scholarly journals Pendekatan Remote Auditing Untuk Internal Audit Dalam Mendeteksi Kecurangan (Fraud) Pada Masa Pandemi Covid-19

Jurnal Ecogen ◽  
2021 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Defriko Gusma Putra
Keyword(s):  
Internal Control ◽  
Control Process ◽  
Internal Audit ◽  
Added Value ◽  
Audit Process ◽  
Weak Supervision ◽  
Work Activities ◽  
Advantages And Disadvantages ◽  
Inspection Process ◽  
The Right

The worsening economic conditions and weak supervision and the distorted focus of companies in facing the Covid-19 pandemic crisis open opportunities for fraudsters in companies that take advantage of the conditions to take actions that harm the company. The Covid-19 pandemic currently occurring has also affected work activities and the internal audit audit process that have been previously determined due to the imposition of PSBB and the prohibition of face-to-face activities so that it has an impact on obtaining audit evidence from restrictions on travel access to checkpoints in several areas. This research is expected to provide insights and solutions related to the application of a remote auditing approach to internal audit in detecting fraud during the Covid-19 pandemic. During the Covid-19 pandemic, remote auditing was the right choice to implement with the various advantages and disadvantages of remote auditing itself, remote auditing became an alternative so that work activities and the inspection process could continue and the role of internal audit in realizing added value for the company to assist management and directors in improving the internal control process and optimizing the detection of fraud.

scholarly journals Can Audit Prevent Fraudulent Financial Reporting Practices? Study of Some Motivational Factors in Two Atlantic Canadian Entities

2010 ◽  
Vol 4 (1) ◽  
pp. 65 ◽  
Author(s):  
Mostaq M. Hussain ◽  
Patricia Kennedy ◽  
Victoria Kierstead
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Control Process ◽  
Internal Audit ◽  
Motivational Factors ◽  
Negative Consequences ◽  
Fraudulent Financial Reporting ◽  
Audit Process ◽  
Reporting Practices ◽  
Need To Evaluate

Much as has been written and done to prevent Fraudulent Financial Reporting (FFR) practices but FFR is still exists in the corporate world. It is common to think about FFR practices in large companies for its greater amount of consequences, though such practises have negative consequences in small companies as well. FFR practices raise questions<br />about the legitimacy of contemporary financial reporting process, roles of auditors, regulators, and analysts in financial reporting. This empirical study attempts to investigate the motivational factors of the prevention and detection of FFR through the auditing process. The interviewees were carried out within the entity and proprietary theoretical framework with some accounting related management in two medium-sized organizations in Atlantic Canada in winter 2008. The findings of this research demonstrate that an audit is not enough to prevent and detect FFR. The audit structure needs to be revised and employees need to be educated in order for them to better understand their internal control process, and their own role. Companies need to evaluate their controls and internal audit process instead of relying on the yearly audit. This study found that the most common methods used for FFR are improper revenue recognition, understatement of expenses/liabilities, and overstated and misappropriation of assets.<br /><br />

scholarly journals Analisis Kendala Penyelesaian Tindak Lanjut Hasil Pemeriksaan BPK Pada Pemerintah Provinsi Gorontalo

2017 ◽  
Vol 8 (1) ◽  
Author(s):  
RAHMI RAMADHAN PONGOLIU ◽  
DAVID SAERANG ◽  
HENDRIK MANOSSOH
Keyword(s):  
Internal Control ◽  
Financial Management ◽  
Internal Audit ◽  
Provincial Government ◽  
Regional Government ◽  
Audit Process ◽  
Study Approach ◽  
The Government ◽  
The Right

