Download or read book Auditor Type and Audit Quality Differences in Nonprofit Healthcare Organizations written by Dennis M. López and published by . This book was released on 2009 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this paper is to explore audit quality in nonprofit healthcare organizations by investigating differences in audit report outcomes. Specifically, we examine the relationship between auditor type and auditor-disclosed internal control exceptions in Circular A-133 audits of U.S. nonprofit healthcare organizations. Our findings indicate audits of nonprofit healthcare organizations conducted by the Big Four CPA firms carry a lower likelihood of disclosing internal control exceptions (i.e., reportable conditions and material weaknesses) than are audits conducted by smaller CPA firms. This challenges the general contention from prior studies that the Big Four firms are better audit quality providers and indicates that the alleged superiority of Big Four firms in terms of audit quality may not be generalizable to all industry sectors.

Download or read book Auditor Size and Internal Control Reporting Differences in Nonprofit Healthcare Organizations written by Kevin T. Rich and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate whether auditor size is associated with the disclosure of internal control exceptions among Circular A-133 audits of nonprofit healthcare organizations. Our focus on auditor report outcomes within the nonprofit healthcare sector is timely and relevant, given the sector's growth and escalating concern for accountability and transparency. Using a sample of 1,180 Circular A-133 audit reports from 2004 to 2008, we find evidence that audits performed by Big 4 firms are less likely to disclose reportable conditions and material weaknesses than those performed by smaller CPA firms. Additional analyses indicate this relation only remains statistically significant for a subsample of small nonprofit healthcare organizations, possibly due to greater selectivity or lower efforts by the Big 4 auditors. Our descriptive statistics also suggest that the market share of the Big 4 firms for Circular A-133 audits decreased during the sample period. We discuss the potential implications of these findings from an audit quality, market dominance, and client size perspective. The results are relevant to hospital financial managers wanting to obtain higher quality audits at a lower cost.

Download or read book Differences Across Audit Firm Types in Assessments of Non profit Organizations Federal Compliance written by Stefanie Lara Tate and published by . This book was released on 2001 with total page 154 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Influence of the Sarbanes Oxley Act on Audit Quality written by Michele M. McGowan and published by . This book was released on 2014 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study uses an institutional theory perspective to examine whether significant changes to the audit work and engagement practices required under the Sarbanes-Oxley Act (SOX) lead to improved audit quality in nonprofit hospitals. Unlike their for-profit counterparts, nonprofit organizations have been subject to audits of internal controls over financial reporting and program compliance for decades under Circular A-133 of the Single Audit Act of 1984, as amended. Circular A-133 audits represent the primary accountability tool over the billions of grant dollars awarded annually by the federal government. Despite the enormity of these awards and the substantial informational effect of the audit reports, prior empirical research suggests that the quality of these audits is problematic. Using the archival data of nonprofit hospital Circular A-133 audits and related hand-collected financial data from IRS Form 990s, bivariate and multivariate analyses are conducted on a cross-sectional sample of 875 audits for 141 nonprofit hospitals with audits during both pre-SOX (2001-2004) and post-SOX (2008-2011) periods. Audit quality is inferred from discretionary accruals (Modified Jones model) and auditor-reported internal control deficiencies (reportable conditions and material weaknesses). The results indicate support for improved audit quality from the pre- to the post-SOX period for all measures of audit quality. The results are different for the measures of audit quality used to examine the association between audit firm size and audit quality. Non-Big 4 audit firms experienced a significant improvement in audit quality when discretionary accruals are used as a proxy for audit quality. Conversely, Big 4 audit firms experienced a significant improvement in audit quality when internal control deficiencies are proxies for audit quality. In the post-SOX period audit firms provide approximately the same level of audit quality regardless of firm size when discretionary accruals or material weaknesses are the proxy for audit quality. When reportable conditions are the proxy, non-Big 4 firms have higher audit quality than Big 4 firms post-SOX. Client characteristics, specifically hospital size and the interaction of leverage and risk, are attributable to differences in post-SOX audit quality. Finally, the study fails to support the hypothesis that large audit firms self-select low risk clients.

