Auditing standards

EPOC: Enfermidade pulmonar obstrutiva crónica. FEV1: Volume expiratorio forzado durante 1 segundo. FHSQ: Foot Health Status Questionnaire. FVC: Capacidade vital forzada. GINA: Global Initiative for Asthma. IMC: Índice de masa corporal. IPAQ: International Physical Activity Questionnaire. LDP: Limiar de dor a presión. METs: Índice metabólico equivalente por semana. OMS: Organización Mundial da Saúde. STROBE: Strengthening the Reporting of Observational Studies in Epidemiology. TPA: Articulación tibio-peroneo-astragalina. TSK-11: Tampa Scale for Kinesiophobia -11. WBLT: Weight Bearing Lunge Test.

This report was prepared by a World Bank team on the basis of work done in Ouagadougou between November 2009 and February 2010. The project team was jointly led by Mr. Ousmane Kolie (Financial Management Specialist, Africa Region) under the supervision of Mr. Edward Olowo-Okere (Manager, Financial Management, Africa Region) and Mr. Zubaidur Rahaman (Head of the ROSC Program). The team included Ms. Françoise Toé and Mr. Soumaila Ouedraogo (Consultants). Technical assistance was provided by Mr. Nestor Coffi (Principal Specialist, Financial Management, Africa Region) and Ms. Elisabeth Bambara (Program Assistant). The authors would like to express their appreciation to the Burkinabè authorities and the accounting profession and private sector representatives for their active participation in and assistance with this study. The Ministry of Economy and Finance has authorized publication of this report September 15, 2010. Burkina Faso -ROSC Comptabilité et Audit -Résumé des conclusions i This aim of this report is to assess the accounting and financial auditing standards and practices in Burkina Faso in the private and semipublic sectors, using as benchmarks International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) and taking into account the good practices noted in the international sphere in these two areas. Consequently, the ROSC study is particularly important for Burkina Faso, given the implications for improvement in the area of public financing. A. Accounting and Auditing Legislation and Regulations 10. The OHADA Uniform Act (UA) Organizing and Harmonizing Company Accounting Systems of February 22, 2000, and the Uniform Act Relating to Commercial Companies and Economic Interest Groups of April 17, 1997, set forth obligations in the area of accounting, the presentation of financial statements, and statutory audits (external auditing) of the accounts of enterprises in Burkina Faso as well as in other OHADA member States. These two UAs define the scope of application of the accounting system. This system applies to enterprises subject to the provisions of commercial law, semipublic enterprises, mixed economy companies, and cooperatives. The adoption of a single accounting system common to the States Parties is prompted by the desire to institute uniform and standard accounting practices in the OHADA environment as well as the reliability of financial reporting intended for third parties. 11. Supplementary UA directives and regulations were decided upon by the WAEMU Council of Ministers of Member States in order to establish regulations for financial reporting or the auditing of certain enterprises. The directives are also supplemented by BCEAO and CREPMF instructions. These include mainly: (i) the regulation instituting the free movement of professional accountants from WAEMU member States; (ii) the regulation establishing one-stop windows by March 31, 2010; (iii) the establishment of Approved Management Centers; (iv) Directive No. 03/97/CM/UEMOA of November 28, 1997 establishing a National Accounting Council in Burkina Faso; (v) the Banking Law; and (vi) the Instructions for financial reporting by companies listed on the BRVM.

This study attempts to test the effect of state ownership and follow-up of audit findings in state-owned enterprises (SOEs) owned by the government of the Republic of Indonesia, on the good corporate governance of SOEs. By using Ordinary Least Square (OLS) analysis, conducted by observing 98 observations during 2010-2014, the findings show that there are negative relationship between state ownership and good corporate governance implementation in SOEs in Indonesia. In addition, the results also reveal that the follow-up of audit findings positively affect the implementation of governance.

Neste trabalho, examinamos aspectos que, de alguma forma, nos anos recentes, tem influenciado a contabilidade brasileira: o positivismo-pragmático norte americano. Sua concepção lógica está fundada nos princípios estabelecidos por Charles Peirce (1922). Com o crash de 1929, o processo de sedimentação do pensamento contábil se altera para  embocar numa prática contábil desprovida do raciocínio científico (manutenção do status quo da classe de auditores). Eles resistem duramente contra o estado que exige deles maior compromisso profissional, em relação à fraude e uma maior transparência nas informações contábeis. Tal quadro influenciaria no modus operandi cientifico dos pesquisadores contábeis, a partir daquele momento (ainda hoje persistem o elevado grau de fraude empresarial e a desinformação contábil).  Os países do terceiro mundo, sem muito preparo científico e tecnológico, absorveram esse processo, tipicamente norte-americano, sem maiores questionamentos, do ponto de vista social, econômico e cultural e que, de alguma forma, tem trazido conseqüências danosas à contabilidade terceiromundista.

As fraudes contábeis nos EUA não são, como muitos imaginam, algo espasmódico, restrito somente às falhas do balanço e das normas contábeis. Ao contrário, elas têm raízes mais profundas, cujos reflexos podem ser percebidos através da formação cultural da classe contábil naquele país e do modelo de gerenciamento, em curso desde os anos 30. Os modelos gerenciais, eixo investigativo da produtividade, perderam a relevância para auscultar as flutuações do mercado de capitais. A manipulação da informação contábil, fundamental na disputa de ranking nas bolsas de valores, atingiu o seu cume com a espetacular derrocada da gigante Enron, além da WorldCom e outras.

