External Audit Research Articles

Strengthening the Application of the DAIDS GCLP Guidelines: The Implementation of an Integrated Laboratory Oversight Framework.

The Division of AIDS (DAIDS) Good Clinical Laboratory Practice (GCLP) Guidelines establish a framework to guide the oversight of laboratories supporting DAIDS-sponsored clinical research or trials. Compliance with these guidelines promotes data reliability, validity, and safety of the clinical research or trial participants and laboratory staff and ensures adherence to regulatory requirements. Acknowledgment and adoption of the DAIDS GCLP Guidelines are critical in building laboratory capacity and preparedness for conducting clinical trials. In collaboration with DAIDS, laboratory experts support the implementation of the DAIDS Integrated Laboratory Oversight Framework (Framework) activities. This article describes the implementation of the GCLP Guidelines, the Framework activities, and the coordinated efforts to strengthen laboratory performance. The Framework activities include four components: Quality Assurance Oversight, GCLP Audits, GCLP Training, and Laboratory Quality Improvement. Comparison of GCLP Guidelines with other regulations or standards, including U.S. Clinical Laboratory Improvement Amendments regulation 42 CFR 493, College of American Pathologists, World Health Organization GCLP, and International Organization for Standardization, ISO 15189:2012 standards, highlighted the differences and similarities to guide integration and harmonization efforts. Processes related to the Framework activities are outlined in detail, including key data derived from the managed activities of over 175 laboratories worldwide. Via the evolution of the DAIDS GCLP Guidelines and laboratory oversight workflows, the laboratories participating in DAIDS-sponsored clinical research and trials have successfully participated in internal and external regulatory audits. The collaborative and integrated oversight approach promotes knowledge-sharing and accountability to support the implementation of the DAIDS GCLP Guidelines and compliance monitoring. Lessons learned have helped with the implementation of the DAIDS integrated laboratory oversight approach and quality oversight programs at multiple laboratories worldwide.

A study of mediating and moderating effects on the relationship between audit quality and integrated reporting quality among Jordanian firms

PurposeThe purpose of this research is to investigate the link between external audit quality and integrated reporting (IR) quality in the Jordanian market, a developing market. Furthermore, the research model considers the mediating effect of earnings management practices and the moderating effect of board gender diversity. As a result, it intends to provide further empirical evidence in this area.Design/methodology/approachThis research investigates its model using data from Jordanian services companies listed on the Amman Stock Exchange (ASE) during the period 2013–2022. With 430 company-year observations, the current research’s sample includes all companies in the research population for which complete data were available during the period under investigation. Data relevant to the research setting were obtained from annual disclosures and the ASE's database.FindingsThe findings of this research show that audit firm size and audit firm specialty have a positive influence on IR quality, but audit firm tenure does not. External audit quality (as proxied by the size, specialty and turnover of the audit firm) had a negative impact on earnings management practices, while earnings management practices had a negative impact on IR quality. Additionally, the findings reveal that earnings management practices completely mediate the relationship between two external audit quality proxies (audit firm size and audit firm specialty) and IR quality. Furthermore, in terms of the moderating impact of board gender diversity, it is obvious that board gender diversity favorably moderates the relationships between all external audit quality proxies and IR quality.Originality/valueUsing agency theory and stakeholder theory, this investigation fills a gap in previous literature by adding scientific explanations and empirical evidence from the Jordanian market, a developing market, in the context of the impact of audit quality on IR quality, mediated by earnings management and moderated by board gender diversity.

