international standards on auditing

Essay ini membahas peran penting profesi akuntan sebagai garda terdepan dalam menjaga integritas keuangan suatu entitas, baik di sektor publik maupun swasta. Dengan fokus pada fungsi strategis laporan keuangan, tulisan ini mengulas bagaimana transparansi dan akuntabilitas yang tercermin dalam laporan keuangan mampu menjadi alat efektif untuk mendeteksi, mencegah, dan meminimalkan potensi korupsi. Melalui pemaparan konsep, regulasi, hingga contoh nyata di Indonesia, essay ini mengajak pembaca untuk memahami bahwa peran akuntan bukan sekadar mencatat angka, tetapi juga menjadi bagian dari perjuangan moral dalam membangun tata kelola yang bersih dan bertanggung jawab.

This article investigates the connection among Top Management Team (TMT) characteristics and audit quality, focusing on how leadership attributes such as expertise, diversity, tenure, and risk management influence corporate governance and audit outcomes. Given the increasing demands for transparency, accountability, and robust financial reporting, the involvement of TMTs in guaranteeing audit quality has become more critical. We reviewed 255 articles published between 1996 and 2021 to analyze key trends, core publications, and influential themes related to TMT characteristics and audit quality. The study uses bibliometric analysis tools, including co-occurrence networks and thematic maps, to uncover the central themes in the literature. Audit quality, corporate governance, and audit fees emerged as dominant topics, while emerging areas such as board quality and internal audit quality suggest new opportunities for future research. The findings underscore the pivotal role of TMT characteristics in shaping governance practices, demonstrating that strategically shaping TMT composition through board size, diversity, and expertise can significantly enhance audit quality, reduce aggressive earnings management, and improve overall governance frameworks. This research provides practical insights for industries, particularly large enterprises and the banking sector, where audit quality is critical for maintaining financial stability. It also contributes to the academic literature by underscoring the interconnectedness of TMT characteristics and audit quality, offering valuable recommendations for scholars and practitioners. Organizations can optimize leadership structures to ensure stronger governance and reliable financial reporting by understanding how TMT attributes influence audit processes.

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

This research explores the concept of professional judgement in auditing
and its implications in the context of the transition from ISQC to ISQM. Professional judgement plays a pivotal role in the audit process, as auditors make informed decisions based on available information and evidence in accordance with professional standards and ethical requirements. The transition from ISQC to ISQM brings about significant changes to the framework of professional judgement, placing greater emphasis on risk assessment, consideration of cumulative misstatements, and the exercise of professional skepticism.
However, auditors face various challenges and barriers that can impact the effectiveness of professional judgement, including complexity, uncertainty, ambiguity, conflicts of interest, liability concerns, and professional skepticism. To enhance professional judgement, auditors can employ methods and techniques such as training, consultation, feedback, reflection, and coaching. These approaches can help auditors navigate the complexities of the audit environment, improve decision-making capabilities, and maintain audit quality. By understanding the factors influencing professional judgement and adopting appropriate
strategies, auditors can ensure the integrity and effectiveness of their judgements and uphold public trust in the auditing profession.

This research explores the concept of professional judgement in auditing
and its implications in the context of the transition from ISQC to ISQM. Professional judgement plays a pivotal role in the audit process, as auditors make informed decisions based on available information and evidence in accordance with professional standards and ethical requirements. The transition from ISQC to ISQM brings about significant changes to the framework of professional judgement, placing greater emphasis on risk assessment, consideration of cumulative misstatements, and the exercise of professional skepticism. However, auditors face various challenges and barriers that can impact the effectiveness of professional judgement, including complexity, uncertainty, ambiguity, conflicts of interest, liability concerns, and professional skepticism. To enhance professional judgement, auditors can employ methods and techniques such as training, consultation, feedback, reflection, and coaching. These approaches can help auditors navigate the complexities of the audit environment, improve decision-making capabilities, and maintain audit quality. By understanding the factors influencing professional judgement and adopting appropriate
strategies, auditors can ensure the integrity and effectiveness of their judgements and uphold public trust in the auditing profession.

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

The quality of an audit becomes visible as the auditor inspects the correspondence level between the established criteria and the presented information by using the International Standards on Auditing (ISA). The way of applying ISAs may differ in variety of situations in accordance with the auditor's professional judgement. In this manner, trying to evaluate the quality of audits and how high quality audits can be achieved needs to be set by several indicators in accordance with International Quality Control Standard 1 (ISQC 1). Audit quality indicators are a combination of qualitative and quantitative measures, there is no single measure of audit quality. The use of Information Technologies (IT) through business methods and internal controls has preferably increased its importance for those same information technologies to be used in auditing and assurance services. New areas of auditing and assurance services have opened up with the digitalization process of the world. There has been argument about whether the IT will replace the accounting profession, whether IT systems will replace auditors. It is indisputable that using IT systems in auditing process increase the quality of the audit without increasing the time spent on the audited data. However, this introduces new technological and business risks that the auditor will need to assess. Accordingly, the expectation from the quality of auditing has increased, but what about the results of the regulatory bodies? Enhanced discussions, in turn, may strengthen audit quality. This chapter explains the key elements that create an environment for audit quality focusing on the audit deficiencies related to the inspection reports from the world's audit regulators. Building/enhancing trust via audit quality cannot be formulized by algorithms or particular standards or obligations. The meaning of evaluation of audit quality depends on the conditions facing the auditor. Measuring professional skepticism, due care or professional judgement are critical factors affecting audit quality. For this reason a comparison is made between Turkish Oversight Authority(KGK) and International Forum of Independent Audit Regulators (IFIAR) inspection reports.

