The Effect of Internal Audit Outsourcing on Financial Analysts' Perceptions of External Auditor Independence

2001 ◽  
Vol 20 (2) ◽  
pp. 115-129 ◽  
Author(s):  
Susan L. Swanger ◽  
Eugene G. Chewning
Keyword(s):  
Phase 1 ◽  
Financial Analysts ◽  
Internal Audit ◽  
Auditor Independence ◽  
Internal Auditing ◽  
External Audit ◽  
Two Phase ◽  
Phase Study ◽  
External Auditor ◽  
Cpa Firm

The practice of outsourcing the internal audit function to the external audit firm has raised fears by many parties such as the SEC of possible independence impairment. The fear stems from the increased economic bond that exists when additional services are provided to an audit client, as well as the long-held view that internal auditing is a management function and, as such, is incompatible with the external audit function. This paper reports the results of a two-phase study of the perceptions of financial analysts regarding external auditor independence when a CPA firm performs both external and internal auditing services. In phase 1, analysts' perceptions of auditor independence are greater when the client employs its own internal audit staff or outsources to a different CPA firm than when the external auditor also performs internal audit functions. Phase 2 results show that analysts' perceptions of auditor independence are higher when the internal audit services are provided by the staff of a different division of the CPA firm compared to a nostaff separation treatment. Perceptions do not differ between full and partial outsourcing treatments, which conflicts with the recent SEC rule limiting the extent of outsourcing arrangements.

Corporate Governance, Audit Quality, and the Sarbanes-Oxley Act: Evidence from Internal Audit Outsourcing

2007 ◽  
Vol 82 (4) ◽  
pp. 803-835 ◽  
Author(s):  
Lawrence J. Abbott ◽  
Susan Parker ◽  
Gary F. Peters ◽  
Dasaratha V. Rama
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Auditor Independence ◽  
Audit Committees ◽  
Internal Auditing ◽  
External Audit ◽  
Internal Auditor ◽  
Sarbanes Oxley ◽  
External Auditor ◽  
Audit Activity

This study extends current literature related to nonaudit services by investigating internal audit outsourcing to the external auditor. We posit that certain types of internal audit outsourcing (i.e., those which are nonroutine, and thus tend to be nonrecurring in nature) are unlikely to lead to economic bonding, while offering significant potential for improvements in audit coverage and scope when provided by the external auditor. Alternatively, outsourcing routine internal audit tasks is more likely to lead to economic bonding, as well as potentially threatening internal auditor independence. Our results are consistent with firms with independent, active, and expert audit committees being less likely to outsource routine internal auditing activities to the external auditor. However, the outsourcing of nonroutine internal audit activities such as special projects and EDP consulting are not negatively related to effective audit committees. Additionally, outsourcing of either type of internal audit activity to an outside service provider other than the external auditor is not related to effective audit committees. Collectively, we interpret these findings as supportive of an effective audit committee's ability to monitor the sourcing of the firm's total (i.e., internal and external) audit coverage, while simultaneously exhibiting concern for external auditor independence.

State Accountancy Regulators' Perceptions of Independence of External Auditors When Performing Internal Audit Activities for Nonpublic Clients

2007 ◽  
Vol 21 (1) ◽  
pp. 43-57 ◽  
Author(s):  
Cecil L. Hill ◽  
Quinton Booker
Keyword(s):  
Internal Audit ◽  
Auditor Independence ◽  
Board Members ◽  
Internal Auditing ◽  
Complete Understanding ◽  
External Audit ◽  
External Auditors ◽  
Target State ◽  
Significant Difference ◽  
Cpa Firm

This study explores state accountancy regulators' perceptions of whether external auditors remain independent when also performing internal audit activities for nonpublic entities. The purpose of this study is to provide a more complete understanding of perceptions regarding auditor independence in the nonpublic entity environment. The primary issues are (1) whether performing the external audit and internal auditing services for the same entity affects perceptions of independence, and (2) whether a separation between the CPA firm's internal and external audit personnel significantly affects perceptions of independence when both services are performed. We use a between-subjects design and target state accountancy regulators from each of the 54 U.S. jurisdictions. Findings based on 206 usable responses indicate that state board members do not perceive a significant difference in the independence of a CPA firm performing a nonpublic entity's external audit versus a CPA firm performing that entity's external audit and internal audit, provided that separate personnel are used for the external and internal audit work. Board members do perceive a significant difference in independence when the CPA firm uses the same personnel to perform both the external and internal audit work.

