scholarly journals The impact of audit rotation on the comparability of financial reports,

2021 ◽  
Author(s):  
Allison Manoel de Sousa ◽  
Alex Mussoi Ribeiro ◽  
Ernesto Fernando Rodrigues Vicente
Keyword(s):  
Regulatory Environment ◽  
Financial Reports ◽  
Audit Firm ◽  
Auditor Rotation ◽  
Client Relationships ◽  
Regulatory Bodies ◽  
Market Practices ◽  
Mandatory Rotation ◽  
The Impact

Abstract This study aims to assess the effect of the rotation and tenure of audit firm and audit partner on the comparability and consistency of financial reports. Several studies have addressed the effect of auditor rotation on the quality of financial reports, but none of them focused specifically on the impact on the comparability and consistency of financial reports. Around the world, the impact of mandatory rotation of audit partner and audit firm is being discussed in academia and regulatory bodies. The peculiarity of the Brazilian regulatory environment allows us to contribute to the discussions on the effects of implementing mandatory auditor rotation. Our sample included 50 companies for which we analyzed data from 2012 to 2018. To measure comparability, we used the similarity of the accounting function model by DeFranco, Kothari and Verdi (2011), and to measure consistency we used the adaptations to this model proposed by Ribeiro (2014). For data analysis, we used descriptive statistics and multivariate panel analysis. Our results suggest that the rotation (mandatory and voluntary) of audit firm and audit partner does not affect the comparability and consistency of financial reports. Results also suggest that auditor-client relationships of up to three years contribute to a significant increase in comparability and consistency, indicating that mandatory rotation does not impair investors’ ability to compare the information concerning their investments. In addition, regulators are shown that a possible reduction in the mandatory rotation term (from five to three years, as in Italy) would be in line with market practices and would imply an increase in the comparability and consistency of financial information.

scholarly journals Effects Of Rotation On Auditor Independence And Quality Of Audit Service In Malaysian Banking Industry

2012 ◽  
Vol 6 (2) ◽  
pp. 249 ◽  
Author(s):  
Kabiru Isa Dandago ◽  
Nur Diyana Binti Zamro
Keyword(s):  
Audit Quality ◽  
Banking Industry ◽  
Auditor Independence ◽  
Primary Data ◽  
Auditor Rotation ◽  
Mandatory Requirement ◽  
Banking Institutions ◽  
Mandatory Rotation ◽  
The Impact

This study highlights the nature of auditor rotation in the Malaysian banking industry and its effects on auditor independence and quality of audit service in the industry. To generate primary data for analysis, interviews were conducted on officials of two banking institutions and one accounting/audit firm. The study finds that there have not been significant changes in the annual appointment of auditors in the Malaysian banking institutions over the last ten years, suggesting that there is a good working relationship between the auditors (especially the Big4) and the banks. This allows room for continuous debate on the need for mandatory rotation as a<br />means for ensuring auditor independence and high audit quality in the Malaysian banking industry. In the absence of statutory/mandatory requirement for auditor rotation, it is recommended that the Malaysian banking institutions should be carefully evaluating the impact auditor rotation would have on the quality of audit work on their current and future financial statements, as they decide whether to rotate their auditors or not.

scholarly journals The Impact of Inventory Valuation Methods on Corporate Financial Reports.

2016 ◽  
Vol 12 (3) ◽  
pp. 125-134
Author(s):  
A. Bruce Caster ◽  
Wanda K. Causseaux
Keyword(s):  
Learning Outcomes ◽  
Business Students ◽  
Balance Sheet ◽  
Financial Statement ◽  
Financial Indicators ◽  
Hypothetical Case ◽  
Financial Reports ◽  
Income Statement ◽  
The Impact

Business students are generally introduced to LIFO and FIFO in their first accounting course. However, that introduction generally focuses exclusively on computing ending inventory and cost of goods sold.  Students are rarely challenged to compute or analyze the impacts of LIFO and FIFO on the income statement, balance sheet, or cash flow statement.  This paper presents a hypothetical case designed to provide a framework within which students can compute, analyze, and discuss the financial statement impacts and economic impacts of choosing one or the other of these accounting methods.  The questions in this case also address the effects of this choice on financial indicators like liquidity ratios, the impacts of each method on quality of earnings, and the potential impacts of IFRS convergence on companies that are currently using LIFO.One important feature of this case is its adaptability to support a variety of learning outcomes in different courses.  This flexibility results from making the questions posed in the case as independent of each other as possible.  That independence allows a professor to select only the questions that support the learning outcomes for that professor’s specific course.  The teaching notes discuss in detail possible course applications and uses of this case.

scholarly journals The Impact of the Audit Committees' Properties on the Quality of the Information in the Banking Financial Reports: A Survey on Saudi Commercial Banks

2017 ◽  
Vol 10 (11) ◽  
pp. 175
Author(s):  
Mwafag Rabab’ah ◽  
Omar Al-Sir ◽  
Ali A. Alzoubi
Keyword(s):  
Commercial Banks ◽  
Audit Committee ◽  
Audit Committees ◽  
Financial Reports ◽  
Audit Team ◽  
The Impact