The quality of an audit becomes visible as the auditor inspects the correspondence level between the established criteria and the presented information by using the International Standards on Auditing (ISA). The way of applying ISAs may differ in variety of situations in accordance with the auditor's professional judgement. In this manner, trying to evaluate the quality of audits and how high quality audits can be achieved needs to be set by several indicators in accordance with International Quality Control Standard 1 (ISQC 1). Audit quality indicators are a combination of qualitative and quantitative measures, there is no single measure of audit quality. The use of Information Technologies (IT) through business methods and internal controls has preferably increased its importance for those same information technologies to be used in auditing and assurance services. New areas of auditing and assurance services have opened up with the digitalization process of the world. There has been argument about whether the IT will replace the accounting profession, whether IT systems will replace auditors. It is indisputable that using IT systems in auditing process increase the quality of the audit without increasing the time spent on the audited data. However, this introduces new technological and business risks that the auditor will need to assess. Accordingly, the expectation from the quality of auditing has increased, but what about the results of the regulatory bodies? Enhanced discussions, in turn, may strengthen audit quality. This chapter explains the key elements that create an environment for audit quality focusing on the audit deficiencies related to the inspection reports from the world's audit regulators. Building/enhancing trust via audit quality cannot be formulized by algorithms or particular standards or obligations. The meaning of evaluation of audit quality depends on the conditions facing the auditor. Measuring professional skepticism, due care or professional judgement are critical factors affecting audit quality. For this reason a comparison is made between Turkish Oversight Authority(KGK) and International Forum of Independent Audit Regulators (IFIAR) inspection reports.

Purpose This paper aims to investigate the position of international financial services centres (IFSCs) in the International Federation of Accountants’ countries’ status on the adoption of International Standards on Auditing (ISA) and assess the factors influencing ISA adoption in these centres. Design/methodology/approach This research drew its data from various sources, including the World Economic Forum (WEF) data set, the World Bank Report on Observation of Standards and Codes, the World Development Indicators and the Economic Intelligence Unit Report on Democracy Index on 50 countries classified as IFSCs. The adoption status is then regressed on a number of variables of interest. To establish that the results are robust, the authors used a combination of different regression techniques comprising OLS, multinomial and logistic regressions. Findings In addition to the gross domestic product growth and education level, this paper adds new evidence to the literature by reporting th...

This study aims to explore the extent of external auditors awareness of the requirements of the International Standard on Auditing No. 260 (Communications with those charged with governance) on audit quality and to shed light on the effectiveness of the communication process based on auditors actual experience. A mixed method approach was employed to achieve the study objectives. The analysis of 116 questionnaires concluded that the requirements of the ISA 260 enhance audit quality, but the two-way communication between Jordanian auditors and the audit committee is ineffective from external auditor’s perception. The study also found that audit committees do not support external auditor when disagreements arise between auditors and their client management on accounting treatments. The qualitative interviews confirmed the quantitative results and revealed several explanations among which: 1) lack of qualified directors, 2) lack of a clear policy in selecting board members, 3) me...

This study aims to explore the extent of external auditors awareness of the requirements of the International Standard on Auditing No. 260 (Communications with those charged with governance) on audit quality and to shed light on the effectiveness of the communication process based on auditors actual experience. A mixed method approach was employed to achieve the study objectives. The analysis of 116 questionnaires concluded that the requirements of the ISA 260 enhance audit quality, but the two-way communication between Jordanian auditors and the audit committee is ineffective from external auditor’s perception. The study also found that audit committees do not support external auditor when disagreements arise between auditors and their client management on accounting treatments. The qualitative interviews confirmed the quantitative results and revealed several explanations among which: 1) lack of qualified directors, 2) lack of a clear policy in selecting board members, 3) me...

This study aims to explain the Jordanian state of the implementation of robotic process automation RPA in auditing, and to examine the expected impact of RPA implementation on audit quality from the views of Jordanian auditors, furthermore, the study aims to define the challenges of RPA implementation in Jordanian auditing firms. The study employed a survey method to collect data by using questionnaires. Three hundred (300) questionnaires were supplied to the sample of the study of which two hundred and seven (207) questionnaires from retrieved questionnaires were valid for analysis. The results of the study showed that Jordanian auditing firms do not apply RPA despite the expected impact of implementation on audit quality, this may be justified by the challenges that the auditors believe, the most important as they indicated are the initial investment for creating or purchase RPA, and the changing resistant by auditors for different purposes. The contributions of this paper are by ...

