Audit Work Research Articles

The Role of Professional Ethics, Independence, and Work Experience in Auditor Performance

The objective of this study is to examine the impact of professional ethics, independence, and work experience on the performance of auditors at Regional Office 2 of PT Bank Negara Indonesia (Persero) Tbk in West Sumatra, Riau, and Riau Islands. This research is quantitative research with the intention to test models that reveal the relationship between research constructs, namely professional ethics, independence, work experience, and auditor performance. Interviews and questionnaires distributed to bank auditors using complete sampling approaches were utilized to gather data for this study. The employed analytical technique is multiple linear regression. Those findings demonstrated that (1) There is a relationship between professional ethics and auditor performance that is both good and significant; (2) Independence has a positive and significant influence on auditor performance; (3) A favorable and considerable influence on auditor performance is exerted by the auditor's previous work experience; and (4) Professional ethics, independence, and work experience together have a significant influence on auditor performance. This study has a number of implications is the importance of maintaining professional ethics, independence, and improving auditors' work experience to improve the quality of performance in conducting audits

Research on Audit Problems and Countermeasures of "Special Fund for Nutrition Improvement Plan" of Y Audit Bureau

The implementation of the nutrition improvement plan for rural compulsory education students is an important policy measure for the state to promote educational equity and improve the nutritional status of students in poor areas. The audit of special funds for nutrition improvement program can test the implementation effect of the policy, and standardize the allocation, management and use of funds in education finance and other departments.Y Audit Bureau is the government agency in charge of auditing of Y Municipal People's Government. In September 2023, Y Audit Bureau led the audit of special funds for the nutrition improvement Plan for rural compulsory education students, focusing on policy implementation, fund distribution and use, food safety, etc., promoting the implementation of the nutrition improvement plan policy through audit supervision, and safeguarding the vital interests of rural compulsory education students. Taking Y Audit Bureau as an example, this paper summarizes and refines the key points of the audit work of the nutrition improvement plan, in order to provide reference for relevant auditors and management departments.

Peranan Sistem Pengawasan Keuangan Desa Dalam Mendukung Efektivitas Audit

This study aims to determine the role of the Village Financial Supervision System in supporting audit effectiveness at the Inspektorat Daerah Kabupaten Banyumas. This research uses case study qualitative research. The population in this study are 43 users of the Village Financial Supervision System (Siswaskeudes) then a sample of 12 people take using purposive sampling method. Data analysis using qualitative data analysis is the process of selecting, sorting and organizing data that researchers have collect from several sources including field notes, interviews, observations and documentation and the research theory that researchers use is UTAUT and Luder Contigency Model. The results of this study indicate that the role of the Siswaskeudes Application in supporting audit effectiveness at the Regional Inspectorate of Banyumas Regency is to determine priority villages for audits (based on risk analysis), Produce Audit Work Programs and Audit Working Papers automatically and standardized, Audit becomes effective and efficient, easy access to village government financial reports and formulate problem maps as a basis for further action. The driving and inhibiting factors in the use of the Siswaskeudes Application in supporting audit effectiveness at the Regional Inspectorate of Banyumas Regency using the Luder Contigency Model, The stimulant in using the Siswaskeudes Application is the number of villages that must supervise are 74,961 villages but the number of APIP is only 9,124 people. Social Structural Supporting Factors from the user's side, obstacles in Implementation from the user's side of the Siswaskeudes Application including.

Determinants of financial statement fraud: the perspective of pentagon fraud theory (evidence on Islamic banking companies in Indonesia)