Studies generally suggest the audit report is not an effective communication tool to inform the users of Financial Statements about the audit and its process. In a move to enhance the informative value of the auditor's report, the International Auditing and Assurance Standard Board has approved a standard called for an enhanced auditors' report. While the introduction of the new report is expected to result in better financial reporting and audit quality, it may also cause auditors to incur additional audit costs due to increased audit efforts as well as reporting cost. The present study examines this possibility and based on the analysis of 261 listed companies, our results suggest that the new reporting requirement does not cause auditors to increase audit fees. Additional, the study suggests that size of the company, poor performance and ability to meet short term obligation are important determinants of audit fees. Two highly reputable audit firms namely, PWC and KPMG, are found to charge higher fees than others. The present study provides knowledge to regulators on how the auditors respond to regulatory change in the term of production cost and subsequently, would provide insight on how the change would alter the quality of audit reporting.

O presente trabalho, de natureza exploratória, documental e com abordagem quali-quanti buscou identificar quais as motivações dos processos abertos pela Comissão de Valores Mobiliários (CVM) contra auditores independentes. Para se atingir este objetivo foram definidos os seguintes objetivos específicos: (i) identificar os auditores e empresas de auditorias envolvidas em processos administrativos junto à CVM; (ii) evidenciar as infrações cometidas pelos auditores; (iii) verificar o status e quando finalizados, as penalidades aplicadas contra os auditores no período estudado. Os dados, essencialmente secundários e provenientes do sítio eletrônico da CVM-Comissão de Valores Mobiliários utilizando-se uma amostra não probabilística (por acessibilidade) constituída de 38 processos abertos pela CVM contra os auditores no período de 2007 a 2013. Os processos foram identificados a partir de consulta das palavras-chaves "auditoria" e "auditores". Para análise dos dados os processos encontrados foram classificados por tipo de empresa de auditoria (Big Four e Não Big Four). Os resultados da pesquisa evidenciaram que as infrações mais recorrentes na amostra utilizada foram: (1) o descumprimento das regras aplicáveis à atividade de auditoria, (2) a não participação ou não obtenção de pontuação mínima no Programa de Educação Continuada e (3) irregularidades no relatório de auditoria emitido. Quanto às penalidades, a aplicada com maior frequência foi a multa pecuniária. Houve absolvição em dois casos e também encerramento por cumprimento do termo de compromisso acordado com a CVM, em nove processos. Adicionalmente observou-se uma propensão das Big Four a fazerem acordos para extinção dos processos. Palavras-chave: Auditoria Independente. Processos Contra Auditores. Big Four.

RESUMO O presente trabalho, de natureza exploratória, documental e com abordagem quali-quanti buscou identificar quais as motivações dos processos abertos pela Comissão de Valores Mobiliários (CVM) contra auditores independentes. Para se atingir este objetivo foram definidos os seguintes objetivos específicos: (i) identificar os auditores e empresas de auditorias envolvidas em processos administrativos junto à CVM; (ii) evidenciar as infrações cometidas pelos auditores; (iii) verificar o status e quando finalizados, as penalidades aplicadas contra os auditores no período estudado. Os dados, essencialmente secundários e provenientes do sítio eletrônico da CVM-Comissão de Valores Mobiliários utilizando-se uma amostra não probabilística (por acessibilidade) constituída de 38 processos abertos pela CVM contra os auditores no período de 2007 a 2013. Os processos foram identificados a partir de consulta das palavras-chaves "auditoria" e "auditores". Para análise dos da...

Este artigo apresenta os resultados de uma pesquisa de carater exploratorio, de cunho documental, quantitativa e qualitativa, que buscou identificar quais as motivacoes dos processos abertos pela Comissao de Valores Mobiliarios (CVM) contra auditores independentes. Para se atingir a este objetivo, foram definidos os seguintes objetivos especificos: (i) identificar os auditores e empresas de auditorias envolvidas em processos administrativos junto a CVM; (ii) evidenciar as infracoes cometidas pelos auditores; (iii) verificar o status e quando finalizados, as penalidades aplicadas contra os auditores no periodo estudado. Os dados, essencialmente secundarios e provenientes do sitio eletronico da CVM – Comissao de Valores Mobiliarios utilizando-se uma amostra nao probabilistica, por acessibilidade constituida de 38 processos abertos pela CVM contra os auditores, no periodo de 2007 a 2013. Os processos foram identificados a partir de consulta das palavras-chaves “auditoria” e “auditores”...

There is a widespread public perception that the provision of NAS undermines auditor independence. In order to protect auditor independence, the regulatory frameworks of many countries include regulations and guidelines which auditors are required to observe. This paper provides a comparative analysis of selected regulatory frameworks. Regulatory frameworks, with respect to independence, make distinctions between independence of mind and in appearance. It is clear from the analysis of the frameworks that the provision of NAS can threaten both independence of mind and in appearance. There are some NAS for which no safeguard seem to be adequate and which are therefore subject to prohibition. On the other hand, for some nonaudit services the threats are not so clearcut, and auditors are then required to apply professional judgment so that the seriousness of the threats is balanced against the effectiveness of specified safeguards.

There is a widespread public perception that the provision of NAS undermines auditor independence. In order to protect auditor independence, the regulatory frameworks of many countries include regulations and guidelines which auditors are required to observe. This paper provides a comparative analysis of selected regulatory frameworks. Regulatory frameworks, with respect to independence, make distinctions between independence of mind and in appearance. It is clear from the analysis of the frameworks that the provision of NAS can threaten both independence of mind and in appearance. There are some NAS for which no safeguard seem to be adequate and which are therefore subject to prohibition. On the other hand, for some nonaudit services the threats are not so clearcut, and auditors are then required to apply professional judgment so that the seriousness of the threats is balanced against the effectiveness of specified safeguards.

