scholarly journals AUDIT QUALITY: TO THE ISSUE OF REFINING THE CONCEPT

2021 ◽  
Vol 4 (39) ◽  
pp. 156-166
Author(s):  
A. Semenets
Keyword(s):  
Information Quality ◽  
Audit Quality ◽  
Jel Classification ◽  
Financial Information ◽  
Actual State ◽  
Accounting Quality ◽  
Management Decisions ◽  
Quality Audit ◽  
Long Run ◽  
Audit Information

Abstract. The purpose of the article is to systematize and generalize the existing approaches to interpret the audit quality concept and judge it as for its implementation. The strictest demand for high quality audit is one of the important trends, which have become clear recently. The further development of audit at all levels is inextricably linked to improving its quality. Audit information is the basis for management decisions, so improving the audit information quality, and therefore, audit quality, will improve the quality of management decisions, which will inevitably affect the economic and financial situation at all the management levels, and reduce information risk during decision-making by all the financial information users. The importance of the audit information quality in modern economic processes has also been considered. The audit impact on the development of economic processes at the micro- and macro-levels has been studied. Theoretical insights into the issue of determining audit quality have been analyzed, which is crucial both for the methodology of audit performance and audit quality evaluation, and for audit information reliability, thus being useful for all the financial information users. These theoretical insights also have a significant impact on the practical audit activities, the reliability of the information provided, its quality indicators and other factors that are important for audit information users. It has been proven that the main criterion for audit information quality is its reliability and compliance with the actual state of the audited entity. The study of the causes of the global economic crisis, which unfolded in 2008 with all its severity, revealed a range of problems caused by decisions made on the basis of audited financial statements. Among the main causes of this financial crisis, in addition to the general economic ones, is, firstly, accounting quality and audit quality, which significantly contributed to the bankruptcy of key financial institutions, thus leading to the crisis; and secondly, insufficient control over possible fraud by audited enterprises. Both are the result of low quality audit. A new definition of audit quality is given, which differs greatly from most of the current ones. This, in turn, makes it possible to more accurately and correctly identify the directions, methods, principles and other components of audits, considerably improving their quality. In the long run, improving audit quality should significantly reduce the risks of crisis development in the real sector of economy. Keywords: audit quality, audit, audit services, evaluation, control, reliability, actual state, audited object. JEL Classification M42 Formulas: 0; fig.: 0; tabl.: 2; bibl.: 31.

scholarly journals Companies’ Sustainable Growth, Accounting Quality, and Investments Performances. The Case of the Romanian Capital Market

2020 ◽  
Vol 12 (22) ◽  
pp. 9748
Author(s):  
Mihai Carp ◽  
Leontina Păvăloaia ◽  
Constantin Toma ◽  
Iuliana Eugenia Georgescu ◽  
Mihai-Bogdan Afrăsinei
Keyword(s):  
Information Quality ◽  
Value Relevance ◽  
Sustainable Growth ◽  
Financial Information ◽  
Share Price ◽  
Accounting Quality ◽  
Control Variables ◽  
Investment Performance ◽  
Ethical Attitude ◽  
Two Factors

The paper analyzes the influence of sustainable growth (SGR) as a reflection of the manner of strategic business organization, particularly in the quality of reported financial information (magnitude of discretionary accruals—DAC) as an expression of the ethical attitude adopted by companies in the entity–investor relationship, on the investors’ decisions, substantiated in the performance level of the shares held. Using models consecrated in the literature, the results reflect a significant influence, both in the case of separate testing of the two factors (SGR and DAC), and in the case of the conjugated action thereof, on investment performance. The relations were also tested by introducing certain control variables into the analysis, such as: the intangible ratio, quick ratio, company size, as well as the SGR sensitivity function of the level of information quality. In the case of financial information quality, specific indicators from the two consecrated value relevance testing models by Ohlson (1995) and Easton and Harris (1991) were used as control variables. The obtained results are robust, preserving the sense and intensity of the influences. However, in the case of testing for the influence of information quality on share price, it was noticed an insignificant relation, associated with the situation in which, to execute some speculative transactions, investors particularly interpreted conjunctural factors. The study contributes to the development of the specialty literature by highlighting the role of internal growth and information quality as determinant factors in the investors’ analyses, while also offering a potentially practical tool for assessing the opportunity of making placements in the capital of companies.

