Does the Internal Audit Function Play a Role in Mitigating Earnings Management?

This paper aims to investigate the effect of the characteristics of the internal audit function(IAF)on earnings management(EM)for a sample of 27 Tunisian listed companies.The authors employed the Correlated Panels Corrected Standard Errors model to estimate the regression equation.The results showed that EM is negatively associated with internal audit effectiveness,frequency of audit committee meetings with Chief Audit Executives(CAEs),the partial outsourcing of internal audit,and the firm’s size.Moreover,the authors found a positive relationship between EM and the use of IAF as a training ground for management and the private sector.This study is important to academics,regulators,and policymakers in introducing new governance reforms to strengthen the IAF as an important internal governance mechanism to reduce earnings management practices in emerging countries.The results also provide useful information for investors to examine the effect of internal audit characteristics on earnings management.

Exploring the Internal Audit Practices of Electric Power Enterprises in the Context of the New Economic Normal

In the current economic landscape characterized by a decelerating domestic economy,rising investments,and an extended project construction timeline,power generation enterprises must enhance their internal audit efforts to sustain their competitive edge in business development.Addressing systemic shortcomings methodically and practically can enhance the internal audit effectiveness within electric power enterprises and contribute to the steady enhancement of their production and operation performance.

Financial Management and Control and Internal Audit System in the Public Sector in BiH

The introduction and implementation of finansijsko upravljanje i kontrola(FUK,financial management and control[FMC])in Federation of Bosnia and Herzegovina(FBiH)aims to incorporate a modern public internal financial control(PIFC)system into traditional public resources management models.This area is one of the reform areas in which Bosnia and Herzegovina(BiH)is obliged to harmonize the legislative framework and practice with the good practices and regulations recommended by the European Commission.The establishment and development of the PIFC are also an obligation of Bosnia and Herzegovina established by the Stabilization and Association Agreement between the European Community and the member states,of the one part,and Bosnia and Herzegovina,of the other part.The public internal financial control(PIFC)system focuses on enhancing transparency,financial discipline,and dedicated use of public resources,that is,transparent,economical,efficient,and effective management of public resources,and control of the use of those resources.The topic of this paper is“financial management and control in the public sector”where the aim is to show,through the conducted theoretical research,the level of achievement of the establishment of this system in public sector institutions in BiH.The European Union wants to direct all potential member countries towards development of internal controls in the use of their own resources,but also to create a control environment that would ensure the dedicated use of EU funds.In Bosnia and Herzegovina,there is no single legal framework in terms of a single law governing public internal financial controls.The contents of the applicable legal provisions at all three levels(BiH,FBiH,and Republic of Srpska[RS])are largely congruent thanks to the Coordination Committee of Central Harmonization Units(CHJs)in Bosnia and Herzegovina,through which the harmonization of regulations and practices in the development of public internal financial controls is ensured.

Internal Control and Internal Audit in the Function of Supervising the Operations of Companies

The management of a modern company is faced with the need to make business decisions regarding the achievement of business goals.Increased interest in establishing internal control is affected by the presence increased corruption and the erosion of business morality.For internal controls,everyone is interested,from external auditors to management,board of directors,shareholders of large public companies and the state.With the constant growth of the company,the decentralization of business has been compounded by the management process.Therefore,in addition to internal control,internal audit is required.The company’s management cannot deal with oversight because it has to deal with strategic issues.This is where internal audit is performed as an expert service.The results of the conducted empirical research showed that the stages of development of internal control in enterprises in Montenegro do not correspond with the achieved degree of development of this profession in the countries of the developed market economy.

Current Status on Onshore Petroleum internal Audit

ＣｕｒｒｅｎｔＳｔａｔｕｓｏｎＯｎｓｈｏｒｅＰｅｔｒｏｌｅｕｍｉｎｔｅｒｎａｌＡｕｄｉｔ￥ＳｕｎＳｈｏｕｒｏｎｇ（ＤｉｒｅｃｉｏｒｏｆＡｕｄｉｔＢｕｒｅａｕ．ＣＮＰＣ）Ｔｈｅｏｎｓｈｏｒｅｐｅｔｒｏｌｅｕｍｉｎｔｅｒｎａｌａｕｄｉｔｈａｓｂｅｅｎｃａ...

Internal Audit Promotes the Path of the Modernization of University Governance Capacity

Colleges and universities undertake the historical responsibility of realizing the great rejuvenation of the Chinese nation,and the Party attached great importance to it.The modernization of college governance and governance ability are directly related to the fundamental problem of“who to cultivate,how to cultivate people and for whom”.As an important part of systematized economic decision-making,standardized internal management and risk prevention and control normalization in universities,internal audit promotes the modernization of governance in colleges and universities and plays an important role in“checking,treating and preventing”.Based on the governance theory,I will study the modernization of governance capacity in colleges and universities,and build the path of internal governance audit to boost the modernization of college governance capacity from the aspects of audit system,organizational system,operation system,evaluation system on the macro,medium and micro levels of governance in colleges and universities.

Enhancement of Audit Closed-Loop Management for Optimal Audit Results Transformation

The process of converting audit findings into actionable improvement measures within an enterprise is pivotal for achieving the“value-added”objective of internal audits and fostering sustainable business development.By elucidating the definition and significance of transforming internal audit results,this study underscores the imperative of applying and effectively converting these findings.Additionally,it seeks to streamline the value assessment framework for internal audit result transformation and delineates key factors that impede this transformation.Furthermore,this study explores strategies to bolster the closed-loop audit management system and outlines specific methods for enhancing the transformation of internal audit results within the enterprise,thereby contributing to its overall progress.

Identifying the key factors of subsidiary supervision and management using an innovative hybrid architecture in a big data environment

In a highly intertwined and connected business environment,globalized layout planning can be an effective way for enterprises to expand their market.Nevertheless,conflicts and contradictions always exist between parent and subsidiary enterprises;if they are in different countries,these conflicts can become especially problematic.Internal control systems for subsidiary supervision and management seem to be particularly important when aiming to align subsidiaries’decisions with parent enterprises’strategic intentions,and such systems undoubtedly involve numerous criteria/dimensions.An effective tool is urgently needed to clarify the relevant issues and discern the cause-and-effect relationships among them in these conflicts.Traditional statistical approaches cannot fully explain these situations due to the complexity and invisibility of the criteria/dimensions;thus,the fuzzy rough set theory(FRST),with its superior data exploration ability and impreciseness tolerance,can be considered to adequately address the complexities.Motivated by efficient integrated systems,aggregating multiple dissimilar systems’outputs and converting them into a consensus result can be useful for realizing outstanding performances.Based on this concept,we insert selected criteria/dimensions via FRST into DEMATEL to identify and analyze the dependency and feedback relations among variables of parent/subsidiary gaps and conflicts.The results present the improvement priorities based on their magnitude of impact,in the following order:organizational control structure,business and financial information system management,major financial management,business strategy management,construction of a management system,and integrated audit management.Managers can consider the potential implications herein when formulating future targeted policies to improve subsidiary supervision and strengthen overall corporate governance.

Construction of Meteorological Observation Quality Management System for Basic Observation Business

A set of closed-loop normative standards of PDCA(planning-implementing-checking-improvement) of the quality management system is applied to promote the standardization, normalization and institutionalization of grass-roots meteorological observations, further improve the service availability and timely rate of data, and improve the quality and efficiency of meteorological observations.