The main aim of this research is to investigate whether board diversity affect the accounting conservatism. This study depends on a panel data set drawn from 68 industrial firms listed on Amman Stock Exchange (ASE) for the period from 2013 to 2016. Four demographic characteristics of directors have been investigated, namely: gender diversity, education level, average age and nationality diversity. Accounting conservatism was measured by accrual-based conservatism. The results indicate that gender diversity, education level and nationality diversity are significantly positively correlated with accounting conservatism. However, the findings fail to reveal any significant effect for directors' age on accounting conservatism. The findings of this study assert that it is necessary to take board diversity (directors' demographic characteristics) into account when choosing board of directors members because demographic characteristics diversity influences directors' behavior to...

Changes in boards of BPK followed by a change of strategic audit plan. Board’s current period brings big issues that are different from the previous period, the audit associated with the issue of welfare or prosperity. This study aims to determine whether the BPK had and the need to reposition the role of major issues related to the changes brought by the new boards. This research is qualitative content analysis method with the object of study are audit strategic plan, a draft audit strategic plan, and IHPS from 2008 to 2014. By using the approach of the six key elements offered by Ryan, et al (2007), the results showed that the BPK (boards and auditors) has realized some key elements as the form of the repositioning, such as the strengthening of strategic value, learning capabilities and strategic flexibility, an adequate understanding of audit entities, and the top management commitment. However, the results also show that auditors still need to have an understanding of the sensit...

Executive Summary The provision of non-audit services (NAS) by an incumbent auditor has remained a highly contentious issue. One school argues that the joint provision does not impair an auditor’s independence. Instead, it reduces total costs, enhances the ability to detect material misstatements, increases technical competence due to knowledge spillovers and leads to intense competition. However, a substantial tranche of an audit firms’ income is derived from NAS, and the joint provision increases economic ties with the client. Therefore, another school of thought perceives that the joint provision impairs auditor independence. It is also alleged that auditors expect non-audit work after finishing the auditing job. Their independence is also affected by the risks of self-review. Extant literature reveals that the majority of the studies on the issue are archival and experimental. The studies are concentrated in the US, UK, Australia, Malaysia, Nigeria, South Africa, China, and some...

BPK memiliki mandat untuk melakukan pemeriksaan atas pengelolaan dan tanggung jawab keuangan negara, diantaranya melalui Pemeriksaan Dengan Tujuan Tertentu (PDTT). Berdasarkan hasil kajian yang dilakukan Direktorat Litbang PDTT pada tahun 2011, pemeriksaan yang termasuk dalam PDTT adalah pemeriksaan investigatif dan kepatuhan. Pemeriksaan kepatuhan yang dimaksudkan adalah pemeriksaan kepatuhan yang berdiri sendiri. Tulisan ini bertujuan untuk memberikan informasi tentang penarikan kesimpulan dalam pemeriksaan kepatuhan yang berdiri sendiri tersebut. Metodologi yang digunakan yaitu studi literatur, telaah LHP, pengumpulan data dan informasi melalui kuesioner dan wawancara, serta Focus Group Discussion dengan praktisi dan akademisi. Hasil studi menunjukkan bahwa faktor-faktor yang mendukung kualitas penarikan kesimpulan dalam pemeriksaan kepatuhan yang berdiri sendiri adalah tujuan, lingkup atau cakupan pemeriksaan, kriteria, materialitas, sampel dan bukti pemeriksaan. Studi ini mengusulkan bentuk kesimpulan yang mengacu pada ISSAI 4100 Compliance Audit Guidelines-For Audits Performed separately from the Audit of Financial Statements. BPK has the mandate to conduct audits over management and accountability of the state finance, with one of the audit types is Special Purpose Audit (PDTT). Based on the results of studies conducted by the Directorate of Research and Development of PDTT (Litbang PDTT) in 2011, PDTT consists of, among others, investigative and compliance audit. Compliance audit intended is a compliance audit performed independently. This study aims to provide information about the conclusions in the compliance audit which performed independently. The methodology used is literature study, audit reports analysis, data and information collection through questionnaires and interviews, as well as focus group discussions with practitioners and academician. Based on the study, it can be inferred that factors affecting the quality of the conclusion is the audit objective, the scope of the examination, criteria, materiality, sample and evidence. This study suggests to use ISSAI 4100 Compliance Audit Guidelines-For Audits Performed separately from the Audit of Financial Statements as a reference for the conclusion format.

