scholarly journals The Demand for External Audit Quality: The Contribution of Agency Theory in the Context of Cameroon

2022 ◽  
Vol 11 (1) ◽  
pp. 13
Author(s):  
Michael Forzeh Fossung ◽  
Samuel Tanjeh Mukah ◽  
Kueda Wamba Berthelo ◽  
Motika Eubert Nsai

This study examines the effect of agency theory on the demand for external audit quality in Cameroon. Specifically, it looks at the impact of shareholder/manager agency cost, shareholders/creditors agency cost, and majority/minority shareholders agency cost on external audit quality demand in Cameroon. The focus is on a sample of 171 companies drawn from the regions of Littoral, Centre and North-West using questionnaires. We assess the explanatory power of agency theory on the demand for a better quality of audit in the Cameroonian context by modelling external audit quality as a function of agency costs. The logistic regression analysis allows us to study the nature of any possible interaction. The analysis shows that while an increase in shareholder/creditor agency cost and an increase in shareholder/manager agency cost negatively affect the demand for audit quality, the majority/minority agency cost and the size of the audited client positively and significantly affect the demand for audit quality.

2015 ◽  
Vol 7 (2) ◽  
pp. 255
Author(s):  
Mohammad Abdallah Almomani

<p>The study aims at investigating the impact of external audit quality features on enhancing the quality of accounting profits of the listed manufacturing firms at Amman Stock Exchange (ASE), where continuity of profit has been used as Proxy variable to express the quality of earnings. Indicators of quality of audit, audit office size, auditors' fees, period of customer's retention, type of auditor's opinion, and the specialization in client's industry, were used to measure audit quality. A sample of 45 firms had been selected, and data covering the period 2009-2013 had been collected from these firms, where 225 observations were used in the analysis. The study finds that the earnings of listed manufacturing firms at Amman Stock Exchange are with good quality, and that there is a linear relationship between external audit quality and the quality of reported earnings. Auditors' fees have most important significant effect on earnings quality, followed by auditors' opinion, where others factors has no significant effect on earnings quality. Based on these findings, the study raises several questions about the reliability of audit quality properties by stakeholders in firms, especially investors, when they check the quality of earnings, whenever they need to take a decision. The study recommends further researches regarding the issue by using other metrics to measure earnings quality, and through the addition of other properties to the quality of the audit, such as linked audit offices with auditing global offices, degree of qualification employees, and the opened lawsuits against audit office.</p>


2015 ◽  
Vol 12 (3) ◽  
pp. 146-154 ◽  
Author(s):  
Kais Lassoued ◽  
Ibtissem Bacha

In a Tunisian context, the purpose of this research is to study the aspects related to the quality of external audit, relating to the opportunistic management of earnings. Indeed, we are interested in the aspect of handling the earnings as a means for the manager to achieve its objectives by publishing a result different from that which is achieved. Thus, the quality of external audit, as an essential element of the system of government of the companies, may be able to limit the process of accounting manipulation, and therefore to protect the interests of investors and creditors. Given these factors, there is a key question: To what extent can the quality of the external audit influence the opportunistic management of earnings in Tunisian businesses? In this research, our goal is to empirically test a sample of Tunisian companies listed on the stock market, the impact of audit quality on the opportunistic practice of earnings


2018 ◽  
Author(s):  
C. Coy ◽  
A.V. Shuravilin ◽  
O.A. Zakharova

Приведены результаты исследований по изучению влияния промышленной технологии возделывания картофеля на развитие, урожайность и качество продукции. Выявлена положительная реакция растений на подкормку K2SO4 в период посадки. Корреляционно-регрессионный анализ урожайности и качества клубней выявил высокую степень достоверности результатов опыта. Содержание нитратов и тяжелых металлов в клубнях было ниже допустимых величин.The results of studies on the impact of industrial technology of potato cultivation on growth, yield and quality of products. There was a positive response of plants to fertilizer K2SO4 in the period of planting. Correlation and regression analysis of yield and quality of tubers revealed a high degree of reliability of the results of experience. The contents of nitrates and heavy metals in tubers was below the permissible values.


2018 ◽  
Vol 3 (2) ◽  
pp. 161
Author(s):  
Satria Tri Nanda

<p><em>This research aims to identify the factors influencing the audit quality of auditors at Inspektorat Provinsi Riau. The population in this research were auditor, examiner, assistant examiner, and P2UPD (Pengawas Penyelenggara Urusan Pemerintah di Daerah) in charge at the Inspectorate in Riau Province and all Inspectorates in Districts and Cities in Riau Province. A total of 290 set of questionnaire were sent and a number of 184 of questionnaires were processed. Using regression analysis conducted by SPSS, the hypotheses testing analysis results show that experience, responsiveness, professional care, executive involvement</em><em>t, planning</em><em> and auditability have significant and positive effect on audit quality. These results indicate that the higher the levels of experience, responsiveness, professional care, executive involvement and auditability of Inspectorate officials, the better the quality of audit performed by the Inspectorate Officials of Riau Province.</em></p>


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zukaa Mardnly ◽  
Zinab Badran ◽  
Sulaiman Mouselli

Purpose The purpose of this study is to examine the individual and combined effect of managerial ownership and external audit quality, as two control mechanisms, on earnings management. Design/methodology/approach This study applies ordinary least squares estimates on fixed-time effects panel regression model to test the impact of the investigated variables on earnings management for the whole population of banks and insurance companies listed at Damascus Securities Exchange (DSE) during the period from 2011 to 2018. Findings The empirical evidence suggests a negative non-linear relationship between managerial ownership (as proxied by board of directors’ ownership) on earnings management. However, neither audit quality nor the simultaneous effect of the managerial ownership and audit quality (Big 4) affects earnings management. Research limitations/implications DSE is dominated by the financial sector and the number of observations is constrained by the recent establishment of DSE and the small number of firms listed at DSE. In addition, the non-availability of data on executive directors’ and foreign ownerships restrict our ability to uncover the impact of different dimensions of ownership structure on earnings management. Practical implications First, it stimulates investors to purchase stocks in financial firms that enjoy both high managerial ownership, as they seem enjoying higher earnings quality. Second, the findings encourage external auditors to consider the ownership structure when choosing their clients as the financial statements’ quality is affected by this structure. Third, researchers may need to consider the role of managerial ownership when analyzing the determinants of earnings management. Originality/value It fills the gap in the literature, as it investigates the impact of both managerial ownership and audit quality on earnings management in a special conflict context and in an unexplored emerging market of DSE. It suggests that managerial ownership exerts a significant role in controlling earnings management practices when loose regulatory environment combines conflict conditions. However, external audit quality fails to counter earnings management practices when conditions are fierce.


2019 ◽  
pp. 98-124
Author(s):  
Randi Swandaru

The purpose of this study is to examine the impact and the electronic service quality of the national zakat management information system (SIMBA) on the national zakat collection. This paper uses a multiple regression analysis in its explorative attempt to illustrate the impact of SIMBA implementation on the national zakat collection. It shows that SIMBA is positive and significantly impact the national zakat collection as well as the human development index that is used as a proxy for the human resource management quality of zakat institutions in the respective city. Nonetheless, the population is negative and significant to the zakat collection as endemic poverty and reluctance to pay zakat are indicated as the reasons. Moreover, this study has succeeded in adapting and conducting e-service quality survey to zakat information system realm. All the tests prove that the instrument in this study has a high degree of reliability and validity. The results show that some of the demographic factors significantly impact the perceived performance of SIMBA. Multiple regression analysis that is conducted in this study shows that e-service quality dimension is positive and significant towards SIMBA’ overall quality, perceived value, and loyalty intention. This study contributes to the zakat management system literature, especially in the impact of the national zakat information system, which is pivotal in enhancing zakat collection and poverty alleviation program funded by zakat.


2020 ◽  
Vol 2 (4) ◽  
pp. 3737-3754
Author(s):  
Witta Widiya ◽  
Efrizal Syofyan

The purpose of this study was to analyze the effect of competency, independence, and auditor ethics on audit quality in Inspectorate Office. Type of this research is a quantitative researh. The population in this study were auditors in inspectorate office West Sumatera province with 35 samples taken. The technique of sample collection is total sampling method. The sources of the data of this research is the primary data. The technique of the data collection is questionnaires. The data were analyzed using multiple regression analysis using SPSS version 25. Data analysis methods used in this study are multiple linier regression analysis, with audit quality as the dependent variabel, competency, independence and auditor ethics as the independent variabel. This result of the reseacrh support the third hypotheses, where the research shows that auditor ethics has an effect on audit quality of examiners at the inspectorate West Sumatera province. The results also show that competency and independence have no effect on audit quality of examiners at the inspecorate West Sumatera provinsi.


2021 ◽  
Vol 3 (1) ◽  
pp. 12-21
Author(s):  
Imtiaz Ahmed Khan ◽  
Altaf Hussain Abro ◽  
Farooque Ahmed Leghari

The paper discusses the minority shareholders’ protection under the quantumof agency cost in corporate governance in Pakistan. The agency theory statesthat in most of the cases, the controlling shareholders and the topmanagement are normally involved in expropriating the funds of the company.This phenomenon increases the agency cost. The agency cost is directlyproportional to the cost of functioning of the company. In other words, theagency cost is inversely proportional to the profit of the company. Accordingto the agency theory, if the agency cost is decreased, the profit for investorincreases. The Pakistani corporate sector is dominated by the businessfamilies, the state and an opportunity to get the private benefits at the cost ofother stakeholders. There are the different mechanisms as discussed andapplied around the world to minimize the agency cost so as to make companyfinancially strong and better profit for the investors. In Pakistan, the agencycost is very high. Hence, there is a need to revamp the corporate governancemechanism to reduce the agency cost in order to provide a better protection tominority shareholders in a particular in the context of the global trend keepingin the view of the nature of corporate structure in Pakistan.


2021 ◽  
Vol 13 (46) ◽  
pp. 81-103
Author(s):  
Ahmed Ali Qassem Mohssen

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.


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