Purpose The purpose of this study was to determine the determinants of financial statement fraud: the perspective of pentagon fraud theory. Design/methodology/approach This study used quantitative methods with an explanatory research design by applying secondary data on Islamic banking companies listed on the Indonesia Stock Exchange (IDX). Findings External pressure affects financial statement fraud, ineffective monitoring affects financial statement fraud, external auditor quality affects financial statement fraud, change in auditor affects financial statement fraud, frequent number of CEO’s picture affects financial statement fraud, external pressure affects firm size, ineffective monitoring affects firm size, external auditor quality affects firm size, change in auditor affects firm size, frequent number of CEO’s picture affects firm size, firm size affects financial statement fraud, firm size mediates the relationship between external pressure on financial statement fraud, firm size mediates the relationship between ineffective monitoring on financial statement fraud, firm size mediates the relationship between external auditor quality and financial statement fraud, firm size mediates the relationship between change in auditor and financial statement fraud, firm size mediates the relationship between frequent number of CEO’s picture and financial statement fraud. Research limitations/implications The limitations of this research were found during the research process and can be used as input for further research and related parties in conducting the research to obtain better research results. The limitations of this study are as follows: this study only focused on Islamic banking, so it cannot be generalized to other sectors. Besides, this study only tested five independent variables, one dependent variable and one mediating variable. Practical implications For external auditors, financial statement fraud by management might be caused by many factors and is a social as well as an economic problem that must be addressed immediately. Therefore, in carrying out the duties and roles as an external auditor, they must have an attitude of independence (not taking sides) in the mental attitude that must be maintained by the auditor related to the assignment. Auditors must have sufficient technical expertise and training as auditors. In carrying out the audit, the auditor should use their professional skills in responding carefully and thoroughly. Moreover, in carrying out audit work, the auditor must have a plan, must know adequate internal control and obtain sufficiently competent audit evidence. Originality/value To the best of the authors’ knowledge, very few studies in Indonesia have applied the Beneish model. There is only one study that implemented the Beneish model, and the study examined only a few companies listed on the IDX. The findings of the present study have important implications not only for banks but also for users of financial statement accounts in Indonesia, especially for investors, auditors, regulators, taxation and other state authorities.

Managing Earnings Management: A Framework of Standards, Governance and Ethics

Manipulating earnings to superficially represent financial reports is a flagrant violation of management's assertions about the fairness of financial statements. Therefore, auditors have developed objectives to counter management assertions to ensure that financial reporting is credible and free from earnings management practices (EMP).  This study examines the role of an integrated system of auditing standards and corporate governance surrounded by a framework of ethical values and principles in reducing EMP through the use of a sequential explanatory mixed method. Through this approach, the results obtained from 131 surveys were used as input for the interviews to add a more in-depth understanding of this phenomenon and find fruitful ways to reduce EMP. The results revealed that management's assertion on “accuracy, valuation and allocation” was most involved in EMP, thus, requiring a high degree of exercising professional skepticism. While “objectivity” was the ethical principle most respected by auditors, the results showed that the most serious threat to auditor independence that poses a challenge to the audit profession is the threat of intimidation. Moreover, the study showed that exercising the supervisory role in holding management accountable and following up on the work of auditors to uncover EMP requires real independence of the audit committee from the executive members. The findings have implications for economic policymakers in emerging countries where the sustainability of the audit profession and public companies is critical to economic development and stability. The study provides insights and guidance in mapping corporate governance for the future and benefiting from the experiences of developed countries as outlined in the study’s conclusion.

Is auditor financial decision-making affected by prior audit report information? A behavioral approach

The role of financial experts is to provide their professional judgments with an opinion included in the financial reports after reviewing an entity's financial information, following a specific audit process. We investigate whether confirmation bias (through prior audit opinions) occurs among auditors during the audit process and decision-making, and whether experience mitigates this effect. A total of 175 non-experienced auditors run a 2x4 between-subjects experiment (experiment 1) studying how financial information (IV with two levels: negative and neutral/positive) and previous audit report (IV with four levels: absence, negative, moderately negative, and positive) might influence the issuance of the subsequent decision-making (DV). In addition, a total of 32 junior level 1 auditors (less than one year of experience), 31 junior level 2 auditors (up to 3 years of experience) and 20 senior auditors (more than 3 years of experience) run a 2 × 4 × 3 between-subjects experiment (experiment 2) analyzing if experience (IV with three levels of experience: less than one-year, between one and three years, more than three years) mitigates this effect (experiment 2). Results confirm that the previous-year audit report affect auditors' current assessment, showing that positive and negative prior opinions persuade auditors when suggesting the next one. This finding is relevant as auditors' opinions could be conditioned by prior opinions instead of their own expertise. Our evidence also suggests that professional experience mitigates this influence on auditors' assessments. Consequently, this study has relevant implications for partners, audit professionals and audit firm recruiters. A general implication is that auditor training courses should reinforce the auditor's own expertise and criteria based on the deep analysis of financial and economic data rather than on the work of previous auditors.