Quality improvement in medicines regulation: a retrospective analysis of the Pharmacy Board of Sierra Leone before and during quality management system implementation

BackgroundNational Medicines Regulatory Authorities like the Pharmacy Board of Sierra Leone are responsible for protecting and promoting public health, implementing regulatory standards, and maintaining a supply chain with an assured supply of medical products that are safe, effective, and of good quality. This retrospective study assesses the identification of substandard and falsified medicines, the changes in the functions and key indicators of assessment, and the quality improvement changes of the Pharmacy Board of Sierra Leone.MethodsData was obtained from 2013 to 2021 records using a data collection tool to collate and review all relevant information to address the different objectives. All data were sourced from the Department of Quality Assurance and the Department of Enforcement and Narcotics at the Pharmacy Board of Sierra Leone. The review also included, identified substandard and falsified medicines, the World Health Organisation Global benchmarking self-assessment tool, and internal and external audit records of the quality management system of all twelve departments of the Pharmacy Board of Sierra Leone.ResultsThe study showed marked changes in identifying substandard and falsified medicines by the Pharmacy Board of Sierra Leone during ISO 9001:2015 implementation (2017- 2020) compared to Pre-ISO 9001:2015 implementation (2013- 2016). Critical functions of the Pharmacy Board of Sierra Leone from the assessment of the WHO GBT ML in 2016 and 2021 showed that several indicators had been addressed during ISO 9001:2015 certification with improvement in the level of maturity for the quality management systems and Pharmacovigilance functions. There was also an improvement in identifying non-conformances and a commitment to continuous improvement of processes during ISO 9001:2015 implementation.ConclusionsThis study revealed that regular checks through standard assessment, internal audits, and standard management review processes that generate follow-up actions, timelines, and a commitment to identifying correction, and corrective actions for non-conformances are essential quality improvement tools for the efficient functioning of an institution (Pharmacy Board of Sierra Leone). Our study revealed that commitment to continuous implementation of proper quality management system could significantly improve institutional efficiency, thereby improving service delivery and customer satisfaction.

Impact Smart Applications To Enhance The Transparency and Accuracy Of Financial Auditing

The research aimed to analyze the impact of employing artificial intelligence and blockchain technologies in enhancing transparency and accuracy in financial audits.WeeThe research sought to understand how these technologies contribute to improving...ActivitiesAuditing by reducing human errors and enhancing confidence in financial statements.throughData was collected usingQuestionnaire from the research sample, and analysisResults through the statistical programSPSS v 26 and AMOS v 26,The most important conclusions of the research were that applicationsSmart provides the ability to quickly analyze large amounts of financial data, which improves the quality of auditing and decision-makingFinance. WowMRecommendations are a necessityStrengthening cooperation between regulatory authorities and banks to ensure the application of international auditing standards in light of the use of modern technology,The research contributes toAnalysis of the role of intelligent applicationsOhIn improving the accuracy and transparency of financial auditing using advanced technologies.whatHussein audits and detection of financial errorsWhich enhancesConfidence in financial reports by reducing errors and increasing accuracy using smart technology.

Komite Audit, Kualitas Audit dan Audit Tenure dalam Meningkatkan Kekuatan Integritas Laporan Keuangan: Studi Empiris pada Perusahaan BUMN Tahun 2021-2023

This research focuses on state-owned companies in 2021-2023 to evaluate the role of the audit committee, audit quality, and auditor tenure to improve the integrity of financial reports. The integrity of financial reports is a crucial aspect in business and finance because reliable and accurate reports are the basis for stakeholders in making economic decisions. This study was motivated by several cases in state-owned companies, such as PT Garuda Indonesia and PT Asuransi Jiwasraya, which showed dishonesty in financial reporting. This analysis is aimed at assessing the professionalism of the audit committee and the independent monitoring system on the performance taken for this research is secondary. With analysis tools using SPSS version 25. management to produce quality audits. Data a The research methodology involves analyzing data from 36 samples of state-owned companies using classic assumption tests, such as normality tests, multicollinearity tests, autocorrelation tests, and heteroscedasticity tests. The results of the analysis state that the audit committee variable, audit quality has a significant impact on the integrity of financial reports and audit tenure has no significant effect on the integrity of financial reports. The contribution of this analysis is the importance of the audit committee's role in improving the integrity of financial reports as reflected in effectiveness in a transparent and accountable manner, the selection of auditors who have a reputation and high competence ensures reliable financial reports, provides insight into the impact of long-term relationships between auditors and clients on the integrity of financial reports.

Pengaruh Self-Efficacy, Tekanan Ketaatan, Kompleksitas Tugas dan Pengalaman Auditor Terhadap Audit Judgment pada BPK RI Perwakilan Provinsi Jawa Timur

The research aims to know the impact of self-efficacy, obedience pressure, task complexity and auditor’s experience to audit judgment and was conducted at the BPK Representative of east java. using a quantitative approach and involved a sample of 62 auditors selected through basic purposive sampling and Slovin formula. Data analysis relied on Partial Least Square (PLS) software. The result of this research reveal that self-efficacy and auditor’s experience is have a positive effect to audit judgment. This is because an auditor who has a good level of self-confidence and experience will find it easier to face existing challenges. Meanwhile obedience pressure and task complecity has no effect to audit judgment. This is because an auditor, when feeling under pressure or facing a variety of tasks, always maintains his independence. Because in the State Financial Audit Standards relating to audit work, they must be free in attitude, mentality and appearance from personal and organizational interference that can affect their independence.

Exemplary Practices in Kidney Care: Sharing the Experience of " Disease Care Certification"

<p>2019年8月，本院腎臟團隊首次參與醫策會「腎臟病照護品質認證」，在委員查核下通過認證。近三年來，本院透過外部審核和交流，不斷增強自身實力，凝聚成員共識，進行腎臟照護標準化。以「病人為中心」執行醫療服務，促進跨領域合作，拓展研究領域。本團隊亦致力於品質改進和減少異常發生，建立新透析中心積極應對COVID-19及其他嶄新挑戰。在數位轉型過程中，本院更引進電子病歷智慧輔助系統，利用One System整合平台提升照護效率。同時，針對末期腎病(Pre-ESRD)5期病人，提前啟動醫病共享決策(SDM)，成立「愛腎家族」群組，強調醫療團隊成員和病人之間的合作。在高品質連續性照護基礎上，為急性腎損傷、慢性腎臟病、和需要透析的病人建立全面性的照護機制。</p> <p> </p><p>In August 2019, our hospital’s renal team participated for the first time in the Disease-Specific Care Kidney Disease certification program and achieved certification from the Joint Commission of Taiwan. Over the preceding three years, this team has consistently strengthened itself through external audits and exchanges, fostering consensus among its members and achieving standardization in renal care. Focusing on patient-centered care, the team’s main goals are to enhance core medical services, promote cross-disciplinary integration, and expand research areas. Our team is also dedicated to improving quality of care and mitigate anomalies. Furthermore, a new dialysis center was established to proactively respond to COVID-19 and other emerging challenges. During the digital transformation process, our hospital introduced an intelligent electronic medical record assistance system and utilized the One System integration platform to enhance care efficiency. For patients with stage 5 pre-end-stage renal disease, we proposed early shared decision-making standards, established a “Love Kidney Family” group, and emphasized the importance of collaboration between healthcare providers and patients. These initiatives were aimed at developing a foundation for offering comprehensive, high-quality care for patients with acute kidney injury, chronic kidney disease, and those requiring dialysis.</p> <p> </p>

The contribution of analytical procedures in supporting corporate governance: A field study in Algeria

Abstract This study aimed to shed light on the contribution of analytical procedures (APs) to supporting corporate governance. This was achieved through a field study in which a questionnaire was created and disseminated to a random sample of external auditors in Algeria. The data collected underwent analysis using the SPSS. The study concluded that APs play a crucial role in bolstering corporate governance by analyzing the company’s continuity capability and identifying financial problems facing the companies. In addition, APs enhance the quality and efficiency of external auditing, especially considering auditing as one of the key mechanisms that support corporate governance.

Pengujian Hexagon Fraud Theory dalam Mendeteksi Fraudulent Laporan Keuangan

This research aims to test the fraud hexagon component for the possibility of fraudulent financial reports. The research population uses companies listed on the Indonesia Stock Exchange with a sample of 32 banking issuers. The research results show that only the change in director variable has a positive influence on fraudulent financial reports. The financial stability variable, the external auditor quality variable, the change of auditor variable, the CEO's picture variable, the project variable with the government are not proven to have an effect on fraudulent financial reports.

