Download or read book Internal Audit Quality written by Sally-Anne Pitt and published by John Wiley & Sons. This book was released on 2014-09-29 with total page 405 pages. Available in PDF, EPUB and Kindle. Book excerpt: Deliver increased value by embedding quality into internal audit activities Internal Audit Quality: Developing a Quality Assurance and Improvement Program is a comprehensive and authoritative guide to better practice internal auditing. Written by a global expert in audit quality, this guide is the first to provide complete coverage of the elements that comprise an effective internal audit quality assurance and improvement program. Readers will find practical solutions for monitoring and measuring internal audit performance drawn from The IIA's International Standards for the Professional Practice of Internal Auditing, and complemented by advice and case studies from leading audit practitioners from five different continents. Major corporate and financial collapses over the past decade have challenged the value of internal audit. With an increased focus on internal audit's role in good governance, management is increasingly demanding that internal audit provides assurance of the quality of its own activities. The IIA standards provide a framework for audit quality in the form of mandatory guidance . Recent research indicates that the majority of internal audit functions do not fully comply with the standards and, as a result, are not servicing the needs of their organizations as well as they might. Internal Audit Quality offers a roadmap to internal audit quality, providing readers the guidance they need to: Embed quality into all elements of internal audit from strategic and operational planning down to day-to-day tasks Create well-defined internal audit programs and procedures Independently self-assess internal audit quality and performance Conform with the IIA standards and better practice Provide assurance over internal audit efficiency and effectiveness Deliver value by meeting stakeholder expectations As a key component of good governance, internal audit is on the rise. The days of retrospective, compliance-focused auditing is a thing of the past. Organizations expect more of internal audit, and many internal audit activities are accepting the challenge. Rather than relying on audit supervision and external assessments, modern auditors are embedding quality into audit activities to create effective programs. For the auditor looking to distinguish themselves as leading edge, Internal Audit Quality provides the guidance that enables the right work, at the right time, in the right way.
Download or read book Internal Audit Quality and Financial Reporting Quality written by Lawrence J. Abbott and published by . This book was released on 2015 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: In light of the growing importance of internal audit functions (IAF) and the limited archival evidence on internal audit quality, we examine an interactive model of IAF quality (comprised of competence and independence) to better understand the determinants of IAF effectiveness as a financial reporting monitor. Our tests support the hypothesis that the joint presence of competence and independence is a necessary antecedent to effective IAF financial reporting monitoring. In sum, our results show that, the answer to “what is the effect of internal audit competence (independence) on financial reporting quality?” is “it depends on the independence (competence) of the internal auditor.” Our study extends the understanding of IAF quality determinants in the realm of financial reporting as it relates to ongoing discussions by researchers, standard setters, regulators, and practitioners.
Download or read book Research in Accounting in Emerging Economies written by Shahzad Uddin and published by Emerald Group Publishing. This book was released on 2010-12-02 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt: Includes research papers that examines various issues including the adoption of International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSASs), management accounting change in the context of public sector reforms, corporate reporting disclosures, auditing, etcetera.
Download or read book Internal Audit Quality and Earnings Management written by Douglas F. Prawitt and published by . This book was released on 2010 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Internal auditors often perform work that is relevant to their host entities' financial reporting processes, yet little research attention has focused on the effects of internal auditing on companies' external financial reporting. Using a unique and previously unavailable data set, we investigate the relation between internal audit function (IAF) quality and earnings management. We measure IAF quality using a composite measure comprising six individual components of IAF quality based on SAS No. 65, which guides external auditors in assessing the quality of an IAF with respect to its role in financial reporting. Earnings management is measured using two separate proxies, (1) abnormal accruals and (2) the propensity to meet or barely beat analysts' earnings forecasts. We find evidence that IAF quality is associated with a moderation in the level of earnings management as measured by both proxies.
Download or read book Audit Quality written by Jonas Tritschler and published by Springer Science & Business Media. This book was released on 2013-10-31 with total page 251 pages. Available in PDF, EPUB and Kindle. Book excerpt: Arising from the author’s experience as a practicing CPA, this book is quite different from other research in this field, as it confronts the subject of audit quality from a pragmatic perspective. The first goal of Jonas Tritschler is to develop an audit quality metric on national audit firm level. Financial reporting errors, as detected by the German enforcement institutions during examinations, which subsequently are published in the German Federal Gazette by the involved companies, are the data basis for this measurement. Using the developed audit quality metric, the second goal of this study is to analyze audit quality differences of selected audit firms by comparing their deployed audit input factors such as employee’s competence (ratio of certified professionals to total audit staff), experience of employees (average tenure of employees in years) and client-specific experience (client fluctuation rate). Results indicate a correlation between audit quality according to the developed metric and the operationalized audit input factors mentioned above.