Ces exemples, fournis à titre purement indicatif, montrent un format de présentation possible Directives pour l'établissement des états financiers du CGAP, version provisoire du 1 er déc. 00 , page 3 Ces exemples, fournis à titre purement indicatif, montrent un format de présentation possible de l'information requise par les directives. L'emploi de ces formats types n'est pas obligatoire. Ces exemples, fournis à titre purement indicatif, montrent un format de présentation possible de l'information requise par les directives. L'emploi de ces formats types n'est pas obligatoire. Les directives demandent la présentation d e certaines informations qui ne figurent habituellement pas dans les états financiers. La plupart des IMF sont des institutions sortant de l'ordinaire en ce sens qu'elles poursuivent une mission sociale en procédant à des opérations financières, souvent-au moins pendant un temps-grâce à des dons ou des ?prêts subventionnés. Elles emploient, par ailleurs, généralement des méthodes de prêt très différentes de celles auxquelles ont recours les banques plus traditionnelles. C'est pourquoi, pour juger de la situation financière d'une IMF, il faut disposer de certaines informations que n'ont pas à fournir les institutions traditionnelles, telles que les informations sur les ?subventions en nature, l'?état des impayés pour le ?portefeuille de prêts, et autres éléments dont la présentation n'est pas requise par les normes comptables internationales (IAS). Les directives énoncées ci-après sont accompagnées d'une brève explication des raisons pour lesquelles l'information demandée est importante. Les lecteurs qui souhaiteraient obtenir de plus amples détails peuvent se reporter aux manuels d'analyse financière traitant des IMF. 3 Liens avec les audit externes. Il est fortement recommandé aux IMF de soumettre chaque année leurs états financiers à un audit extérieur, d'autant plus que les bailleurs de fonds l'exigent fréquemment. Il est toutefois important qu'elles suivent les présentes directives même si leurs états financiers ne sont pas audités, lorsqu'il leur faut décrire leur situation financière, au moyen de ces derniers, à des entités extérieures telles que des bailleurs de fonds et d'autres investisseurs. Le conseil d'administration et les directeurs des IMF décident euxmêmes des directives à respecter pour la présentation des états financiers à usage interne. 3 Au nombre des ouvrages de référence qui peuvent être consultés figurent le manuel de la Banque inter-américaine de développement intitulé Technical Guide for the Analysis of

Estas directrices fueron elaboradas en consulta con profesionales e instituciones donantes que son miembros del CGAP. El 22 de junio de 2000 los países miembros donantes dieron su aprobación para que se distribuyera esta versión preliminar de las directrices. Una vez que las directrices hayan sido aplicadas en la práctica a principios del 2001, se publicará la versión definitiva. El CGAP está integrado por los organismos bilaterales de asistencia externa de 16 países:

To ensure compliance with U.S. Treasury rules, unless expressly stat ed otherwise, any U.S. tax advice contained in this publication (including examples, exhibits, and illustrations) is not intended or written to be used as, and shall not be considered, a "covered opin ion" or other written tax advice, and should not be relied upon for the purpose of avoiding tax-related penalties under the Internal Revenue Code; promoting, marketing, or recommending to another party any transaction or tax-related matter(s), IRS audit, tax dispute or other purposes.

In an effort to increase the credibility of financial information in its emerging capital markets, China recently adopted rigorous new auditing standards designed to increase auditor independence. Consistent with increased auditor independence, we find that the frequency of modified opinions increases nine-fold subsequent to the adoption of the new standards. However, the increase in modified reports is immediately followed by a large decline in audit market share among the largest auditors-those with the greatest propensity to issue modified reports. We conjecture that this "flight from audit quality" results from the absence of market-based incentives for Chinese managers to demand independent auditors. Our findings suggest that government regulation alone is not sufficient to create financial markets that foster auditor independence.

The recent famous financial frauds have demonstrated that in many cases the auditor was either responsible for or an accomplice in their manifestation. Thus, the auditor plays an important role in ensuring a true and fair view regarding the financial position and performance of the company. International standards on auditing indicate that the financial auditor's main objective is to serve the stakeholders' interests by expressing an independent, objective and competent opinion regarding the accuracy of information from financial statements. Also, according to audit standards, the auditor has the responsibility to assess fraud risk and how it could influence his opinion. The purpose of this study is to test if there is a connection between the affiliation of the client-company to an auditor who is member of Big4 and the incidence of financial fraud. The research results indicate the existence of a company profile that is defrauded or not defrauded. Starting from a series of factors associated to the financial auditor, a deterministic model was proposed in the study for estimating the probability of being defrauded. For the validation of the working hypotheses, a sample consisting of 200 defrauded and not defrauded companies was selected, quoted on New York Stock Exchange. Research results were obtained by processing the data with SPSS 19.0.

