Auditing Theory and Practice

This paper presents the progress of auditor independence from a textbook perspective during the 20th century and into the present. It analyzes the multiple editions of Auditing Theory and Practice by Robert Montgomery. The lengthy time span of these editions is divided into several shorter periods based on major changes and developments in auditor independence. Finally, the paper uses several criteria related to auditor independence to review how the Montgomery text covered these changes and developments

Artificial Intelligence (AI) has become increasingly popular globally as a crucial tool for auditing financial statements, but in Nigeria, the adoption and use of AI tools by auditors is still in its early stages. Attention has been primarily focused on the Big 4 accounting firms, with little attention given to small-scale audit practitioners in Nigeria. This study seeks to examine the impact of AI on audit practice in Nigeria by employing a survey research design. The population of this study comprises 89 accounting firms operating in the Ikeja Local Government area of Lagos State, with a sample size of 62 firms selected using purposive sampling. Data was collected through a well-structured questionnaire, and the reliability of the research instrument was confirmed with a Cronbach Alpha test result of an average of 70%. Descriptive analysis and regression analysis were used to analyze the data, and the results indicated that data mining, machine learning, and image recognition exhi...

This research was conducted in KAP Kurniawan, Kusmadi and Matheus, which aims to analyse the suitability of audit planning of financial statement by KAP Kurniawan, Kusmadi and Matheus with the audit planning of financial statement based on the Professional Standard of Public Accountant (SPAP). Research method that used is descriptive analysis with a qualitative approach and the type of data used is primary data and secondary data. Primary data is collected through interviews, while secondary data by collecting audit planning of financial statements documents in KAP Kurniawan, Kusmadi and Matheus. The results of this research show that the audit planning of financial statement by KAP Kurniawan, Kusmadi and Matheus in accordance with the audit planning of financial statement based on SPAP issued by Institute of Public Accountants of Indonesia (IAPI). The advice given to KAP Kurniawan, Kusmadi and Matheus is always implement audit plan in accordance with SPAP because a good audit plann...

The very big result in the enterprise voluntary cleaner production auditing has been obtained since cleaner production was carried out in our country, and our country has been generally acknowledged as in the best development country for cleaner production. More and more key enterprises have implemented the cleaner production auditing in recent years. The work for cleaner production has been done in recent ten years. With the annunciating key enterprises from each province environment protection hall for recent years, cleaner production auditing has been done by thousands of enterprises involving in more than twenty industries. Through the key enterprises of compulsory auditing of exploration and practice, this article on the key enterprises of compulsory cleaner production auditing need, innovation, implementation of status and elaborating the problems.

This study investigates voluntary demand for auditing by Australian farm businesses, a significant but relatively unexplored segment of the economy. Most farms operate as family partnerships or sole proprietors and we thus focus on incentives to audit arising from internal sources (owner-manager), controlling for traditional incentives arising from external contractual constraints (i.e., debt), organisational characteristics (i.e., size), and agency conflict. We hypothesise that an external audit assists management in enhancing internal control by complementing the process of profit planning and control (budgeting) and that increased family conflict provides an incentive to engage external audit. Of the 457 survey questionnaire respondents, 27% voluntarily engage an external auditor and 66% conduct some formal written planning. Results from logistic regression analyses support the predicted impact of both size and debt on audit, and further support the hypothesised impact of budgeting. The positive association between budgeting and audit confirms the complementary relationship. More importantly, this relationship is not confounded by the combined impact of size and budgeting and debt and budgeting on voluntary audit. In addition, family conflict has no impact on voluntary demand for auditing by farm business.

This study investigates voluntary demand for auditing by family businesses, a significant but relatively unexplored segment of the economy. The paper considers demand for both internal and external auditing by using survey data to investigate the impact of firm characteristics linked to the cost vs. benefit of engaging an auditor. Variables examined are firm size, debt, and two agency proxies that measure separation of ownership and control, namely, the proportion of nonfamily management in the firm, and the proportion of nonfamily representation on the board of directors. The paper also considers the association between internal and external auditing. Descriptive results on voluntary demand for auditing by 186 family businesses revealed that internal audit was more prevalent than external audit, and outsourcing was a common method for providing internal audit. Results from logistic regression analyses provide support for the hypothesized impact of the two agency proxies and firm debt on demand for external audit, but do not explain the demand for internal audit. For firms that voluntarily engaged an auditor (internal and/or external audit), the negative and significant correlation between internal and external audit suggest that in the family business environment they are more commonly viewed as substitute rather than complementary responses.

International Standard on Audits (ISA) are targeted for convergence with existing auditing standard applied in other countries including Indonesia.. However, until convergence efforts are conducted up to now, there are five aspects for which differences currently exit among SPAP (GAAS translation) and ISA.

Bab ini berisi tentang definisi filosofi audit dan garis besar dari teori auditing. Kandungan teori auditing sebagai asumsi dasar dan pemahaman yang baik untuk meningkatkan praktik audit. Bagaimana perkembangan auditing dan sejarahnya serta masalah-masalah audit yang perlu dipecahkan menurut buku ini. Saat ini hanya sedikit literatur profesional yang dapat menjelaskan teori auditing dan tidak ada teori yang mendukung praktek. Perhatian terbanyak ditujukan pada teori akuntansi dan hanya sedikit perhatian pada teori auditing, sehingga perlu bagi kita untuk menginvestigasi kemungkinan mengintegrasikan teori auditing. Saat ini terdapat sejumlah besar masalah yang membingungkan dalam auditing, misalnya sampai sejauh mana pertanggung jawaban auditor untuk mengungkapkan (disclose) keterbatasan yang ada pada perusahaan yang diaudit. Jadi perlu jadi perhatian terhadap adanya prinsip yang memberikan solusi bagi auditor dan kemampuan auditor untuk mengatasi masalah tertentu dalam proses audit. Salah satu tujuan teori, untuk investigasi yan serius dan penting terhadap kemungkinan dan sifat dari teori auditing yaitu agar dapat menyediakan suatu solusi atau sekurang-kurangnya petunjuk terhadap solusi dari problem yang sulit. Alasan lain, sebagai suatu profesi, anggotanya mempunyai keinginan untuk menemukan dasar hukum yang mengatur organisasi dan kegiatannya. Sebagai suatu badan organisasi dari ilmu pengetahuan harus ada teori yang mengatur sistemnya. Untuk itu diperlukan filosofi auditing.

International Standard on Audits (ISA) are targeted for convergence with existing auditing standard applied in other countries including Indonesia.. However, until convergence efforts are conducted up to now, there are five aspects for which differences currently exit among SPAP (GAAS translation) and ISA.

International Standard on Audits (ISA) are targeted for convergence with existing auditing standard applied in other countries including Indonesia.. However, until convergence efforts are conducted up to now, there are five aspects for which differences currently exit among SPAP (GAAS translation) and ISA.

Every person shall respect the dignity, personality, privacy and peace of mind of his neighbors and other persons. The following and similar acts, though they may not constitute a criminal offense, shall produce a cause of action for damages, prevention and other relief: