Audit Tasks Research Articles

Assessment Audit: How Artificial Intelligence Affected Audit Quality of Sustainability Report Based on Auditors Perspective

This study aims to analyze audit assessment and the effects of artificial intelligence on the audit quality sustainability reports from the standpoint of auditors who provide audit opinions on audits that are conducted of sustainable financial reports. Certain audit tasks can now be automated by the audit profession thanks to technology. Artificial intelligence (AI) and big data analytics can be used to analyze huge data, one of the technological innovations that need more study than conventional data. The number of 85 auditors of Accountant Public Firms in Medan completed questionnaires that were used in this study to gather data. Following the collection of data from respondents, quantitative descriptive methodologies were used to analyze the data. The audit profession may improve the quality of audits by promoting the use of AI and big data analytics and by supporting auditors in developing their skills to stay current with new technologies. AI can improve audit quality, reduce costs, and eventually replace human workers. People are still required in the audit process, though, as AI cannot make decisions when it comes to providing audit opinions on financial reports. As a result, its contribution to the audit process is minimal. Therefore, it is hoped that this study will shed light on the potential applications of AI in the auditing process.

ACTUAL ISSUES OF REPRODUCTION OF FIXED ASSETS OF DOMESTIC ENTERPRISES

The article touches upon topical issues of reproduction of fixed assets of domestic enterprises in terms of their accounting, audit and strategic aspects of management. The study emphasises the necessity of constant renewal of fixed assets to ensure competitiveness, increase of labour productivity and quality of products. The main purpose of the study is to identify the key problems of managing the reproduction of fixed assets and formulate ways to solve them. To achieve the research objective, the methods of analysis and synthesis, comparative analysis and empirical methods were used. The paper emphasises the importance of improving accounting and auditing, considers the concepts of physical and moral wear and tear, as well as depreciation of fixed assets. It is determined that improving the depreciation policy is an important factor in increasing the investment activity of business entities. It is substantiated that internal audit plays an important role in providing reliable information on the process of reproduction of fixed assets, which contributes to the effective management of enterprise resources. The author defines the tasks of internal audit, including verification of the correctness of recognition and assessment of fixed assets restoration costs, reliability of information on depreciation charges, depreciation and residual value of fixed assets, control over accounting of lease transactions and transactions with investment property. The publication also discusses the strategic aspects of fixed assets reproduction, emphasising the importance of an innovative approach to improving the competitiveness of enterprises. It is noted that the implementation of innovative reproduction requires an integrated approach, including the construction of a mechanism that ensures the orientation of the market and the macroeconomic model of management to innovative forms of reproduction of fixed capital. The article pays special attention to the problems of financing innovative projects and cooperative technological chains. The article concludes by emphasising the need to form a comprehensive mechanism at the macro level, focused on the priority reproduction of fixed asset systems using the latest technologies. The paper emphasises the importance of creating a unified system of innovation and investment activities of enterprises, taking into account the interests of all participants. It stresses the expediency of using both market and non-market incentives for the reproduction of fixed assets, which will facilitate the production of competitive products and ensure the sustainable development of enterprises in the market.

Prawne i praktyczne aspekty dotyczące przetwarzania danych osobowych w procesie rekrutacji

The subject of this article is to identify good practices, occurring risks and irregularities in the processing of personal data of job candidates as part of the employee recruitment process and to develop principles for verifying the correctness of the functioning of this process as a tool supporting the audit task. The recruitment process and the associated staff turnover is one of the key areas where the employer should ensure the organizational and legal security of the processed personal data, which undeniably affects its professionalism and the perception of external customers, such as job candidates. The uniformity of the legality of this process is influenced by both national labor laws and EU regulations. The key principles to ensure the compliance of processed data with the requirements of labor laws in the recruitment process are the principle of data minimization and storage limitation, as well as the processing of personal data of job candidates by persons only authorized by the employer, who have committed themselves to the principles of confidentiality and impartiality. The above is also related to the implementation of the controller’s information obligations to job candidates and their correlation with the actual processing of personal data by the controller and its authorized personnel.