La grande crisi globale: una sfida per la politica industriale e per le imprese

2009 ◽  
pp. 9-19
Author(s):  
Riccardo Varaldo ◽  
Lucio Lamberti
Keyword(s):  
Financial Stability ◽  
Business Models ◽  
Jel Classification ◽  
Credit Crunch ◽  
Corporate Structure ◽  
Research And Innovation ◽  
Leading Role ◽  
Long Run ◽  
Rapid Action ◽  
Political Approach

- The years to come are going to be very complex for global economies, a true challenge for industrial policy and corporate decisions. The first priority has been to ensure financial stability and to mitigate the credit crunch effects on economies, but a new strategic issue has to be put rapidly in place: the public rescue policy for economies and corporates. All measures must be taken to avoid the disruption of societies and economies, and this effort needs to be coordinated at the European and international level. In the short term, Italian industries will be less affected due to a higher flexibility and a less procyclical banking effect, but they will be very vulnerable in the long run because of the fragility of the corporate structure. More than other countries, Italy needs rapid action and a strategic political approach. Research and innovation are a must, and universities have to play a leading role in this phase. Keywords: recession, credit crunch, supply chain, business models, R&D policies, industrial Policies Parole chiave: recessione, restrizione del credito, filiera, modelli di business, politiche di R&S, politiche industriali JEL Classification: L25

scholarly journals KOMITE AUDIT SEBAGAI PEMODERASI PENGARUH WORKLOAD DAN MASA PERIKATAN AUDIT PADA KUALITAS AUDITe

2016 ◽  
Author(s):  
Theresia Julina Rusli ◽  
I Dewa Nyoman Wiratmaja
Keyword(s):  
Audit Committee ◽  
Sampling Method ◽  
Audit Quality ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Quality Audit ◽  
Final Sample ◽  
The Impact

This  research  aims to find empirical evidence  about the impact  of  workload  and  audit tenure  on  audit quality  and  using audit  committee  as  a  moderating  variable. This  research  focused  on  manufacturing companies  that  listed  on  the  Indonesia Stock Exchange. Sample was collected using   purposive sampling method and resulted 31  companies as a final sample.  The  data are analyzed by using Moderated Regression Analysis (MRA). The results of  this research indicate  that the  workload  has a negative  impact on  audit quality.  Audit tenure has a positive impact on audit quality. Audit committee reduces the negative impact of workload on audit quality. And audit committee reduces the positive impact of audit tenure on audit quality.

The Effect of Real Exchange Rate on Trade Balance in a Resource-Rich Economy: The Case of Mongolia

2018 ◽  
Vol 53 (4) ◽  
pp. 211-224 ◽  
Author(s):  
Gan-Ochir Doojav
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Balance ◽  
Developing Economies ◽  
Jel Classification ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Exchange Rate Depreciation

For resource-rich developing economies, the effect of real exchange rate depreciation on trade balance may differ from the standard findings depending on country specific characteristics. This article employs vector error correction model to examine the effect of real exchange rate on trade balance in Mongolia, a resource-rich developing country. Empirical results show that exchange rate depreciation improves trade balance in both short and long run. In particular, the well-known Marshall–Lerner condition holds in the long run; however, there is no evidence of the classic J-curve effects in the short run. The results suggest that the exchange rate flexibility may help to deal effectively with current account deficits and exchange rate risk. JEL Classification: C32, C51, F14, F32

scholarly journals DETERMINAN KUALITAS AUDIT DAN FAKTOR-FAKTOR YANG BERPENGARUH TERHADAP AUDITEE SATISFACTION (STUDI EMPIRIS PADA AUDITOR INTERNAL BANK UMUM SYARIAH DI INDONESIA)