FAKTOR- FAKTOR PENENTU ADANYA AUDIT DELAY

Audit delay is the length of time needed by an independent auditor to complete his audit work, measured from the closing date of the financial year to the date stated by the independent auditor report. This research aims to determine the effect profitability, solvency, company size, audit committee and auditor turnover on audit delay. The population in this research is banking companies on the Indonesia Stock Exchange for the 2020-2022 period. The sampling method used was a purposive sampling method so that a sample of 44 banking companies was obtained. The analysis technique uses multiple linear regression analysis techniques. The research results show that the company size and audit committee have a negative effect on audit delay. Meanwhile profitability, solvency and Changing auditors has no effect on audit delay.

Intelligent Information Audit System Construction: Integration of Big Data and Artificial Intelligence Technologies

Big data and artificial intelligence technologies have become a key force driving change in all industries. As an important part of this trend, the intelligent information audit system can effectively improve the efficiency and accuracy of the audit work by integrating the big data technology and the AI algorithm. This paper first analyzes the development of the information audit system, and the scholars research, from the core elements of intelligent information audit system and the main research content, to discuss how to build an efficient and reliable intelligent information audit system, and put forward some suggestions, aims to promote the big data and artificial intelligence technology in the application of information audit system, improve the audit efficiency, promote the development of audit.

Audit Risks and Prevention Strategies of Corporate Accounting Based on Computer Technology

Business owners use professional auditors to do audits on their companies because auditors are essential partners in the growth of enterprises. Auditors may improve their ability to organize their audit work sensibly and provide accurate audit opinions if they effectively identify the risks associated with the audit. In this day and age of big data and the World Wide Web, businesses produce a significant quantity of data through the normal course of their activities. Using data mining techniques, deep learning, neural networks, and other developing technologies to extract excellent auditing data from the massive amounts of data produced by audited businesses is a significant challenge for auditors. As a result, the purpose of this research is to use computer data mining methods in order to develop an audit risk model. This model will give an example for auditors to use when doing big data analysis and will mine important data, which will ultimately result in an improvement in the audit process's efficiency as well as its correctness.

The Impact of Transfer Pricing on the Company’s Image. Implications in Audit Work

In an economy strongly marked by globalisation, transfer pricing is at the top of the agenda of taxpayers, tax authorities and regulatory bodies, with its influence manifested primarily in the fiscal area, respectively in the correct determination and proper allocation of the corporate tax base between different jurisdictions or between companies operating within the same jurisdiction. However, transfer pricing transcends the fiscal problematic and significantly influences other aspects of a company's life, one of which is the image reflected in the annual financial statements, including cash flows or financial performance indicators, and through their analysis, the investment decisions of potential users of accounting information. Transfer pricing is, therefore, also a reference point in the audit work carried out at the level of companies part of national or multinational groups and involved in significant intra-group transactions, as compliance or noncompliance with the arm’s length principle directly influences the way in which different elements of income, expenses, results, assets, equity or liabilities are reflected or not in accordance with the true and fair view principle and thus, ultimately, the audit opinion. National and international auditing standards provide recommendations and guidance on how to deal with transfer pricing issues as part of audit engagements, reflecting a continuing concern by professional bodies to develop best practices in this area.

A Study on the Application of Big Data Auditing in Commercial Banks

The rapid development of network and information technology has brought the auditing work into the era of networkization. 5G, big data, cloud computing, blockchain, artificial intelligence and a series of new technologies have emerged, which have brought brand-new changes and enhancements for banks in China, and at the same time brought new demands for the auditing work of commercial banks. At the same time, we are required to carry out comprehensive optimization and upgrading of the audit work through the application of big data, and to promote the big data of the audit work. Therefore, this thesis focuses on an in-depth analysis of the meaning and technical characteristics of big data, and explores the specific use of big data in commercial banks.