Download or read book Does Hiring a Local Industry Specialist Auditor Matter to Nonprofit Organizations written by Erica Harris and published by . This book was released on 2018 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior literature on auditor choice in the nonprofit market has largely focused on auditor size as a measure of audit quality. We extend this literature by examining a more refined definition of nonprofit audit quality which incorporates the twelve mission industries defined by the National Taxonomy of Exempt Entities (NTEE). Different from prior studies, we investigate audit firm industry specialization based on these twelve industry categories rather than classifying the nonprofit sector as a whole as an industry, highlighting that different types of nonprofit organizations require specialized auditor knowledge. We also measure industry specialization at a local metropolitan service area (MSA) level, taking into account the varying state regulatory environments and the more localized audit market for nonprofit organizations. We use this improved measure to study both the determinants and consequences of nonprofit auditor choice. We find that industry specialist auditor choice among nonprofit organizations is associated with higher governance quality (higher governance index, larger boards, and more independent boards), poorer financial health, and greater complexity. Moreover, nonprofits audited by industry specialist auditors issue more timely financial reports to stakeholders and see a future increase in direct donations than nonprofits audited by non-specialist auditors and Big 4 auditors.

Download or read book Government Auditing Standards 2018 Revision written by United States Government Accountability Office and published by Lulu.com. This book was released on 2019-03-24 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.

Download or read book Research in Governmental and Nonprofit Accounting written by P A Copley P a and published by JAI Press. This book was released on 1999-04-15 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of Research in Governmental and Nonprofit Accounting is to stimulate and report high-quality research on a wide range of governmental and nonprofit accounting issues. A number of papers appearing in Volume 10 differ from much of our existing empirical work. The Bento and White and Copley and Seay studies use time-series data over relatively long intervals. In the case of the Sneed and Sneed and Elder, Kattelus, and Douthett studies, the authors use methodologies which have not been employed in previous studies in either the public or private sector. To the extent that these methodologies permit investigation of previously unexplored issues, the papers will be of interest to researchers outside of the governmental and nonprofit area. Governmental and nonprofit accounting represents an undeveloped research area which would benefit from rigorous examination. The government and not-for-profit sectors are also becoming increasingly attractive research areas. There are new standards of reporting for not-for-profit entities and a proposal for a dramatic change in state and local government financial statements. Change is always an opportunity for new research. As evidenced by the Forgione chapter, data exists and is becoming increasingly available.

Download or read book Essentials of Health Care Organization Finance written by Dennis D. Pointer and published by John Wiley & Sons. This book was released on 2004-09-24 with total page 207 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Finally! The book that all health care board members needed but were afraid to ask for! Those dark days of staring at incomprehensible numbers during board meetings, of nervous nodding when their financially-literate brethren make comments or ask questions, of voting on things that they do not understand are gone! This book is long overdue and should be read by every trustee who is not a finance professional." --James E. Orlikoff, president, Orlikoff & Associates, Inc. and executive director, American Governance & Leadership Group Accounting for $1.4 trillion in expenditures (13.7 percent of gross domestic product), health care is one of the nation's largest and fastest growing industries. This concise, expertly written primer on health care organization finance is a nuts and bolts guide to what has become every hospital's most sensitive topic. Health care organization board members must possess basic financial competence to govern effectively. This book will help them acquire, easily and painlessly, the basic financial literacy essential for discharging their roles and fulfilling their fiduciary duties.

Download or read book Audit and Accounting Guide written by AICPA and published by John Wiley & Sons. This book was released on 2020-08-11 with total page 768 pages. Available in PDF, EPUB and Kindle. Book excerpt: From financial reporting to revenue recognition to grants and contracts to auditor report changes, you have a lot going on in the not-for-profit financial arena right now. Whether you're already an expert in NFP audit and accounting standards or just getting started, this is the practical guidance you need. This must-have resource for nonprofits accounting and auditing professionals is an essential reference that will assist you with the unique aspects of accounting and financial statement preparation and auditing for not-for-profit entities. It will help you with the following Understand and implement recent updates and changes, including those related to financial reporting, revenue recognition, and grants and contracts Gain a full understanding of the accounting issues unique to not-for-profit entities Assist in the implementation of auditor report changes.

