The Role of External Auditor in Protecting the Financial Information Listed in the Financial Statements in the Jordanian Industrial Companies

his study aims to (1) examine and analyze the influence of Human Resource (SDM) competence and the role of internal audit on the successful implementation of the Local Financial Information System (SKID) partially and simultaneously, (2) examine and analyze the competence of SDM and the role of internal audit on the quality of financial report partially and simultaneously,(3) examine and analyze the influence of SDM competence and the role of internal audit on the quality of financial reports on the successful implementation of the SKID. The object of this study is all provincials and district / city governments throughout North Sumatera. The sample of this study was 34 (thirty four). The data was collected by questionnaire, documentation, and interview methods. The analysis method used was path analysis using SPSS Program. The results of this study indicate that (1) SDM competence and the role of internal audit have no partial effect on the successful implementation of SKID (2) SDM competence, the role of internal audit doesn’t simultaneously affect the successful implementation of SKID (3) SDM competence and the role of internal audit have a significant effect partially to the quality of financial reports (4) the successful implementation of SKID has no effect on the quality of financial reports (5) SDM competence, the role of internal audit, the successful implementation of SKID simultaneously affects the quality of financial reports (6) SDM competence and the role of internal audit have no effect on quality financial reports through the successful implementation of the local financial information system.

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Fintech in financial reporting and audit for fraud prevention and safeguarding equity investments

Journal of Accounting & Organizational Change ◽

10.1108/jaoc-09-2019-0098 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Paulina Roszkowska

Keyword(s):

Financial Reporting ◽

Financial Statements ◽

Financial Statement ◽

Financial Fraud ◽

Financial Statement Fraud ◽

Content Type ◽

Financial Scandals ◽

External Auditor ◽

Equity Investments

Purpose The purpose of this paper is to explore the audit-related causes of financial scandals and advice on how emerging technologies can provide solutions thereto. Specifically, this study seeks to look at the facilitators of financial statement fraud and explain specific fintech advancements that contribute to financial information reliability for equity investments. Design/methodology/approach The study uses the case studies of Enron and Arthur Andersen to document the evidence of audit-related issues in historical financial scandals. Then, a comprehensive and interdisciplinary literature review at the intersection of business, accounting and engineering, provides a foundation to propose technology advancements that can solve identified problems in accounting and auditing. Findings The findings show that blockchain, internet of things, smart contracts and artificial intelligence solutions have different functionality and can effectively solve various financial reporting and audit-related problems. Jointly, they have a strong potential to enhance the reliability of the information in financial statements and generally change how companies operate. Practical implications The proposed and explained technology advancements should be of interest to all publicly listed companies and investors, as they can help safeguard equity investments, thus build investors’ trust towards the company. Social implications Aside from implications for capital markets participants, the study findings can materially benefit various stakeholder groups, the broader company environment and the economy. Originality/value This is the first paper that seeks solutions to financial fraud and audit-related financial scandals in technology and not in implementing yet another regulation. Given the recent technology advancements, the study findings provide insights into how the role of an external auditor might evolve in the future.

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The Factors Affect the Quality of Financial Statements Audit in Vietnam Businesses

Asian Social Science ◽

10.5539/ass.v12n1p172 ◽

2015 ◽

Vol 12 (1) ◽

pp. 172 ◽

Cited By ~ 3

Author(s):

Do Huu Hai ◽

Ngo Sy Trung

Keyword(s):

Structural Equation ◽

Audit Quality ◽

Financial Statements ◽

Financial Information ◽

Equation Modeling ◽

Factors Affecting ◽

Study Results ◽

Occupational Qualification

<p>The development of a market economy, especially the financial markets is asking for transparency and truthfulness of the financial information with high quality. The information in the financial statements will impact directly and indirectly to the rights and decisions of investors. Independent auditors play a role of evaluating truthfulness and reasonable financial information in enterprises, however there are still risks. This study focuses on analyzing the factors affecting the quality of financial statements audit in enterprises. The analytical methods used in this study are: factor analysis method to explore and test the Cronbach's alpha coefficient for the construction and testing of measuring scales. Moreover, linear structural modeling method (Structural Equation Modeling SEM) is used to test the reliability and value of discrimination, convergence, unitary of the concept and scale of research. The study results showed that occupational qualification is an important factor affecting the audit quality in the establishment of the business financial statements and legal environment factors, factors belonging to business, factor of independence, factors of quality control system of audit firm.</p>

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Critical Analysis on the Amendments Discussed, Concerning Changes in Accounting Estimates

Studies in Business and Economics ◽

10.2478/sbe-2019-0002 ◽

2019 ◽

Vol 14 (1) ◽

pp. 17-33

Author(s):

