The Concept of Corporate Reporting and Audit Quality

2020 ◽  
pp. 251-271
Author(s):  
George Silviu Cordoș ◽  
Melinda Timea Fülöp ◽  
Nicolae Măgdaș
Keyword(s):  
Audit Quality ◽  
Financial Statements ◽  
Sociology Of Education ◽  
Financial Statement ◽  
Credibility Theory ◽  
Corporate Reporting ◽  
Education Theory ◽  
Controversial Topic

The responsibility of auditors is a controversial topic that has brought much debate amongst academics and experts alike in recent years. This chapter's aim is to set the framework in which audit reporting exists: part of the wider landscape of corporate reporting and the final fragment of the sphere of the financial statements audit quality. By using a general-to-specific deductive approach, the authors discuss the international and European perspectives on the process of financial statement audits, as well as the stakeholders or audit and audit reporting, in order to clearly define the regulatory space in which any changes in this field occur. The authors also discuss the theories that explain the process of audit reporting, with an emphasis on the lending credibility theory, the inspired confidence theory, and the sociology of education theory. The authors consider that these theories explain the improvements undertaken to improve the communicative value of the audit quality.

THE EFFECT OF FINANCIAL STABILITY, EXTERNAL PRESSURE, PERSONAL FINANCIAL NEED, FINANCIAL TARGETS, INEFFECTIVE MONITORING AND AUDIT QUALITY ON DETECTING FRAUD FINANCIAL STATEMENT IN PERSPECTIVE OF FRAUD TRIANGLE

2018 ◽  
Vol 23 (2) ◽  
pp. 191-199
Author(s):  
Sidik Nur Fajri
Keyword(s):  
Financial Stability ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Total Sample ◽  
External Pressure ◽  
Financial Statement ◽  
Fraud Triangle ◽  
Financial Statement Fraud ◽  
Financial Need

The purpose of this study was to determine whether financial stability, external pressure, personal financial need, financial targets, ineffective monitoring, and audit quality affect the financial statement fraud by collecting empirical evidence. The object of research is the companies from sector property and real estate which listing on the Indonesia Stock Exchange, with research period in 2010-2012. The samples in this study were selected based on purposive sampling method with a total sample of 14 companies. The analysis technique used in this research is multiple regression analysis using SPSS. These results indicate that the variable external pressure, personal financial need and audit quality effect on the financial statements fraud, meanwhile variables financial stability, financial targets, ineffective monitoring had no effect on the financial statements fraud. Variables financial stability, external pressure, personal financial need, financial targets, ineffective monitoring and audit quality simultaneously effect on the financial statements fraud. Keywords: Financial Statement Fraud, Fraud Triangle

scholarly journals Pengaruh Audit Tenure, Ukuran KAP, Ukuran Perusahaan Klien Terhadap Kualitas Audit Perusahaan di Bursa Efek Indonesia

2020 ◽  
Vol 4 (1) ◽  
pp. 117-126
Author(s):  
Fitri Andriani ◽  
Rindi Meilani ◽  
Chandra Evendi Pardede ◽  
Wenny Anggeresia Ginting
Keyword(s):  
Quantitative Research ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Positive Influence ◽  
Financial Statement ◽  
Company Size ◽  
Industrial Market ◽  
Logistic Analysis ◽  
Independent Audit

This quantitative research aimed to explain and describe the impacts of audit tenure, KAP size and company size in industrial market in Indonesia in 2016-2018. The population included 154 companies, from which samples were randomly selected based on these following criteria is Industrial market of Indonesia 2016-2018,  Incomplete financial statement 2016-2018, Unregistered names in industrial market 2016-2018. Companies conducted independent audit without explanation 2016-2018, and Financial statements were published between 2016-2018. There were 105 companies sampled in this research with 315 financial statements for 3 year-period. The data were analyzed descriptively and using logistic regression test. The results of the logistic analysis showed that Audit Tenure, KAP Size, and Company Size had a positive influence on the dependent variable of this research. Keywords : Audit Tenure, KAP Size, Company Size, Audit Quality, Manufacturing Company, Indonesia Stock Exchange  

Audit Quality Inputs and Financial Statement Conformity to Benford’s Law

2020 ◽  
pp. 0148558X2093046
Author(s):  
Thien Le ◽  
Gerald J. Lobo
Keyword(s):  
Cash Flow ◽  
Audit Quality ◽  
Financial Statements ◽  
Audit Fees ◽  
Financial Statement ◽  
Benford’S Law ◽  
Audit Report ◽  
Audit Firm ◽  
Income Statement ◽  
Benford's Law

We examine whether audit quality inputs are related to the conformity of financial statements to Benford’s law. We find that overall financial statement conformity increases with audit fees, nonaudit fees, and audit report lag, and decreases with audit firm tenure. We also find that these audit quality inputs are more strongly associated with income statement conformity than with cash flow statement conformity. Our findings document the role that auditing plays in enhancing the conformity of financial statements to Benford’s law.

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB Rulemaking Docket Matter No. 34: PCAOB Release No. 2011-003, Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements.