The crux of audit work is the collection and the evaluation of evidence (AbouSeada and Abdel-Kader, 2003; Rittenberg et al., 2009). International auditing standards suggest that the auditors should obtain evidence to support their opinions (IFAC, 2010b). Thus, this study investigates the extent of sufficiency and appropriateness of evidence obtained by Libyan auditors in the Libyan context thus contributing to the knowledge of the auditing in developing Arab countries. Particularly, this study examines the effects of the six selected factors which are: source of evidence, directness of evidence, types of evidence, professional and academic qualifications of the auditor, consistency of evidence, and amount of evidence; on the audit evidence. A mixed method approach was utilised in the study to gather a range of views from all the professional groups involved in Libyan Auditing. Self-administered questionnaires were used to collect data concerning the perceptions of participants (exte...

BPK memiliki mandat untuk melakukan pemeriksaan atas pengelolaan dan tanggung jawab keuangan negara, diantaranya melalui Pemeriksaan Dengan Tujuan Tertentu (PDTT). Berdasarkan hasil kajian yang dilakukan Direktorat Litbang PDTT pada tahun 2011, pemeriksaan yang termasuk dalam PDTT adalah pemeriksaan investigatif dan kepatuhan. Pemeriksaan kepatuhan yang dimaksudkan adalah pemeriksaan kepatuhan yang berdiri sendiri. Tulisan ini bertujuan untuk memberikan informasi tentang penarikan kesimpulan dalam pemeriksaan kepatuhan yang berdiri sendiri tersebut. Metodologi yang digunakan yaitu studi literatur, telaah LHP, pengumpulan data dan informasi melalui kuesioner dan wawancara, serta Focus Group Discussion dengan praktisi dan akademisi. Hasil studi menunjukkan bahwa faktor-faktor yang mendukung kualitas penarikan kesimpulan dalam pemeriksaan kepatuhan yang berdiri sendiri adalah tujuan, lingkup atau cakupan pemeriksaan, kriteria, materialitas, sampel dan bukti pemeriksaan. Studi ini mengusulkan bentuk kesimpulan yang mengacu pada ISSAI 4100 Compliance Audit Guidelines-For Audits Performed separately from the Audit of Financial Statements. BPK has the mandate to conduct audits over management and accountability of the state finance, with one of the audit types is Special Purpose Audit (PDTT). Based on the results of studies conducted by the Directorate of Research and Development of PDTT (Litbang PDTT) in 2011, PDTT consists of, among others, investigative and compliance audit. Compliance audit intended is a compliance audit performed independently. This study aims to provide information about the conclusions in the compliance audit which performed independently. The methodology used is literature study, audit reports analysis, data and information collection through questionnaires and interviews, as well as focus group discussions with practitioners and academician. Based on the study, it can be inferred that factors affecting the quality of the conclusion is the audit objective, the scope of the examination, criteria, materiality, sample and evidence. This study suggests to use ISSAI 4100 Compliance Audit Guidelines-For Audits Performed separately from the Audit of Financial Statements as a reference for the conclusion format.

In this study, we aim to examine the influence of corporate governance on the audit quality of financial report moderated by benevolence. The research data consisted of 320 observations from 80 public listed companies in the manufacturing industry from 2013-2016. The research model has been tested using a data pool, with statistics on Structural Equalization Modeling-Partial Least Square (SEM-PLS). The results of the study get empirical evidence that corporate governance has a positive effect on audit quality. While benevolence as an independent variable has a negative impact on audit quality, however, benevolence as a moderating variable strengthens the influence of corporate governance on audit quality. Likewise, SIZE as control variables have a positive effect on audit quality, but ROA no impact on audit quality and LEV have a negative impact on audit quality. The result of this study have implications for investors, company management and regulators, that good corporate governance is inseparable from the benevolence of management in managing the company as a way to improve audit quality, is something essential and needs attention from all parties.

In this study, we aim to examine the influence of corporate governance on the audit quality of financial report moderated by benevolence. The research data consisted of 320 observations from 80 public listed companies in the manufacturing industry from 2013-2016. The research model has been tested using a data pool, with statistics on Structural Equalization Modeling-Partial Least Square (SEM-PLS). The results of the study get empirical evidence that corporate governance has a positive effect on audit quality. While benevolence as an independent variable has a negative impact on audit quality, however, benevolence as a moderating variable strengthens the influence of corporate governance on audit quality. Likewise, SIZE as control variables have a positive effect on audit quality, but ROA no impact on audit quality and LEV have a negative impact on audit quality. The result of this study have implications for investors, company management and regulators, that good corporate governan...

Bene�it of implementating audit recommendation is an important factor in performance audit. This paper present results of descriptive research using survey method to auditee of BPK's performance audit aimed to assess the extent of bene�its of BPK's performance audit and to know BPK's performance audit recommendation over entities being audited (auditee). Survey was conducted to BPK's auditees that consist of Ministries/ agencies, state /local owned enterprises, hospitals, as well as regional work units (SKPD) in Provincial/District/City government and "other entities". The survey results show that BPK's performance audit help improving the performance of the auditee, where auditee at regional government level (including local owned enterprises) get greater bene�it than the central government (including state owned enterprises). The survey result shows higher frequency of performance audit conducted and better quality of BPK's recommendation provides greater bene�its to the auditee. This survey also shows that 90% of respondents agree that BPK's recommendations can be implemented. Some inputs presented by the auditee related efforts should to be taken by the BPK to improve the quality of audit and recommendation, to increase the level of follow up by the auditee.