Download or read book CPA Audit Quality written by and published by . This book was released on 1989 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Internal Audit Competency and Financial Reporting Quality written by Melissa Renschler and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Limited availability of human capital data on the internal audit function (IAF) has constrained research on this topic. This study overcomes certain data limitations by using LinkedIn data from Revelio Labs. Using longitudinal data on individual IAF employees, we document that IAF experience, education, and size are associated with higher financial reporting quality. Specifically, we find that IAF competency is inversely associated with the propensity for material weaknesses and misstatements. We further document that firms respond to these adverse reporting events by investing in IAF competency, and these results are driven by improvements to IAF experience and size. Finally, we find that improvements in IAF competency are positively associated with the remediation of material weaknesses. Our findings can help internal audit leaders focus on shaping their functions and aid them in garnering support for investment in the IAF from management and the board. Regulators that have focused on improving financial reporting quality via oversight over external auditors and audit committees may also consider focusing on the IAF.
Download or read book Corporate Governance Models and Applications in Developing Economies written by Agyemang, Otuo Serebour and published by IGI Global. This book was released on 2019-08-30 with total page 330 pages. Available in PDF, EPUB and Kindle. Book excerpt: Virtually all developing, transitioning, and emerging-market economies are faced with one pressing concern at the moment: how to establish the groundwork for long-term economic performance and competitiveness in a diverse market. However, without the existence of good corporate governance in these economies, small enterprise will cease to exist in developing countries. Corporate Governance Models and Applications in Developing Economies is a collection of innovative research that contributes to the better understanding of corporate governance models by documenting the structures, principles, tenets, case studies, and applications for the development of good business practices in developing economies. While highlighting topics including risk management, financial distress, and insider trading, this book is ideally designed for corporate managers, executives, economists, strategists, investors, shareholders, students, researchers, academicians, business professionals, and policymakers.
Download or read book Audit Committee Effectiveness and Internal Audit written by Fatimah Mat Yasin and published by . This book was released on 2012 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: Increased concerns regarding corporate accountability in various developed nations have been associated with the need for effective audit committee and internal control systems. This is due to large corporate collapses which have demonstrated problems with the quality of financial reporting and auditing. This study examines the nature and extent of the relationship between audit committee characteristics and internal audit function characteristics with audit quality whereby audit fee is used as a proxy for audit quality. The corporate governance characteristics included in this study are audit committee expertise, frequency of audit committee meetings, structure of internal audit function and size of internal audit function. This study applied the agency theory and resource dependence theory. This study also formulated eight hypotheses that guided the analysis and using publicly available information of 200 Malaysian public listed companies for the financial year end 2009 and 2010 each. This study provides recent evidence of a positive relationship between audit quality and two audit committee characteristics: audit committee with postgraduate qualification and frequency of audit committee meeting. Further, a positive relationship is found between audit quality and internal audit function characteristic, which is size of internal audit function. The results indicate firms that consist of more audit committee members with higher tertiary education and meets regularly with well-resourced internal audit units have a significant relationship with the audit quality. Apart from contributing to the literature on corporate governance and audit quality, this study may serve as an input for the regulator to encourage strict enforcement for Malaysian-listed companies to incorporate corporate governance practices especially on audit committee composition and internal audit function.
Download or read book Internal Audit and Financial Reporting Quality in the Public Sector written by Steven M. DeSimone and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Professional Practices Framework IPPF written by and published by . This book was released on 2013 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Internal Audit Function and Financial Reporting Quality written by Sewwandi W.A.U. and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The importance of the Internal Audit Function (IAF) is continuously increasing in the current business context and among the research community. The purpose of this study is to examine the relationship between the Internal Audit Function (IAF) and Financial Reporting Quality (FRQ) in the Banking Industry of Sri Lanka. The study used a quantitative approach with the survey method as the primary data collection method. Respondents were internal auditors of 18 banks. Four sub hypotheses to examine the relationship among IAF and external audit, and eight sub hypotheses to examine the relationship between the IAF and fraudulent FR were formulated. The study mainly used regression models for data analysis. A significant relationship between IAF and external audits exists, with all four variables positively correlating to FRQ in banks. A significant relationship between the IAF and fraudulent FR exists, with all eight variables correlating to FRQ in banks (collaboration having a negative correlation). Both these relationships increase FRQ. As one of the initial studies investigating the impact of the IAF on the FRQ in Sri Lankan banks, this study promotes the importance of focusing on the IAF in the banking industry to influence the FRQ of banks. The management and boards of directors in the banks, bank regulators, and investors can identify the link between IAF and FRQ and the importance of focusing on stakeholder requirements. The paper also extends banking literature in terms of FRQ.
Download or read book Rotational Internal Audit Programs and Financial Reporting Quality written by Margaret H. Christ and published by . This book was released on 2015 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: A report from the Institute of Internal Auditors finds that a majority of Fortune 500 companies systematically rotate internal auditors out of the internal audit function and into operational management (IIA 2009a). We use semi-structured interviews with 11 chief audit executives and 2 audit committee chairmen to develop an initial framework focusing on how this practice affects financial reporting quality. We then test these associations with archival data and find that companies that use a rotational staffing model for the internal audit function have significantly lower financial reporting quality than companies that do not. However, we find that several compensating controls identified from the interviews (e.g., consistency of IAF leadership or supervision, audit committee oversight, and management oversight and direction) can reduce this adverse financial reporting effect. We conclude that companies should consider the potential costs of using a rotational staffing model in the internal audit function and, if adopting this practice, should ensure the appropriate compensating controls are in place to mitigate such costs.
Download or read book Determinants and Consequences of Internal Audit Function Quality written by Like Jiang and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: I develop a new input-based measure of internal audit function (IAF) quality and investigate the factors that incentivize firms to establish a high-quality IAF as well as the economic consequences of a high-quality IAF. To operationalize my empirical analysis, I construct a unique, international archival IAF sample by matching a proprietary global internal auditor survey named CBOK 2010 with public data in the Worldscope database. Based on the International Standards for the Professional Practice of Internal Auditing proposed by the Institute of Internal Auditors, I measure IAF quality by desirable IAF attributes and practices which encompass the IAF's (1) competence, (2) independence, (3) planning and reporting practices, and (4) quality assurance and improvement practices. Regarding the determinants of IAF quality, I find that the IAF quality is affected by firms' operating environments and features of other governance mechanisms including board monitoring incentives, audit committee diligence, and CEO power. Moreover, firms' incentives for a high-quality IAF are bolstered by strict and detailed IAF requirements in countries' corporate governance codes. Finally, I document that other governance mechanisms, especially the monitoring incentives of directors, play a greater role in influencing the IAF quality when the overall regulatory environment is weak. Regarding the economic consequences of a high-quality IAF, I first address the role of IAF in providing assurance services in financial reporting and find that IAF quality is positively associated with earnings quality. Considering the increasing involvement of IAF in risk management and strategic initiatives, which leads to an expanded role of IAF in providing consulting services relevant to firms' operations, I further provide evidence supporting that a high-quality IAF matters for firms' operating performance. Specifically, I document that the speed of operating performance recovery after the recent financial crisis is significantly quicker for firms with a high-quality IAF than for firms with a low-quality IAF, and that the IAF quality is positively associated with firms' investment efficiency in the post-financial-crisis period. In addition, I find that the extent to which the IAF is involved in strategic consulting activities has an incremental positive effect on performance recovery, which suggests that providing consulting services is an important way for the IAF to deliver value to firms. However, the benefits from such an expansion of consulting activities comes at a cost in firms with a low-quality IAF, as I find that the IAF's involvement in strategic consulting can impair the IAF's role in providing assurance services and hence negatively affects earnings quality when the IAF quality is low but not when the IAF quality is high. Overall, the findings suggest that if the IAF is expected to deliver value to firms by providing both assurance and consulting services, maintaining an appropriate level of IAF quality is essential.
Download or read book United States and European Union Auditor Independence Regulation written by Christiane Strohm and published by Springer Science & Business Media. This book was released on 2007-12-11 with total page 247 pages. Available in PDF, EPUB and Kindle. Book excerpt: Christiane Strohm investigates the effects of the Sarbanes-Oxley-Act and the revised 8th EU-Directive on auditing. She shows that there is a difference in the communication and safeguarding effects of a regulation, depending on the precision of its wording and that safeguarding effects also depend on auditors' monetary incentives and on perceived costs of litigation.
Download or read book Improving Healthcare Quality in Europe Characteristics Effectiveness and Implementation of Different Strategies written by OECD and published by OECD Publishing. This book was released on 2019-10-17 with total page 447 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume, developed by the Observatory together with OECD, provides an overall conceptual framework for understanding and applying strategies aimed at improving quality of care. Crucially, it summarizes available evidence on different quality strategies and provides recommendations for their implementation. This book is intended to help policy-makers to understand concepts of quality and to support them to evaluate single strategies and combinations of strategies.
Download or read book Quality Control Procedure for Statutory Financial Audit written by Siddhartha Sankar Saha and published by Emerald Group Publishing. This book was released on 2017-07-13 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: This new work takes a comprehensive look at the quality control framework for statutory financial audit. Saha and Roy focus on identifying the different factors governing quality of audit and establish a comprehensive framework for quality control.