Abstrack. Follow-up audit results is one indicator to determine the successful of an audit process. Law Number 15 of 2004 stipulates that follow-up activities on the recommendation of the audit BPK on Local Government Financial Statement (LKPD) are the responsibility that must be implemented by the entity. Recommendations are improvement on the things that need to be supervised and monitored in order to audit not only limited to giving opinions but more into the financial management improvements that the accountability is aspired to be realized better. Low completion of follow-up on the results of BPK could be an indication that the regional government has not fully committed to implementing the recommendations follow-up given by the examiner. This study is aimed to analyze the obstacles faced by SKPD of Gorontalo Province and the efforts that have been did by the Provincial Government of Gorontalo in order to accelerate the completion of the follow-up audit results of BPK. This study used a qualitative method with case study approach and the Government of Gorontalo Province as the research object with 4 (four) SKPD which is considered to represent the entity of Gorontalo Provincial Government with regard to several factors, namely the completion status of follow-up; the magnitude of the amount managed; the complexity of the activities; public service functions; and the internal audit function. Data was obtained by in-depth interviews, observation and documentation study in 4 (four) SKPD. The key informants were purposively determined to get the right information and accurate based on the following criteria: authoritativeness to the implementation of the follow-up, in charge of finding materials, preparing materials follow-up report, to master the problems of programs and activities, findings related parties, and the internal audit. Results showed that the constraints faced SKPD in following up the audit report of BPK, namely: lack of organizational commitment; weak internal control systems; findings related parties have died/retired/address unknown; rotation of employees; and disagreements over the results of the examination.Keywords: audit findings, financial statements, constraints and efforts of the provincial government, and follow-upAbstrak. Tindak lanjut hasil pemeriksaan merupakan salah satu indikator keberhasilan suatu pemeriksaan. Undang-Undang Nomor 15 Tahun 2004 mengamanatkan bahwa kegiatan tindak lanjut atas rekomendasi hasil pemeriksaan BPK atas Laporan Keuangan Pemerintah Daerah (LKPD) merupakan tanggungjawab yang harus dilaksanakan oleh entitas. Rekomendasi merupakan perbaikan terhadap hal yang perlu diawasi dan dimonitoring agar audit yang dilakukan tidak hanya sebatas pemberian opini tetapi lebih kedalam perbaikan pengelolaan keuangan agar akuntabilitas yang dicita-citakan dapat terwujud dengan lebih baik.Rendahnya penyelesaian tindak lanjut rekomendasi hasil pemeriksaan BPK dapat menjadi indikasi bahwa Pemerintah Daerah belum sepenuhnya berkomitmen dalam melaksanakan rekomendasi tindak lanjut yang diberikan oleh pemeriksa.Penelitian ini bertujuan untuk menganalisis kendala-kendala apa saja yang dihadapi oleh SKPD Provinsi Gorontalo serta upaya-upaya yang telah dilakukakan oleh Pemerintah Provinsi Gorontalo dalam rangka percepatan penyelesaian tindak lanjut hasil pemeriksaan BPK. Penelitian ini menggunakan metode kualitatif dengan pendekatan studi kasus dan Pemerintah Provinsi Gorontalosebagai objek penelitian yaitu 4 (empat) SKPD yang dianggap mewakili entitas Pemerintah Provinsi Gorontalo dengan memperhatikan beberapa faktor yaitu status penyelesaian tindak lanjut; besarnya jumlah anggaran yang dikelola; kompleksitas kegiatan; fungsi layanan publik; dan fungsi pengawas internal. Data diperoleh melalui teknik wawancara mendalam, pengamatan, dan studi dokumentasi pada 4 (empat) SKPD. Informan kunci ditentukan secara purposif untuk mendapatkan hasil informasi yang tepat dan akurat berdasarkan kriteria antara lain :mempunyai kewenangan terhadap pelaksanaan tindak lanjut, membidangi materi temuan, menyusun bahan laporan tindak lanjut, menguasai permasalahan program dan kegiatan, pihak terkait temuan, dan pengawas internal. Hasil penelitian menunjukkan adanya kendala-kendala yang dihadapi SKPD dalam menindaklanjuti hasil pemeriksaan BPK yaitu : (1) kurangnya komitmen organisasional; (2) lemahnya sistem pengendalian intern; (3) pihak terkait temuan telah meninggal/pensiun/alamat tidak diketahui; (4) rotasi pegawai; dan (5) adanya ketidaksepakatan atas hasil pemeriksaan.Kata Kunci : hasil pemeriksaan, laporan keuangan,kendala dan upaya pemerintah provinsi, dan tindak lanjut

scholarly journals The Effect of Corporate Governance in Palestine on the Efficiency of Internal Audit: Empirical Evidence

2016 ◽  
Vol 8 (5) ◽  
pp. 124 ◽  
Author(s):  
Suhaib Tawfiq Jarrar
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Audit Quality ◽  
Internal Audit ◽  
Public Companies ◽  
Internal Auditor ◽  
The Right ◽  
The Impact

