External Audit Research Articles

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.

Impact of Accounting Information Systems of Cash Executions on Internal Controls of Company

The study investigates how the accounting information system of cash expenditure affects the internal controls of the company. Cash expenditure, which is vital to business operations, is managed by accounting information systems (AIS). It is expected that effective use of AIS will improve the accuracy of transaction recording, reduce errors, and prevent fraud. The study uses a quantitative method by sending questionnaires to various that have implemented cash expenditure. The results show that there is a significant correlation between how well AIS manages cash expenditure and how well the company's internal controls. Good AIS implementation ensures that all transactions are properly recorded, authorizations are carried out according to procedures, and authorities can only access financial information. In addition, an integrated AIS offers audit trails that facilitate the tracking and verification of transactions by both internal and external auditors. These findings suggest that the use of effective cash expenditure can strengthen internal control mechanisms, improve financial integrity, and give confidence to stakeholders of the company's interests.

From state financial control to modern audit: evolutionary development in Russia and other countries

The article is devoted to the study of the evolution of state financial control and audit. The historical facts of their origin in the Great Roman Empire, China, India, Great Britain, the USA and Russia are given. Four stages of audit development in modern Russia are identified and a fairly detailed description of each stage is given. The necessity of modernizing the process of self-regulation of the auditing profession is substantiated, taking into account the recommendations of the International Forum of Independent Regulators of Auditing, the development and effective implementation of a new Concept and a new Strategy of Russian audit, the implementation of which will create conditions for the consolidation of the audit professional community, contributing to the development and functioning of mechanisms for involving the audit community in the processes of solving strategic tasks aimed at improving the efficiency of functioning modern models of state financial control and audit, the development of the national economy and ensuring the economic security of the country. Special attention is paid to taking measures to increase the level of demand and value of the audit.

The Effect of Implementing Internal Control Systems According to the COSO Committee in Reducing Money Laundering in Jordanian Commercial Banks

This study sought to determine the effects of an internal control system implementation for banks according to the COSO Committee and its role in reducing money laundering in Jordanian commercial banks, a questionnaire was designed distributed, and analyzed by 45 participants working as external auditors (chartered accountants) for Jordanian commercial banks, and the analytical and descriptive methods were applied, with one sample using the T-test. The study showed several results, including the impact of internal control systems with their eight components in reducing money laundering, as well as the existence of interest and awareness by the departments of Jordanian commercial banks of the importance and role of internal control systems according to the COSO Committee, and the importance of the availability of the elements of the internal control system from a controlled environment, the existence of an information and communication system, monitoring and follow-up to contribute to reducing money laundering. The study recommended adopting a self-assessment model for regulatory risks in banks because of its advantages in explaining the types of risks surrounding the banks related to the concepts, operations, and stages of money laundering.

FACTORS AFFECTING AUDIT DELAY (STUDY OF MANUFACTURING COMPANIES LISTED ON MALAYSIAN STOCK EXCHANGE FOR THE 2019-2022 PERIOD)

This research determines factors influence audit delays in manufacturing companies listed on Malaysian Stock Exchange for the period of 2019 until 2022. The model in this study consists of Profitability, Solvency, Company Size and Public Accounting Firm Size. Apart from that, this research also uses audit delay as a dependent variable. Secondary data used in this research are financial reports and audit reports from manufacturing companies listed on Malaysian Stock Exchange for the period of 2019 until 2022. The sample in this study consisted of 21 companies using purposive sampling techniques. The data analysis techniques used are descriptive statistics, classical assumption testing, and hypothesis testing using multiple linear regression analysis. The findings indicate that (1) Profitability has an effect on audit delay, (2) Solvency has no effect on audit delay. (3) Company size has no effect on audit delay. (4) Public Accounting Firm Size influences audit delay. (5) Simultaneously, Profitability, solvency, company size and Public Accounting Firm Size influence on audit delay.

Stakeholders’ involvement in economics and management programs quality assurance

Purpose This study aims to investigate the stakeholders’ (employers and students) involvement in economics and management programs quality assurance in Italian universities from the external audit perspective. Design/methodology/approach The research tests if employers are positively associated with the coherence between program objectives and job prospects, and if student involvement is positively associated with student orientation, tutorship and flexibility for specific types of students (differently abled students and working students). Based on data from the Italian Agency for Quality Assurance (ANVUR) in Italian universities, this study selects a sample of 44 bachelor and master university programs. Findings When a program coordinator assures coherence between competencies included in the study plan and job prospect, the employers’ involvement in the plan and management of the program increases and becomes more effective. High-quality services regarding student orientation, tutorship and flexibility for specific types of students increase the students’ involvement in university governance. Originality/value Findings contribute to literature extending the stakeholder theory in universities, better specifying how employers and students may play a key role in improving the quality assurance of teaching activities.

Exploring the institutional barriers to rural water management in Ghana

ABSTRACT Framed within policy support for bottom-up community water management in development practice in the global south, this paper explores the institutional barriers that impede effective community management of water infrastructure in water-stressed rural communities in the Upper Manya District and Yilo Krobo Municipality in the Eastern region of Ghana. The study adopted a qualitative research approach, using data collection methods such as in-depth interviews and focus group discussions with local government and community water management committees and participant observation across four communities. The findings revealed that irregular and inadequate monitoring, poor financial auditing and transparency, inadequate technical support, and limited community engagement were the institutional barriers confronting sustainable rural water management. The study argues that in community water management, hybrid models are more likely to work better than models that focus entirely on either top-down or bottom-up approaches since the former can strengthen technical capacity, financial accountability, and the experimentation of infrastructure co-design initiatives. The paper concludes that by addressing institutional lapses in Africa's infrastructural management regimes, rural populations can become part of, rather than left behind, in the global quest to ensure water availability and sustainable water management for all.