The Influence of Work Experience and Audit Expertise on Audit Quality in the Public Sector: The Moderating Effect of Professional Qualification

Purpose: This study analyses the degree to which audit experience and expertise affect audit quality through the moderating effect of Professional Qualification. 
 Design/Methodology/Approach: The study used a survey research design from a sample of about 400 audit staff of the Ghana Audit Service. 
 A conceptual framework was developed by adopting the framework for Audit Quality (2014) instituted by the International Auditing and Assurance Board (IAASB) and tested using PLS-SEM method of analysis.
 Findings: The study found that in the Public Sector, both audit expertise and experience influence audit quality.
 Furthermore, it was also established that professional qualification did not moderate the relationships between work experience, audit expertise and audit quality. 
 Professional qualification in audit quality was also found to be significant in the study.
 Implications/Research Limitation: The results of the study extend and add to the growing empirical research studies on audit expertise, work experience, and audit quality, as well as in the area of public sector auditing. However, the study was limited to only public sector auditors working with Ghana's Supreme Audit Institution (SAI), the Audit Service.
 Practical Implication: The study results have the prospect of encouraging top management to intensify the need to consciously institute and implement strategies that incorporate people with the requisite audit expertise and experience into the public sector to maximise and enhance audit quality.
 Originality/Value: This study is the first from a public sector perspective that directly examines how audit quality is influenced by audit expertise and experience and how professional qualification moderates this effect.
 Nonetheless, this research is distinct from other empirical studies on the basis of the method used and the context of the study.

PENGARUH PENGALAMAN KERJA AUDITOR, AKUNTABILITAS DAN PROFESIONALISME TERHADAP KUALITAS AUDIT (STUDI EMPIRIS PADA KANTOR AKUNTAN PUBLIK DI WILAYAH KOTA BEKASI DAN DKI JAKARTA)

This research was conducted with the aim of measuring the influence of auditor work experience, accountability and professionalism on audit quality. The samples used in this research were auditors who worked at 5 public accounting firms in the Bekasi City area and 5 public accounting firms in the DKI Jakarta area. The number of respondents in this study was 100 respondents. The sampling technique used in this research was purposive sampling. The data collection method used in this research is a questionnaire method. The questionnaire was processed using SPPS version 26. The results of this study show that the auditor's work experience has no effect on audit quality, accountability has a positive effect on audit quality, professionalism has a positive effect on audit quality.

Implications of Divided Responsibility in Audits Involving Component Auditors

SUMMARY This article summarizes and reflects on the practical implications of the published study “Are Referred-To Auditors Associated with Lower Quality and Efficiency?” (Krishnan and Li 2023). Audits of companies frequently involve the participation of auditors (who audit components of clients) other than the lead auditor that signs the audit report. In general, the work of these component auditors is assimilated in the lead auditor’s report. However, uniquely in the United States, the lead auditor sometimes formally divides responsibility with the component auditor and refers to the component auditor’s work in its audit report. These component auditors are “referred-to” auditors. Krishnan and Li (2023) examine factors associated with the use of referred-to auditors as well as the associations between the use of referred-to auditors and measures of audit quality and audit efficiency.

The Influence Of Public Information Systems On Auditors' Performance At KAP M. Lian Dalimunthe Dan Rekan

The rapid development of public information, the complexity of the nature of audit assignments, and the demands on the quality of financial statement audits require auditors to work in an audit team that is capable of working collaboratively efficiently, and effectively. One way to achieve this is through the empowerment of all public information system-based devices and electronic technology. This research presents test results of the influence of public information systems on auditor performance. The research was conducted by distributing questionnaires to auditors at KAP M. Lian Dalimunthe dan Rekan. The research results show that the information system of the public has a significant positive influence on auditor performance. Results research also found that perceived ease of use and perception of usefulness have a significant positive impact on the use of information systems public among auditors, where the perception of ease of use also influences the perception of usefulness held by auditors in system use. The complexity of the auditor's work also influences it positive implementation public information system technology by auditors.

Application of Big Data Technology in Audit

In the new era of rapid development of big data technology, the three key points of high-quality development of auditing are auditing talents, auditing rule of law and auditing technology. In the traditional audit process, auditors focus on professional judgment and professional competence, make audit plans, implement audit procedures and draw audit conclusions. However, there are many problems in traditional audit work, such as difficulty in obtaining sufficient external information and inefficiency in analyzing audit evidence. Therefore, auditors apply big data technology to audit work to solve various problems and put forward corresponding safeguard measures.