Endometrial Adenocarcinoma in SurePath™ Cervical Samples: Cytological Features Revisited

2016 ◽  
Vol 60 (1) ◽  
pp. 46-52 ◽  
Author(s):  
Nalini Gupta ◽  
John Crossley ◽  
Nick Dudding ◽  
John H.F. Smith
Keyword(s):  
Phase 1 ◽  
Endometrial Adenocarcinoma ◽  
Nuclear Chromatin ◽  
Phase 2 ◽  
Cervical Lesions ◽  
Two Phase ◽  
Endometrial Cells ◽  
Phase Study ◽  
Cytological Features ◽  
Liquid Based Cytology

Objective: The cytomorphological criteria of malignant endometrial lesions in cervical samples are less well described than those of cervical lesions. We wished to investigate if there were features in SurePath™ liquid-based cytology samples that would facilitate more accurate differentiation between benign and malignant endometrial cells. Study Design: This was a two-phase study, with a review of all SurePath™ samples reported as endometrial adenocarcinoma (n = 42) evaluating 12 cytological features in the first phase. In phase 2 (test set), all initial cases plus an additional 83 cases were reviewed using these 12 cytological features to predict the outcome. Results: Out of 12 cytological features evaluated in phase 1 (training set), nuclear chromatin pattern, apoptotic bodies and tingible body macrophages were found to be the most significant features determining malignant histological outcome. These 12 cytological features were re-evaluated in phase 2 (n = 125). Of 125 cases, 54 had a benign and 71 had a malignant or premalignant histological outcome, with a positive predictive value of 56.8%. Conclusion: Granular nuclear chromatin, tingible body macrophages and apoptosis in the background are the most significant factors in determining whether endometrial cells present in cervical samples represent malignancy or are benign. Using these features, relatively accurate predictions of endometrial pathology can be made.

scholarly journals Evaluation of the clinical practice of aminoglycoside use in paediatric patients in Kenya: findings and implications for lower-middle income countries

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Elias Joseph Onyango ◽  
Faith Okalebo ◽  
Margaret Oluka ◽  
Rosaline Kinuthia ◽  
Loice Achieng ◽  
...  
Keyword(s):  
Phase 1 ◽  
Therapeutic Index ◽  
Therapeutic Drug ◽  
National Guidelines ◽  
Two Phase ◽  
Middle Income ◽  
Face To Face ◽  
Skill Gaps ◽  
Aminoglycoside Therapy ◽  
Phase Study

Abstract Objectives To evaluate the practice of aminoglycoside use/monitoring in Kenya and explore healthcare worker (HCW) perceptions of aminoglycoside monitoring to identify gaps and opportunities for future improvements, given the low therapeutic index of aminoglycosides. Methods This was a two-phase study whereby we reviewed patients’ medical records at Kenyatta National Hospital (October–December 2016) in Phase 1 and interviewed HCWs face to face in Phase 2. Outcome measures included describing and evaluating the practice of aminoglycoside use and monitoring and compliance to guidelines. Data were analysed using descriptive and inferential analysis. Results Overall, out of the 2318 patients admitted, 192 patients (8.3%) were prescribed an aminoglycoside, of which 102 (53.1%) had aminoglycoside doses that did not conform to national guidelines. Aminoglycoside-related adverse effects were suspected in 65 (33.9%) patients. Monitoring of aminoglycoside therapy was performed in only 17 (8.9%) patients, with no therapeutic drug monitoring (TDM), attributed mainly to knowledge and skill gaps and lack of resources. Out of the 28 recruited HCWs, 18 (64.3%) needed training in how to perform and interpret TDM results. Conclusions The practice of using and monitoring aminoglycosides was suboptimal, raising concerns around potential avoidable harm to patients. The identified gaps could form the basis for developing strategies to improve the future use of aminoglycosides, not only in Kenya but also in other countries with similar settings and resources.