The aim of this thesis was to identify possible differences between the expectations of Accounting's users and content of audit standards issued by the Federal Accounting Council, with regard to the role of independent auditors in preventing and detecting errors and fraud, and, later, examine whether through the users' opinion, the audit presented indicators of legitimacy. The expectation gap were checked between the groups: a) Users versus Standards b) Auditors versus Standards and c) Users versus Auditors. And in addition we tested the hypothesis that a greater level of involvement in the Audit practice helps to reduce the expectations gap. The sample was composed of 50 auditors and 106 users of financial statements, selected from students of MBA-related areas of Accounting and Business Administration of Federal University of Bahia. To validate the scales were tested: a) the dimensionality by factor analysis, KMO index and Bartlett's sphericity test; b) the reliability, by means of Cronbach's alpha; and c) the convergence using the Spearman coefficient. After validation of scales were performed hypothesis testing using parametric tests of mean differences for one and two samples, simple linear regression and multiple linear regression. The results indicate the existence of significant differences in expectations between the three groups analyzed in relation to auditors' liability to prevent and detect fraud and there isn't this significant difference between users and auditors only for the auditor's responsibility to communicate errors. This research also found that the level of involvement in audit practice is only related to a smaller difference in expectations when analyzing the perception of the independent auditor for the content of standards, related to the auditor's responsibility to prevent and detect fraud. For the other scales of fraud and all error for all the groups the survey revealed that the involvement level in audit is not related to a smaller expectations gap. The conclusion is that there are significant expectations gaps between auditors and other users of accounting in relation to establishing audit standards and auditors to move away from less of audit standards than other users of accounting. These differences are also found between the perception that auditors have their role and the perception that other users have on the function of the independent auditor. Additional information found in this research show that the reduction of expectations gaps is not related to the level of engagement with practice audits, but the profile of the respondent (User or auditor)and that such expectations gaps can be explained by the high degree of legitimacy that the profession has.

The independent audit rotation in Brazil was initiated by the Banco Central do Brasil (BACEN) because of the corporative scandals that demonstrated great vulnerabilities on the issuance of financial statements of financial institutions, were later adopted by Comissão de Valores Mobiliários (CVM) for the listed companies, registered on the stock market. The main objective of the implementation of independent audit' rotation was the protection of auditor independence and ethics, and the following of fraud and accounting errors reduction that would be related to the execution process of the audit of the financial statements. The trade of audit firm has always been a polemic matter, because besides of affecting the commercial and professional relationship of auditors to the audited companies, as well as the whole market structure for audit firms, wondering whether it is really effective in maintaining the independence and ethics. The dissertation was founded in Brazilian and international public accounting standards, the historic evolution of the concept of rotation of independent audit, the assessment of market and academic researches performed on the subject in other countries and also on the philosophical structures that determine the principles of independence and ethics that are correlated with accounting and auditing. Besides all theory referred above, was prepared a database with all the listed companies related to the database Economática in the years ranging from 1997 to 2007, excluding the financial institutions, and we obtained information regarding the independent audit on the CVM website. Taking as basis this information compiled on the rotated database, based on the methodology AWCA-Abnormal Working Capital Accruals, the effects of the earnings management from the audit firms exchanges, analyzing, mainly, the reason for the trade (CVM mandatory rotation or spontaneous exchange), classification of the audit firms as Big Four (PwC, DTT, E&Y and KPMG), and the duration of the relationship between the auditors and the audited company. The conclusion of the dissertation was to confirm that with or without independent audit rotation, the effects of the earnings management do not present significant difference on its essence, not been, thereby, the rotation of independent audit the best way to ensure to the capital market the maintenance of the independence of the auditor on the execution of his work, because we can not confirm that the practice of rotation alone minimizes the risks associated with fraud and accounting errors when preparing the financial statements. One topic that was found by this research that simplifies the management of the companies results, is the hiring of audit firms ranked as Big Four (PwC, DTT, E&Y and KPMG). Noted that those audit firms ranked as Big Four have their own team professionals rotation practices formalized in its internal rules.

The independent audit rotation in Brazil was initiated by the Banco Central do Brasil (BACEN) because of the corporative scandals that demonstrated great vulnerabilities on the issuance of financial statements of financial institutions, were later adopted by Comissão de Valores Mobiliários (CVM) for the listed companies, registered on the stock market. The main objective of the implementation of independent audit’ rotation was the protection of auditor independence and ethics, and the following of fraud and accounting errors reduction that would be related to the execution process of the audit of the financial statements. The trade of audit firm has always been a polemic matter, because besides of affecting the commercial and professional relationship of auditors to the audited companies, as well as the whole market structure for audit firms, wondering whether it is really effective in maintaining the independence and ethics. The dissertation was founded in Brazilian and internation...

Purpose:   The study aims to reflect on the reasons behind the increasing use of analytical procedures during evidence collection as a way of corroborating the claims made in financial statements.   Theoretical framework: The study develops the problem arising from more complex financial information due to more complex transactions within market players, and develops all the theoretical approach to auditing and the analytical procedures ruled in ISA 520.   Design/methodology/approach: A relevant sample was taken from the auditing market in Portugal, and thus principal component analysis was develop in order to conclude why auditors tend to rely increasingly in analytical procedures, as a source of evidence in auditing approaches.   Findings:   The conclusions of this empirical study point to the fact that, in general terms, the increasing use of analytical procedures stems from a risk-based approach to auditing together with reasons that have to do with time pressure and the need to...

Resumo: O objetivo do presente estudo foi fazer um resgate das principais discussões sobre comitê de auditoria desde a sua origem e revisar a incidência de pesquisas científicas sobre esse tema. Trata-se de uma pesquisa exploratória-qualitativa, tendo a revisão de estudos proposta abrangido uma amostra de 39 investigações. Como resultado constatou-se que as principais abordagens sobre o tema estão voltadas à sua formação voluntária, independência dos membros e vantagens proporcionadas às companhias. Em se tratando de temática emergente a ser estudada, cita-se a estruturação de um colegiado com maior poder coercitivo, pela sua independência por meio da desvinculação remuneratória dos seus membros. Palavras-chave: Comitê de auditoria. Temas emergentes. Pesquisas científicas.