This study aims to identify the impact of the audit committees' properties on the quality of the information of the banking financial reports in the Saudi commercial banks by identifying the effect of identifying tasks and duties, independence, accounting and banking experience and efficiency of the audit committee on achieving the quality of the Saudi banking and financial reports. 110 questionnaires were distributed on the research sample and 105 questionnaires were received and analyzed through ANOVA. Results indicate that the availability of the audit committees' properties affect increasing the quality of the financial reports in the Saudi banking at the level of properties as a whole where the (P) probable value was (0.000 ), which is less than 0.05. It represents the functions and duties of the audit committee, the committee's independence in banks, the availability of the accounting and banking experience for the members of the audit committee and the efficiency of the audit committees at banks. The study recommends more emphasis on the diversity of the experiences of the members of the audit team and thus; the committee can performs its functions in a more efficient and effective way.

Audit-Firm Tenure and the Quality of Financial Reports*

2002 ◽  
Vol 19 (4) ◽  
pp. 637-660 ◽  
Author(s):  
E. Johnson ◽  
Inder K. Khurana ◽  
J. Kenneth Reynolds
Keyword(s):  
Financial Reports ◽  
Audit Firm

scholarly journals ASSESSMENT OF THE POTENTIAL OF AUDITING FIRMS IN THE CONTEXT OF DEVELOPING ECONOMIC CRIMES

2020 ◽  
Author(s):  
Dimitriy Grytsyshen ◽  
◽  
Zhanna Prokopenko ◽  
Tetiana Kochyn ◽  
Volodymyr Tsependa ◽  
...  
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Legal Framework ◽  
Audit Firm ◽  
Corporate Scandals ◽  
Functional Value ◽  
Functional Features ◽  
Labor Resources ◽  
The Impact

The article proves that the number one issue in the development of the information society is not the amount of information, but its quality, and it is the audit of confirmation of this quality through the assessment of the risks of its reduction. It is specified that in this direction it is important both the innovative method of auditing the financial statements for quality, and the resources needed to perform all defined audit procedures. It is revealed that according to the model the content of audit tasks changes, and there is a need to transform its methodology. The impact of negative financial reporting and auditing results on the securities markets was assessed by studying corporate scandals in Ukraine and the world. The characteristics of corporate scandals in terms of falsification of financial statements and methodology and organization of audit are given. The directions of transformation of institutional audit support as a tool for evaluating financial statements and its results as components of the information resource for internal and external users are identified. The analysis of the legal framework in the field of quality control of services provided by audit entities allowed to form the institutional aspects of quality assurance of audit activities and to establish the functional features of the relevant institutions. The organizational-hierarchical interrelations are defined, and also the functional value in system of maintenance of quality of auditing activity of subjects of regulation of auditing activity in Ukraine is defined. The relationship between the quality of the audit and the audit of the quality of financial statements is substantiated. It is established that the key resource of economic activity of the audit firm is the labor resources that form the human resources and determine the quality of the audit service. It is characterized that the quality of the audit service depends on the effectiveness of the audit entity as a subject of external independent financial control in the context of the relevant public functions and as a business entity whose main purpose is to make a profit. It was found that the efficiency of use and formation of economic resources by the audit firm depends on all the effects associated with its operation.

scholarly journals The Impact of The Quality of Financial Statements on Local Revenue Using Examination Opinion Results as Moderating Variable

2017 ◽  
Vol 6 (1) ◽  
pp. 122-133
Author(s):  
Arik Susbiyani
Keyword(s):  
Local Governments ◽  
Financial Statements ◽  
City Governments ◽  
Financial Reports ◽  
Financial Report ◽  
Local Revenue ◽  
Positive Effects ◽  
The Impact ◽  
The Relationship

This study aimed to examine the influence of the financial statements on local revenue by using the results of the examination opinion as moderating variable. The study used Legitimacy Theory to explain and analyze the relationship between variables. The population in the study was all the districts and cities in Indonesia totaling 497 county and city governments. The sampling method used in the study was judgment sampling. Samples that met the criteria of the study were 116 local governments. The analytical tool used in this research was the analysis of MRA (Moderated Regression Analysis). The results showed that the effects of the partial test of the quality of financial reports to local revenues were not significant positive effects. While the partial test results stating the influence of audit opinion on local revenue having positive effects were not significant. Other results showed that the interaction between the results of the examination opinion to the quality of financial statements was insignificant on the quality of financial statements. In other words, the results of the examination opinions moderated (strengthened) the relationship between quality of financial report on local revenue of district and city governments in Indonesia.

scholarly journals Pengaruh Implementasi Sistem Informasi Manajemen Daerah Terhadap Kualitas Laporan Keuangan pada Satuan Kerja Pemerintah Daerah Kabupaten Nias Selatan