Investors’ reliability on financial statements decreases due to continuing corporate scandals. Many of these rogue listed companies have had dominant shareholders who have circumvented internal controls for personal gain or have hidden poor management using misleading reporting. This has led to calls for restructuring the annual financial report and to fill the gap of corporate governance constituents. This study aims to highlight the importance of combining the efforts of the audit trinity (those are: the audit committee, the external auditor and the internal auditor) in securing the financial reporting system and corporate governance. This literature-based study suggests coordinating and integrating the efforts of the audit trinity and the issue a joint report addressing all matters related to (1) safeguarding company’s assets and accounts (2) ensuring that financial statements and the annual report are fair, balanced and reliable, and (3) ensure the entity’s compliance with appli...

BPK memiliki mandat untuk melakukan pemeriksaan atas pengelolaan dan tanggung jawab keuangan negara, diantaranya melalui Pemeriksaan Dengan Tujuan Tertentu (PDTT). Berdasarkan hasil kajian yang dilakukan Direktorat Litbang PDTT pada tahun 2011, pemeriksaan yang termasuk dalam PDTT adalah pemeriksaan investigatif dan kepatuhan. Pemeriksaan kepatuhan yang dimaksudkan adalah pemeriksaan kepatuhan yang berdiri sendiri. Tulisan ini bertujuan untuk memberikan informasi tentang penarikan kesimpulan dalam pemeriksaan kepatuhan yang berdiri sendiri tersebut. Metodologi yang digunakan yaitu studi literatur, telaah LHP, pengumpulan data dan informasi melalui kuesioner dan wawancara, serta Focus Group Discussion dengan praktisi dan akademisi. Hasil studi menunjukkan bahwa faktor-faktor yang mendukung kualitas penarikan kesimpulan dalam pemeriksaan kepatuhan yang berdiri sendiri adalah tujuan, lingkup atau cakupan pemeriksaan, kriteria, materialitas, sampel dan bukti pemeriksaan. Studi ini mengusulkan bentuk kesimpulan yang mengacu pada ISSAI 4100 Compliance Audit Guidelines-For Audits Performed separately from the Audit of Financial Statements. BPK has the mandate to conduct audits over management and accountability of the state finance, with one of the audit types is Special Purpose Audit (PDTT). Based on the results of studies conducted by the Directorate of Research and Development of PDTT (Litbang PDTT) in 2011, PDTT consists of, among others, investigative and compliance audit. Compliance audit intended is a compliance audit performed independently. This study aims to provide information about the conclusions in the compliance audit which performed independently. The methodology used is literature study, audit reports analysis, data and information collection through questionnaires and interviews, as well as focus group discussions with practitioners and academician. Based on the study, it can be inferred that factors affecting the quality of the conclusion is the audit objective, the scope of the examination, criteria, materiality, sample and evidence. This study suggests to use ISSAI 4100 Compliance Audit Guidelines-For Audits Performed separately from the Audit of Financial Statements as a reference for the conclusion format.

In this study, we aim to examine the influence of corporate governance on the audit quality of financial report moderated by benevolence. The research data consisted of 320 observations from 80 public listed companies in the manufacturing industry from 2013-2016. The research model has been tested using a data pool, with statistics on Structural Equalization Modeling-Partial Least Square (SEM-PLS). The results of the study get empirical evidence that corporate governance has a positive effect on audit quality. While benevolence as an independent variable has a negative impact on audit quality, however, benevolence as a moderating variable strengthens the influence of corporate governance on audit quality. Likewise, SIZE as control variables have a positive effect on audit quality, but ROA no impact on audit quality and LEV have a negative impact on audit quality. The result of this study have implications for investors, company management and regulators, that good corporate governan...

This study aims at evaluating and investigating the effectiveness of the internal auditing procedures in the Jordanian commercial banks through evaluating auditing procedures used in the commercial banks in Jordan and evaluating the role of the board of directors in achieving this effectiveness. Moreover, this study aims at investigating the internal auditing program used in the banks to check the availability of the risk-based auditing program and sufficient degree of independence for the internal auditor in these banks. The study's main hypothesis was: "the internal auditing procedures in the Jordanian commercial banks do not include the effectiveness of the internal auditing profession" and there were other four sub-hypotheses. The descriptive approach was used. A questionnaire consisted of 48 items was prepared and distributed to 130 internal auditors in the commercial banks representing 248 internal auditors. Only 104 questionnaires were valid for analysis out of 120 questionnaires that were retrieved. Data were collected and analyzed statistically. Results revealed that the internal auditing program used in the commercial banks included procedures that achieve internal auditing procedures and the role of the board of directors ensured the effectiveness of the internal auditing in the information technology. Additionally, results showed that the internal auditing program included risk based auditing program and the internal auditing procedures ensure the internal auditor's independence. The study recommended the necessity to enhance the current procedures followed in the internal auditing implementation for its effectiveness and the necessity to clarify the internal controls and its levels to ensure the success of the auditing program.

