scholarly journals Development of Instruments for Audit Quality Assessment and Control

2019 ◽  
Vol 6 (5) ◽  
pp. 58-68
Author(s):  
D. S. Fomina
Keyword(s):  
Control System ◽  
Quality Assessment ◽  
Audit Quality ◽  
Internal Audit ◽  
External Control ◽  
State Control ◽  
Audit Market ◽  
Audit Firms ◽  
Wide Range ◽  
And Control

The role of audit firms as independent institutions certifying the reliability of reporting information disclosed by businesses to the wide range of interested parties is currently increasing. At the same time, the audit market is going through a period of crisis because of the decline in prestige of the profession, low profitability, falling user confidence to the results of audit and the lack of national auditing legislation. On the other hand during crisis times the significance of the control over the quality of auditing including the state control goes up. The article systematizes the results of the research on audit quality assessment and control. It also describes methodological approaches to building an effective internal audit control system, provides practical recommendations on how to improve the reporting data of audit firms, identifies conceptual elements of the quality control system and considers the issues of improving the effectiveness of external control. Implementation of the proposals will improve the competitiveness of audit firms in the crisis industry and allow the transition from formal audit control to substantive control.

scholarly journals TRANSFORMATION OF THE EXTERNAL AUDIT QUALITY CONTROL SYSTEM

2020 ◽  
pp. 65-75
Author(s):  
В.Т. Чая ◽  
Н.В. Кобозева
Keyword(s):  
Quality Control ◽  
Control System ◽  
Internal Control ◽  
Audit Quality ◽  
International Experience ◽  
External Control ◽  
Formal Approach ◽  
Wide Range ◽  
Deductive Method

Контроль качества работы аудиторов способствует повышению качества финансовой информации, в связи с чем рост его результативности имеет особое значение не только на уровне отрасли, но и общества и государства в целом. Международный опыт организации контроля в аудите основан на дедуктивном методе, акцентирующем на тестинге системы внутреннего контроля проверяемого объекта. Российская практика внешнего контроля ориентирована на индуктивный подход, предполагающий широкий круг отобранных для проверки заданий, что обуславливает ресурсозатратность и формализацию подхода. Трансформация парадигмы концепции контроля с учетом международного опыта будет способствовать обеспечению перехода от формального подхода к проверкам по существу, а также повышению его результативности и эффективности. Quality control of the work of auditors contributes to improving the quality of financial information, and therefore the growth of its effectiveness is of particular importance not only at the level of the industry, but also for society and the state as a whole. The international experience of the organization of control in audit is based on the deductive method, which focuses on testing the internal control system of the audited object. The Russian practice of external control is focused on the inductive approach, which assumes a wide range of tasks that are selected for verification, which causes resource consumption and formalization of the approach. The transformation of the paradigm of the concept of control, taking into account international experience, will help to ensure the transition from a formal approach to substantive checks and increase its effectiveness.

Design of a Reconfigurable Dynamic Testbed for Co-Design Method Validation

2017 ◽  
Author(s):  
Anand P. Deshmukh ◽  
Danny J. Lohan ◽  
James T. Allison
Keyword(s):  
Control System ◽  
Design Method ◽  
Design Methods ◽  
System Architectures ◽  
Car Suspension ◽  
Kinematic Behavior ◽  
Wide Range ◽  
Physical Testing ◽  
Dynamic Testbed ◽  
And Control

Physical testing as a technique for validation of engineering design methods can be a valuable source of insights not available through simulation alone. Physical testing also helps to ensure that design methods are suitable for design problems with a practical level of detail, and can reveal issues related to interactions not captured by physics-based computer models. Construction of physical and testing of physical prototypes, however, is costly and time consuming so it is not often used when investigating new design methods for complex systems. This gap is addressed through an innovative testbed presented here that can be reconfigured to achieve a range of different prototype design properties, including kinematic behavior and different control system architectures. Thus, a single testbed can be used for validation of numerous design geometries and control system architectures. The testbed presented here is a mechanically and electronically reconfigurable quarter-car suspension testbed with nonlinear elements that is capable of testing a wide range of both optimal and sub-optimal design prototypes using a single piece of equipment. Kinematic suspension properties can be changed in an automated way to reflect different suspension linkage designs, spring and damper properties can be adjusted in real time, and control system design can be changed easily through streamlined software modifications. While the specific case study is focused on development of a reconfigurable system for validation of co-design methods, the concept extends to physical validation using reconfigurable systems for other classes of design methods.

Does Audit Fee Homogeneity Exist? Premiums and Discounts Attributable to Individual Partners

2011 ◽  
Vol 30 (4) ◽  
pp. 249-272 ◽  
Author(s):  
Stuart D. Taylor
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Data Availability ◽  
Audit Market ◽  
Homogeneity Assumption ◽  
Audit Firms ◽  
Audit Fee ◽  
Using Data ◽  
The Individual ◽  
Made In

SUMMARY This paper investigates the implied assumption, made in many audit fee determination studies, that, within a given audit firm, all partners produce a statistically identical level of audit quality and earn a statistically identical level of audit fees. This is referred to as the “homogeneity assumption.” However, this is contradicted by the individual auditor behavioral literature, which shows that different individual auditor characteristics can have an impact on audit quality. Given the fact that audit partners differ in their quality, this paper hypothesizes that different audit partners will be able to earn differing levels of fees. This hypothesis is tested by estimating an audit fee model using data from 822 Australian publicly listed companies for the year 2005. Australia is an ideal audit market for this research, as the disclosure of the name of the audit engagement partner in the audit report is mandatory. The empirical results indicate that individual audit partners earn individual audit fee premiums (or discounts) that are not explainable by the audit firms of which they are members. Data Availability: All data have been extracted from publicly available sources.

scholarly journals Should the 4 big replace the big 4? An examination of audit quality using internal audit

2012 ◽  
Vol 9 (2) ◽  
pp. 41-55
Author(s):  
Harjinder Singh ◽  
Rick Newby ◽  
Inderpal Singh
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Important Research ◽  
Dummy Variable ◽  
Big 4 ◽  
Audit Firms ◽  
Dichotomous Variable ◽  
Audit Fee

Prior research has linked audit quality with large audit firms. Consequently, a dichotomous variable, Big N/non-Big N has traditionally proxied for audit quality. Applying a different measure of audit quality than audit fee, this study investigates whether a single dummy variable for Big N is an appropriate proxy for audit quality in explaining differences in the existence of clients’ internal audit (IA) function. Results indicate that the existence of clients’ IA function is not consistent among Big 4 firms. This has important research implications for the universal use of a Big N dummy variable as a measure for audit quality.

scholarly journals Auditor gender, experience and reporting in nonprofit organizations

2017 ◽  
Vol 32 (6) ◽  
pp. 550-577 ◽  
Author(s):  
Anne-Mie Reheul ◽  
Tom Van Caneghem ◽  
Machteld Van den Bogaerd ◽  
Sandra Verbruggen
Keyword(s):  
Nonprofit Organizations ◽  
Audit Quality ◽  
Data Set ◽  
Content Type ◽  
Non Profit ◽  
The Public ◽  
Audit Market ◽  
Audit Firms ◽  
Audit Opinions ◽  
Auditor Characteristics

Purpose The purpose of this study is to investigate the association between individual auditor characteristics (gender, experience and sector expertise) and audit opinions in Belgian non-profit organizations (NPOs). The purpose is to identify auditor characteristics that imply a better assurance of financial statement (FS) quality. FS quality is essential to enhance financial accountability toward the resource providers of NPOs and the public at large. Design/methodology/approach Multinomial regressions are conducted on a data set of Belgian NPOs. Propensity score matching is used to control for potential self-selection bias. Findings Auditors with sector expertise are found to provide better assurance than their non-sector-expert counterparts. The former are more likely to disclose FS errors and uncertainties in their audit report. Originality/value This study contributes to the auditing literature by focusing on an understudied audit market, namely, the non-profit audit market. The number of non-profit studies that investigate determinant of audit quality is very scarce, and none of them explores the determinants of audit opinions. Moreover, these studies ignore individual auditor characteristics as determinants of audit quality. The findings of this study provide meaningful information for several actors in the NP field and for audit firms.

scholarly journals Computer Auditing: The way forward

2019 ◽  
Vol 1 (1) ◽  
pp. 001-003
Author(s):  
Tawei Wang Tawei Wang ◽  
Shi-Ming Huang Tawei Wang
Keyword(s):  
Information Technology ◽  
Financial Reporting ◽  
Internal Audit ◽  
Audit Process ◽  
Business Decisions ◽  
Internal Auditors ◽  
Audit Firms ◽  
Wide Range ◽  
Textual Data ◽  
Efficiency And Effectiveness

<p>We broadly define computer auditing as any audit practices that may rely on information technology (IT). Such skill has long been argued and considered to be an important capability for both external and internal auditors for more than two decades though its applications were relatively limited in the past. In recent years, with the advance of information technology, what auditors can achieve with IT has dramatically changed. For example, auditors are now be able to perform both descriptive and predictive analyses, process both numeric and textual data, and apply such capability from assertion testing to compliance and risk assessments. This evolving capability has also brought the new term &ldquo;audit analytics&rdquo; to practices. Specifically, analytics focuses more on the business decisions and processes while the traditional computer auditing is mainly about audit. This improved capability and expanded scope have attracted a lot of attention with a wide range of applications. For instance, the PCAOB&rsquo;s new strategic plan (PCAOB 2018 ) has highlighted that &ldquo;[i]nnovations in data analytics and technology have great potential to improve the efficiency and effectiveness of financial reporting and the audit process&rdquo; (p.9). Audit firms and internal audit functions have also engaged in the development and the use of analytics in external and internal audit processes (e.g., Forbes 2018; Deloitte 2016; KPMG 2016), which have potentially changed the role of internal auditors to internal consultants.</p> <p>&nbsp;</p>

scholarly journals METHODOLOGICAL SUPPORT FOR COMMUNICATION NETWORKS AND SERVICES QUALITY MANAGEMENT

2021 ◽  
Vol 23 (3) ◽  
pp. 81-90
Author(s):  
M.A. Davliatova ◽  
Keyword(s):  
Control System ◽  
Quality Management ◽  
Quality Assessment ◽  
Communication Networks ◽  
Communication Systems ◽  
Services Quality ◽  
Telecommunication System ◽  
Communication Services ◽  
And Control

The paper is devoted to the analysis of the known methodological support for quality assessment and control of communication services. The known approaches to quality assessment of communication services have mainly been developed in relation to the situation, characterized by the fact that each management system actually relied on its own, dedicated communication system. In this case, most of the results apply to analogue communication systems with predominantly assigned channels (paths) to certain information directions, which together reflect the structure of the control system. The synthesis of communication systems is based on the requirements of the respective control system. As a result of the analysis, the limitations of the known methodological support in the field of assessment and control of the communication services quality were revealed. In order to eliminate the identified limitations of the known methodological support in the field of assessment and control of the quality of communication services, the author has developed: analytical and simulation model of an information and telecommunication system with the required level of reliability of its elements; method for determining the parameters of the development directions of telecom operators' networks; method for assessing the probabilistic-temporal indicators of the technical resource of the fragments of the information and telecommunication system, generating communication services of a certain type.

Sign in / Sign up

Export Citation Format

Share Document