audit of Government Internal Supervisory Apparatus. This research aims to analyze the suitability of the implementation of audit quality control at the Surakarta City Inspectorate using the eight elements contained in the APIP Pedoman Kendali Mutu APIP dan Pedomaan Telaah Sejawat, and to analyze the strategies implemented for improving audit quality controls at the Surakarta City Inspectorate. The research methodology used a case study-based on qualitative descriptive method. The data used in this study are primary data, which obtained through interviews with source person and secondary data from 32 documents. The results of data analysis indicated, that the audit implementation at the Surakarta City Inspectorate had not been fully implemented the APIP Auditi Quality Control Guidelines. The strategy needs for improving the effectiveness of the implementation of audit quality control are the commitment of the leadership and all employees to enforce the supervision in according with PKMA-APIP.

Audit Quality Control and Financial Risk Prevention Strategies for CPAs under Multi-Objective Optimization Calculation Considering Sustainable Development Strategy

Abstract Audit functions as the “guardian” of the capital market by overseeing economic activities and providing forensic analysis on the major projects and financial transactions of the entities it examines. The sustainability of auditing as a profession hinges critically on audit quality. This study aims to investigate the characteristics and elements that influence audit quality control, employing modern risk-oriented audit theory to formulate a financial audit risk assessment process. The research uses a multiple linear regression model to analyze factors affecting audit quality control among certified public accountants (CPAs). The model analyzes data from 513 A+H share listed companies, with parameters estimated using the Singular Value Decomposition (SVD) method within an overall least squares framework. Furthermore, the Particle Swarm Optimization (PSO) algorithm, a technique within the multi-objective optimization algorithm suite, is utilized to refine parameters in the manipulability Jones model. This adjustment is intended to better quantify the level of earnings management of the audited entities, thus enhancing the reflection of financial audit risks. Findings from the study reveal that the coefficient reflecting the impact of a CPA’s practice experience on audit quality control is 0.249. Additionally, it was observed that a 1% deterioration in the financial condition of an audited entity correlates with a 0.505% decrease in audit quality. For high-risk clients classified under ‘Special Treatment’ (ST), the range of practice years for CPAs is predominantly between 6 to 14 years, which may not fully meet the clients’ auditing needs. The study suggests that tailored audit surveys should be conducted for various client types prior to audit engagements. This strategic approach would enable better allocation of CPA resources, thereby enhancing audit quality control and the capability to mitigate financial audit risks.

The Construction and Implementation Path of the Audit System for Quality Control in the Big Data Era

In the era of big data, the construction and implementation of a quality control audit system are particularly crucial. This article delves into the impact of big data technology on quality control auditing, establishes a quality control auditing system in the big data era, and elucidates the pathway to realizing this system. Through the application of big data technology to quality control audits, there is an enhancement in audit efficiency, the attainment of more accurate risk assessment, and the provision of robust support for the sustainable development of enterprises.

Audit Quality Control and Standards: A Case Study of Auditing Firms in Kigali, Rwanda

Audit Quality Control and Standards: A Case Study of Auditing Firms in Kigali, Rwanda

Politically connected business and real earnings management: the moderating role of family control and audit quality

PurposeThis study examines whether real earnings management (REM) choices are connected with the ownership structure of politically connected businesses (PCBs). The authors also discuss the moderating role of audit quality (AQ) and family control (FC) on the relationship between PCBs and REM.Design/methodology/approachThe authors' study sample comprises firms registered on the Pakistan Stock Exchange (PSE). The sample examines the financial data of the firms that remained listed for the last eight years, i.e. from 2011 to 2018, excluding nonfinance companies and firms with incomplete data. The authors test the hypothesis using feasible generalized least squares (FGLS) regression methods.FindingsThe authors find that PCBs show a high level of involvement in income-decreasing REM compared to nonPCBs due to lower litigation risk in REM. However, the authors' results also show that two monitoring mechanisms, AQ and FC, curb the opportunistic behavior of PCBs and reduce the intensity of REM in PCBs.Practical implicationsThe findings of the study are beneficial in decision-making for both internal and external stakeholders, such as creditors, shareholders and competitors. In countries like Pakistan, which fall in the category of emerging economies, PCBs show involvement in income-decreasing REM to change the accurate picture of financial information to attain personal goals, and investors in such countries have a low level of knowledge about earnings management strategies; thus, this study offers detailed knowledge and information to investors and shareholders about political connections and REM. This plays a crucial role for regulators in stiffening the rules and regulations to further assist in more secure financial reporting.Originality/valueThis study contributes to the literature by providing a nuanced understanding of the interplay between political connections, REM, FC and AQ in the business context. Second, family-controlled businesses often exhibit distinct characteristics and governance structures compared to nonfamily-controlled firms. Exploring the moderating role of FC in the following relationship could provide valuable insights into how family dynamics influence the financial reporting practices of PCBs. Third, AQ is a critical factor in ensuring financial reporting transparency. However, the interaction between AQ, political connections, and REM remains relatively unexplored. This study explains how audit oversight affects the earnings management behavior of PCBs.

THE EFFECT OF AUDIT QUALITY, ACCOUNTABILITY AND INTERNAL CONTROL ON THE QUALITY OF FINANCIAL REPORTS IN ZAKAT MANAGEMENT

The quality of financial reports is a structured report regarding the statement of financial position and transactions carried out and accounted for by a reporting entity. The quality of financial reports is considered good if the information presented in these reports can be understood and meets the needs of users in making decisions. It should be free from misleading notions, material errors, and should be reliable, allowing for comparisons with previous periods of financial statements. This research was conducted to determine the effects of audit quality, accountability, and internal control on the quality of financial reports. The research focused on the Amil Zakat Institute and the National Amil Zakat Agency for the City of Depok and DKI Jakarta as the population. The research sample was selected using purposive sampling methods and included 30 respondents. Data were processed using SPSS software and analyzed using multiple linear regression analysis. The results of this study indicate that audit quality, accountability, and internal control have a positive effect on the quality of financial reports.

Audit Quality Control and Financial Performance of Deposit Money Banks in Ekiti State, Nigeria

Audit Quality Control and Financial Performance of Deposit Money Banks in Ekiti State, Nigeria

Standardization and quality control of Doppler and fetal biometric ultrasound measurements in low-income setting.

The aim of this study was to determine the quality of fetal biometry and pulsed-wave Doppler ultrasound measurements in a prospective cohort study in Uganda. This was an ancillary study of the Ending Preventable Stillbirths by Improving Diagnosis of Babies at Risk (EPID) project, in which women enroled in early pregnancy underwent Doppler and fetal biometric assessment at 32-40 weeks of gestation. Sonographers undertook 6 weeks of training followed by onsite refresher training and audit exercises. A total of 125 images for each of the umbilical artery (UA), fetal middle cerebral artery (MCA), left and right uterine arteries (UtA), head circumference (HC), abdominal circumference (AC) and femur length (FL) were selected randomly from the EPID study database and evaluated independently by two experts in a blinded fashion using objective scoring criteria. Inter-rater agreement was assessed using modified Fleiss' kappa for nominal variables and systematic errors were explored using quantile-quantile (Q-Q) plots. For Doppler measurements, 96.8% of the UA images, 84.8% of the MCA images and 93.6% of the right UtA images were classified as of acceptable quality by both reviewers. For fetal biometry, 96.0% of the HC images, 96.0% of the AC images and 88.0% of the FL images were considered acceptable by both reviewers. The kappa values for inter-rater reliability of quality assessment were 0.94 (95% CI, 0.87-0.99) for the UA, 0.71 (95% CI, 0.58-0.82) for the MCA, 0.87 (95% CI, 0.78-0.95) for the right UtA, 0.94 (95% CI, 0.87-0.98) for the HC, 0.93 (95% CI, 0.87-0.98) for the AC and 0.78 (95% CI, 0.66-0.88) for the FL measurements. The Q-Q plots indicated no influence of systematic bias in the measurements. Training local healthcare providers to perform Doppler ultrasound, and implementing quality control systems and audits using objective scoring tools in clinical and research settings, is feasible in low- and middle-income countries. Although we did not assess the impact of in-service retraining offered to practitioners deviating from prescribed standards, such interventions should enhance the quality of ultrasound measurements and should be investigated in future studies. © 2022 The Authors. Ultrasound in Obstetrics & Gynecology published by John Wiley & Sons Ltd on behalf of International Society of Ultrasound in Obstetrics and Gynecology.