2017 ◽  
Vol 14 (1) ◽  
pp. 27
Author(s):  
Hermi ,
Keyword(s):  
Structural Equation ◽  
Audit Quality ◽  
Primary Data ◽  
Validity And Reliability ◽  
Cross Sectional ◽  
Firm Reputation ◽  
Quality Audit ◽  
Audit Firm ◽  
Work Ethics ◽  
Service Portfolio

<p>The purpose of this study is to analyze the influence of Independence, Competence<br />and Islamic work Ethics partially and simultaneously to the Audit Quality . The next<br />purpose is to analyze the influence of Audit Quality, Audit Services Portfolio and Audit<br />Firm Reputation partially and simultaneously against Auditee Satisfaction on Islamic<br />Banks in Indonesia. This study is expected to provide benefit to the development of<br />knowledge, particularly in the field of accounting and auditing, Government, Islamic<br />Bank, Indonesian Institute of Accountants (IAI ), Indonesian Institute of Certified Public<br />Accountants (IAP ), the auditors and the Audit Firm (KAP). The results are expected to<br />provide information for various parties accurately and meaningfully as a solution to<br />determine the variables that affect the Auditee Satisfaction and Audit Quality at Islamic<br />Bank in Indonesia. Limitations of the study include: (1) The extent of the problem which<br />studied in determining the factors that can affect the Audit Quality and Auditee Satisfaction<br />in Islamic Bank in Indonesia , (2) Limitation of the study lies in the data acquisition, (3)<br />This study only emphasized the perception of the factors that may affect Audit Quality and<br />Auditee Satisfaction.<br />This study used primary data through questionnaires with the population of<br />internal auditors of Islamic Banks in Indonesia. This study used a quantitative approach<br />and in terms of the type of investigation, this study is causal. Based on the time horizon<br />the study is cross-sectional (one - shot ) because the data was collected only once . Before using the data to test hypothesis, the validity and reliability test should be done first.</p><p>Data analysis uses Structural Equation Model (SEM) supported by AMOS software.<br />Based on the test results, it shows that Independence, Competence and Islamic work<br />Ethics partially or simultaneously affect the Audit Quality significantly. The next stage of<br />testing Audit Quality partially has no significant effect on the Auditee Satisfaction. While<br />Audit Service Portfolio and Audit Firm Reputation either partially or simultaneously<br />have significant effect on the Auditee Satisfaction. Simultaneously the three variables<br />Audit Quality, and Audit Services Portfolio and Reputation of Audit Firm have<br />significant effect on the Auditee Satisfaction. .<br />Keywords: Independence, Competence, Islamic Work Ethics, Audit Quality, Audit Services<br />Portfolio, Audit Firm Reputation and Auditee Satisfaction.</p>

scholarly journals The impact of Key Audit Matters (KAMs) on financial information quality: Evidence from Lebanon

2021 ◽  
Vol 19 (2) ◽  
pp. 135
Author(s):  
Joelle Matta ◽  
Khalil Feghali
Keyword(s):  
Value Creation ◽  
Information Quality ◽  
Investment Decision ◽  
Financial Statements ◽  
Financial Information ◽  
Audit Report ◽  
External Auditors ◽  
Expectations Gap ◽  
Expectation Gap ◽  
The Impact

<p>The purpose of this study is to discover the impact of Key Audit Matters (KAMs) on financial information quality and their value for Lebanese auditors. The value creation of KAMs is determined by its financial information quality, its ability to help during investment decision and its effect on the audit expectation gap. The research is conducted through a survey that was filled by external auditors who audit Lebanese banks exclusively, and are involved in the new audit report. The main results show that reporting by using Key Audit Matters adds value to the audit report from the perspective of Lebanese external auditors, and can reduce information asymmetry, increase trust in accounting and reduce the expectation gap. Moreover, the results marked that KAM improves the auditee's understanding in the audited entity, builds confidence in the audited financial statements, and helps to reduce the audit expectations gap.</p>

scholarly journals Ownership Structure and earnings management: Empirical evidence from listed pharmaceuticals and chemical firms of Bangladesh