This paper comes to examine the impact of corporate governance in Palestine on the efficiency of internal audit from the reality of the listed corporations in the Palestine Exchange; [PEX]. The population of this paper consists of all the 25 listed Palestinian companies in the Palestine Exchange that have internal auditor. It also includes another 5 companies that rely on the internal audit by external companies. Hence, the number of the reviewed companies by this study is 30 companies (Palestine Exchange Market). Thereupon, 30 questionaires were distributed and retrived. However, this manuscript states a summary of the most important results. These results are explained as is shown in the following: (1) the findings of the study state that there is an effect of applying the variables of corporate governance altogether on the quality of the internal audit of the listed public companies in the Palestine Exchange. These rules are (disclosure and transparency, accountability, responsibility, justice, and independency). (2) The results of the study indicate that there is a significant effect of applying the corporate governance variables individually on the quality of the internal audit of the listed public companies in the Palestine Exchange. Thus, the effect of these variables appears contrasted respectively as the following: disclosure and transparency, justice and accountability, independency and responsibility. (3) The corporate governance represents combining the right practices and procedures which operate within the standards and rules that governed by the obligatory standards. These standards aim at ensuring that there aren’t any contradictions between the strategic goals of the company and the fuctional procedures of the administration in achieving these goals. (4) The internal audit adds value to the company through the functions that enhance its performance within corporate governance. This includes providing information to all levels of the management, evaluating the system of the internal control and the risk management, in addition to sticking the company with the principles of corporate governance. The findings of the study come up with the following recommendations: (1) the study assures the importance of applying the corporate governance principles because of their clear effect on the internal audit quality. It also recommends working efficiently on the professional development of the auditors and improving their performance through training programs, as well, encouraging them to keep up with the latest developments in the field of the auditing and other related fields. (2) It strongly recommends working on enhancing and activating the role of the board of directors and the audit committee; as well as granting them the independency. Hence, they will be able to carry out the tasks assigned to them. Consequently, they will avoid the effects that the company may be exposed to as a result of the internal weakness of the practical aspects of the principles of corporate governance; in addition to the negative impacts of this issue on the quality of the internal audit.

Empirical evidence about ISO 9001 and ISO 9004 in Italian companies

2017 ◽  
Vol 29 (5) ◽  
pp. 650-665 ◽  
Author(s):  
Federica Murmura ◽  
Laura Bravi
Keyword(s):  
Design Methodology ◽  
International Standards ◽  
Added Value ◽  
Iso 9001 ◽  
Content Type ◽  
Advantages And Disadvantages ◽  
Different Types ◽  
The Right ◽  
E Mail ◽  
Practical Implications

Purpose The purpose of this paper is to evaluate the experience of International Organization for Standardization (ISO) 9001 certified companies, examining their motivations to introduce the standard and their perceived benefits and barriers. In parallel, the research investigated the knowledge and perception of ISO 9004 guideline, analyzing if it could give an added value to certified companies. Design/methodology/approach A questionnaire was proposed by e-mail to 2,581 Italian ISO 9001 certified companies from January 18 to March 31, 2016; 522 companies participated to the survey. Findings Companies of different size have been driven by different motivations to certification, reaching different types of benefits, while both large and small ones perceived the greater bureaucratization as an obstacle. The ISO 9004 standard is little known and applied among Italian companies, but the ones which adopted it benefited from it. Research limitations/implications A limitation may be derived from the fact that the sample was composed only of Italian companies, although this effect was to understand perceptions and trends of these international standards in the Italian reality. Practical implications Analyzing perceived advantages and disadvantages of ISO 9001 and 9004 could be crucial for managers to understand if their joint use is the right strategy to gain competitiveness in the reference markets. Originality/value Compared to previous studies in which ISO 9001 was evaluated as a stand-alone standard, the research made a comparative evaluation with ISO 9004, as ISO considers them to be “consistent pair of standards,” covering the literature gap about the effectiveness of the joint use of them.