Analysis of the utilization of inspectorate audit report provincial and regency/city inspectorates by BPK representative of North Sulawesi Province

This study aims to determine the implementation of the use of the Provincial and Regency/City Inspectorate Audit Report (LHP) by the BPK Representative of North Sulawesi Province in the period of 2021 to 2023, obstacles and efforts to overcome obstacles. This research uses a qualitative method. Data collection with unstructured observations, in-depth interviews, and documentation. The results of the study show that the LHP of the Regional Inspectorate has not fully made an active contribution to the preparation of the program, implementation, and control of audit activities by the BPK Representative of North Sulawesi Province. The LHP of the Regional Inspectorate has contributed when the BPK Audit Team carried out the audit task. The BPK Audit Team is active in requesting the Regional Inspectorate's LHP and the Regional Inspectorate's Annual Supervision Work Program (PKPT) during the implementation of the audit task used in examining problems and recommendations along with not continuing the Regional Inspectorate LHP. The results of the BPK Audit Team's study are used in the preparation of the business risk matrix, fraud risk matrix, sample selection strategy and preparation of additional/alternative procedures if necessary. The obstacle to the use of the Regional Inspectorate LHP for BPK is the lack of understanding of the obligation of the Regional Inspectorate to actively submit its LHP to the BPK, the lack of timely receipt of the Regional Inspectorate LHP by the BPK Audit Team so that an in-depth evaluation cannot be carried out, the scope of the Regional Inspectorate LHP object is less relevant to the needs of the Audit Team. The efforts that have been made by BPK are that the BPK Audit Team has made a written request for the list of LHPs along with the LHP of the Regional Inspectorate and the Badiklat PKN BPK RI has opened opportunities to improve the competence of Regional Inspectorate inspectors with training for Regional Inspectorate inspectors.

PENGARUH AUDIT KNOWLEDGE, AUDIT EXPERIENCE, SELF-EFFICACY TERHADAP AUDIT JUDGEMENT: PERAN KOMPLEKSITAS TUGAS SEBAGAI VARIABEL MODERATING

This study aims to examine the effect of Audit Knowledge, Audit Experience, Self-Efficacy on Audit Judgement with Job Complexity as an Moderating Variable. This type of research is quantitative research. The data used in this study is primary data. The population in this study are all auditors at Public Accounting Firms in the City of Jakarta and the sample of this study are auditors who had worked for more than one year and had carried out audit tasks. Data was obtained from 155 respondents. The analysis used is a multiple linear regression analysis method. The results of the analysis show that Audit Knowledge, Audit Experience, Self-efficacy have a positive effect on Audit Judgement. Job complexity weakens the influence between Audit Knowledge and Self-efficacy on Audit Judgement. However, Job Complexity strengthens the influence of Audit Experience on Audit Judgement.

Artificial intelligence co-piloted auditing

This paper proposes the concept of artificial intelligence co-piloted auditing, emphasizing the collaborative potential of auditors and foundation models in the auditing domain. The paper discusses the future relationship and interactions of human auditors and AI, imagining an audit setup where auditors’ capabilities are enhanced through artificial intelligence across a variety of audit tasks. To exemplify the potential of this co-piloted audit paradigm, we illustrate a systematic fine-tuning approach to foundation models using Chain-of-Thought prompting. This study showcases how foundation models can work as collaborators flexibly with auditors, enabling the model to accurately identify transactions from instructions. This study provides a detailed description of the formulated prompt protocols and the corresponding responses generated by ChatGPT, ensuring reproducibility. We envision this work as an initial step towards the widespread implementation of co-piloted auditing, paving the way for more efficient, accurate, and insightful audit procedures.

Enhancing auditors’ professional skepticism through nudges: an eye-tracking experiment

This article studies whether nudges – that is, gentle alterations of people’s behaviour – increase audit quality. Although the utility of nudges is well-established in behavioural sciences, their applicability and efficacy have been less studied in accounting and auditing. To bridge this knowledge gap, the study extends nudge theory to financial audits, offering experimental evidence of the impact of social norms and justification nudges on auditor behaviour. A factorial 2 × 2 between-subject experiment (social norms and justification) shows that nudges amplify professional skepticism, a critical indicator of audit quality. A follow-up eye-tracking experiment involving an audit task identifies the underlying cognitive mechanism of this effect; nudges heighten auditors’ visual attention to pertinent information, thereby refining their evaluations of audit evidence and increasing their professional skepticism.

MODERASI AUDITOR PROFESSIONAL SCEPTICISMPADA KOMPLEKSITAS TUGAS AUDIT, LOCUS OF CONTROLDAN KUALITAS AUDIT

Audit quality is the result achieved from financial statements that are presented fairly, all material matters or provide a true picture according to the financial reporting framework in order to increase the trust of users of financial statements. The purpose of this study is to investigate whether the complexity of the audit task, and locus of control can affect audit quality and auditor professional scepticism can moderate the effect of audit task complexity, and locus of control on audit quality. Type of research is quantitative research, in this study the data collection method is the distribution of questionnaires via g-form. The data collected in this study are the results of questionnaires distributed to auditors at public accounting firms in Indonesia. The results of this study audit task complexity and locus of control have a positive effect on audit quality, auditor professional scepticism cannot moderate the effect of audit task complexity and locus of control on audit quality.Keyword: Audit Quality, Audit Task Complexity, Locus of Control, and AuditorProfessional Scepticism.