2020 ◽  
Vol 5 (2) ◽  
pp. 58-69
Author(s):  
Dewan Azmal Hossain
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Ownership Structure ◽  
Good Governance ◽  
Foreign Ownership ◽  
Jel Classification ◽  
Financial Information ◽  
Least Square ◽  
The Relationship

Objective – This study aims to examine the relationship between ownership structure (determined by institutional and foreign ownership) and earnings management in the context of Bangladeshi Pharmaceuticals and Chemical firms. Methodology/Technique – Out of 32 listed firms, this study examined 29 firms from the pharmaceuticals and chemical industry of Bangladesh from 2014 to 2018. Three firms are omitted as they got listed in 2018 and 2019 respectively. This study uses discretionary working capital accrual to measure earnings management that is the dependent variable. Ordinary least square regression analysis is conducted to assess the result of this study. Institutional and foreign ownership are independent variables. ROA, size, cash flow from operation, and leverage are control variables. Findings – It is found that institutional ownership is negatively related to earnings management and foreign ownership is positively related to earnings management but none of them are statistically significant indicating institutional and foreign ownership do not help in resolving or reducing the earnings management problems in the context of Bangladeshi pharmaceuticals and chemical firms. Novelty – Previous studies in Bangladesh deal only with the techniques of earnings management. To my knowledge, it is the first study that tries to assess the relationship of ownership structure defined by institutional and foreign shareholdings with earnings management in the context of Bangladeshi pharmaceuticals and chemical firms. These two ownership patterns are selected because they are supposed to increase the quality of financial information and also because in Bangladesh state and general shareholders are too dispersed to monitor the governance issues. The practical implications of this study is that investors should not consider institutional and foreign ownership percentage as a determining factor of good governance when considering investment decisions rather should look for other firm-specific factors as institutional and foreign shareholders are found to be inactive in increasing the quality of financial information in the context of Bangladesh. Policymakers should identify why institutional and foreign shareholders are not active and should revise the governance mechanisms accordingly. Type of Paper: Empirical Keywords: Ownership structure; Institutional Shareholdings; Foreign Shareholdings; Earnings Management; Bangladesh. Reference to this paper should be made as follows: Hossain, D.A. 2020. Ownership Structure and earnings management: Empirical evidence from listed pharmaceuticals and chemical firms of Bangladesh, J. Fin. Bank. Review, 5 (2): 58 – 69 https://doi.org/10.35609/jfbr.2020.5.2(3) JEL Classification: G40; G41; G49.

Neo-Dualism: Accumulation, Distress, and Proliferation of a Fissured Informality

2021 ◽  
pp. 048661342110121
Author(s):  
Kasturi Sadhu ◽  
Saumya Chakrabarti
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Growth Process ◽  
Jel Classification ◽  
Formal Sector ◽  
Firm Level ◽  
Macro Model ◽  
Long Run ◽  
Level Data ◽  
Firm Level Data

A dominant strand of orthodoxy argues that the problem of the informal sector could be mitigated through the capitalistic growth process. But our observations on India are different—with an expansion of the capitalistic formal sector, as the economy grows, there is a proliferation of fissured informality. Using a structuralist macro-model, we provide certain explanations for this phenomenon, which are also tested empirically using Indian subnational-state and firm-level data. Thus, we explore both the short- and long-run effects of the expansion of the formal sector on the heterogeneous informal economy. While a section of the population is pulled into the advanced informal activities, a vast segment is pushed to petty production. Accordingly, the orthodox transition narrative is questioned and alternative policy and political possibilities are introduced. JEL Classification: O11, O13, O17, P48

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