scholarly journals Investigating Fraud Risks Assessment Practices in Public Sector Audits

2021 ◽  
Vol 16 (1) ◽  
pp. 183-205
Author(s):  
Mohamad Mahsun ◽  
◽  
Nafsiah Mohamed ◽  
Sharifah Norzehan Syed Yusuf ◽  
Indrawati Yuhertiana ◽  
...  
Keyword(s):  
Risk Assessment ◽  
Public Sector ◽  
Audit Process ◽  
Planning Stage ◽  
Audit Planning ◽  
Fraud Risk ◽  
Auditing Standards ◽  
The Government ◽  
The Impact ◽  
Audit Standards

Fraud Risk Assessment (FRA) is claimed to be an important activity at the audit planning stage in both the private and public sectors. In fact, because of the importance of FRA activities, Auditing Standards (SAS 99, ISA 240, ISSAI 1240) have required auditors to carry out FRAs at the audit planning stage. FRA is considered as the core activity of financial audit planning because of the impact of fraud on the sustainability of an entity, quality of life, and economic growth. This study aimed to determine the practice of FRA in public sector audits and to find out more about the obstacles faced by auditors during the audit process and to find out the causes of these obstacles by considering the approach to the Audit Standards used. This study found that auditors’ performance can be determined based on their complete compliance with audit standards. We have encountered a serious problem that requires firm action from the government or a competent official, namely the auditor’s willingness in preparing the Fraud Risk Assessment Matrix. In addition, we recommend the Audit Standards Board to adopt international public sector auditing standards and disseminate them through training for auditors, students, and professionals. Keywords: fraud risk assessment, public sector audit, auditor competency

When Analysts Speak, Do Auditors Listen?

2018 ◽  
Vol 38 (1) ◽  
pp. 221-245 ◽  
Author(s):  
Nathan J. Newton
Keyword(s):  
Risk Assessment ◽  
Forecast Error ◽  
Audit Report ◽  
Audit Process ◽  
Forecast Dispersion ◽  
Earnings Expectations ◽  
Audit Planning ◽  
Auditing Standards ◽  
Jel Classifications

SUMMARY Prior studies examining the interactions of auditors and analysts have generally focused on how auditors influence analysts' forecasts or audit clients' behavior relative to those forecasts without considering how analysts might influence auditors. However, auditing standards encourage auditors to incorporate analyst-provided information into their risk assessment and audit planning. This study investigates whether auditors respond to a signal of potential misstatement risk derived from differences between auditors' earnings expectations and analysts' forecasts. Results indicate that auditors respond to this signal by charging higher fees and delaying the release of the audit report, which in combination suggest greater audit effort. Further, this signal reflects actual misstatement risk in the form of subsequent restatements, but audit effort mitigates this risk. Finally, auditors' response to analyst information is attenuated when forecast dispersion and forecast error suggest the signal lacks credibility. Overall, these findings suggest that auditors incorporate analyst-provided information into the audit process. JEL Classifications: M41; M42; M48.

scholarly journals The Personality Factor of Conscientiousness on Skills Requirement and Fraud Risk Assessment Performance

2020 ◽  
Vol 11 (2) ◽  
pp. 405
Author(s):  
Ala'a Zuhair Mansour ◽  
Aidi Ahmi ◽  
Oluwatoyin Muse Johnson Popoola
Keyword(s):  
Risk Assessment ◽  
Public Sector ◽  
Personality Factors ◽  
Personality Factor ◽  
Fraud Prevention ◽  
Assessment Task ◽  
The Public ◽  
Fraud Risk ◽  
The Government ◽  
Assessment Performance