Positive Impact of Audit Quality on Sharia Banks

Sharia banking can thrive by using the company's financial success, which is closely aligned with the audit process. The purpose of the audit task is to acquire evidence and assess it impartially to determine if the audit criteria are satisfied, so ensuring a high-quality audit and preventing fraud. Subsequently, a study was conducted to ascertain the influence of ethical factors and auditor expertise on the level of audit excellence in the financial statements of Islamic banks in Banda Aceh. The research employed a quantitative approach, utilizing the multiple linear regression model for data analysis. The primary data was collected through a questionnaire and processed using IBM Statistics to test statistical hypotheses. The study findings indicate that both ethical factors and audit experience have a favorable influence on the quality of audits conducted by Islamic institutions.

Do perfectionism types matter? Auditors' ability to detect fraud and the moderating role of time budget pressure: evidence from Egypt

Purpose This study aims to examine how auditors' perfectionism types and time budget pressure (TBP) influence fraud detection in Egypt. Design/methodology/approach We utilize a mixed-methods approach, combining questionnaires with an experimental case study in a within-subjects quasi-experimental design. Based on Almost Perfect Scale-Revised (APS-R), perfectionism traits were categorized using cluster analysis into adaptive, maladaptive, and non-perfectionism. Auditors from Egyptian firms performed fraud-related tasks with TBP manipulated. Findings Auditors' perfectionism types significantly influence fraud detection capabilities. Adaptive perfectionists demonstrated higher relevance in identifying fraud factors and excelled in accurately assessing fraud risks and audit procedures planning. Conversely, maladaptive perfectionists identified more but less relevant factors. TBP notably impacted maladaptive and non-perfectionist auditors' planning quality, unlike adaptive perfectionists, who showed resilience. Practical implications Findings provide insights to audit firms to bolster audit quality through team formations and task assignments, harnessing the strengths of adaptive and maladaptive perfectionists. Regulatory entities are positioned to integrate safeguards that recognize auditor capabilities and vulnerabilities, particularly under TBP. Considering psychological assessments in auditor selection and development assures alignment of traits with audit tasks, enhancing audit quality. Originality/value This study breaks new ground in the effects of auditor perfectionism on fraud detection, considering situational factors like TBP in emerging markets. Through a mixed-methods approach and cluster analysis, it reveals how different perfectionism traits influence audit effectiveness, offering insights not previously considered in auditing literature and suggesting practical applications for enhancing fraud detection in similar contexts.

Professional Scepticism, Auditor Experience, and Self-efficacy on Audit Judgement

In the performance of all audit tasks, auditors must adhere to pre-determined standards. In Indonesia, there have been cases of fraud related to auditors, including the case of fraud at SNP Finance in 2018. Such situations can arise due to incorrect audit judgment. Factors that may impact audit judgment include professional skepticism, auditor experience, and self-efficacy. A quantitative approach is used in this research. The study population consisted of auditors at public accountant firms in Bandar Lampung. During data collection, questionnaires were administered directly to external auditors. The data were analyzed using SmartPLS. The study revealed new evidence suggesting that professional skepticism only has a limited effect on aiding auditors in their audit judgments, even when combined with extensive auditor experience. This limitation can occur when the auditor has a short working period. Conversely, self-efficacy has been shown as a beneficial factor in helping auditors make well-informed audit decisions. Keywords: professional skepticism, auditor experience, self-efficacy, audit judgment

"OʻZBEKISTONDA SOLIQ TEKSHIRUVI VAZIFALARI VA PRINSIPLARI HAMDA QONUNCHILIKNING RIVOJLANISH TENDENSIYALARI "

"In this article, the author analyzed the categories related to the institute of tax audit, in particular the objectives and principles of tax audit. The purpose of this study is to develop proposals and conclusions aimed at revealing the essence of the tax audit as a result of the study. In order to prevent the illegal interference of tax authorities in the activities of taxpayers, it is relevant to clearly define in the tax legislation the legal foundations of the tasks and principles of conducting tax audits. The tasks of the tax audit follow the objectives and functions of the tax authorities, and the main issue is to ensure payments to the state budget without negatively affecting the morale of taxpayers. A comparative legal analysis of the legislation of national and foreign states has been carried out, and proposals have been developed on the task, principles, and development of legislation on tax audit in national legislation. These proposals are used in scientific activities, lawmaking, law enforcement practice, interpretation of tax legislation, and improvement of national legislation. During these inspections, it is relevant to clearly define the rights and obligations in the relationship between tax authorities and taxpayers, as well as to consolidate the basic principles. "