Encontram-se no atual ordenamento economico empresas de capital aberto, exercendo atividades produtivas, operacionais e financeiras. Como forma de demonstrar maior transparencia e seguindo normatizacoes, essas empresas contratam auditores independentes para analisarem suas informacoes contabeis e financeiras. Ao longo dos ultimos doze anos o mundo deparou-se com grandes escândalos corporativos, em alguns desses casos foi detectada a participacao fraudulenta de auditores independentes. Apos essas revelacoes a profissao dos auditores independentes tem passado por uma falta de credibilidade, principalmente pelos analistas financeiros, que sao os profissionais responsaveis por direcionar investidores no sentido de optar por qual empresa investir. Estudou-se neste trabalho se a imagem do auditor independente foi afetada devido aos ultimos escândalos corporativos. Para entender melhor essa problematica foram enviados questionarios com perguntas abertas e fechadas, para uma amostra de anal...

This article aimed to identify factors that determine the auditor’s position in relation to the operational continuity of banks in financial distress. This research fills a gap in the national literature regarding the auditors’ position on operational continuity in the banking industry - a relationship subject to conflict between the premise of informing the user about operational continuity and the risk of a self-fulfilling prophecy. Understanding the context that explains the action of auditors in relation to going concerns in the banking industry is important for economic agents to comprehend whether and how auditing contributes to an environment of trust, credibility, and security in the financial market, considering that continuity risk warrants an opinion from the auditors, given their role of mitigating informational asymmetry and principal-agent conflicts. The research results contribute to the activities of market and professional regulatory bodies, of economic agents inter...

O presente artigo mostra o surgimento da auditoria. Surgiu em decorrencias desenvolvimentos dos negocios que durante anos, experimentaram mudancas considerais, tentando assim acompanhar a evolucao e crescimento tecnologico. Na parte seguinte explica o que e auditoria interna e algumas tecnicas usuais, conferencia de calculo, exame de escrituracao, investigacao minuciosa, inquerito, exame de registro auxiliar, correlacao das informacoes obtidas e observacao. E no resultado final mostra sobre a diferenca de erro e fraude e o parece da auditoria que e um relatorio onde o auditor expressa sua opiniao Palavra-Chave: Auditoria Interna, Relatorio.

O presente artigo teve como objetivo analisar o comportamento das fraudes nas empresas brasileiras em pesquisa realizada nos anos de 2002 e 2004 pela empresa de auditoria KPMG. O artigo foi estruturado com uma fundamentacao, relacionando o assunto fraudes com a auditoria e demonstrando a diferenca entre fraude e erro. Em seguida apresentaram-se as principais formas para coibir a fraude nas empresas. A pesquisa teve carater descritivo e explicativo com abordagem do problema quantiqualitativa. Os dados foram coletados em relatorios divulgados pela KPMG sobre fraudes no periodo de 2002 e 2004. Observou-se que, diferentemente das informacoes divulgadas pelos meios de comunicacao, a fraude nos demonstrativos contabeis ocorreu em apenas 1% das empresas pesquisadas. Os resultados da pesquisa evidenciaram que a origem das fraudes esta relacionada a perda de valores sociais e morais, geralmente cometida pelo pessoal que presta servico de suporte a empresa, em virtude de deficiencias nos cont...

The aim of the paper is to describe how globalization has affected the public accounting profession from the vantage point of the rules and requirements in the participating jurisdictions, global alliances and reciprocity for foreign credentials, the domestic and international mobility since globalization raises many important questions and creates opportunities for accounting professionals and educators. The concept of globalization and its impacts on the public accounting profession is examined in the context of the United States and the globalization is defined from the economic perspective, such as international trade and treaties that created the impetus for the U.S. to move toward adopting more international jurisdictions and removing some qualification restrictions on the certified public accountant (CPA) examination. Because the crucial step of being a certified public accountant is passing the CPA exam, the change in rules regarding eligibility requirements for international candidates and the international administration of the Uniform CPA Exam since 2011 is worth investigating. Due to the globalization, a greater opportunity exists today for foreign accountants to become a U.S. CPA, which may eventually affect the nature of the accountancy profession. This study has a narrative and ontological (descriptive) research approach, so it contributes to the literature by providing first ideas about this scarcely explored research avenue, evoking follow-up research questions, opening the door for the future deductive and inductive studies. Especially, it explains implications for the future research about globalization effects on foreign CPA accounting market, professional public accounting education programs for licensing professional accountants, professional ethics, and alliances for international opportunities.

This paper analyses the modifications of financial audit reports of Maltese companies between 2005 and 2009. It examines the audit reports of a random sample of 374 limited liability companies registered with the Registry of Companies in Malta. The study shows that the average 2005-2009 modification rate in Malta stood at 22.4%, this representing an increase over previous periods. Most modified reports were noted in the case of private exempt and international trading non-exempt companies. Generally, private exempt companies had their audit report qualified on the basis of a limitation of scope, whilst most international trading companies had their reports qualified on the basis of disagreement with management. Furthermore, the “small company qualification” (which has been long abolished) was still incorrectly being used in Maltese audit reports till 2009. The results therefore show that there is still room for improvement in audit reporting in Malta. Whilst the Big Four audit firms...