The study examines the moderation effect of the personality factor of conscientiousness on the relationship between skills (forensic accountant and auditor) and fraud risk assessment task performance in the Jordanian public sector. The forensic accountant skills denote enhanced level of capability purposely required to collect evidence in respect of fraud prevention, detection, deterrence as well as response. Whereas, the auditing standards require auditors to make available realistic guarantees in terms of sufficiency and reliability that the financial statements as a whole are free from material misstatements arising from fraud or error. Despite efforts by the government in reducing cases of fraud through a measure of reforms such as the establishment and strengthening of accountability organs and promoting global best practices for corporate organisations, fraud and financial crimes in the public sector of Jordan are still increasing. Hence, this paper develops a conceptual framework to investigate the moderating effect of conscientiousness on skills requirements and fraud risk assessment performance. The study will assist the forensic accountants and auditors working as regulators in the public sector environment concerning fraud prevention, detection, and response. It also creates awareness among accounting information users in the public sector. The paper contributes to the literature on personality factors of conscientiousness, auditing and forensic accounting, enhanced capability skills requirement, and competence (fraud risk assessment performance) by forensic accountants and auditors about fraud prevention, detection, and response in the Jordanian public sector.

Cultural Differences in Auditors' Compliance with Audit Firm Policy on Fraud Risk Assessment Procedures

2018 ◽  
Vol 37 (4) ◽  
pp. 25-48 ◽  
Author(s):  
Olof Bik ◽  
Reggy Hooghiemstra
Keyword(s):  
Risk Assessment ◽  
Cultural Differences ◽  
Internal Quality ◽  
Audit Process ◽  
Audit Firm ◽  
Fraud Risk ◽  
National Differences ◽  
Assessment Procedures ◽  
The Impact ◽  
Cross National

SUMMARY Internationally operating audit firms rely heavily on global firm policies and audit methodologies to ensure consistency of audits across the globe. However, cultural differences are likely to affect auditors' compliance with such firm-wide systems of control. In this study we use proprietary data from a Big 4's internal quality reviews, involving 1,152 audit engagements from 29 countries, to assess the impact of cross-national cultural differences on auditors' compliance (or not) with the firm's policy in a specific yet crucial and culturally susceptible area of the audit process: fraud risk assessment procedures. We find that collectivism and societal trust are negatively associated, while religiosity is positively associated with compliance with global firm policy. However, we do not find evidence that compliance and power distance are associated. Overall, our findings suggest that cross-national differences in auditors' compliance with global audit firm methodology (or not) are associated with cross-national cultural differences. An implication of our findings is that a uniform local application of global audit methodologies may remain an illusion unless different, targeted approaches for different regions in the world are considered.

Theoretical Application of Public Sector Planning and Budgeting

2018 ◽  
pp. 248-279
Author(s):  
Caroline E. Covell
Keyword(s):  
Public Sector ◽  
Social Exclusion ◽  
Negative Impact ◽  
Holistic Approach ◽  
Government Structure ◽  
The Public ◽  
Scientific Analysis ◽  
The Government ◽  
Theoretical Application ◽  
The Impact

The corporatization of the government has resulted in the change of the government structure and it has a negative impact on the fiscal budgeting. This change has also resulted in the equalization and generalization of the public-sector finance to private-sector finance. The impact is the disappearance of sources of funds and the adoption of the four-legged horse budget apocalypse and the categorical funding. This adoption has resulted in economic marginalization, social exclusion, massive corruption, and non-sustainability. A sustainable fiscal budget design requires the application of theory on practice and a holistic approach through the organizational structure and the timeframe of each jurisdiction, based on factual evidence and scientific analysis.

scholarly journals Motivational Factors and Job Performance: The Mediating Roles of Employee Engagement

2021 ◽  
Vol 11 (3) ◽  
pp. 67
Author(s):  
Hussain Almawali ◽  
Nor Intan Adha Hafit ◽  
Narehan Hassan
Keyword(s):  
Public Sector ◽  
Job Performance ◽  
Employee Engagement ◽  
Motivational Factors ◽  
Future Research ◽  
Ministry Of Education ◽  
Government Sector ◽  
The Government ◽  
The Impact ◽  
The Relationship