The stronger the ability, the greater the destructiveness? CEO ability and stock price crash risk

The impact of CEO ability on corporate behavior is dual-faceted. Based on the “rent-seeking hypothesis”, this paper focuses on the “dark side” of CEO ability and suggests that CEO ability may hurt corporate behavior. Using the DEA method to measure CEO ability and selecting Chinese A-share listed companies from 2007 to 2017 as a sample, we examine the relationship, mechanisms, and boundary conditions between CEO ability and stock price crash risk. Our study finds that CEO ability exacerbates stock price crash risk positively. Mechanism tests based on CEO tenure, agency conflict, and litigation risk reveal that CEO ability intensifies stock price crash risk for alleviating career concerns, seeking private gains, and risk avoidance, supporting the “rent-seeking hypothesis”. Boundary condition tests based on internal and external governance environments show that internal control quality and external audit supervision can play a governance role in mitigating the exacerbating effect of CEO ability on stock price crash risk. The conclusions are of significant importance for companies, relevant departments, and global market participants to strengthen governance and supervision to prevent the negative impact of CEO ability on stock prices, thereby promoting the stable development of global financial markets.

A Systematic Literature Review of the Role of Big Data Analysis in Financial Auditing

A Systematic Literature Review of the Role of Big Data Analysis in Financial Auditing

공공재정 부정이익환수제도에 관한 고찰

The Public Finance Recovery Act was enacted in April 2019 in addition to the disciplinary surcharge system for public officials under the National Public Officials Act and the Local Public Officials Act as subsidies, R&D expenses, allowances, etc. of the state, local governments, and public organizations continue to make false claims and excessive claims. In order to prohibit public financial fraudulent claims and to recover the full amount of fraudulent income, which is unearned income, a sanction surcharge of up to five times is imposed and recovered in consideration of the intention and habitability of fraudulent claims. In this paper, after examining the concept, scope, and legal nature of public finance fraud recovery, we examine the Improper Payment lnfonnation Act of 2002, the False Claims Act, the Federal Improper Payments Coordination Act of 2015, and the Payment Integrity Information Act of 2019 in the United States, and the Subsidy Appropriation Act of Japan to seek implications for Korea In addition, we examine legal issues related to the systematization of pre- and post-systems to reduce fraudulent profits in public finance payments, securing the effectiveness of the whistleblowing system for public finance subsidy recovery, and activating the anonymous proxy reporting system, and suggest improvement measures to enhance the effectiveness of the Public Finance Recovery Act. Before recovering the illicit profits of public finance payments, relevant administrative agencies and public institutions should actively operate programs to strengthen the risk assessment and eligibility review of illicit payments, and after disbursing public finance support funds, they should strictly conduct an audit by an external auditor independent of the administrative agency and public institution to prevent illicit receipt of public finance support funds, and the results of the audit should be posted on the website of the relevant administrative agency to enhance transparency. In addition, in order to eradicate the negative organizational culture toward whistleblowers and the secret receipt of public finance support funds in Korea, whistleblowers should be allowed to file a U.S.-style qui tarn lawsuit only in cases where they make false claims to administrative agencies or public institutions. However, if the relevant administrative agency or public institution allows intervention in the lawsuit and recovers the illicit profits of public finance funds, they should be compensated 35% of the recovered amount to the whistleblower. Given the nature of fraudulent receipt of public financial support funds, the regional National Human Rights Commission's anonymous proxy reporting advisory group should be expanded in a balanced manner to ensure that the anonymous proxy reporting system is activated, and the anonymity of internal reporters should be guaranteed.