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The audit of small and micro-enterprises has, for a long time, been of concern to many academics and practitioners alike. Arguments have abounded as to whether the small enterprise audit was worthwhile or not. Though both views existed, it was apparent that small enterprise auditors did face problems in the small audit, albeit in different forms and magnitude. Some countries allow small enterprises to go unaudited. In the UK, a financial reporting standard for smaller entities has been promulgated in an attempt to mitigate some of the problems. This paper presents findings of an exploratory study conducted in Tanzania in relation to problem met by small and micro-enterprise auditors. The study was motivated by the fact that, whereas elsewhere the small audir problem is apparent and being dealt with in variow ways, in Tanzania there is an apparent lack of knowledge to any problems and their effect on the auditor's work. The study thus sought, inter alia, to confirm the existence of small audit problems, the nature of their incidence, and their impact on the audit work. This was done by soliciting responses to a number of potential audit problems. The results suggest that most of the problems investigated did not occur frequently although some were significant to the auditor's work. A tentative conclusion is that, though small enterprises in Tanzania have similar characteristics to those elsewhere, the incidence of SME audit problems is perceived differently in the country.

Este traballo ten como obxectivo analizar se os informes de auditoría de contas anuais se redactan de acordo coas Normas Técnicas de Auditoría (NTA) sobre informes, para o cal se estuda se o formato e o contido dos informes é acorde á normativa española vixente, e a súa relación co tipo de opinión que contén e co auditor que o emite. Partimos dunha mostra de 1.236 informes de empresas galegas non cotizadas seleccionadas mediante o método de mostraxe aleatoria estratificada para o período 2004-2007. Unha vez definidas a variable dependente-a cualificación global asignada a un informe segundo o grao de cumprimento das NTA-e as variables independentes-o tipo de auditor e o tipo de opinión-, contrástanse as hipóteses mediante unha análise de regresión coa finalidade de explicar os cambios na probabilidade de atopar un informe non acorde coas NTA en función das variables descritas. Os resultados alcanzados permiten concluír que os informes non sempre se redactan de acordo coas NTA, pois conteñen erros. Os informes con opinión cualificada son os que maiores desviacións presentan con respecto ás normas, sendo os auditores que exercen a título individual os que maior propensión teñen a emitir informes non acordes coas NTA, en comparación coas sociedades ou coas multinacionais.

Contexto: Apesar do avanço da tecnologia, muitos processos, especialmente no setor público, ainda necessitam de buscas manuais ou não inteligentes, para construção de conhecimento. Para as auditorias do Ministério da Saúde e do Sistema Único de Saúde (SUS), as diversas fontes de pesquisa a serem exploradas provocam demora e altos custos. Objetivo: Avaliar preliminarmente uma ferramenta, baseada em recuperação de conteúdo textual, o Sussurro, para coletar e apresentar as diversas matérias relacionadas à saúde pública, as quais podem nortear auditorias. Método: Prova de conceito do Sussurro. Resultados: Entre mais de 2 milhões de registros de matérias, 56.053 foram classificadas como indícios para auditoria em saúde. Conclusão: O Sussurro otimiza a seleção de conteúdo necessário para executar uma auditoria, beneficiando a investigação e o combate à corrupção na área de saúde.

This instructional case, based on a real-life experience, introduces students/ professionals to an ethical dilemma faced by a CPA who serves as both an auditor and a tax preparer for related parties. The CPA becomes aware of a large amount of gambling activity undertaken by an individual income tax client who is employed as the executive director of the local branch of a national charitable organization. The local branch also happens to be an audit client of the CPA. Through the case, students/professionals gain an understanding of and appreciation for a realistic ethical dilemma faced by a CPA who also prepares personal income tax returns for related parties. To help the CPA resolve the issues in this case, students/professionals must understand and apply relevant professional standards, including the AICPA Code of Professional Conduct, AU-C Section 240 ''Consideration of Fraud in a Financial Statement Audit,'' and IRS Circular 230 ''Regulations Governing Practice Before the Internal Revenue Service.'' A survey questionnaire administered to students who completed the case during an upper-level accounting course suggests that students found the case to be an enjoyable and valuable learning experience that helped them to recognize personal and professional ethical issues facing auditors and tax professionals, as well as to access and apply professional standards to such ethical issues.

Recently, the Public Company Accounting Oversight Board (''PCAOB'' or ''Board'') issued a release to address, in two ways, issues relating to the responsibilities of a registered public accounting firm and its supervisory personnel with respect to supervision. First, the release reminds registered firms and associated persons of, and highlights the scope of, Section 105(c)(6) of the Sarbanes-Oxley Act of 2002 (''the Act''), which authorizes the Board to impose sanctions on registered public accounting firms and their supervisory personnel for failing to supervise reasonably an associated person who has violated certain laws, rules, or standards. Second, the release discusses and seeks comment on conceptual approaches to rulemaking that might complement the application of Section 105(c)(6) and, through increased accountability, lead to improved supervision practices and, consequently, improved audit quality. The PCAOB provided for a 91-day exposure period (from August 5, 2010, to November 3, 2010) for interested parties to examine and provide comments on the conceptual approaches to rulemaking that might complement the application of Section 105(c)(6). The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below to the PCAOB on the PCAOB Release No. 2010-005, Application of the ''Failure to Supervise'' Provision of the Sarbanes-Oxley Act of 2002 and Solicitation of Comment on Rulemaking Concepts.