Revitalizing Government Internal Auditor Apparatus in the Era of Industry 4.0

The purpose of this paper is to propose a transformation strategy which is the focus of the Government Internal Supervisory Apparatus (APIP) on the impact of Industry 4.0 on the internal audit function and the development of an improvement plan for the Internal Auditor SPIP level . can be applied to address audit challenges in the Industry 4.0 era. Due to the impact of Industry 4.0 on audit activities, APIP is required to be able and quickly adapt to technological advances. The adoption of Industry 4.0 technology positions APIP as an activity analyst who can identify errors in business processes and devise solutions to fix them. As a consequence, an APIP transformation strategy is needed to face the challenges of Industry 4.0. The author suggests that the APIP transformation strategy to increase the SPIP level must include: (1) the use of data collection equipment, such as sensors and software, to collect data; (2) inclusion of characteristics that characterize APIP's ability to complete audit tasks, including cognitive abilities, problem solving abilities, communication skills, internal control systems, and agility; and (3) applying a professional, millennial, innovative approach that prioritizes integrity, objectivity and professionalism while still embracing the possibility of failure.

Digital engineering audit management strategy based on machine learning combined with wireless communication network

In response to the evolving landscape of the modern era, the requirements for engineering audit have undergone significant changes. To achieve efficient audit tasks and obtain accurate and reliable results, the integration of machine learning and wireless network technology has become essential, leading to the emergence of digital and information-based audit modes. This paper focuses on the development of a digital audit system that combines engineering audit management fusion with machine learning and wireless network technology. Such an approach reflects the dynamic shift in internal audit functions and objectives, providing clear guidelines for the future of digital audit management. By harnessing the power of machine learning and wireless networks, the digital audit system effectively addresses challenges associated with data management, sharing, exchange, and security during the audit process. Through seamless integration, it enables comprehensive electronic and digital management of internal and audit business processes. This research explores the platform’s functionalities and its potential application, using actual audit data for analysis. The proposed digital audit system showcases superior real-time data querying performance, heightened accuracy in checks, and enhanced retrieval capabilities. The simulation results validate the system’s efficacy, highlighting its ability to deliver true and dependable audit outcomes. By embracing digital transformation, the engineering audit field can harness the potential of cutting-edge technologies, thus paving the way for a more efficient, reliable, and future-ready approach to audit management.

Named Entity Recognition in Government Audit Texts Based on ChineseBERT and Character-Word Fusion

Named entity recognition of government audit text is a key task of intelligent auditing. Aiming at the problems of scarcity of corpus in the field of governmental auditing, insufficient utilization of traditional character vector word-level information features, and insufficient capturing of auditing entity features, this study builds its own dataset in the field of auditing and proposes the model CW-CBGC for recognizing named entities in governmental auditing text based on ChineseBERT and character-word fusion. First, the ChineseBERT pre-training model is used to extract the character vector that integrates the features of glyph and pinyin, combining with word vectors dynamically constructed by the BERT pre-training model; then, the sequences of character-word fusion vectors are input into the bi-directional gated recurrent neural network (BiGRU) to learn the textual features. Finally, the global optimal sequence label is generated by Conditional Random Field (CRF), and the GHM classification loss function is used in the model training to solve the problem of error evaluation under the conditions of noisy entities and unbalanced number of entities. The F1 value of this study’s model on the audit dataset is 97.23%, which is 3.64% higher than the baseline model’s F1 value; the F1 value of the model on the public dataset Resume is 96.26%, which is 0.73–2.78% higher than the mainstream model. The experimental results show that the model proposed in this paper can effectively recognize the entities in government audit texts and has certain generalization ability.

Аудит інтелектуальної власності як складова процесу управління портфелем об’єктів інтелектуальної власності організації

The aim of the article is to define the essence of the process of auditing the intellectual property of an organization and to study its features in the context of business development. It is determined that the main purpose of an intellectual property audit is to collect information about what intellectual property (IP) has been created or acquired and what steps have been taken to protect it. It is also necessary to analyze the procedures for documenting and protecting intellectual property used in the enterprise. The main tasks of the intellectual property audit are noted as follows: inventory of all issued patents and patent applications pending consideration; cataloging license agreements; analysis of the consistency of the intellectual property strategy with the corporate strategy of the enterprise; cataloging documents related to previous litigation, disputes, analysis, or research; review of intellectual objects of property (IPO) portfolio management plans and the company’s policy on intellectual property strategy. The carried out research allowed to conclude that the implementation of the IP audit allows the management of the organization to determine the existing intellectual products, submitted applications and already received IPO, their commercial potential in the context of the organization’s development strategy. In addition, in accordance with the development strategy, the audit of the organization’s IPO allows you to determine the need to obtain external IPOs, as well as to review the strategy for managing the IPO portfolio. Prospects for further research in this direction are the development and improvement of methodological instruments for the process of auditing objects of intellectual property of an organization as a component of the process of managing the IPO portfolio.