The role of stakeholders' perception in internal audit status: the case of Iran

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bita Mashayekhi ◽  
Farzaneh Jalali ◽  
Zabihollah Rezaee
Keyword(s):  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
Chief Executive ◽  
Audit Committees ◽  
Current Status ◽  
Structured Interviews ◽  
Audit Process ◽  
Content Type

PurposeThe purpose of this study is to explore the internal audit actors and stakeholders' perceptions of the IA status in Iranian companies, and those actors and stakeholders' roles in shaping the current situation of IA in Iran.Design/methodology/approachThis paper uses the interpretive qualitative method. Data comprises of semi-structured interviews with board of directors, audit committees, chief executive officers and chief audit executives. The paper analyzes internal audit policy documents, reports and legislations.FindingsThe results illustrate that the internal audit in Iran is perceived as a “perfunctory” practice among its stakeholders due to being recognized as an inefficient process. The key actors and stakeholders in internal audit process–including executive and board managers, audit committee members and chief audit executives–play important roles in shaping the current status of internal audit via their perceptions and actions.Practical implicationsThe fact that internal audit in Iran is perceived as an inefficient process and is used as a perfunctory practice highlights the importance of addressing this issue at the standardization and regulation level. The deficits in the roles of key actors and stakeholders need to be considered as the legislative guide in different levels.Originality/valuePrior studies mostly focus on the role of internal audit in organizations. In contrast, this study focuses on the role of key actors and stakeholders of internal auditing process in shaping the current perceived role of internal audit in organizations. Also, the study examines an emerging economy, which differs from advanced economies in important ways, including regulations, organizational culture, internal control structure and internal audit.

scholarly journals Pengaruh Kompetensi dan Pelaksanaan Audit Internal dalam Menunjang Efektifitas Pengendalian Internal Penjualan

2010 ◽  
Vol 1 (2) ◽  
pp. 582
Author(s):  
Elisia Elisia ◽  
Stefanus Ariyanto
Keyword(s):  
Significant Influence ◽  
Internal Control ◽  
Research Result ◽  
Internal Audit ◽  
Process Variable ◽  
Tourism Industry ◽  
Audit Process ◽  
Control Effectiveness ◽  
Internal Audit Function ◽  
Effectiveness Coefficient

PT Inti Dufree Promosindo is a subsidiary of PT Sona Topas Tourism Industry, Tbk. The company is one of the biggest retail companies that sell local and imported products. This business is also called duty free shop. PT. Inti Dufree Promosindo have problems in evaluate the infuence of the effectiveness of its internal audit function towards sales internal control due to large number of sales transactions occurred. The research result shows that the auditor competence and audit process variable have low but significant influence to sales internal control effectiveness (Coefficient determination 22.7%), and so that the audit process variable that have low but significant influence to sales internal control effectiveness (Coefficient determination 36.8%). However, the combination of the two variables tested with linear regression shows that both variables simultaneously have strong influence to sales internal control effectiveness. Based on the result of multiple linier regression analysis the determination coefficient is 47, 4%. This shows that auditor competence and audit process simultaneously have a significant effect in supporting internal sales control effectiveness. 

scholarly journals What is the value of internal auditing? – A literature review on qualitative and quantitative perspectives

2020 ◽  
Vol 94 (3/4) ◽  
pp. 83-92
Author(s):  
Anna Eulerich ◽  
Marc Eulerich
Keyword(s):  
Literature Review ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
Added Value ◽  
Future Research ◽  
Internal Auditing ◽  
Governance System ◽  
System Risk ◽  
Central Pillar

In recent years, research on internal audit has developed significantly. Numerous papers have discussed the importance of internal auditing (IA) as a central pillar of the corporate governance system. Through its activities, IA supports the Audit Committee and the CEO/C-Level. As an independent, objective assurance and advisory function, it is designed to add value through the audit of the internal control system, risk management and the governance processes. Interestingly, research on internal audit unfortunately rarely corresponds to these added value concept defined in the core responsibilities. Therefore, this literature review attempts to highlight the possible perspectives of the added value discussion and to help define future research avenues.

scholarly journals Theoretical Aspects of Night Audit at Hotel Enterprises

2021 ◽  
Vol 26 (1) ◽  
pp. 98-102
Author(s):  
Natalia Mikhailova ◽  
◽  
Olga Volodko ◽  
Svitlana Rybakova ◽  
◽  
...  
Keyword(s):  
Internal Control ◽  
Hotel Industry ◽  
Internal Audit ◽  
Practical Significance ◽  
State Enterprise ◽  
Commercial Activities ◽  
General Scientific ◽  
The Right ◽  
Audit Technology ◽  
And Control