Experience, Independence, Professional Commitment of Auditors, and Audit Quality (Study at the Sidoarjo Regency Inspectorate)

This research aims to investigate the impact of audit experience, auditor independence, and professional commitment on audit quality at the Sidoarjo Regency Inspectorate. The research methodology employed in this study is descriptive quantitative. The primary data for this research were collected through a questionnaire, and the sampling technique used was saturated sampling. The sample size for this study consisted of 34 auditors or respondents. Prior to analysis, the collected data underwent validity and reliability tests. Multiple linear regression analysis was employed to analyze the data. The hypothesis testing was conducted using SPSS. The findings of this study indicate that both auditor's work experience and professional commitment significantly influence audit quality, whereas auditor independence does not have a significant impact on audit quality.

The Effect of Recurrent Deficiencies in PCAOB Inspections on Audit Quality within the Big Four Audit Firms in South Africa

The research aims to examine PCAOB inspection deficiencies' impact on audit quality in South Africa's Big Four, highlighting challenges in maintaining high standards across Financial Statements (FS), Internal Control Over Financial Reporting audits (ICFR), Auditor Ethics, Professional Conduct, and Due Professional Care. The study analyzes South African Big Four firms' audit work and its impact on audit quality, focusing on four PCAOB inspection deficiencies: FS and (ICFR) audits, Auditor Ethics/Independence, Professional Conduct, and Due Professional Care and Scepticism. The study used a mixed-method (qualitative and quantitative) case study approach. A self-administered questionnaire was used to collect primary data. Secondary data was collected from existing literature and inspection reports. The test results indicate that the identified deficiencies significantly influence audit quality, establishing a strong connection between these deficiencies and the audit quality of Big Four firms. The findings suggest that recurrent deficiencies in PCAOB inspections have a negative effect on audit quality within the Big Four Audit Firms in South Africa, concluding that deficiencies in these variables (Integrated Audits of FS and ICFR, Auditor Ethics and Independence, Professional Misconduct, and Due Professional Care and Professional Scepticism) can adversely affect the overall audit quality of the Big Four firms.

POSITIVE AND NEGATIVE IMPACTS OF USING THE ATLAS AUDIT APPLICATION IN SUPPORTING THE WORK OF AUDITORS IN KAP “X”

The influence of technological changes that exist today has an impact on various areas of human life. Until various terms are known, such as remote auditing and Computer-Aided Audit Techniques (CAAT). The ATLAS audit application is a type of digital transformation implementation in the auditing industry and serves as an illustration of the development of computer-aided audit methodologies. The purpose of this study was to ascertain the effects of employing the ATLAS program to assist auditors in KAP "X" work. Based on theoretical studies, interview findings, questionnaire distribution, and literacy studies, the study technique employed is descriptive with a qualitative approach. Following that, data on the outcomes of research, interviews, questionnaires, and studies on literacy are gathered, examined, assessed, and conclusions are drawn. This study obtained the results that the ATLAS audit application has a positive impact in the form of work efficiency, time effectiveness in providing the necessary information output and accuracy to audit procedures that are missed, as well as low cost and easy to use. The questionnaire measurement found that the impact of using the ATLAS audit application was 68.8%. However, there is a negative impact from the implementation of the ATLAS audit application, which is more temporal or temporary. Based on this discussion, it can be concluded that the ATLAS audit application can have a positive impact in supporting the work of auditors.

Formulation of Development Strategy of Public Accountant, A Case on KAP D & BCS Semarang

This study aims to formulate an appropriate strategy for developing KAP D BCS using the Quantitative Strategic Planning Matrix (QSPM). The quantitative data in the form of the number of Public Accountants (AP) and Public Accounting Firms (KAP) obtained from the Directory of Public Accounting Firms and Public Accountants during 2010–2022, as well as literature studies. The qualitative data were obtained through observation, interview, and questionnaires. The data was analyzed using EFE Matrix, IFE Matrix, SWOT Matrix Diagram, TOWS Matrix, and QSPM. The analysis of the IFE and EFE matrixes respectively resulted in the total score of 0.63 and 0.08 which indicate aggressive strategy in particularly development strategy in the IE matrix. The assessment using QSPM ended up with innovation strategy that provides the highest total attractiveness value. The KAP can utilize information technology to support the process in providing assurance and non-assurance services, such as digitizing audit working papers (KKP), audit programs and procedures, training and library of the audit materials enabling them to be accessed from any place, and developing websites and digitizing HR data.