This research examines the relationship between motivational factors, job performance, employee engagement and the impact of motivational factors on job performance function of employee engagement as a mediator in the government sector in the Sultanate of Oman. A quantitative study methodology was used, and six hypotheses were evaluated using 111 representative government employees from the Ministry of Education. This study is a pilot test. This study uses quota sampling, and Statistical Package for the Social Sciences (SPSS) and path analysis techniques were used for the analysis. The study's findings indicate that these factors have a favorable association, that motivational factors have significant positive relationships with employee engagement and job performance, and that employee engagement acts as a partial mediator in the relationship between motivational factors and job performance. This study is critical for leaders and regulators interested in enhancing job performance in Oman's public sector. This is one of the few studies on the mediating function of employee engagement in the link between motivational variables and job performance. This is the first research of its kind in Oman for the public sector. Other motivational variables could be examined and evaluated in the private sector in Future research.

scholarly journals Implementation of Fraud Risk Assessment To Mitigate The Fraud Risk in Tax Audit Process

2020 ◽  
Vol 4 (02) ◽  
pp. 77
Author(s):  
Qomarudin Alfatah ◽  
Nicholas Agustinus L. Tobing
Keyword(s):  
Risk Assessment ◽  
Rational Choice Theory ◽  
Choice Theory ◽  
Audit Process ◽  
Fraud Risk ◽  
Quantitative And Qualitative Research ◽  
Risk Appetite ◽  
Directorate General ◽  
Tax Audit ◽  
High Level

<p><em>The emergence of a variety of fraud schemes, ineffective internal controls, and the number of fraud cases that occur in the taxation sector, encourage researches related to fraud risk assessment, especially in tax audit activi</em><em>ties</em><em>. This study aimed to identify potential fraud schemes risks, evaluate risk controls and discuss anti-fraud strategies using a case study at the Directorate General of Taxes in Indonesia. With a sequential mix method approach through a combination of quantitative and qualitative research, and by using rational choice theory, this research extends the literature of previous studies by providing evidence that fraud can be prevented by increasing the probability to detect fraud scheme. This study fills out the gaps related to fraud risk assessment research in </em><em>the </em><em>tax audit </em><em>process</em><em> which have been rarely performed in the literatures.</em></p><em>The results concluded that of the 20 fraud scenarios identified, there were 7 fraud scenarios categorized as high level of residual fraud risk, 9 fraud scenarios at the medium level, and the rest at low levels. This study discussed appropriate controls to mitigate the residual fraud risk to be maintained at the level of organizational risk appetite. In addition, this study also discussed anti fraud strategies that are relevant to the organization, through evaluating anti-fraud strategies that have been previously implemented and anti-fraud strategies that have never been implemented</em>

scholarly journals Crisis Management in Nigeria’s Public Sector and the Impact of the Organised Labour Union: Interrogating the Nexus between Industrial Harmony and Political Stability

2020 ◽  
Author(s):  
Daniel Taye Medoye
Keyword(s):  
Public Sector ◽  
Crisis Management ◽  
Social Groups ◽  
Political Stability ◽  
Sources Of Information ◽  
The Public ◽  
The Government ◽  
The Right ◽  
The Impact ◽  
Two Sectors

This study sought to explore the dynamics in managing crisis in the Nigerian public sector and its engagement with the organised labour, with a view to determining the interface between industrial harmony and political stability in the country. This study is predicated on the fact that crisis management is essentially embedded in humanity. Additionally, the study was informed by the established and widely held view by scholars, that social groups by their nature and context, are in fact characterised by conflicts. Consequently, the study established that the public sector in every society is not immune against conflict or crisis, and this will naturally arise as long as there is interaction between and among human elements in the two sectors. The author used the terms—crisis and conflict—interchangeably in the study, and pointed out that the methodology adopted was a descriptive and analytical approach. This is informed by the sources of information accessed which are essentially secondary. The study concluded by asserting that given the humanity-linked nature of conflict, its management in the public sector, particularly in Nigeria, will continue to be an unavoidable responsibility of the government. This is to ensure that the right environment is created to guarantee smooth governance.

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