Preface to Reports Concerning Annually Inspected Firms The Sarbanes-Oxley Act of 2002 requires the Public Company Accounting Oversight Board ("PCAOB" or "the Board") to conduct an annual inspection of each registered public accounting firm that regularly provides audit reports for more than 100 issuers. The Board's report on any such inspection includes this preface to provide context for information in the public portion of the report. A Board inspection includes, among other things, a review of selected audits of financial statements and of internal control over financial reporting. If the Board inspection team identifies deficiencies in those audits, it alerts the firm to the deficiencies during the inspection process. Deficiencies that exceed a certain significance threshold are also summarized in the public portion of the Board's inspection report. The Board encourages readers to bear in mind two points concerning those reported deficiencies. First, inclusion in an inspection report does not mean that the deficiency remained unaddressed after the inspection team brought it to the firm's attention. Under PCAOB standards, a firm must take appropriate action to assess the importance of the deficiency to the firm's present ability to support its previously expressed audit opinions. Depending upon the circumstances, compliance with these standards may require the firm to perform additional audit procedures, or to inform a client of the need for changes to its financial statements or reporting on internal control, or to take steps to prevent reliance on previously expressed audit opinions. A Board inspection does not typically include review of a firm's actions to address deficiencies identified in that inspection, but the Board expects that firms are attempting to take appropriate action, and firms frequently represent that they have taken, are taking, or will take, action. If, through subsequent inspections or other processes, the Board determines that the firm failed to take appropriate action, that failure may be grounds for a Board disciplinary sanction.

O objetivo do presente estudo consiste em verificar o efeito da troca da firma de auditoria no nível de gerenciamento de resultados das companhias brasileiras listadas na BM&FBovespa. Para tanto, realizou-se uma pesquisa descritiva, com abordagem quantitativa, por meio de pesquisa documental. A população da pesquisa compreendeu as companhias abertas brasileiras listadas na BM&FBovespa no período de 2010 a 2016. Utilizou-se de regressão de dados em painel. Os resultados encontrados evidenciaram que as variáveis GROWTH (percentual de mudanças nas vendas) e TURN (vendas divididas pelos ativos totais no final do ano) foram significativas a nível de 99%, o que permite afirmar que estas impactam no gerenciamento de resultados nas organizações que compõe a amostra no período analisado. Em contrapartida, demais variáveis SIZE (logaritmo natural do ativo total), LEV (total do passivo dividido pelo total do patrimônio líquido no final do ano), DISSUE (percentual de mudanças no total dos passivos), CF (fluxo de caixa líquido anual das atividades operacionais divido pelos ativos totais no final do ano), AUD (empresa auditada por firma de auditoria Big-Four ou não) e TROFIRAUD (troca de firma de auditoria) não foram significativas. Palavras-chave: auditoria, firma de auditoria, troca de auditoria, gerenciamento de resultados. Audit firm exchange effect on earnings management in listed companies brazilian companies The objective of this study is to verify the effect of the exchange of audit firm on earnings management level of Brazilian companies listed on the BM&FBovespa. We conducted a descriptive with a quantitative approach by means of information retrieval. The research population comprised the Brazilian listed companies listed on the BM&FBovespa from 2010 to 2016. Panel data regression was used. The findings showed that the GROWTH variables (percentage changes in sales) and TURN (sales divided by total assets at the end of the year) were significant at the level of 99%, which allows us to state that these impacts the earnings management in the sample in the analyzed period. On the other hand, other variables SIZE (natural logarithm of total assets), LEV (total liabilities divided by total shareholders' equity at the end of the year), DISSUE (percentage of changes in total liabilities), CF (annual net cash operating activities divided by total assets at the end of the year), AUD (company audited by audit firm Big Four or not) and TROFIRAUD exchange (auditing firm) were not significant.

In an attempt to increase credibility in its capital markets, China recently adopted new auditing standards. Consistent with increased auditor independence, we "nd that the frequency of modi"ed opinions increases nine-fold subsequent to the adoption of the new standards. However, the increase in modi"ed reports is followed by a decline in audit market share among large auditors } those with the greatest propensity to issue modi"ed reports. We conjecture that this &#ight from audit quality' results from lack of incentives to demand independent auditors. Our "ndings suggest that government regulation alone is insu$cient to create "nancial markets that foster auditor independence. 2000 Elsevier Science B.V. All rights reserved.

Embora desde DeAngelo (1981) a qualidade da auditoria seja um tema com muito espaco na literatura contabil internacional, ha poucas evidencias sobre a qualidade da auditoria no mercado financeiro. No Brasil, apenas nos anos 2000 comecaram a surgir estudos a respeito da qualidade de auditoria, mas sem foco especifico em bancos. O presente estudo teve por proposito identificar os fatores determinantes da qualidade dos trabalhos dos auditores nas instituicoes bancarias brasileiras. Utilizando como proxy de qualidade de auditoria a pratica de gerenciamento de resultados, mais especificamente os accruals discricionarios relacionados ao processo de constituicao da Provisao para Creditos de Liquidacao Duvidosa (PCLD), foram realizados testes tendo por base as informacoes trimestrais de 2001 a 2012 dos bancos comerciais e multiplos e caixas economicas. Os testes empiricos revelaram que a qualidade dos trabalhos de auditoria tem relacao: negativa com o nivel de importância do cliente para o ...