Valentin Burcă ◽

Cristina Nicolăescu ◽

Daniel Drăguţ

Keyword(s):

Financial Reporting ◽

Critical Analysis ◽

Essential Role ◽

Financial Statements ◽

Financial Information ◽

Clear Distinction ◽

Accounting Estimates ◽

Comment Letters

AbstractIn this article, our main aim is to bring in discussion some of the most controversial points debated along the time on the use of the accounting estimates in financial reporting. More important, we have referred to the Exposure Draft recently closed for comment letters, which addressed some points that will follow to be transformed into several amendments to IAS 8. Our discussion is focused, especially on how professionals can make a clear distinction between changes in accounting estimates and changes in accounting policies. We try to underline the trinomial perspective of this subject, as the changes in accounting estimates impact, not only the financial statements, but can generate issues on auditing those estimates, or on using financial information output on the entity valuation models. Additionally, we try to emphasize the essential role of this distinction between changes in accounting estimates and changes in accounting policies.

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Peranan Penyusunan Laporan Keuangan Dalam Penyajian Informasi Keuangan Pada BMT At-Taqwa Muhammadiyah Sumatera Barat

Paediatrica Indonesiana ◽

10.24036/wra.v8i1.109085 ◽

2020 ◽

Vol 8 (1) ◽

pp. 14

Author(s):

Leli Wita Suwita

Keyword(s):

Balance Sheet ◽

Financial Statements ◽

Financial Information ◽

Financial Statement ◽

Financial Reports ◽

Income Statement ◽

Corporate Entity ◽

West Sumatra ◽

And Performance

This study aims to analyze how the role of financial statement preparation is to find out information relating to the financial position and performance of a corporate entity which includes the realization of the budget report, balance sheet, cash flow statement, and reports on the financial statement notes. The research method used is a qualitative method that compares financial statements between 2016 and 2018. The financial statements presented by BMT At-Taqwa Muhammadiyah West Sumatra in the form of a balance sheet and income statement, where an increase in value from the reporting date of the current year with the previous year, of the report there are still shortcomings in the reporting. BMT At-Taqwa Muhammadiyah West Sumatra is recommended to make all financial reports needed by financial information from BMT At-Taqwa Muhhammadiyah West Sumatra.Keywords: Role; Financial Statements; Financial Information.

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The Analysis and Evaluation of Profitability in Accepted Companies in Tehran Stock Exchange with ROA and ROE Approaches in Industrial Companies

Business Management and Economics Research ◽

10.32861/bmer.72.21.26 ◽

2021 ◽

pp. 21-26

Author(s):

Mohammad Taleghani ◽

Ataollah Taleghani

Keyword(s):

Stock Exchange ◽

Financial Statements ◽

Study Data ◽

Significant Relation ◽

Time Duration ◽

Return On Equity ◽

Analysis And Evaluation ◽

Industrial Companies ◽

Factors Influencing

Return on Equity (ROE) is one of the most important factors influencing the investor’s decisions. By analysing the financial statements, the financial analysers are always trying to evaluate or identify the future profitability changes of the companies. In this study, the relation between ROE of industries entered into Tehran Stock Exchange was investigated. Herein the significant role of industry is expressed through operating and financial drives. The study data is taken from a sample consisting of 4 industries including 70 companies entered into Tehran stock Exchange during a 7- year time duration (from March 21st, 2012 to March 20th, 2019). Results indicate that there is a significant relation between ROE and its elements as per the industry and future profitability.

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Code of ethics for professional accountants and change the external auditor: A study of the emerging markets

Corporate Ownership and Control ◽

10.22495/cocv18i3art16 ◽

2021 ◽

Vol 18 (3) ◽

pp. 201-212

Author(s):

Abdel Razaq Farah Freihat ◽

Ismail Hamad Al-Shaar ◽

Ayda Farahn

Keyword(s):

Code Of Ethics ◽

Stock Exchange ◽

Financial Statements ◽

Manufacturing Firms ◽

Annual Reports ◽

Manufacturing Companies ◽

External Auditors ◽

Industrial Companies ◽

Amman Stock Exchange ◽

External Auditor

To ensure the independence of auditors and the credibility of financial statements, this study investigates if Jordanian manufacturing companies change their external auditors. Moreover, assess if that change is influenced by the International Code of Ethics for Professional Accountants (ICEPA). The study figured out the viewpoints of external auditors and financial managers of public industrial companies listed on the Amman Stock Exchange. Auditor’s changing data is gathered from the annual reports of (59) manufacturing firms from 2006 to 2015. (280) questionnaires were collected from financial managers and auditors of manufacturing firms to assess if auditors comply with ICEPA. The binomial test and the logistic regression analysis were used. The study showed that the change of the external auditor in Jordanian companies is significantly affected by the ICEPA. However, external auditors and financial managers have different views of the effects of the ICEPA on the change of the external auditor in Jordan.