The Relationship between Audit Planning, Audit Hours and Audit Quality for the Adoption of New External Audit Law：Focusing on Auditor Change

The Relationship between Audit Planning, Audit Hours and Audit Quality for the Adoption of New External Audit Law：Focusing on Auditor Change

Strengthening corporate governance and financial compliance: Enhancing accountability and transparency

In today's complex business landscape, robust corporate governance and financial compliance are essential for maintaining organizational integrity, accountability, and transparency. This review examines the key components and strategies necessary to enhance these frameworks, ensuring sustainable success and stakeholder trust. Corporate governance encompasses regulatory compliance, risk management, ethical conduct, and stakeholder engagement. Adherence to laws and regulations, such as the Sarbanes-Oxley Act (SOX) and the General Data Protection Regulation (GDPR), is foundational in minimizing legal risks and safeguarding reputation. Effective risk management involves identifying, assessing, and mitigating potential threats to an organization’s financial health and operational integrity through strong internal controls and regular audits. Promoting ethical conduct within organizations is crucial for maintaining trust and reputation. Establishing codes of conduct, ethical guidelines, and whistleblower protections fosters a culture of integrity. Transparent communication and stakeholder engagement ensure that organizational activities align with stakeholder interests and expectations. Enhancing accountability and transparency involves several key strategies. Strong board oversight and independence, characterized by diverse and skilled board members, ensure balanced and objective decision-making. Regular internal and external audits verify financial accuracy and compliance, identifying areas for improvement. Leveraging technology and data analytics is pivotal in modern compliance efforts. Technologies like blockchain, artificial intelligence (AI), and machine learning automate processes, improve accuracy, and provide real-time insights into financial performance and risk management. Transparent regulatory reporting and disclosure practices, adhering to standards such as the International Financial Reporting Standards (IFRS), further enhance stakeholder trust. Continuous training and education for employees and board members on corporate governance principles, regulatory requirements, and ethical standards are vital for fostering a culture of compliance and accountability. Strengthening corporate governance and financial compliance is fundamental for enhancing accountability and transparency. By adopting comprehensive regulatory frameworks, leveraging technology, and promoting ethical conduct, organizations can build trust, mitigate risks, and ensure sustainable growth in a dynamic business environment. Keywords: Corporate Governance, Global Corporations, Harmonization.

PENGARUH FAKTOR-FAKTOR KEUANGAN TERHADAP AUDIT REPORT LAG PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

The increasing number of companies in the form of Go Public is a sign that the development of activities on the Indonesia Stock Exchange (IDX) is increasing, this will trigger a high demand for effective and efficient financial statement audits. Companies that have gone public have an obligation to submit financial reports in a timely manner. Delays in submitting financial reports are caused by audit report lag. Financial factors such as company size, profitability, leverage, liquidity, earnings per share, and financial distress are indicated to be the cause of audit report lag. So that these financial factors require special attention so that the submission of audited financial reports is timely. This study aims to determine the effect of company size, profitability, leverage, liquidity, earning per share, and financial distress on audit report lag in manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2022. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the period 2020-2022. The sampling technique in this study used purposive sampling method, so that a sample of 86 companies was obtained with a total of 217 observations. The results showed that company size and profitability had a significant negative effect on audit report lag, leverage and liquidity had no effect on audit report lag, and earning per share and financial distress had a significant positive effect on audit report lag

PENGARUH FINANCIAL DISTRESS, OPINI AUDIT, DAN PERGANTIAN MANAJEMEN TERHADAP AUDITOR SWITCHING

This study aims to determine the effect of Financial Distress, Audit Opinion, and Management Change on Auditor Switching in companies listed on the Indonesia Stock Exchange (BEI) for the period 2018-2022. Based on the purposive sampling method, a sample of 35 companies was obtained. The analysis method used is descriptive statistical method using logistic regression analysis tool. Hypothesis testing was conducted using Eviews 12 software. The results of this study indicate that Financial Distress has no effect on Auditor Switching, Audit Opinion has a significant effect on Auditor Switching. Management Change has no effect on Auditor Switching

The effectiveness of food safety self-checking systems in institutional catering

Internal and external food safety audits and inspections are commonly implemented in food service establishments to uphold and enhance food safety standards. While the processes for various types of inspections are similar, each has distinct roles and implications. Self-checking involves inspections conducted by local staff within the food business. However, experts question the efficacy of this process, as it often fails to uncover food safety issues.This indicative study aimed to investigate whether self-checking can reveal food safety risks associated with primary and additional activities and identify which activities, if any, are misjudged by internal staff. An in-depth survey was conducted over four months in 10 school kitchens using a food safety control checklist, which was completed monthly by internal staff, an internal auditor, and an external auditor.The evaluations from external auditors consistently rated the kitchens lower than those from internal auditors and local catering managers. The most divergent judgments centered on personal hygiene practices, storage procedures, cleaning methods, and disinfection processes.Based on this data, food handlers tend to perceive their adherence to food safety practices as more robust than it is.