This paper offers discussions towards the investors on the new audit report requirement imposed by the International Auditing and Assurance Standards Board (IAASB) in the recent years. The auditing has evolved over the period due to the advancement and the need of the global economy. The regulators and practitioners view that the new audit report as a tool that providing more to the investors including of increasing the transparency of information and audit quality. The new audit report requirement on ISA 701, Communicating Key Audit Matters (KAMs) has required more disclosure from the auditor by reporting the most significant matters in the audit of financial statements for the current period. The three underpinning theories; agency theory, knowledge-based theory of a firm and communication theory are discussed in supporting the theoretical of the new auditor's report.

Akuntan public adalah salah satu jenis profesi bidang akuntansi yang menawarkan jasa professional terkait bidang akuntansi yang seesuai standar berlaku dan telah mendapatkan izin dari negara serta berhak melakukan praktik di Indonesia yang bekerja secara idependen ,yang melatar belakangi penulis untuk mengkaji permasalahan ini ialah terkait dengan tata cara pemilihanan ggota akuntan public yang menurut penulis terdapat kekeliruan. Studi ini bertujuan untuk menjelaskan menjelaskan kewenangan Akuntan Publik dalam melakukan pemeriksaan pengelolaan keuangan dan mekanisme pemeriksaan pengelolaan keuangan tahunan BPK oleh akuntan publik menurut Undang-undang nomor 15 tahun 2006 tentang Badan Pemeriksaan Keuangan. Metode penelitian yang digunakan dalam penelitian ini adalah jenis penelitian yuridis normatif. Pendekataan penelitian yang dilakukan lebih ditujukan kepada pendekatan undang-undang, pendekatan konseptual, dan pendekatan komperatif. Adapun sifat penelitian dalam skripsi ini adalah penelitian deskriptif, Serta bentuk dari penelitian ini adalah bentuk preskriptif.

Regulators in the USA and elsewhere have shown renewed interest in auditors’ judgments related to going-concern modified (GC) audit reports. Such judgments involve evaluating management’s plans, and prior research suggests that executive turnover is associated with significant organizational changes. Further, some recent studies posit that gender is associated with accounting and audit judgments. We examine audit opinions for two different samples: 2,089 financially stressed firms and 642 manufacturing firms that filed for bankruptcy. In both samples, we find that GC opinions are more likely for firms with a new CFO; however, we find no significant association between GC opinions and executives’ gender. The CFO tenure related result may arise from auditors’ professional skepticism related to a new executive. Our gender-related results differ from those of Gold et al. (2009) and suggest the need for additional research related to the role of client gender in auditing settings.

Auditor independence and the quality of audit report is of growing concern to regulators, institutional investors and stakeholders as a series of accounting scandals have undermined the professionalism of auditors. The findings from this study produced an insight of how auditor’s independence improve audit quality and that abnormal audit fees is as a result of additional effort for auditor to carry out rigorous audit engagement as a result of wider audit scope; that mandatory audit firm rotation will enhance auditor independence, and that audit committee with nonexecutive independence will promote audit quality. The study also finds that in terms of auditor size, smaller audit firms that belong to professional bodies will provide higher audit quality. The main conclusion of this research is that where an auditor is fully independent in carrying out audit engagement with strong resistance to fees pressure will enhance audit quality. This research provides insight into the impact of I...

Thanks to the Canadian Institute of Chartered Accountants through the Canadian Academic Accounting Association and to the Social Sciences and Humanities Research Council for generous financial assistance. We are grateful to the members of the Financial Executives Institute (Canada) Committee on Corporate Reporting and many other senior financial officers for their advice on the features that affected their negotiations with their audit firm. Excellent research assistance has been provided by Guoping Liu (PhD student) and Rawan El khatib and Pam McIntryre (co-op students). We thank the members of the FEI (Canada) for responding to our questionnaire and to the staff of Financial Executive Institute (FEI) (Canada) for support in obtaining the highest response level to date of an FEI (Canada) questionnaire. We received insightful and helpful comments from the editor, Gordon Richardson, and the anonymous reviewers. Finally, we thank members of the following accounting workshops and conferences for comments:

The objective of this study is to investigate the effect of regulatory changes on financial reporting quality and audit fees and to further test whether this effect was moderated by firm characteristics (i.e. abnormal audit fees, political connections and overlapping directorship) in Nigeria. This study utilized the data of 90 companies listed on the Nigerian stock exchange over the period 2008–2013. Using Generalized Method of Moments (GMM) technique that takes into account the endogeneity nature of financial reporting quality and audit fees model, the results indicated that financial reporting quality improved in the regulatory changes period. However, abnormal audit fees, political connection and overlapping directorship deteriorated the effect. Accordingly, future regulatory reforms must be cognizant of these factors. Even though there are abundant empirical studies on financial regulatory changes and their effects on financial reporting quality, this study provides additional i...