Disclosure Of Nonaudit Services Fees: Perceptions Of Investors And Accounting Professionals

2011 ◽  
Vol 19 (4) ◽  
Author(s):  
J. Gregory Jenkins ◽  
Kathy Krawczyk
Keyword(s):  
Internal Audit ◽  
Audit Fees ◽  
Auditor Independence ◽  
Legal Services ◽  
Software Training ◽  
Big 5 ◽  
Accounting Professionals ◽  
Normal Text ◽  
Final Rule ◽  
Cpa Firm

<p class="MsoBodyTextIndent" style="text-align: justify; line-height: normal; text-indent: 0in; margin: 0in 37.9pt 0pt 37.4pt;"><span style="font-size: 10pt; mso-bidi-font-style: italic;"><span style="font-family: Times New Roman;">This study examines investors&rsquo; and accounting professionals&rsquo; perceptions related to the necessity and form of disclosure of nonaudit service (NAS) fees pursuant to the Security and Exchange Commission&rsquo;s Final Rule on auditor independence. A between-subjects design was used to examine participants&rsquo; opinions as to the need for disclosure of the performance of NAS and the particular form of disclosure that was preferred. The design incorporated four types of NAS (actuarial services, internal audit outsourcing, legal services, and software training), two levels of materiality (40 percent and 3 percent), and three categories of participants (non-Big 5 CPA firm professionals, Big 5 CPA firm professionals, and investors). A larger percentage of investors favored disclosure of NAS fees than either non-Big 5 CPA firm professionals or Big 5 CPA firm professionals. In addition, of those who favored disclosure, investors favored disclosure of the amount of NAS along with the total audit fees, regardless of the amount, while non-Big 5 CPA firm professionals and Big 5 CPA firm professionals both favored disclosure of the amount of NAS alone and only if those services exceeded a specified threshold. The investor results lend support to the SEC&rsquo;s revised auditor independence rules.</span></span></p>

Continuous Auditing and Risk-Based Audit Planning—An Empirical Analysis

2020 ◽  
Vol 17 (2) ◽  
pp. 141-155 ◽  
Author(s):  
Marc Eulerich ◽  
Christine Georgi ◽  
Alexander Schmidt
Keyword(s):  
Audit Committee ◽  
Research Question ◽  
Internal Audit ◽  
Positive Influence ◽  
Internal Auditing ◽  
Continuous Auditing ◽  
Audit Planning ◽  
Positive Effects ◽  
Internal Audit Function ◽  
External Auditor

ABSTRACT Due to rapidly changing risks in companies, a continuous alignment of internal audit activities with the relevant risks is required. Continuous auditing (CA) is one possible way to meet these requirements. Specifically, the internal audit function (IAF) could use CA as a methodology in order to add a continuous perspective to their risk assessment. This study examines factors associated with the use of CA information in the IAF's risk-based audit planning (RBAP). We use survey data from 264 chief audit executives to address our research question. We find several factors having a positive influence on the use of information from CA in RBAP. These factors include the importance of data analytics, the collaboration with the audit committee and external auditor, as well as the use of IAF's results for fraud prevention. Furthermore, our additional analysis presents various positive effects of CA on potential output measures of internal auditing. JEL Classifications: G30; G32; G34; M42.

The Impact of Audit Committees on the Realization of an Integration Relationship between Internal and External Audit when Conducting Audits. A Study on Public Shareholding Corporations

2020 ◽  
Vol 11 (2) ◽  
pp. 420
Author(s):  
Ola Mohammad KHERSIAT
Keyword(s):  
Internal Audit ◽  
Audit Committees ◽  
P Value ◽  
Test Results ◽  
External Audit ◽  
External Auditor ◽  
External Audits ◽  
The Impact ◽  
Spearman Test ◽  
The Relationship

This study aims to investigate methods of achieving an integrating relationship between internal and external audit when conducting audit procedures in Jordanian public shareholding corporations, as well as investigate the impact of audit committees achieving such a relationship since an effective internal audit effective  the external auditor`s estimations regarding control risks. The study concludes that all aspects of the realization of an integration relation between internal and external audit have achieved a fair ratio exceeding 60%. Spearman test was used to show the nature of the relationship between the internal and external audit. The test results showed that the relationship between these methods is vulnerable in Jordanian public shareholding corporations, and that audit committees have no statistically significant impact on achieving an integrating relationship between internal and external audits  in conducting audit in Jordanian public shareholding corporations, since the ratio of audit committees interpretation (R2) which amounted to (.145) of the dependent variable difference ( achieving an integrating relationship between internal and external audit in conducting audit) is relatively low, and that the P- value derived for this relation amounted to (.615) which is more than (5%) .