2011 ◽  
Vol 5 (2) ◽  
pp. C1-C14 ◽  
Author(s):  
Joseph F Brazel ◽  
Paul Caster ◽  
Shawn Davis ◽  
Steven M Glover ◽  
Diane J Janvrin ◽  
...  
Keyword(s):  
Audit Quality ◽  
Exposure Period ◽  
Financial Statements ◽  
Data Availability ◽  
Financial Statement ◽  
The Public ◽  
Additional Information ◽  
Public Company ◽  
Auditing Standards ◽  
Auditor Reporting

SUMMARY Recently, the Public Company Accounting Oversight Board (PCAOB or Board) issued a concept release to solicit public comment on the potential direction of a proposed standard-setting project on the content and form of reports on audited financial statements. The objective of the concept release was to discuss several alternatives for changing the auditor's reporting model that could increase its transparency and relevance to financial statement users, while not compromising audit quality. To that end, the alternatives included (1) a supplement to the auditor's report, in which the auditor would be required to provide additional information about the audit and the company's financial statements (an “Auditor's Discussion and Analysis”), (2) required and expanded use of emphasis paragraphs in the auditor's report, (3) auditor reporting on information outside the financial statements, and (4) clarification of certain language in the auditor's report. The PCAOB provided for a 102-day exposure period (from June 21 to September 30, 2011) for interested parties to examine and provide comments on the conceptual approaches to rulemaking that might complement the application of Section 105(c)(6). The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below to the PCAOB on the PCAOB Release No. 2011-003, Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements. Data Availability: Information about and access to the release is available at: http://pcaobus.org/Rules/Rulemaking/Docket034/Concept_Release.pdf

scholarly journals Pengaruh Manipulasi Laporan Keuangan dan Karakteristik Chief Financial Officer terhadap Ketepatwaktuan Pelaporan Keuangan dengan Kualitas Audit Sebagai Variabel Pemoderasi

2018 ◽  
Vol 5 (2) ◽  
pp. 117-136
Author(s):  
Alif Hidayatullah ◽  
Sulhani Sulhani
Keyword(s):  
Financial Reporting ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Educational Background ◽  
Financial Statement ◽  
Chief Financial Officer ◽  
Study Support ◽  
Score Model ◽  
The Relationship

This study was conducted with the aim of obtaining empirical evidence of the relationship between financial statement manipulation and CFO’s characteristics to the timeliness of financial reporting by using audit quality as a moderator. The data used in this study is 206 observations derived from the financial statements of companies listed in the Indonesia stock exchange for the period of 2012-2015. This research uses moderation regression method with panel data. The manipulation of financial statements in this study was measured using the Benneish (M-Score) model, the characteristics of CFOs were measured regarding three categories consisting of gender, tenure and educational background, and audit quality was measured using industrial proxies of audit specialization. The results of this study support the first hypothesis that the manipulation of financial statements negatively affects the timeliness of financial statements. Meanwhile CFO’s characteristic has no significant influence on the timeliness of financial reporting and audit quality cannot moderate the influence of financial statement manipulation and CFO’s characteristic, hence it does not support another hypothesis of this study.

scholarly journals PENGARUH KUALITAS AUDIT, LEVERAGE, DAN UKURAN PERUSAHAAN TERHADAP MANAJEMEN LABA

2019 ◽  
Vol 11 (1) ◽  
pp. 54-79
Author(s):  
Leni Susanti ◽  
Silvia Margareta
Keyword(s):  
Earnings Management ◽  
Sampling Method ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Statement ◽  
Insignificant Effect ◽  
Jones Model ◽  
Method Analysis

Earnings management is manager’s choice to manipulate the company’s financial statements to several object’s benefit. Earnings management can decrease the credibility of financial statement that be used as base of decision making. The aim of this reseach is to find empirical evidence on the effects of audit quality, leverage, and firm’s size on earnings management. This research was conducted on manufacture companies on the Indonesia Stock Exchange from 2013-2017 and the samples of this research are 102 companies. The sampling technique was using purposive sampling method. Analysis method in this reseacrh was using multiple liniar regression. The results of this research indicate that either using De Angelo Model or Modified Jones Model audit quality, leverage, and firm’s size have a significant effect on earnings management simultantly. And partially by using De Angelo Model audit quality has a negative insignificant effect, leverage has a negative significant effect, and firm’s size has a positive insignificant effect on earnings management. While using Modified Jones Model partially audit quality has a negative significant effect, leverage has a negative significant effect, and firm’s size has insignificant effect on earnings management.

scholarly journals ANALISIS FAKTOR YANG MEMPENGARUHI MANAJEMEN LABA DENGAN KUALITAS AUDIT SEBAGAI VARIABEL INTERVENING PADA PERUSAHAAN LQ45 PERIODE 2015-2017

2019 ◽  
Vol 10 (1) ◽  
pp. 14
Author(s):  
Erna Puspita ◽  
Dian Kusumaningtyas
Keyword(s):  
Earnings Management ◽  
Path Analysis ◽  
Quantitative Research ◽  
Management Practices ◽  
Audit Quality ◽  
Sampling Technique ◽  
Financial Statements ◽  
Financial Statement ◽  
Managerial Ownership ◽  
Managerial Skills

<em>This research is motivated by the importance of information about earnings needed by internal and external parties. So there are many factors that influence managers to manipulate company profit information. In this case the audit quality of the financial statements is an important factor because it is able to minimize the existence of corporate earnings management practices, so that the audit results on financial statements are reasonable. The purpose of this study was to determine whether earnings management is influenced by ownership mechanism variables and managerial skills, the level of financial statement disclosure, and also the intermediary variable in the form of audit quality. This research is a quantitative research with expost facto research technique. The population in this study is 34 companies. The sampling technique was purposive sampling. Data analysis techniques using Path Analysis. Research Results Testing the first model hypothesis, it can be concluded that managerial ownership, managerial skills, level of financial statement disclosure, and audit quality have a significant effect on earnings management. Testing the second model hypothesis, it can be concluded that managerial ownership, managerial skills, and the level of financial statement disclosure have a significant effect on audit quality. Based on the path analysis diagram, it can be concluded that the indirect effect of managerial ownership variables, managerial skills, and the level of financial statement disclosure through audit quality variables is greater than the direct influence.</em>

scholarly journals ANALISIS PERENCANAAN AUDIT LAPORAN KEUANGAN PADA KANTOR AKUNTAN PUBLIK (KAP) KURNIAWAN, KUSMADI, DAN MATHEUS

2020 ◽  
Vol 8 (3) ◽  
pp. 237-244
Author(s):  
Hafifah Nasution ◽  
Lysa Nur Awalianti
Keyword(s):  
Audit Quality ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Qualitative Approach ◽  
Financial Statement ◽  
Primary Data ◽  
Audit Planning ◽  
Research Show ◽  
Public Accountant

This research was conducted in KAP Kurniawan, Kusmadi and Matheus, which aims to analyse the suitability of audit planning of financial statement by KAP Kurniawan, Kusmadi and Matheus with the audit planning of financial statement based on the Professional Standard of Public Accountant (SPAP). Research method that used is descriptive analysis with a qualitative approach and the type of data used is primary data and secondary data. Primary data is collected through interviews, while secondary data by collecting audit planning of financial statements documents in KAP Kurniawan, Kusmadi and Matheus. The results of this research show that the audit planning of financial statement by KAP Kurniawan, Kusmadi and Matheus in accordance with the audit planning of financial statement based on SPAP issued by Institute of Public Accountants of Indonesia (IAPI). The advice given to KAP Kurniawan, Kusmadi and Matheus is always implement audit plan in accordance with SPAP because a good audit planning will improve audit quality.

scholarly journals A Comprehensive Analysis of Findings from Single Audits: The Implications of Auditee Type and Auditor Expertise

2018 ◽  
Vol 7 (1) ◽  
pp. 55-77 ◽  
Author(s):  
Tammy R. Waymire ◽  
Thomas Z. Webb ◽  
Timothy D. West
Keyword(s):  
Local Government ◽  
Internal Control ◽  
Audit Quality ◽  
Financial Statements ◽  
Comprehensive Analysis ◽  
Financial Statement ◽  
Federal Grant ◽  
Program Compliance ◽  
Single Audit ◽  
Internal Control Deficiencies

ABSTRACT Single audits provide critical accountability for federal grant awards. Our study comprehensively examines differences in single audit findings (related to both financial statements and major program compliance) by auditee type (state/local government and nonprofit) and across varying levels of auditor expertise. In a sample of 24,144 audit engagements over the period 2004 through 2010, nonprofit auditees report fewer internal control deficiencies than government auditees, but more instances of questioned costs related to major programs. Audits conducted by firms with lower single audit expertise are associated with fewer financial statement and major program compliance findings. The results by auditee type and auditor expertise are important to discussions of single audit quality.

Does Availability of Audit Partners Affect Audit Quality? Evidence From China

2019 ◽  
pp. 0148558X1989386
Author(s):  
Agnes W. Y. Lo ◽  
Kenny Z. Lin ◽  
Raymond M. K. Wong
Keyword(s):  
Audit Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Certified Public Accountant ◽  
Policy Debate ◽  
Cpa Firms ◽  
Lower Likelihood ◽  
Recent Policy ◽  
Public Accountant

In this study, we examine whether Chinese Certified Public Accountant (CPA) firms with more partners available to perform audit engagements deliver higher quality services. Based on a sample of 2,990 company-year observations over the period of 2002 to 2015, we find that CPA firms with smaller staff–partner ratios are associated with a lower likelihood of restatements of their clients’ financial statements. Interestingly, we find that this association is less evident when engagement partners have excessive workloads, suggesting the need to balance workloads across partners within a firm. Overall, our results highlight the importance of considering partner availability and its impacts on audit quality, which echo regulators’ growing concern about the inadequate mix of audit experience, expertise, and supervision within CPA firms. Our study is timely and the results are informative to the recent policy debate. From a public policy perspective, our results suggest that CPA firms should be required to disclose information about the deployment of audit partners to help financial statement users make inferences about the quality of their work.

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