scholarly journals Main directions of improving audit quality in auditing firms

2021 ◽  
Vol 11/3 (-) ◽  
pp. 17-19
Author(s):  
Iryna KHOROSHYLOVA
Keyword(s):  
Quality Control ◽  
Audit Quality ◽  
Decisive Role ◽  
Point Of View ◽  
Effective Management ◽  
Economic Activities ◽  
Commercial Activity ◽  
Audit Firm ◽  
Audit Market

The paper examines in detail the problems of audit market quality. The modern audit quality control system in Ukraine is analyzed, the main indicators characterizing the development trends of the audit services market are considered. When representatives of different segments of society use the services of independent audit firms to make effective management decisions, it is necessary to conduct high-quality audits. To achieve this goal, we have given and described the structure, given a description of its elements, identified ways to develop to improve the quality of auditing. The market for audit services has an extremely high level of competition. In such circumstances, each individual audit firm must maintain a sufficiently high degree of image among current and potential users of their services. This can be achieved only by maintaining the impeccable quality of audits and constant review of the personnel structure of the audit firm. The purpose of writing the paper is to analyze the problematic aspects of quality control of audit services, functional aspects of audit quality control from the point of view of the external user, and the internal organization of quality work of specialists. In the context of globalization of the economy, the growth of commercial activity, production of goods, works and services, the main competitive advantage is quality, including this is typical for auditing. The main product of audit services is documentary evidence of financial (accounting) statements. With regard to related and other services, the result of audit activities is the provision of advice and development of measures for effective management of financial and economic activities of the enterprise. The quality and effectiveness of the audit product cannot be assessed before or at the time of service, only after all audit procedures have been performed. Quality control of audit activities is a set of measures aimed at improving financial and economic activities and reducing the risks of audit organizations. The decisive role for clients in choosing an audit company is played by an impeccable business reputation, so only organizations that provide their services in a quality and honest manner can count on competitive advantages in the audit market and profitability of sales.

scholarly journals The relation of auditor tenure to audit quality: Empirical evidence from the German audit market

2013 ◽  
Vol 2 (1) ◽  
pp. 27-43 ◽  
Author(s):  
Patrick Krauß ◽  
Henning Zülch
Keyword(s):  
Audit Quality ◽  
The European Union ◽  
Short Term ◽  
Audit Firm ◽  
Audit Market ◽  
Auditor Tenure ◽  
Client Relationship ◽  
Mandatory Audit Firm Rotation

This study investigates whether and how the length of an auditor-client relationship affects audit quality. Using a sample of 1,071 firm observations of large listed companies for the sample period of 2005 to 2011, the study is one of the first to empirically analyze this auditing issue for the German audit market. The empirical results demonstrate that neither short term nor long term audit firm tenure seems to be a significant factor with regard to audit quality in Germany. In the wake of the ongoing discussion in the European Union regarding the optimal audit tenure length for the quality of the conducted statutory audits, our findings do not support the idea of a mandatory audit firm rotation rule.

scholarly journals Quality of Audit Services Rendered to Entities Engaged in Foreign Economic Activities

2017 ◽  
pp. 79-89 ◽  
Author(s):  
О. Е. Lubenchenko
Keyword(s):  
Quality Control ◽  
Control System ◽  
Internal Control ◽  
Professional Ethics ◽  
International Standards ◽  
Economic Activities ◽  
Audit Firm ◽  
International Standard ◽  
External Auditor

Ways to enhance the quality of audit in foreign economic activities are studied. It is stressed that foreign users of financing reporting tend to demand reliable and impartial data confirmed by an external auditor from domestic entities engaged in foreign economic activities. It is demonstrated that the quality of auditor services is assured at the level of a professional auditor and an audit firm, particularly through establishing quality control system based on the Code of Professional Ethics and the International Standards of Quality Control. A review of quality control components in the International Standard of Quality Control is made. It is demonstrated that the policy and the procedures for the assurance of independent internal control are based on ethical requirements to audit, which can be violated in the following circumstances: threat to own interest; threat of own assessment; threat to protection; threat to personal relations; threat of pressure.

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.

The Auditor as a Determining Factor on Derivative Financial Instrument Disclosures

2019 ◽  
pp. 70-93
Author(s):  
Kátia Lemos ◽  
Sara Serra ◽  
Amidel Barros
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
Accounting Standards ◽  
Financial Instruments ◽  
Financial Instrument ◽  
Audit Firm ◽  
Academic Literature ◽  
Number Of Factors ◽  
Determining Factor

Based on the premise that the quality of the audit is related to the quality of the financial reporting, the purpose of this chapter is to verify if the audit is a determining factor in derivative financial instruments disclosures. However, the academic literature has revealed that audit quality is influenced by a number of factors, such as gender, experience, and auditor's fees, as well as the type of audit firm (Big4 or not Big4). In order to achieve the proposed objective, a disclosure index was prepared, based on the requirements of the International Accounting Standards Board (IASB), applied to companies listed on Euronext Lisbon, excluding the sports corporations. The results revealed that the level of disclosure is influenced by the size of the audited company and by the auditor's gender, being greater in the larger companies and in the companies audited by a male auditor.

Quality Control and Testing of CIPP Liners

2014 ◽  
Vol 1044-1045 ◽  
pp. 1549-1552 ◽  
Author(s):  
Otakar Cigler ◽  
Karel Kubečka ◽  
Petr Waldstein
Keyword(s):  
Quality Control ◽  
Western Europe ◽  
High Efficiency ◽  
New Technologies ◽  
Environmentally Friendly ◽  
Point Of View ◽  
High Quality ◽  
Very High

The construction and rehabilitation of buildings and structures are intervention in the environment of people. Therefore, we are always looking for new technologies that are not only environmentally friendly but also acceptable from the point of view. Speed, flexibility, minimum limit for residents and transport, and also a high efficiency is the reason why more and more in recent years carried out the rehabilitation of sewerage using remediation sleeves. One of the systems of trenchless rehabilitation of sewerage systems used in Western Europe is a system company RELINEEUROPE Alphaliner Liner GmBH & co., the company's Technicians have developed one of the most important practices in the area of trenchless rehabilitation of sewerage systems. A large proportion of the development also has operators and owners of the pipeline. Technology offers very high quality of carried out restorations. This article describes the procedures for ensuring the quality of the used in Germany, which is a world leader in the development, production and use of this technology.

scholarly journals Kaizen a Tool for Continuous Quality Improvement in Indian Manufacturing Organization

2019 ◽  
Vol 4 (2) ◽  
pp. 452-459 ◽  
Author(s):  
Ravinder Kumar
Keyword(s):  
Quality Control ◽  
Point Of View ◽  
Automobile Manufacturing ◽  
Root Cause ◽  
Continuous Quality ◽  
Manufacturing Assembly ◽  
A New Technique ◽  
Manufacturing Organization ◽  
Case Organization

Kaizen is a practice of continuous improvements in manufacturing, assembly, quality and engineering. In this paper author have discussed the problems faced by a leading automobile manufacturing organization on quality of interior parts of the automobile like plastics and rubber. During study author used a new technique called “Global Customer Audit” which is basically a vehicle audit from final customer point of view for interior parts of automobiles. During this audit, author has observed various defects and by using different quality control tools like pareto charts, histograms, check sheets and arranged defects according to their intensity or magnitude of occurrence i.e. finding useful one from trivial many. In this paper, the author found the root cause of defects by using different quality control tools. Kaizen is done to remove these defects and continuously improve products and production processes. Kaizen helps in making manufacturing process leaner, simple and fitter. The main purpose of this paper is to discuss the concept of Kaizen, its application in case organization for solving problems raising big quality concerns on a day to day bases.

scholarly journals Percepção dos clientes quanto a qualidade em um restaurante a la carte: uma análise exploratória

2016 ◽  
Vol 11 (1) ◽  
pp. 8-16
Author(s):  
André Luís Policani Freitas ◽  
Marta Duarte De Barros
Keyword(s):  
Rio De Janeiro ◽  
Methodological Approach ◽  
Point Of View ◽  
Ambient Conditions ◽  
Economic Activities ◽  
Service Sectors ◽  
Self Service ◽  
Janeiro State ◽  
A La Carte

ResumoO turismo é uma das atividades econômicas mais promissoras atualmente e o sucesso dessa atividade depende de vários setores de serviços, dentre eles o de restaurantes. Diversos estudos têm sido desenvolvidos com o objetivo de avaliar a qualidade dos serviços em restaurantes, buscando identificar as necessidades, as expectativas e os atributos mais importantes do serviço oferecido segundo o ponto de vista dos clientes. Entretanto, geralmente estes estudos consideram dimensões e atributos diferenciados, com foco em estabelecimentos com características específicas, como por exemplo, restaurantes a La Carte e Self- Service. Visando contribuir para a análise deste problema, este artigo empregou uma abordagem metodológica baseada em modelos e estudos existentes para avaliar a qualidade em um restaurante à luz de dimensões e itens inerentes a este segmento, segundo a percepção dos clientes. O estudo foi realizado em um restaurante a La carte localizado em um município do estado do Rio de Janeiro, Brasil. O emprego do coeficiente Alfa de Cronbach revelou que todas as dimensões foram consideradas confiáveis. Os resultados revelaram que diversos itens críticos estão associados às condições do ambiente (servicescapes), além de itens relacionados a facilidades proporcionadas a portadores de necessidades especiais. Acredita-se que a abordagem utilizada seja aplicável à avaliação da qualidade em outros tipos de restaurantes. AbstractNowadays, tourism is one of the most promising economic activities and the success of this activity depends on the several service sectors, such as restaurants sector. Several studies have been developed with the aim to assess the quality of the service in restaurants, trying to identify the needs, the expectations and the most important attributes of the service concerning the customers’ point of view. However, in general these studies consider different dimensions and attributes, with focus in establishments with specific characteristics, such as, self-service and full-service restaurants. In order to contribute for the analysis of this problem, this article applied a methodological approach based on existing models and studies to assess the quality rendered by restaurants regarding dimensions and items inherent to this segment, according to the customers’ perception. The study was performed in a full-service restaurant, in a municipality of Rio de Janeiro state, Brazil. Cronbach’s Alpha analysis showed that all dimensions were reliable. Several critical items are related to ambient conditions (servicescapes) and to issues concerning disabled people. It is believed that the referred approach is applicable to assess the quality in other kinds of restaurants.

scholarly journals Kualitas Audit Didasarkan Pada Isu-Isu Keahlian Dan Profesionalisme Auditor

Manajerial ◽  
2017 ◽  
Vol 9 (2) ◽  
pp. 83
Author(s):  
Mohammad Ali Sartono
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Audit Process ◽  
Audit Firm ◽  
Number Of Factors ◽  
Regulatory Bodies ◽  
Personal Qualities ◽  
Potential Damage

<p align="justify">This research will examine the views from stakeholders on the quality of audits based on issues of expertise and professionalism of auditors, audits commercialization  and transparency the audit. This study focuses attention on the response from implementation of audits quality regulations according to the company’s audits, the audit committee and investors. The focus of this research is an analysis of research by identifying four major drivers of audit quality, namely: culture in an audit firm; skills and personal qualities of audit partners and staff; the effectiveness of the audit process; the reliability and usefulness of audit reporting. In this study also identifies a number of factors that affect the quality of audit beyond the control of the auditor, namely: the approach taken by management; the contribution made by the audit committee; role of shareholders and commentators; role as a driver of audit quality litigation; regulatory approaches; the pressure caused by the acceleration reports. The results showed that the regulatory bodies and professionals involved in the management and improvement of audit quality to make efforts to improve the tarnished image, increase its legitimacy and reputation as well as the dominance of responses raised concerns about potential damage to the profession.</p>

scholarly journals Impact of Audit Firm Rotation on Audit Quality: Evidence from Bhutan

2019 ◽  
Vol 8 (2S3) ◽  
pp. 1410-1417
Keyword(s):  
Audit Quality ◽  
Research Study ◽  
Indirect Evidence ◽  
Secondary Data ◽  
Listed Companies ◽  
Positive Relation ◽  
Public Companies ◽  
Audit Firm ◽  
Quality Evidence

This research study examines the effects of audit firm rotation on audit quality for non- financial public listed companies in Bhutan. Currently, Bhutan has only 21 companies listed on the Royal Securities Exchange of Bhutan Limited (RSEBL). Secondary data obtained for the period of 10 years, between 2009 to 2018, were analyzed using regression analysis. Abnormal Working Capitals Accruals (AWCA) has been used as proxy for audit quality. The study concludes that audit firm rotation has an insignificant but positive relation with AWCA. Thus, in Bhutan audit firm rotation does not affect audit quality for non-financial public companies, which are in tune with prior studies. Further, it was observed that there is an insignificant relation between AWCA and all control variables with the exception of growth. Growth has a decreasing trend at the rate of -0.13 percent while the trend analysis of AWCA shows that audit quality of non-financial public listed companies has been increasing at the rate of 21.01 percent which is an indirect evidence of low audit quality

scholarly journals Agricultural machine parts quality control by dynamic non-destructive methods

2018 ◽  
Vol 226 ◽  
pp. 04034 ◽  
Author(s):  
Alexey N. Beskopylny ◽  
Viktor B. Rykov ◽  
Elena M. Zubrilina ◽  
Andrey D. Chistyakov
Keyword(s):  
Quality Control ◽  
Wear Resistance ◽  
Manufacturing Process ◽  
Mechanical Characteristics ◽  
Point Of View ◽  
Agricultural Machinery ◽  
Machine Parts ◽  
Non Destructive ◽  
Destructive Methods

The problem of quality control of agricultural machinery parts by means of dynamic non-destructive methods of impact indentation of conical shape indenters is considered. Quality of the crucial parts is considered from the point of view of a set of mechanical characteristics that determine the strength, hardness, wear resistance and deformability. These characteristics must be known and be able to control on all the details promptly and accurately both in the manufacturing process and in operation. The mechanical characteristics of metals are stochastic in nature. For this purpose, an impact indentation device was developed, and the method based on probabilistic laws of dispersion of mechanical characteristics is obtained.

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