This study aimed to propose a theoretical framework that explains the relationship between internal corporate governance mechanisms namely audit committee and board of directors, and auditor independence. It is a descriptive study that explored the Saudi corporate governance reforms and the Saudi auditing market. In recent years, Saudi Arabia has been pursuing corporate governance reforms, as evidenced by the setting up of the Capital Market Authority (CMA) in 2003 and the publication of the Saudi Corporate Governance Code (SCGC) in 2006. In the Saudi Organization for Certified Public Accountants (SOCPA), the accounting standards committee holds the responsibility of developing and reviewing accounting and auditing standards in the country. According to the agency theory, corporate governance mechanisms and external audit have a key role in improving the process of financial reporting. Basing the primary argument on the above premise, this study attempted to achieve the following ob...

SUMMARY This study provides evidence on the factors that currently impact audit committee members' selection of external auditors. Using a two-stage approach, we survey and interview public company audit committee members (ACMs), and find evidence that management continues to provide input into the decision process even as SOX regulations require audit committees to take responsibility for the auditor selection decision. ACMs view management as an important information source when they assess the proposing audit partner's reputation for accessibility, timeliness, and ability to liaise with the firm's national technical office, as well as the proposing audit firm's technical and industry expertise. Results of this study can help firms be more competitive in the audit bidding process, inform policy makers when considering whether to impose further audit committee regulations, and aid academics in ensuring an up-to-date understanding of the audit committee's role in...

Purpose: The aim of the paper is to present a critical literature review of the impact of audit committee characteristics (ACCs) on audit quality and to identify any research gaps in the field of audit quality. The aim is also to establish, if any, research gaps in the area of audit quality and to recommend any for potential research.  Approach/Methodology/Design: The methodology of this study is a review of literature on audit committee characteristics and audit quality. A number of research articles were analyzed. Findings: The results of this review of literature revealed that audit committee size, audit committee meeting, and audit committee financial expertise have main effects on  the audit quality in the public and private sectors. Practical Implications: This review article gives an opportunity to auditors, management of audit offices and other stakeholders to better understand the pillars of audit quality, factors, and framework to reinforce the quality of the financial sta...

The main aim of this research is to investigate whether board diversity affect the accounting conservatism. This study depends on a panel data set drawn from 68 industrial firms listed on Amman Stock Exchange (ASE) for the period from 2013 to 2016. Four demographic characteristics of directors have been investigated, namely: gender diversity, education level, average age and nationality diversity. Accounting conservatism was measured by accrual-based conservatism. The results indicate that gender diversity, education level and nationality diversity are significantly positively correlated with accounting conservatism. However, the findings fail to reveal any significant effect for directors' age on accounting conservatism. The findings of this study assert that it is necessary to take board diversity (directors' demographic characteristics) into account when choosing board of directors members because demographic characteristics diversity influences directors' behavior to...

This research work examines the factors that determine the selection of external auditor among Global Brand listed companies in Nigeria. The variables of Audit Big 4 firms which include Deloitte, Klynveld Peat Marwick Goerdeler, (KPMG) and Price Water House Coopers (PWC) where selected as choice target for this research work. Big four audit firm of Ernst’s & Young (E&Y) was excluded in the sample as it is found not to have provided audit services to any of the selected global brand listed company in Nigeria during the period covered by this study. The study employed the methodology of Multinomial Probit Regression (MPR) analysis in X-raying the data. Empirical evidence shows that there is a significant positive relationship between firm size and choice of external auditor’s selection for the big four audit firms of KPMG and Deloitte. The study also provides a revelation that the relationship between the variable of firm size is negative and statistically significant with audit firm ...

SUMMARY On May 11, 2016 the Public Company Accounting Oversight Board (PCAOB) issued a request for comment on Proposed Auditing Standard—The Auditor's Report on an Audit of Financial Statements when the Auditor Expresses an Unqualified Opinion and Related Amendments to PCAOB Standards, a reproposal of its August 2013 proposed auditor reporting standard. The reproposal retains the pass/fail model of the existing auditor's report while seeking to enhance the form and content of the report. The reproposal solicited public comment on the following significant changes to the existing auditor's report: (1) add a description of “critical audit matters” that provides audit-specific information about especially challenging, subjective, or complex aspects of the audit as they relate to the relevant financial statement accounts and disclosures, (2) add a statement about auditor independence and the phrase “whether due to error or fraud” when describing the auditor's responsibil...

