scholarly journals Impact Factors on Internal Audit Quality of Businesses the Case Study of Karachi Pakistan

2021 ◽  
Vol 7 (3) ◽  
pp. 697-716
Author(s):  
Muhammad Abdullah Idrees ◽  
Ayesha Khan ◽  
Insiya Abbas ◽  
Muhammad Bilal
Keyword(s):  
Market Economy ◽  
Financial Reporting ◽  
Capital Market ◽  
Audit Quality ◽  
Internal Audit ◽  
Impact Factors ◽  
Audit Firms ◽  
Earning Quality

Purpose: Internal Audit Quality is relied upon to prompt top notch financial reporting to the outsiders of the businesses. Excellent financial reporting communicates in earning quality. Earning quality has been playing a key role in the capital market for quite a while. Account clients give exceptional consideration to procuring quality since they settle on their choice dependent on it. Then again, the market economy will encounter terrible, gone misfortunes if the association's exhibition isn't reflected in its income. Methodology: This examination targets researching the connection between Internal Audit Quality, a leading group of audit quality and financial reporting. Exploration information, acquired from 300 audit firms had internal audit offices. Just the selected firms met inclusion standards, to which research polls were sent. At long last, 300 surveys were affirmed as satisfactory, and were taken as exploration test. Findings: Discoveries indicated that excellent Internal Audit Quality will prompt great financial reporting. Additionally, solid top managerial staff will fortify this connection. Implications/Originality/Value: So it is concluded that all these three newspapers were mostly against the peace talks and government and media were not on the same page on the issue of peace talks. (Times New Roman 11pt including headings and text, single line spaced).

scholarly journals EFFECT OF INTERNAL AUDIT QUALITY ON THE EFFECTIVENESS OF GOOD CORPORATE GOVERNANCE (CASE STUDY AT PT JASA RAHARJA)

2020 ◽  
Vol 2 (2) ◽  
pp. 203-217
Author(s):  
Fajar Arya Adhitya Putra ◽  
Hadri Mulya
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Sampling Method ◽  
Audit Quality ◽  
Statistical Tests ◽  
Internal Audit ◽  
Control Unit ◽  
Good Corporate Governance

This study aims to examine the Effect of Internal Audit Quality on the Effectiveness of Good Corporate Governance which is seen from the Independence of Auditors, Professional Capabilities, Scope of Work and Examination at PT Jasa Raharja.The population in this study were all employees of PT Jasa Raharja which were divided into Employees of the Internal Control Unit, Head of Branches, Head of Division, Head of Internal Control Unit and Corporate Secretary of PT Jasa Raharja. Samples obtained by purposive sampling method were as many as 85 employees. The results of statistical tests show that the Quality of Internal Audit has a significant effect on the Effectiveness of Good Corporate Governance that is measured using variables such as Independence, Professional Capability, Scope of Work and Examination.

A Perspective on the PCAOB—Past and Future

2014 ◽  
Vol 28 (4) ◽  
pp. 937-947 ◽  
Author(s):  
Phil D. Wedemeyer
Keyword(s):  
Financial Reporting ◽  
Business Models ◽  
Audit Quality ◽  
Financial Statements ◽  
The United States ◽  
Regulatory Structure ◽  
Political Debate ◽  
Audit Firms ◽  
Audit Standards

SYNOPSIS The auditing of financial statements of public companies in the United States is now a regulated industry, and the primary instrument of its regulation is the Public Company Accounting Oversight Board (PCAOB), an entity created by the Sarbanes-Oxley Act of 2002 (SOX). The PCAOB is one element of a politicized regulatory structure and, as a result, future developments in auditing will continue to be difficult to predict. SOX requirements for PCAOB inspections of audit firms substantially increased the possibility that an audit will be subsequently evaluated despite the absence of identified errors in audited financial statements. The SOX requirement for an auditor's opinion on internal controls over financial reporting (ICFR) immediately increased audit costs and continues to generate heated political debate. In addition, certain aspects of audit quality and PCAOB inspections as well as reporting and audit standards have, or will, affect the conduct of audits and the activities of audit firms. The net effect of these changes has been to increase the cost of audits, particularly as a result of increased review, other quality control activities, and the performance of audits of ICFR, where required. In return, the quality of audits in terms of compliance with audit standards has improved significantly. However, the business models of audit firms and the processes for education and certification of accountants have remained substantially unchanged and are major influences on the quality of audits.

Internal Audit Quality and Earnings Management

2009 ◽  
Vol 84 (4) ◽  
pp. 1255-1280 ◽  
Author(s):  
Douglas F. Prawitt ◽  
Jason L. Smith ◽  
David A. Wood
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Quality ◽  
Internal Audit ◽  
Earnings Forecasts ◽  
Data Set ◽  
Research Attention ◽  
Internal Auditors ◽  
External Auditors

ABSTRACT: Internal auditors perform work that is relevant to their host entities' financial reporting processes; yet, little research attention has focused on the effects of internal auditing on companies' external financial reporting. Using a unique and previously unavailable data set, we investigate the relation between internal audit function (IAF) quality and earnings management. We measure IAF quality using a composite measure comprising six individual components of IAF quality based on SAS No. 65, which guides external auditors in assessing the quality of an IAF with respect to its role in financial reporting. Earnings management is measured using two separate proxies: (1) abnormal accruals and (2) the propensity to meet or barely beat analysts' earnings forecasts. We find evidence that IAF quality is associated with a moderation in the level of earnings management as measured by both proxies.

Enriching AIS Courses With SOX Compliance Activities

2010 ◽  
Vol 5 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Joann Segovia ◽  
Carol M. Jessup ◽  
Marsha Weber ◽  
Sheri Erickson
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Controls ◽  
Accounting Profession ◽  
Investor Confidence ◽  
Reporting Requirements ◽  
Sarbanes Oxley ◽  
Audit Firms ◽  
Significant Change

A very significant change to the accounting profession occurred in 2002 when the Sarbanes-Oxley Act of 2002 (SOX) was enacted. This legislation had a significant impact on corporations and their audit firms. The objective was to improve corporate governance and its quality of financial reporting to improve investor confidence. This paper provides instructors with a background on SOX and suggests readings and activities that reflect the requirements of SOX as it relates to the AIS environment and the analysis of internal controls. These activities can strengthen students' understandings of how corporations respond to the various reporting requirements of this Act.

An Empirical Investigation of IPO Underpricing and the Change to the LLP Organization of Audit Firms

2004 ◽  
Vol 23 (1) ◽  
pp. 53-67 ◽  
Author(s):  
Steven R. Muzatko ◽  
Karla M. Johnstone ◽  
Brian W. Mayhew ◽  
Larry E. Rittenberg
Keyword(s):  
Initial Public Offering ◽  
Audit Quality ◽  
Limited Liability ◽  
Litigation Risk ◽  
Ipo Underpricing ◽  
Audit Firm ◽  
Legal Structure ◽  
Audit Firms ◽  
Public Offering

This paper examines the relationship between the 1994 change in audit firm legal structure from general partnerships to limited liability partnerships (LLPs) on underpricing in the initial public offering (IPO) market. The change in legal structure of audit firms reduces an audit firm's wealth at risk from litigation damages and reduces the incentives for intrafirm monitoring by partners within an audit firm. Prior research suggests that underpricing protects underwriters from litigation damages, and that the level of underpricing varies inversely with both the amount of implicit insurance provided by the audit firm and the quality of the audit services provided. We hypothesize the change in audit firm legal structure reduced the assets available from audit firms in IPO-related litigation and indirectly reduced audit quality by lowering intrafirm monitoring. As a result, underwriters have incentives as a joint and several defendant with the audit firms to increase IPO underpricing, particularly for high-litigation-risk IPOs, following audit firms' shifts to LLP status. Our findings are consistent with this hypothesis.

Audit Reviewers' Judgments in Multiple Client Audit Environments

2017 ◽  
Vol 29 (2) ◽  
pp. 1-9 ◽  
Author(s):  
Sudip Bhattacharjee ◽  
Mario J. Maletta ◽  
Kimberly K. Moreno
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Contrast Effects ◽  
Comparative Information ◽  
A Current

ABSTRACT This study replicates Bhattacharjee, Maletta, and Moreno (2007), who find that audit preparers are susceptible to contrast effects in a multi-client environment. We demonstrate that auditors in the role of reviewers are also susceptible to contrast effects from a prior client. Audit reviewers' assessments of internal audit quality of a current client were significantly affected by the quality of the internal audit group of a client they previously reviewed. Specifically, when auditors first reviewed a client with a weak internal audit group they assessed the subsequent moderate internal audit group as being of higher quality than when they first reviewed a prior client with a strong internal audit group or did not review a prior client. Reviewers' documentation of evidence was also influenced by comparative information from the prior client. These results corroborate the key findings of Bhattacharjee et al. (2007) and confirm audit reviewers' susceptibility to contrast effects.

scholarly journals Impact of Applying Governance Standards in Evaluating the Quality of Internal Audit in Yemeni Private Universities

2021 ◽  
Vol 13 (46) ◽  
pp. 81-103
Author(s):  
Ahmed Ali Qassem Mohssen
Keyword(s):  
Audit Quality ◽  
Private Universities ◽  
Relative Weight ◽  
Internal Audit ◽  
Slight Variation ◽  
Internal Auditing ◽  
Audit Process ◽  
Transparency And Disclosure ◽  
The Impact

The study aimed to measure the impact of applying governance standards in evaluating the quality of internal audit in Yemeni private universities. To achieve this, the researcher followed the descriptive and analytical approach and employed a questionnaire to collect data from a sample that included (68) participants. After conducting relative analysis, governance was at an average level of (64.9%). There was also a slight variation in the level of implementation, as the dimension of transparency and disclosure was the most frequent dimension, followed by accountability and independence. Further, there was a medium level of adherence to internal auditing standards at a relative weight (65%). The level of commitment to the audit dimensions was as follows: managing the internal audit activities (67%), communicating the results (66%), assessing the risk and control management (64%), and planning and implementing the audit process (62%). and The study also found that the combined governance standards (transparency and disclosure, accountability, independence) increase the quality of the internal audit in Yemeni private universities and the highest dimensions of governance standards affecting the quality of internal auditing are the dimension of independence (80.3%), accountability (71.7%), and disclosure and transparency (63.7%). In light of this, the study recommended adopting governance standards as an integrated approach to achieve quality performance in private Yemeni universities; spreading the culture of governance in private universities among their leaders and staff by holding training courses, seminars, and conferences in order to be accepted and absorbed. In addition, governance should be included in some related academic courses in the disciplines of administrative and accounting sciences. Keywords: governance standards, internal audit quality assessment, private Yemeni universities.

scholarly journals Audit Quality and Disclosures of Less-Experienced Participating Audit Firms in PCAOB Filings

2020 ◽  
Vol 14 (2) ◽  
pp. P1-P8
Author(s):  
Carol Callaway Dee ◽  
Ayalew Lulseged ◽  
Tianming Zhang
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Future Research ◽  
Subsequent Increase ◽  
Market Prices ◽  
Quarterly Earnings ◽  
Audit Firms ◽  
Reported Earnings ◽  
The Universe

SUMMARY In “Who Did the Audit? Audit Quality and Disclosures of Other Audit Participants in PCAOB Filings” (Dee, Lulseged, and Zhang 2015), we examine quality for issuer audits disclosed as involving less-experienced “participating auditors.” We find that market prices of these issuers reacted negatively at the time of disclosure, and investors' valuations of their post-disclosure quarterly earnings declined; investors have greater uncertainty in the numbers reported. In addition, the quality of the reported earnings is lower. However, we do not see a subsequent increase in audit fees, which suggests clients do not increase demands for higher quality to counteract the uncertainty in investors' perceptions of audit quality. Since our sample is limited to less-experienced participating auditors, the results are not readily generalizable to the universe of participating auditors. Future research using Form AP data can explore if our findings are generalizable to issuer audits involving the wider population of participating auditors.

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