СТАН ТА РОЗВИТОК ІТ-АУДИТУ В УМОВАХ ЦИФРОВОЇ ЕКОНОМІКИ

The article examines issues of the state and directions of IT audit development. The relevance of the topic lies in the fact that the conditions of the digital economy are characterized by the rapid pace of changes in the field of information technologies, which requires IT audit to constantly develop and adapt to new challenges. The purpose of the article is to generalize views on the interpretation of the essence of IT audit, to characterize the tasks, types, standards in the field of IT audit, to justify the main stages of IT audit, to generalize the tools of IT audit, to determine the main directions of the development of IT audit in the conditions of the digital economy. Methodical approaches to the essence of IT audit by scientists and practitioners are analyzed in the article. Studies have shown that some specialists define IT audit as a type of audit, others propose to understand and apply it only as an intermediate stage of financial audit, and some - as a separate IT consulting service. The tasks of IT audit, its types and standards are described. The main types of audit evidence, methods and tools, as well as sources of information that can be used when conducting an IT audit are analyzed. The main stages of an IT audit are highlighted: preliminary research of the IT audit object and internal audit planning; IT audit and analysis; reporting on IT audit results; tracking the results of implementation of audit recommendations. The recommended process of organizing an internal IT audit at the enterprise. The IT audit toolkit is summarized, namely: IT audit goals; the necessity of its implementation; objects of IT audit; equipment and software used in IT audit, etc. Based on the conducted research, the advantages of conducting an IT audit are summarized. The following areas of IT audit development in the conditions of the digital economy have been determined: digital transformation; cyber security; data analytics; cloud technologies; automation; regulatory requirements. The development of IT audit is aimed at improving its methods and approaches, which would meet the modern requirements of business and technology, ensuring the reliability and efficiency of information systems of enterprises.

The effect of audit team and audit committee performance on the quality of audit

The study investigates the impact of audit committee performance (ACP) and audit team (AT) characteristics on audit quality. The research problem emerges when we question whether the characteristics of audit committees (ACs) impact audit quality. Additionally, an inquiry arises regarding the influence of the characteristics of the audit (CAT) team within the audit offices of Iraqi audit firms (AFs) on the audit quality. ACP characteristics include the number of members, independent members, financial and accounting experience of committee members, meeting frequency, and the presentation of financial annual reports (FARs) and auditor’s reports. CAT encompasses the team’s number, experience and industrial specialization (EIS), auditor’s judgment, and time required for audit tasks. We relied on a study (Husain, 2020; Alderman & Jollineau, 2020; Al-taee & Flayyih, 2022) in the study model design. The sample comprises 82 firms from the Iraq Stock Exchange with disclosed financial reports (2021–2022). The results reveal that the presentation of FARs and the industrial specialization and experience of CAT significantly influence audit quality, while other variables show no significant impact.

Dampak Pandemi Covid-19 Terhadap Aktivitas Pengauditan

This study investigates the impact of the COVID-19 pandemic on the auditing activities of Indonesian public companies. During a pandemic auditing activities are predicted to affect the auditor's opinion regarding going concern, audit delay, audit opinion, and the decision to use Big-4 versus non-Big-4 auditors. A sample was selected from tourism and manufacturing companies from 2018-2021 due to the severe impact of COVID-19 on these two sectors. The results of the quantitative analysis show that: 1) Auditors issued more going-concern opinions during the Covid-19 pandemic. 2) Auditors spent more time completing auditing tasks during the Covid-19 pandemic. 3) The number of qualified opinions was relatively similar in the pre-pandemic period and during the Covid-19 pandemic. 4) Clients using Big-4 KAPs decreased during the pandemic. In addition, the content analysis shows: 1) More going concern audit opinions should have been issued during the pandemic than currently available. Some auditors seem to deliberately not mention explicitly the impact of Covid 19 on the continuity of the company. 2) Only a small number of companies disclose the impact of Covid 19 on the company's financial performance.

Управление качеством аудита бухгалтерской отчетности в соответствии с требованиями МСА

The article discusses the requirements of new international standards for managing the quality of financial audit in an audit organization and when performing an audit task.