The purpose of this paper is to review the empirical literature on value relevance of audit reports by providing current evidence on the market reaction to modified audit opinions (MAOs). This study is motivated by the argument that recent research has resolved the research designs problems raised by the pre-2010 studies that resulted in unmitigated and contradictory results. We adopt a systematic literature review based on the guidelines presented by Kitchenham et al. to review papers published between 2010 and 2020. The main findings of our review show sufficient evidence that MAOs are indeed useful to investors in making decisions in developed countries, which is evidenced by the fact that the MAOs have a negative effect on the share prices of companies. In contrast, evidence from studies conducted in developing countries shows null market reaction to MAOs, with the exception of the Chinese market, which shows a significant reaction. The methodological limitations and alternative...

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The main purpose of this study is to verify whether there is a relationship between the spontaneous change of an independent auditor and the qualified audit report issued in the previous year and also whether there is a positive relationship between the turnover of auditors and the issuing of qualified audit reports in the year of the turnover and subsequent years. This paper is justified by its proposal to scientifically evaluate the impact of the administration's influence and adopting the auditing turnover in the independence of the external auditor, without bias by the interested of the professional involved, since this is solely a documental study. Therefore, one arrives at diverse hypotheses in regard to the occurrence of a qualified report as a factor that encourages the administration to change auditors and in relation to the mandatory turnover of auditors favoring the issuing of qualified reports. In addition to the documental study, this paper is also comprised of a review of the academic and specialized literature that is the basis for the made questions addressed. The results obtained after the considerations and verification observed in the bibliographic studies, and the tests results from the Chi-square statistics, verify that the administration is more favorable to changing auditing firms when it receives a report modified by relevant safety clauses and emphases than when it receives a clean report from the current auditing firm. Another verification is the absence of a relationship between adopting the mandatory auditing turnover and issuing modified reports in the years after such change takes place.

This study attempts to test the effect of state ownership and follow-up of audit findings in state-owned enterprises (SOEs) owned by the government of the Republic of Indonesia, on the good corporate governance of SOEs. By using Ordinary Least Square (OLS) analysis, conducted by observing 98 observations during 2010-2014, the findings show that there are negative relationship between state ownership and good corporate governance implementation in SOEs in Indonesia. In addition, the results also reveal that the follow-up of audit findings positively affect the implementation of governance.

All rights reserved Manufactured in the United States of America First printing July 2001 1 23404030201 Technical Papers are published to communicate the results of the Bank's work to the development community with the least possible delay. The typescript of this paper therefore has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly.

Annex B Relation between These Disclosure Guidelines and IFRS Disclosure Requirements Disclosure Guidelines for Financial Reporting by Microfinance Institutions v These disclosure guidelines were developed in consultation with microfinance practitioners and the member donors of CGAP (the Consultative Group to Assist the Poor). In June 2000, CGAP member donors approved the distribution of a preliminary version of the guidelines. This final version (July 2004) is based on the results of field testing and input from the Financial Services Working Group (FSWG) of the Small Enterprise and Education and Promotion Network (SEEP).

Estas directrices fueron elaboradas en consulta con profesionales e instituciones donantes que son miembros del CGAP. El 22 de junio de 2000 los países miembros donantes dieron su aprobación para que se distribuyera esta versión preliminar de las directrices. Una vez que las directrices hayan sido aplicadas en la práctica a principios del 2001, se publicará la versión definitiva. El CGAP está integrado por los organismos bilaterales de asistencia externa de 16 países:

Ces exemples, fournis à titre purement indicatif, montrent un format de présentation possible Directives pour l'établissement des états financiers du CGAP, version provisoire du 1 er déc. 00 , page 3 Ces exemples, fournis à titre purement indicatif, montrent un format de présentation possible de l'information requise par les directives. L'emploi de ces formats types n'est pas obligatoire. Ces exemples, fournis à titre purement indicatif, montrent un format de présentation possible de l'information requise par les directives. L'emploi de ces formats types n'est pas obligatoire. Les directives demandent la présentation d e certaines informations qui ne figurent habituellement pas dans les états financiers. La plupart des IMF sont des institutions sortant de l'ordinaire en ce sens qu'elles poursuivent une mission sociale en procédant à des opérations financières, souvent-au moins pendant un temps-grâce à des dons ou des ?prêts subventionnés. Elles emploient, par ailleurs, généralement des méthodes de prêt très différentes de celles auxquelles ont recours les banques plus traditionnelles. C'est pourquoi, pour juger de la situation financière d'une IMF, il faut disposer de certaines informations que n'ont pas à fournir les institutions traditionnelles, telles que les informations sur les ?subventions en nature, l'?état des impayés pour le ?portefeuille de prêts, et autres éléments dont la présentation n'est pas requise par les normes comptables internationales (IAS). Les directives énoncées ci-après sont accompagnées d'une brève explication des raisons pour lesquelles l'information demandée est importante. Les lecteurs qui souhaiteraient obtenir de plus amples détails peuvent se reporter aux manuels d'analyse financière traitant des IMF. 3 Liens avec les audit externes. Il est fortement recommandé aux IMF de soumettre chaque année leurs états financiers à un audit extérieur, d'autant plus que les bailleurs de fonds l'exigent fréquemment. Il est toutefois important qu'elles suivent les présentes directives même si leurs états financiers ne sont pas audités, lorsqu'il leur faut décrire leur situation financière, au moyen de ces derniers, à des entités extérieures telles que des bailleurs de fonds et d'autres investisseurs. Le conseil d'administration et les directeurs des IMF décident euxmêmes des directives à respecter pour la présentation des états financiers à usage interne. 3 Au nombre des ouvrages de référence qui peuvent être consultés figurent le manuel de la Banque inter-américaine de développement intitulé Technical Guide for the Analysis of