2019 ◽  
Vol 10 (2) ◽  
pp. 96-109
Author(s):  
Patricia Diana ◽  
Chermian Eforis ◽  
Maria Stefani Osesoga
Keyword(s):  
Local Government ◽  
Internal Control ◽  
Financial Statements ◽  
Primary Data ◽  
Survey Method ◽  
Financial Reports ◽  
Financial Report ◽  
Report Quality ◽  
The Impact

The purpose of this study was to examine the impact of the implementation of Sistem Informasi Manajemen Daerah (SIMDA) toward financial report quality of local government in Nias Selatan. The Indonesian government has encouraged each region to implement Sistem Informasi Manajemen Daerah (SIMDA). SIMDA is an e-government system developed by the Deputi Pengawasan Bidang Penyelenggaraan Keuangan Daerah in order to improve internal control in regional reporting, including local government financial reports. The study was conducted using a survey method to provide the questionnaries to Kepala Sub Bagian Keuangan, Kepala Sub Bagian Program, and Bendahara in 63 Satuan Kerja Perangkat Daerah (SKPD) Nias Selatan. The data used in this study was primary data. There were 154 questionnaries distributed for this research, but only 140 questionnaries returned and used in this research. Data processing using SPSS 24 application with simple regression method.    The result of this study was implementation of Sistem Informasi Manajemen Daerah (SIMDA) has significant impact toward financial report quality of local government in Nias Selatan.   Keywords        : financial report quality, local government financial statements, SIMDA

scholarly journals Kualitas Audit Didasarkan Pada Isu-Isu Keahlian Dan Profesionalisme Auditor

Manajerial ◽  
2017 ◽  
Vol 9 (2) ◽  
pp. 83
Author(s):  
Mohammad Ali Sartono
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Audit Process ◽  
Audit Firm ◽  
Number Of Factors ◽  
Regulatory Bodies ◽  
Personal Qualities ◽  
Potential Damage

<p align="justify">This research will examine the views from stakeholders on the quality of audits based on issues of expertise and professionalism of auditors, audits commercialization  and transparency the audit. This study focuses attention on the response from implementation of audits quality regulations according to the company’s audits, the audit committee and investors. The focus of this research is an analysis of research by identifying four major drivers of audit quality, namely: culture in an audit firm; skills and personal qualities of audit partners and staff; the effectiveness of the audit process; the reliability and usefulness of audit reporting. In this study also identifies a number of factors that affect the quality of audit beyond the control of the auditor, namely: the approach taken by management; the contribution made by the audit committee; role of shareholders and commentators; role as a driver of audit quality litigation; regulatory approaches; the pressure caused by the acceleration reports. The results showed that the regulatory bodies and professionals involved in the management and improvement of audit quality to make efforts to improve the tarnished image, increase its legitimacy and reputation as well as the dominance of responses raised concerns about potential damage to the profession.</p>

scholarly journals FACTORS INFLUENCING THE QUALITY OF FINANCIAL AUDIT

2019 ◽  
Vol 4 (2) ◽  
pp. 7-15
Author(s):  
Camelia-Daniela Hategan
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Quality Factors ◽  
Financial Reports ◽  
Energy Field ◽  
Auditor Rotation ◽  
Financial Audit

Investors’ decisions are based on financial and non-financial information. To be useful, the information provided by the financial reports must be accurate, which is also ensured by the opinion expressed by the auditors. The purpose of the paper is to show the importance of the quality of audit services both for investors and for professional accountants and auditors. Audit quality factors can be structured according to several criteria and were represented by the size of the auditor, rotation, duration of the contract, types of services provided. In order to support this hypothesis, the correlation between the variables was tested on the basis of a sample of seven companies listed at Bucharest Stock Exchange in the energy field and utilities included in index BET, for period 2013 - 2018. The data was collected from the annual financial statements and reports issued by financial auditors. The results show that there is a correlation between variables, but of different intensities depending on the indicators chosen. Increasing the quality of financial reporting and the quality of audit leads to increased investor confidence in professional accountants.

The Legislation and Regulation of Medical Devices

2021 ◽  
pp. 177-194
Keyword(s):  
European Commission ◽  
Medical Devices ◽  
Product Safety ◽  
Regulatory Environment ◽  
New Approach ◽  
Legislative History ◽  
The Core ◽  
Regulatory Bodies ◽  
The Impact ◽  
The Eu

This chapter outlines the laws that govern the manufacture and supply of medical devices in the EU and UK, both multi-faceted and internationally well-regarded legislative regimes. It contextualises these laws within the broader framework of the EU’s new approach to product safety legislation, in which these medical devices regimes were established. It discusses the core principles and fundamental statutory concepts under the EU and UK legislation that have been reinforced and improved upon over forty years of legislative history. Recent legislative change and the impact of Brexit is discussed in detail in that regard. The chapter also describes the regulatory environment in which Europe’s substantial medical devices industry operates, an industry which is estimated by the European Commission in 2019 as being comprised of 500,000 different types of medical devices and worth €100 billion. An outline of key regulatory bodies and functions is also provided.

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