Introduction. Hotels are luggage and service enterprises. To make the right management decisions and increase profits hospitality enterprises must have accurate, timely, and truthful information on the issues of commercial activities. The most effective way to obtain this information is possible when conducting a regular external audit. It is the quality of the current audit that determines the financial position of the state enterprise. Night audit is one of the areas of internal audit of hotel enterprises, aimed at ensuring the safety of assets, verifying the reliability of accounting information, improving the efficiency of operations, and their compliance with enterprise policy. Night audit is of particular importance for managers and owners of hotel enterprises, as it helps to assess the implementation of the objectives of production and economic activity. Purpose. The purpose of the article is to study the theoretical aspects of night auditing in the hotel industry. Methodology of research. The achievement of this goal was carried out with the help of general scientific and applied research methods, in particular: methods of scientific abstraction - to substantiate the essence and significance of night audit as an aspect of internal control in the hotel industry; methods of logical generalization - to determine the main tasks of the night audit; methods of systematization, detailing and grouping - to consider the methods and basic functions of night auditing. Results. Analyzing and systematizing the scientific works of many scientists, the essence, purpose, and tasks of night audit were determined, the technology and methods of night audit of the hotel were considered, the main competencies of night auditor in the process of control operations were clarified. Conclusions. The practical significance of the obtained results is to determine the need to introduce the practice of night audit as a full-fledged type of control. The scientific novelty of the research results is the deepening of the theoretical foundations of night audit technology to improve the accounting and control support of the management system of the hotel industry. Further research will focus on the detailed implementation of night audit automation in hotel activity.

Williams Community Hospital: An Internal Auditing Case

2015 ◽  
Vol 31 (3) ◽  
pp. 337-345 ◽  
Author(s):  
Sandra Waller Shelton ◽  
Michael Trendell ◽  
Ray Whittington
Keyword(s):  
Internal Control ◽  
Audit Committee ◽  
Community Hospital ◽  
Hospital Setting ◽  
Internal Audit ◽  
Governance Structure ◽  
Business Environment ◽  
Internal Auditing ◽  
Audit Process ◽  
Laws And Regulations

ABSTRACT The internal audit function is a critical part of an organization's control and governance structure. This case introduces students to the complete internal audit process for a company, including identification of risk, audit planning, execution of fieldwork, and reporting. In this exercise students are asked to assume the role of an internal auditor for a community hospital and perform risk assessment, perform testing, and documentation based on an audit program, and prepare an audit report, detailing findings and recommendations. The case includes both testing for compliance with laws and regulations, and tests of compliance with internal control policies and procedures. In response to an ever-changing business environment and the expectations of stakeholders, the internal audit profession identifies compliance with laws and regulations as one of the top risks frequently cited by both audit committee and executive management. The hospital setting is one of particular interest for addressing this topic. This case is appropriate for undergraduate and graduate students in internal auditing and external auditing classes.

scholarly journals Analysis of Factors Affecting Internal Audit Quality: Study at the Inspectorate of Maluku Province, Ambon City and West Seram District

2019 ◽  
Vol 6 (6) ◽  
pp. 116
Author(s):  
Piter Arson Welay ◽  
Rosidi Rosidi ◽  
Nurkholis Nurkholis
Keyword(s):  
Control System ◽  
Internal Control ◽  
Work Experience ◽  
Audit Quality ◽  
Internal Audit ◽  
Audit Process ◽  
Factors Affecting ◽  
Audit Opinion ◽  
Internal Control System ◽  
Positive Effect

This study aims to empirically examine the effects of competence, independence, work experience and internal control systems. Using 61 samples of employees working as auditors in the Maluku Provincial Inspectorate, Ambon City and West Seram District, the data analysis method uses SEM-PLS with the help of the Warp PLS 6.0 application. The results showed that competency had no effect on audit quality, because respondents' demographics had competencies that were not in accordance with the standards, so that in the last few years they had received a fair audit opinion with an exception. Independence has a positive effect on audit quality, the auditor who is always objective in carrying out the audit process, will produce a quality audit. Work experience has a positive effect on audit quality, the more experienced the auditor, the easier it will be to detect audit problems. The internal control system is able to strengthen the relationship of competence, independence and job satisfaction with audit quality, this shows that a good internal control system will support the creation of quality audits.

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