The effect of auditing quality and internal control on financial resilience in public sector organi-zations: Information quality as the mediating factor

In dynamic socio-economic environments, public sector organizations and companies with strong financial resilience are better equipped to adapt to economic changes, socio-economic fluctuations, and shifts in the business landscape with greater flexibility. Financial resilience also has implications for an organization's liquidity. One of the critical factors influencing financial resilience in public sector organizations is the quality of its audit. Ensuring high-quality audits is vital for assessing the accuracy and reliability of an organization's financial statements. This study aims to investigate the impact of audit quality and internal control on financial security, with information quality serving as a mediating factor. Quantitative research methods were employed to collect and statistically analyze the data. The study gathered information through questionnaires distributed to the Auditors of the Supreme Audit Board, with a sample size of 321 participants. The data was then processed using SmartPLS software. The research findings demonstrate a significant relationship between audit quality and internal control, positively influencing the organization’s financial resilience. Furthermore, the study reveals that information quality acts as a crucial mediator, linking audit quality and internal control to financial security. The analysis shows that audit quality significantly affects information quality. However, the direct impact of audit quality on financial resilience is not significant. On the other hand, internal control significantly influences both information quality and the organization’s financial resilience. Additionally, the quality of information also has a significant effect on the organization’s financial resilience.

Quality control rigidity and audit outcomes

Quality control rigidity and audit outcomes

THE IMPORTANCE OF THE PLACE AND ROLE OF PROFESSIONAL ORGANIZATIONS IN THE PROCESS OF AUDITING ACTIVITY REGULATION IN GEORGIA

Regulation of audit activities and quality control of these activities in Georgia gradually developed from the second half of the 90s of the last century and ended with the fact that for this purpose the state created the accounting, reporting and audit supervision service (SARAS) in the Ministry of Finance as a structural unit of the Ministry. Before that, the state could not effectively and strictly control the audit activities and this role was entrusted to the professional organization - the Georgian Federation of Professional Accountants and Auditors (GFPAA), and earlier there was the Council of Audit Activities under the Parliament of Georgia. But this positive event also led to negative events, which, in my specific opinion, I can consider: 1. Strong monopolistic role of the state and weakening of the role of professional organizations; 2. Serious threat of liquidation of small and medium audit firms and oligopolization of audit services in the hands of large audit firms; Real prospective threat of unemployment of auditors employed in small and medium audit firms. The subject of the research of this topic is the role of professional organizations in the process of auditing activity regulation.

Standardization of Epidemiological Surveillance of Rheumatic Heart Disease.

Rheumatic heart disease (RHD) is a long-term sequela of acute rheumatic fever (ARF), which classically begins after an untreated or undertreated infection caused by Streptococcus pyogenes (Strep A). RHD develops after the heart valves are permanently damaged due to ARF. RHD remains a leading cause of morbidity and mortality in young adults in resource-limited and low- and middle-income countries. This article presents case definitions for latent, suspected, and clinical RHD for persons with and without a history of ARF, and details case classifications, including differentiating between definite or borderline according to the 2012 World Heart Federation echocardiographic diagnostic criteria. This article also covers considerations specific to RHD surveillance methodology, including discussions on echocardiographic screening, where and how to conduct active or passive surveillance (eg, early childhood centers/schools, households, primary healthcare), participant eligibility, and the surveillance population. Additional considerations for RHD surveillance, including implications for secondary prophylaxis and follow-up, RHD registers, community engagement, and the negative impact of surveillance, are addressed. Finally, the core elements of case report forms for RHD, monitoring and audit requirements, quality control and assurance, and the ethics of conducting surveillance are discussed.

Standardization of Epidemiological Surveillance of Acute Rheumatic Fever.

Acute rheumatic fever (ARF) is a multiorgan inflammatory disorder that results from the body’s autoimmune response to pharyngitis or a skin infection caused by Streptococcus pyogenes (Strep A). Acute rheumatic fever mainly affects those in low- and middle-income nations, as well as in indigenous populations in wealthy nations, where initial Strep A infections may go undetected. A single episode of ARF puts a person at increased risk of developing long-term cardiac damage known as rheumatic heart disease. We present case definitions for both definite and possible ARF, including initial and recurrent episodes, according to the 2015 Jones Criteria, and we discuss current tests available to aid in the diagnosis.We outline the considerations specific to ARF surveillance methodology, including discussion on where and how to conduct active or passive surveillance (eg, early childhood centers/schools, households, primary healthcare, administrative database review), participant eligibility, and the surveillance population. Additional considerations for ARF surveillance, including implications for secondary prophylaxis and follow-up, ARF registers, community engagement, and the impact of surveillance, are addressed. Finally, the core elements of case report forms for ARF, monitoring and audit requirements, quality control and assurance, and the ethics of conducting surveillance are discussed.

Assessment of the Key Performance Indicator Proposed by NABH in the Blood Centre of a Tertiary Health Care Hospital in Southern India.