Epidemiological aspects of psychiatric disorder in a Dutch health area

1987 ◽  
Vol 17 (2) ◽  
pp. 495-505 ◽  
Author(s):  
Paul Hodiamont ◽  
Nelly Peer ◽  
No Syben
Keyword(s):  
Psychiatric Disorder ◽  
Phase 1 ◽  
Epidemiological Data ◽  
Chronically Ill ◽  
Industrialized Countries ◽  
Two Phase ◽  
Health Area ◽  
Phase Study ◽  
Dutch Health ◽  
The Unemployed

SynopsisA two-phase study of psychiatric prevalence has been carried out among the inhabitants (aged 18–64) of a Dutch health area (Nijmegen). In phase 1, a random sample of 3232 persons answered the GHQ–30 (response rate:75%). In phase 2,486 of the respondents were interviewed withthe full PSE within two weeks. The relationship of PSE-‘caseness’ (ID ≥ 5) and GHQ score was expressed in a logistic regression model, the parameters of which showed strong agreement with the Canberra results, for all socio-demographic variables examined, except for urbanization. means of the logistic model the point-prevalence of PSE cases was calculated at 7·3% (range5·5%-9·2%).Prevalence did not differ significantly in men and women. Higher case rates were found in age category of 55–59 years, among divorced and widowed persons, the lower educational and occupational levels, the unemployed, chronically ill and unable to work, and with city people. This study adds further evidence to a growing body of epidemiological data suggesting similar rates and patterns of psychiatric disorder in populations in industrialized countries.

scholarly journals Development and Feasibility of a Kinect-Based Constraint-Induced Therapy Program in the Home Setting for Children With Unilateral Cerebral Palsy

2021 ◽  
Vol 9 ◽  
Author(s):  
Hao-Ling Chen ◽  
Szu-Yu Lin ◽  
Chun-Fu Yeh ◽  
Ren-Yu Chen ◽  
Hsien-Hui Tang ◽  
...  
Keyword(s):  
Cerebral Palsy ◽  
Phase 1 ◽  
Training System ◽  
Phase 2 ◽  
Two Phase ◽  
Clinical Trial Registration ◽  
Home Setting ◽  
Therapy Program ◽  
Phase Study ◽  
Block Test

Introduction: Cerebral palsy (CP) is the leading cause of childhood-onset physical disability. Children with CP often have impaired upper limb (UL) function. Constraint-induced therapy (CIT) is one of the most effective UL interventions for children with unilateral CP. However, concerns about CIT for children have been repeatedly raised due to frustration caused by restraint of the child’s less-affected UL and lack of motivation for the intensive protocol. Virtual reality (VR), which can mitigate the disadvantages of CIT, potentially can be used as an alternative mediator for implementing CIT. Therefore, we developed a VR-based CIT program for children with CP using the Kinect system.Aims: The feasibility of the Kinect-based CIT program was evaluated for children with unilateral CP using a two-phase study design.Materials and Methods: In phase 1, ten children with unilateral CP were recruited. To confirm the achievement of the motor training goals, maximal UL joint angles were evaluated during gameplay. To evaluate children’s perceptions of the game, a questionnaire was used. In phase 2, eight children with unilateral CP were recruited and received an 8 weeks Kinect-based CIT intervention. Performance scores of the game and outcomes of the box and block test (BBT) were recorded weekly.Results: In phase 1, results supported that the design of the program was CIT-specific and was motivational for children with unilateral CP. In phase 2, game performance and the BBT scores began showing stable improvements in the fifth week of intervention.Conclusion: It suggested the Kinect-based CIT program was beneficial to the motor function of the affected UL for children with unilateral CP. According to the results of this feasibility study, larger and controlled effectiveness studies of the Kinect-based CIT program can be conducted to further improve its clinical utility.Clinical Trial Registration: ClinicalTrials.gov, NCT02808195; Comparative effectiveness of a Kinect-based unilateral arm training system vs. CIT for children with CP

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