Search results for "Performance audit"
showing 9 items of 9 documents
The Role of Internal Audit in Fraud Prevention and Detection
2014
Abstract This article aims to not just briefly describe the role of the internal audit in the detection of possible frauds, but also to highlight its importance in preventing the commission of frauds in any economic entity. Moreover, the analysis intends to especially point out the advantages that an internal audit can offer to the management of an economic entity and its partners, and to the society as a whole as well. Starting from the premise that auditors are not the adversaries of an entity, one should remember that: the internal audit is a function of assistance offered to the leadership of that entity in order for them to better manage their activities; it expresses judgments on all …
Internal Public Audit in the Financial Crisis Context
2013
Abstract The financial crisis effects have left their mark on the area of internal audit, but the attention on the responsibility that internal auditors could have in preventing the onset of such a crisis is quite low. Audit plays a vital role in the entities functioning by contributing to economic credibility. In this paper we have presented the role and objectives of internal audit, the organization and activity of internal audit in local government in Romania, the outsourced system and how it helped in preventing and/or managing the economic downturn.
Audit Quality and Corporate Governance: Evidence from the Microfinance Industry
2012
This study uses a unique, hand-collected sample of microfinance institutions from 73 countries that typically are not investigated in accounting research to analyze the relationships between audit quality and governance mechanisms. We examine two measures of audit quality, namely, the use of Big Four auditors and the presence of internal auditors who report to the boards of these institutions. The empirical analysis of this study reveals that these two quality metrics are highly related, although we also demonstrate that these metrics capture distinctive aspects of audit quality. In particular, the presence of internal auditors is related to other indicators of stricter governance, whereas …
Academic Practitioner Auditors
2016
Academic practitioner auditors engage in academic research on top of their audit activities. Based on constructive learnings theory and evidence-based management theory, we argue that engaging in research helps lead auditors to deliver higher audit quality. Moreover, we expect that this engagement enables lead auditors to develop their professional reputation and, hence, to generate higher audit fees. Using data from Germany, where lead auditors frequently engage in research, we find empirical evidence for these conjectures. Our study contributes to the current AAA and AICPA debate about the value of bridging the gap between academia and audit practice.
Was the European Commission Green Paper Right? An Evaluation of the French Experience with Joint Auditing
2012
The Green Paper entitled “Audit policy: Lessons from the crisis” (European Commission, 2010) recommends the introduction of joint audit for European listed companies, based on the French experience, to limit the market dominance of the Big 4 and to promote audit quality. However, the regulation passed by the European Parliament in April 2014 does not require, but only encourages the use of two auditors for public-interest entities (European Parliament, 2014). Since many groups of interests tried to influence the European Commission during the consultation process, it is relevant to evaluate the costs and benefits for investors of the unique joint audit system that persists among the occiden…
Changes and Challenges Facing the Audit Profession in Latvia
2014
Abstract The history of certified auditing and audit services in the Latvian market has now existed for twenty years. It is not a long period of time when compared to other countries and the history of the audit profession. However, during these twenty years the audit profession in Latvia has experienced dynamic development along with a positive trend in the Latvian audit market. The main purpose of this paper is to describe the audit profession in Latvia and assess the expected impact of changes on the audit market by evaluating audit quality management, mainly focusing on the situation since Latvia's accession to the EU, with particular reference to the problems related to the development…
Joint Audit: Issues and Challenges for Researchers and Policy-Makers
2013
International audience; The publication of the European Commission Green Paper, ‘Audit Policy: Lessons from the Crisis’ in October 2010, has stirred up a lively debate on the role of joint audits. This literature review identifies and evaluates, for the benefit of future research and regulators, existing evidence about joint audits. We find limited empirical support to suggest that joint audits lead to increased audit quality, but some empirical support to suggest that joint audits lead to additional costs. Overall, this paper indicates that joint audit should be seen as a mechanism that is embedded in a broader institutional context and not be considered in isolation from other factors tha…
Auditing Public Debt Using Risk Management
2023
The Audit Office of the Republic of Cyprus conducted the first-ever audit of the country’s public debt, seeking answers to two key questions. Is government debt sustainable, and is debt financing efficient and effective in securing the lowest cost with acceptable risks? The audit’s findings were discussed by the parliament and can have significant ramifications for public finance. However, public debt management is quite complex, and the International Organization of Supreme Audit Institutions suggests that sufficient technical knowledge is essential in undertaking an audit, including an understanding of the uncertain macroeconomy, financing conditions, and government fiscal stance. We use…
INTERNAL AUDIT: DEFINING, OBJECTIVES, FUNCTIONS AND STAGES
2010
This article aims, through a detailed presentation as to provide clarification for a better understanding of what internal audit definition, objectives, functions and stages of its development mean. It is also exposed a brief history about the emergence and development of internal audit and regulatory framework. I also plan to linking theory and practice by reference to documents used: both the evidence considered and especially those prepared by the auditors in connection with the performance audit and its use in the audit report.