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Role of the External Auditor in Reducing Tax Evasion (Field Study- Tax Chamber of Sudan)

Volume 5 - 2020, Issue 9 - September - International Journal of Innovative Science and Research Technology ◽

10.38124/ijisrt20apr1005 ◽

2020 ◽

Vol 5 (4) ◽

pp. 1519-1526

Author(s):

Dr. Sherien Mamoun ◽

Sayed Ahmed Mohamed

Keyword(s):

Tax Evasion ◽

Financial Statements ◽

Misleading Information ◽

Starting Point ◽

The Subject ◽

External Auditor ◽

Tax Payments ◽

And Control ◽

Shed Light

The study investigated role of external auditor in reducing tax evasion. The problem of the study represented in there is fraud and fraud in tax payments. We find that the tax administration in countries face difficulties that reduce tax revenues and this affects the achievement of the desired goals. Sudan is one of the countries experiencing tax evasion. The study aimed to shed light on the previous studies that dealt with the subject of external auditor and findings to be the starting point for this research, to highlight the importance of external auditor and the role of the external auditor in reducing tax evasion. The importance of the study lies in external auditor and the role played by and contributes to the verification of detection and control tax evasion. The study adopted inductive approach, descriptive analytical approach, and historical approach. The questionnaire used to collect data from taxation chamber of Sudan. To achieve the goals of the study, the following hypotheses were tested: First hypothesis: external auditor contributes to discovering tax evasion, Second hypothesis: external auditor helps in reducing the effects of profit's volume in income statements. The study found that; the external auditor contributes to the disclosure of misleading information intended to be provided by the taxpayer, External auditor helps to detect unjustified expenses and expenses used by the taxpayer. The study recommended several recommendations, among which is that; Dependence on the audited financial statements by a legal auditor in the tax report, Encouraging companies to provide services in return for payment of tax.

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Accountants Awareness And Perceptions About Assurance On XBRL Financial Statements

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v28i2.6838 ◽

2012 ◽

Vol 28 (2) ◽

pp. 145 ◽

Cited By ~ 3

Author(s):

Roopa Venkatesh ◽

Jack Armitage

Keyword(s):

Online Survey ◽

Financial Statements ◽

Financial Information ◽

Survey Questionnaire ◽

Level Of Knowledge ◽

The Cost

The purpose of this study is to gather information about accountants and auditors level of knowledge of XBRL and their perceptions about the importance of providing assurance and the level of assurance needed. An online survey questionnaire was used to gather data from CPAs at all levels of experience and was open from December 2009 through February 2010. The survey gathered information about the participants level of knowledge and awareness about XBRL, and their perceptions about the importance, relevance, and need for assurance on XBRL financial information. The results suggest that accountants and auditors believe that assurance on XBRL financial statements is important and will improve the accuracy and reliability of the XBRL tagged financial statements. Participants were also asked to rank the importance of assurance criteria on XBRL financial statements such as assurance on the accuracy, completeness, existence, proper taxonomies, proper extensions, valid extensions and validity and well-formedness. The results show that participants ranked assurance on the accuracy and completeness assertions as being most important and assurance on validity and well-formedness being the least important. The findings have important implications for the audit profession, as the implementation of XBRL has the potential to not only expand the role of the auditor to include auditing their clients application of XBRL tags, but might also influence the cost and time involved to conduct audit services.

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The Analysis and Evaluation of profitability in Accepted Companies in Tehran Stock Exchange with ROA and ROE Approaches in Industrial Companies

International Journal of Recent Development in Engineering and Technology ◽

10.54380/ijrdetv10i106 ◽

2021 ◽

Vol 10 (2) ◽

pp. 38-45

Author(s):

Mohammad Taleghani ◽

◽

Ataollah Taleghani

Keyword(s):

Stock Exchange ◽

Financial Statements ◽

Study Data ◽

Significant Relation ◽

Time Duration ◽

Return On Equity ◽

Analysis And Evaluation ◽

Industrial Companies ◽

Factors Influencing

Return on Equity (ROE) is one of the most important factors influencing the investor's decisions. By analysing the financial statements, the financial analysers are always trying to evaluate or identify the future profitability changes of the companies. In this study, the relation between ROE of industries entered into Tehran Stock Exchange was investigated. Herein the significant role of industry is expressed through operating and financial drives. The study data is taken from a sample consisting of 4 industries including 70 companies entered into Tehran stock Exchange during a 7- year time duration (from March 21st, 2012 to March 20th, 2019). Results indicate that there is a significant relation between ROE and its elements as per the industry and future profitability.

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