The moderating effect of Enterprise Risk Management (ERM) on the relationship between
Audit Committee (AC) characteristics and corporate performance under Jordanian context remains a
challenge that is yet to be resolved. Jordan plays a significant role on Middle East economy, and
recently attracted the attention of the investors. Audit committee characteristics have a significant
effect on corporate financial and risk decision-making practices in Jordan. The fundamental AC role
is to supervise the corporate’s financial reporting practice, review of financial reports, auditing
practice, internal accounting controls, and risk management practices. Hence, the risk management
committee (RMC) and AC can potentially moderate the relationship between risk management
disclosure and firm performance. Several results of the previous literature were found fraternized,
unclear, and inconsistent regarding the ERM effect on firm performance or its effect on AC
characteristics in general context, while the literature on Jordan context remain very scarce
inaccessible. Therefore, this paper, with regards to existing literature, conceptualized that ‘ERM’
moderates the relationship between AC size, number of AC meeting, AC independence, accounting
expertise in the AC, Muslim directors in the AC, and corporate performance.

The purpose of this study is to determine the effect of auditor ethics and audit tenure on auditors' ability to detect creative accounting practices. The study is conducted on auditors who work at the Bali Province Public Accountant Firm which is registered at IAPI 2020. The sample selection method uses purposive sampling technique. The number of samples in the study were 60 people. The analysis technique used is Multiple Linear Regression Analysis. The results show that auditor ethics has a significant negative effect on the ability of auditors to detect creative accounting practices, which indicates that when an auditor detects creative accounting practices in financial statements, the auditor chooses to override ethics and thus ignores actual findings. Meanwhile, audit tenure has a significant positive effect on the ability of auditors to detect creative accounting practices, which indicates that the longer the audit tenure or the longer the audit engagement period, the auditor's ability to detect creative accounting practices in the financial statements will increase.

• Berdasarkan ketentuan Pasal 13 Undang-Undang Nomor 15 Tahun 2004 tentang Pemeriksaan Pengelolaan dan Tanggung Jawab Keuangan Negara, pemeriksa dapat melaksanakan pemeriksaan investigatif guna mengungkap adanya indikasi kerugian negara/daerah dan/atau unsur pidana, dan berdasarkan ketentuan Pasal 11 huruf c Undang-Undang Nomor 15 Tahun 2006 tentang Badan Pemeriksa Keuangan, Badan Pemeriksa Keuangan dapat memberikan keterangan ahli dalam proses peradilan mengenai kerugian negara/daerah.
• Dasar hukum Peraturan BPK ini adalah UU Nomor 31 Tahun 1999 tentang Pemberantasan Tindak Pidana Korupsi sebagaimana telah diubah dengan UU Nomor 20 Tahun 2001; UU Nomor 15 Tahun 2004 tentang Pemeriksaan Pengelolaan dan Tanggung Jawab Keuangan Negara; dan UU Nomor 15 Tahun 2006 tentang Badan Pemeriksa Keuangan.
• Peraturan BPK ini mengatur mengenai Pemeriksaan investigatif, Pemeriksaan investigatif dalam rangka penghitungan Kerugian Negara/Daerah (penghitungan Kerugian Negara/Daerah); dan pemberian keterangan ahli. BPK melaksanakan Pemeriksaan investigatif guna mengungkap adanya indikasi Kerugian Negara/Daerah dan/atau Unsur Pidana dalam lingkup pengelolaan dan tanggung jawab keuangan negara yang dilakukan secara bebas dan mandiri. Sedangkan Penghitungan Kerugian Negara/Daerah dilakukan BPK melalui Pemeriksaan Investigatif yang bertujuan untuk mengungkap ada atau tidaknya Kerugian Negara/Daerah termasuk menghitung nilai Kerugian Negara/Daerah yang terjadi sebagai akibat dari penyimpangan dalam pengelolaan keuangan negara/daerah. Selain itu, BPK dapat memberikan keterangan ahli dalam proses peradilan mengenai Kerugian Negara/Daerah yang dilakukan oleh Anggota BPK dan/atau Pelaksana BPK berdasarkan penugasan BPK.

Orientation: The need for sound corporate governance has directed attention to internal auditing as a corporate governance tool and mechanism in both public and private sector organisations. Research purpose: The study examined the impact of management support and commitment, staff competence and independence of internal auditors as the antecedents of the effectiveness of an internal auditing function. Motivation for the study: This study was motivated by the need to assess the effectiveness of internal auditing as a corporate governance tool in a non-profit organisation.

The purpose of this study is to provide empirical evidence of the effect of the audit committee (AC) that are: size, independence, financial expertise, and stock owned by audit committee on firm performance measured by Tobin's Q among Jordanian companies. The present study formed by agency theory and resource dependence theory to achieve the aim of the study, wherein, the sample was 180 firms from the financial, industrial and service companies listed on ASE during the period from 2009 to 2017. By using the panel data method, the results demonstrate that the size of the audit committee, the independence of the audit committee, and the financial expertise of the audit committee have a positive and significant relationship with firm performance. While the relationship between stocks owned by the audit committee and firm performance is significantly negative. These findings provide shreds of evidence for all of the regulators, investors, and executives in Jordan into account when designing corporate regulations. Thus, this study offers empirical evidence to assist stakeholders, executives, and stakeholders in their decision.