Autoimmune rheumatic transitional care model development

AimTo develop a transitional care model for autoimmune rheumatic disease patients based on the needs analysis.MethodMixed Method, Explanatory sequential design (QUAN-qual) has been conducted. Quantitative data were collected through medical record and structured interviews. Qualitative study has been done through Focused Group Discussion (FGD), based on problems met in previous quantitative study. We have done the coding processed, followed by determining categories and themes to reach the intercoder agreement with peer-debriefing. Analysis of the final results of research was assisted by the external auditor to form a model of care.ResultThe quantitative data collection from 27 patients showed that the transition age was 18–19 year-old, age of onset 4–17 year-old, 23 patients (85, 2%) with SLE, 4 patients (14.8%) with JIA. Two patients (7.4%) had different diagnosis from the pediatric clinic, 1 patient (3.7%) had no diagnosis from previous clinic. Drug switching during transition occurred in 14 patients (51.9%) and 3 patients (11.1%) has no known medication history. Data regarding disease activity at initial diagnosis were not available in 26 patients (96.3%). The combined FGD analysis found several key words related to “the need of change” in RSCM autoimmune rheumatic transitional care.ConclusionA development of transitional care model for autoimmune rheumatic disease consist of documents about service algorithm, transfer documents, systematic work protocols with education check list has been done.

Assessing the Integration of ChatGPT in IT Audits that Support Financial Statement Audits

Artificial intelligence (AI) has brought significant changes in many fields, including the audit sector. Generative AI, a type of AI, leverages deep learning models to generate human-like content like images and words. ChatGPT, a type of generative AI, is a language model capable of revolutionizing information technology (IT) audits in support of financial statement (FS) audits. This paper highlights and examines advantages and disadvantages of incorporating ChatGPT into IT audits that support FS audits. ChatGPT offers benefits such as efficiency, precision, and speed, which are vital in the IT audit process. However, it also comes with challenges that need to be addressed. This paper contributes to the growing body of knowledge related to the use of ChatGPT in IT audits that support FS audits. The paper further provides insights into how audit firms can effectively adopt ChatGPT to improve the quality, efficiency, and effectiveness of their IT and FS audits.

Sampling targets to assess occupational health in occupational health and safety management system audits: a mixed-methods research in Japan.

Occupational health and safety management systems (OHSMS) are the foundation of occupational health and safety activities within an organization. An important element of these systems is audits. However, OHSMS auditors often lack confidence in conducting occupational health audits compared with their proficiency in conducting occupational safety audits. For occupational health to be effectively managed by OHSMS, the sampling competence of auditors engaged in third-party audits should be improved. Therefore, we conducted this study to identify appropriate sampling targets for occupational health related to International Organization for Standardization (ISO) 45001. We adopted a mixed methods approach to identify appropriate sampling targets. This involved conducting focus group discussions with experts in occupational health and performing systematic text condensation analysis. The validity of our findings was further reinforced through confirmation by external auditors who specialize in ISO 45001. In the qualitative phase, 6 occupational health sampling targets were identified, and of these, 5 were subsequently validated in the quantitative phase: (1) Health issues, legal requirements, and occupational health goals identified by the organization; (2) Occupational health risk assessment and control processes; (3) Processes related to occupational health and documented information showing the results of efforts; (4) Organizational roles and functions of occupational health professionals and opportunities for their professional development; and (5) Processes to ensure commitment to occupational health issues and objectives. To ensure effective and comprehensive occupational health audits, auditors should review these targets. This study will enhance the competence of auditors by identifying appropriate occupational health sampling targets.