Quality indicators are tools for continuous improvement to enable the blood center to achieve its standards of the highest quality. Hence, they have to be established and monitored regularly for which NABH (National Accreditation Board for Hospitals) accreditation should be sought for. This study was undertaken to assess the Key Performance Indicators (KPI) through clinical audit quality control study of ten parameters, with a goal to improve and meet the benchmark as defined by NABH. All 10 Key Performance Indicators defined by NABH were analysed prospectively in a tertiary care blood centre of southern India. Parameters were compared to that of bench mark standards. Root cause analysis of all non-conformance parameters were done. Problem were identified and action taken to achieve KPI benchmarks in all deviations. Out of the ten KPI's which were studied, more than 50% meet the quality standards. The ones that did not meet the bench mark were TTI-HIV% which was 0.44%, TTI-Syphilis (RPR)% 0.26%, Number of units received back for discarding 5.96%, PRBC wastage% (on-shelf) was 2.11%, FFP, Cryoprecipitate wastage % (on-shelf) was 2.71%, the mean TAT for crossmatch of emergency PRBC blood was 18.3min, 41.11% of FFP QC failure failed, Delay in transfusion time beyond 30min after issue was 19.14%, Donor Deferral rate was 16.36% and TTI Outliers% No. of deviations beyond ± 2SD for HBsAg, HCV, HIV were 14.43%, 12.59% and17.73% respectively. Present study has helped to understand the flaws and problems faced by a tertiary care blood center in sustaining quality. It also actively captured and analysed multiple cross sections of non-conformances.

Significance of QA/QC for Hybrid Annuity Model (HAM) Road projects

A developed country is marked by the efficiency and feasibility of the road network. India has one of the world's largest road networks which has expanded significantly at a distance of 5.3 million kilometers from the capital. Many Private companies are investing in this development by private-public-public partnership (PPP3).The key to success of this investment is Quality Assurance, quality Control And quality Audit. Here an attempt is made to understand these concepts with The Hybrid Annuity Model (HAM) model for road project. Keywords:- Hybrid Annuity Model (HAM), Quality assurance, audit Quality Control

Research on audit quality control of the machinery manufacturing industry based on Bio-Technology and Data Mining

With the continuous development of the market, machinery manufacturing enterprises are facing more and more challenges. In the face of the international market, in order to enhance the competitiveness of enterprises, each enterprise's vision can be traced back to itself from the market by using the biotechnology entrepreneurship practices, hoping to adapt to the rapid development of the market faster through its own improvement. The audit quality control of the machinery manufacturing industry appears on people's visions. People gradually realize the importance of audit quality control for the machinery manufacturing industry, and realize that if we cannot effectively improve and perfect the audit quality control system of the machinery manufacturing industry, it is difficult to ensure the healthy, sustainable and rapid development of the machinery manufacturing enterprises. Therefore, when the new opportunity of industrial reform comes, we should strengthen the research on audit quality control of the machinery manufacturing industry in line with the characteristics of the machinery manufacturing enterprises, and apply it to guide practice, so as to solve the urgent problems in the establishment of audit quality control of the machinery manufacturing industry in machinery manufacturing enterprises.

Research on the construction of accounting information audit quality control system based on blockchain

AbstractAudit quality control plays an irreplaceable role in improving the quality of accounting information, and it is also of great significance to the normal operation and development of enterprises. Blockchain is a security technology, which guarantees the security of data to a great extent. Information security is the basis for the quality control of accounting information auditing, and all audit quality control activities start with information data. Therefore, the integration of blockchain technology is essential for audit quality control. This article aims to build an audit quality control system, so that everyone first understands the blockchain security technology and accounting information audit quality control related theories. This article puts forward the method of setting up variables and constructing the accounting information audit quality control system to solve the current problem of low audit quality in China. The experimental results of this article show that blockchain technology is beneficial to ensure the security of audit information and can improve audit quality by 20%.

Insights into auditor public oversight boards: Whether, how, and why they “work”

We survey 170 inspectors, representing 27% of the inspection staff, from auditor public oversight boards (POBs) in 20 countries to understand whether, how, and why auditors respond to POB oversight. We find that a large majority of inspectors believe that auditors frequently respond to their feedback by changing audit procedures and quality control systems. Inspectors perceive inspections to have broad effects on several aspects of auditing, ranging from documentation to the removal of partners. Some inspectors perceive that auditors place greater weight on keeping fees low than on increasing audit quality. Inspectors also believe that auditors on occasion ‘fix’ closed audit files before an inspection, and in rare instances obtain confidential information about upcoming inspections. Inspectors think that the primary reasons why auditors respond to POB feedback are (1) public disclosure, (2) enforcement capabilities, (3) POBs being perceived as authoritative, and (4) POBs having a culture for detecting auditing deficiencies.