Download or read book Not for profit Organizations Industry Developments 1991 written by American Institute of Certified Public Accountants. Auditing Standards Division and published by . This book was released on 1991 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Are Audit related Factors Associated with Financial Reporting Quality in Nonprofit Organizations written by Sarah Ann Garven and published by . This book was released on 2012 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper I examine the effects of various audit-related factors on financial reporting quality in nonprofit organizations (NPOs). Similar to for-profit organizations, NPOs have incentives to report favorable financial results. However, whereas for-profit organizations focus on earnings, of particular importance to NPOs is the program ratio - the proportion of total expenses dedicated to providing programs that fulfill an organization's mission relative to supporting the organization (i.e., fundraising efforts and administration). A nonprofit can inflate its program ratio by opportunistically shifting expenses away from administration and fundraising and toward programs. Although several for-profit papers have examined the impact of audit-related factors on financial reporting quality, especially with regard to earnings management, there is very little evidence on the effects of these factors on financial reporting quality in NPOs. Due to important audit environment and institutional differences between the nonprofit and for-profit sectors, results on audit-related factors in for-profit organizations may not necessarily hold for nonprofit organizations. Thus, the nonprofit sector provides a useful setting to test the generalizability of the effects of audit-related factors on financial reporting quality from the for-profit sector to other sectors. Using logistic regression analyses, my results suggest that audit fees, new auditors, and the Sarbanes-Oxley Act may have some effect on financial reporting quality in nonprofit organizations. In addition, auditor assessments related to auditee risk, going-concern issues, and reportable conditions over financial reporting also may be factors in nonprofit financial reporting quality. However, contrary to results found in for-profit studies, new auditors and reportable conditions over financial reporting appear to be associated with higher nonprofit financial reporting quality, and auditor size using the traditional Big 4/non-Big 4 designation, as well as audit lag, do not appear to be significant factors in determining nonprofit financial reporting quality. Results are mixed with respect to auditor specialization. Overall, my study provides some evidence that certain audit-related factors are associated with financial reporting quality in nonprofit organizations, and also confirms that, due to the uniqueness of the nonprofit audit environment, results from for-profit studies cannot necessarily be generalized to the nonprofit sector.

Download or read book Audits of Certain Nonprofit Organizations written by American Institute of Certified Public Accountants. Subcommittee on Nonprofit Organizations and published by . This book was released on 1988 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Audit Committees and Internal Control Quality written by Annette Pridgen and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the impact of audit committees on the internal control quality of nonprofit organizations. Based on resource dependency theory that stresses an entity's economic needs for internal control over administering federal funding, we select a sample of nonprofit hospitals subject to the Single Audit Act in the United States, from 2001 to 2008. Our results show that hospitals that had audit committees and also employed Big 4 auditors were associated with better internal control quality. In addition, we find that Big 4 auditors were negatively associated with reported deficiencies of internal control over administering major federal programs in the early years (2001-2004), but positively associated with reported deficiencies of the same kind in the later years (2005-2008), suggesting a possible effect of the Sarbanes-Oxley Act.

Download or read book Are Audit Related Factors Associated with Financial Reporting Quality in Nonprofit Organizations written by Sarah Garven and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the effects of several audit-related factors on nonprofit financial reporting quality (FRQ). Using four different measures of FRQ, we demonstrate that the findings of nonprofit accounting research might be sensitive to the choice of FRQ proxy. Nonetheless, we consistently find that specialist auditors and unexplained audit fees have a significant positive effect on FRQ in nonprofit organizations. Interestingly, we observe changes to FRQ in the period after the Sarbanes-Oxley Act of 2002, despite the fact the legislation does not apply to nonprofit audits. In fact, the results suggest nonprofits selected less obvious methods of ratio management post-SOX, compared to pre-SOX. Finally, we do not find that Big N auditors consistently provide the highest quality, a result very different from for-profit studies.

Download or read book Audit and Accounting Guide Health Care Entities 2018 written by AICPA and published by John Wiley & Sons. This book was released on 2018-11-30 with total page 560 pages. Available in PDF, EPUB and Kindle. Book excerpt: Considered the industry's standard resource, this guide helps accountants and financial managers understand the complexities of the specialized accounting and regulatory requirements of the health care industry. Updated for 2018, this edition has been prepared and reviewed by industry experts and provides hands-on, practical guidance for those who work in and with health care entities. A critical resource for auditors, this edition includes new accounting standards and relevant GASB and FASB updates (including those related to private companies). Updates include: FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) FASB ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities FASB ASU No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities SAS No. 133, Auditor Involvement With Exempt Offering Documents GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting) GASB No. 83, Certain Asset Retirement Obligations

Download or read book Compliance Supplement for Audits of Institutions of Higher Learning and Other Non profit Institutions written by and published by . This book was released on 1991 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Audits of Voluntary Health and Welfare Organizations written by American Institute of Certified Public Accountants. Committee on Voluntary Health and Welfare Organizations and published by . This book was released on 1988 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: