A Simple Model of Corporate Fiduciary Duties: With an Application to Corporate Compliance

This article models the duty of care as a response to moral hazard where the principal seeks to induce effort that is costly to the agent and unobservable by the principal. The duty of loyalty, by contrast, is modeled as a response to adverse selection where the principal seeks truthful disclosure of private information held by the agent. This model of corporate loyalty differs importantly with standard adverse selection models, however, in that the principal cannot use available contracting variables as a screening mechanism to ensure honest disclosure and must rely upon the use of an external third-party audit technology, such as the court system. This article extends the model to the issue of corporate compliance and argues that the optimal judicial approach would define the duty to monitor as a subset of due care – and not loyalty – but hold that the usual legal protections provided for due care violations no longer apply.

Analysis on the Construction Pathway of Information Audit of Accounting Firms in Big Data Era

At present, with the deepening of the economic and social digital transformation and the use and popularization of big data, accounting firms are once again facing opportunities and challenges for upgrading. How to make full use of modern audit technology and adapt to the background of big data era is an urgent problem to be solved by domestic accounting firms. This paper first analyzes the problems existing in practice, and then puts forward the implementation path of information audit construction in the era of big data, so as to improve the information audit level of Chinese accounting firms and provide some reference for the research of relevant personnel.

Research on Audit Data Analysis under the Background of Big Data

With the arrival of the era of big data, the audit thinking mode has been promoted to change. Under the influence of big data, audit will become an activity of continuous behavior. Through cloud data, the staff can control the operation status and risk assessment of the whole enterprise, timely analyze, control and respond to risks, and protect the enterprise to reduce risks. With the advent of the era of big data, audit data analysis is becoming more and more important. At the same time, a large amount of data analysis also brings challenges to auditors. Methods to deal and solve the challenges has become an urgent problem to be solved at present. This paper mainly studies the challenges and countermeasures brought by the changes of audit approaches and methods to audit data analysis under the background of big data, so as to continuously innovate and practice the improvement of audit technology and promote the healthy and rapid development of social economy.

Theoretical Aspects of Night Audit at Hotel Enterprises

Introduction. Hotels are luggage and service enterprises. To make the right management decisions and increase profits hospitality enterprises must have accurate, timely, and truthful information on the issues of commercial activities. The most effective way to obtain this information is possible when conducting a regular external audit. It is the quality of the current audit that determines the financial position of the state enterprise. Night audit is one of the areas of internal audit of hotel enterprises, aimed at ensuring the safety of assets, verifying the reliability of accounting information, improving the efficiency of operations, and their compliance with enterprise policy. Night audit is of particular importance for managers and owners of hotel enterprises, as it helps to assess the implementation of the objectives of production and economic activity. Purpose. The purpose of the article is to study the theoretical aspects of night auditing in the hotel industry. Methodology of research. The achievement of this goal was carried out with the help of general scientific and applied research methods, in particular: methods of scientific abstraction - to substantiate the essence and significance of night audit as an aspect of internal control in the hotel industry; methods of logical generalization - to determine the main tasks of the night audit; methods of systematization, detailing and grouping - to consider the methods and basic functions of night auditing. Results. Analyzing and systematizing the scientific works of many scientists, the essence, purpose, and tasks of night audit were determined, the technology and methods of night audit of the hotel were considered, the main competencies of night auditor in the process of control operations were clarified. Conclusions. The practical significance of the obtained results is to determine the need to introduce the practice of night audit as a full-fledged type of control. The scientific novelty of the research results is the deepening of the theoretical foundations of night audit technology to improve the accounting and control support of the management system of the hotel industry. Further research will focus on the detailed implementation of night audit automation in hotel activity.

The implications, applications, and benefits of emerging technologies in audit

Technological innovation has given rise to the possibility of implementing emerging technologies to potentially improve business operations. Audit firms, as businesses, could utilise emerging technologies to address several challenges the audit profession currently faces. This paper performs a qualitative analysis of prior literature concerning the potential implications and applications of the use of emerging technology in the audit process and the benefits audit firms can realise from using emerging technology. Using emerging audit technology in the audit process could automate many repetitive, mundane tasks and assist with performing analytical reviews on large datasets, thereby improving audit quality and efficiency. This paper adds value firstly by highlighting the potential for technological innovation within the audit process and how this innovation could supplement the traditional audit processes and procedures audit firms currently use and secondly, by incorporating emerging technologies into the audit process and highlighting key benefits that can be derived by shifting away from manual processes.

Socio-Political Tension in the Russian Society: Case Study of Youths of the Republic of Tatarstan

This article explores the level of socio-political tension in Tatarstan. The object of the study is the youth social group as a bearer of social activism. The investigation methodology is based on conflict audit technology. Technology involves the use of markers to assess sociopolitical tensions. The main evaluation marker identified a request for social justice. The distinctive characteristics of youth groups are the discretion of group affiliation, the lack of formed ideological attitudes and the latent nature of the formation of the general ideology of various youth communities. The political activism of the Russian youth does not have a pronounced ideological character and is not a decisive factor in the formation of socio-political tensions. It is concluded that the interest in the study of young people who as a group lack common ideological positions is scientifically relevant, even within radicalized communities and with comparative political identities. Consequently, the presence of stable ideological positions will contribute, in principle, to the launching of internal integration processes in these communities and to a stable organization of their discourses and struggles.

An examination of factors associated with investment in internal auditing technology

Purpose The purpose of this study is to explore whether various organizational, internal audit function and audit committee factors are associated with internal audit investment in audit technology. Design/methodology/approach The responses from 213 public and private company chief audit executives (CAEs) from seven Anglo-culture countries are analyzed from the Common Body of Knowledge (CBOK) 2015 Global Internal Auditor Practitioner Survey on specific questions addressing internal audit use of audit technology. Findings The results indicate that several of the studied factors are associated with investment in internal auditing technology, and taken together, suggest that CAE power may be the key driver in the technology investment decision. Furthermore, the data show that internal audit functions are not fully embracing the use of information technology (IT) tools and techniques, with average usage of ten of the eleven tools and techniques examined below moderate levels. Practical implications The results have implications for CAEs, boards and management when making resource allocation decisions. For example, the findings can be used in benchmarking an appropriate investment in internal audit technology, as well as identifying specific internal audit technology areas where further investment may be warranted. Additionally, insights provided by this study can facilitate a discussion about the value internal audit can add by increasing its investment in audit technology. Originality/value This study contributes to prior literature on internal auditing by filling a gap related to internal audit investment in audit technology, examining countries that are similar in culture rather than limiting the study to one country, and using several factors that have not been previously examined in prior internal audit investment-related literature. Additionally, the findings pointing to the important role CAE power appears to play in the internal audit technology investment decision provide several interesting new research avenues.