PROVISIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON EXTERNAL AUDIT AND CERTIFICATE OF EXTERNAL AUDIT ISSUED RECENTLY BY THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

In accordance with the regulations as stipulated in the Pro-visions of the Customs of the People’s Republic of China on Ex-ternal Audit, the Customs officers engaged in external audit shalluse the Certificate of External Audit of the Customs (hereinafterreferred to as Certificate) as of June 5, 1997. The Certificate has ablack leather outer covering and is inlaid inside with a pierced andguilded customs emblem, which consists of the red national em-blem in its upper part, and a key and a truncheon encircled by earsof wheat in its lower part. Put in a leather covering, the Certificateis a card sealed up with plastics, on which there is a bareheadedcolour photo of the holder in the Customs uniform and with a

The Relationship Among Ethical Climate, Job Satisfaction, Organizational Commitment, and External Auditor＇s Turnover Intention

This study attempts to examine the relationship among ethical climate, job satisfaction, organizational commitment, and turnover intention in the context of the Malaysian external auditor＇s work environment. The questionnaire is sent to a sample of external auditors from Malaysian Big Four （Klynveld Peat Marwick Goerdeler （KPMG）, Ernst and Young, Deloitte KassimChan, and PricewaterhouseCoopers （PwC）） main offices. There are 167 useable responses. The regression results have provided evidence that ethical climate is directly, significantly, and positively associated with job satisfaction. In contrast, ethical climate appeared not to be directly related with external auditor＇s turnover intention. Both job satisfaction and organizational commitment were identified as significant predictors in explaining turnover intention, since they had a significant and negative effect on external auditor＇s turnover intention. This study also implied that job satisfaction had a significant effect on organizational commitment. Furthermore, the findings revealed that organizational commitment partially mediated the relationship between job satisfaction and turnover intention. The results extend the literature on external auditor＇s turnover intention and provide insights for human resource management in accurately assessing employee＇s turnover intention in order to improve retention and reduce actual turnover particularly in audit firms.

The Impact of the External Audit Quality on the Financial Performance of Conventional and Islamic Banks

The continuing emergence of sudden financial crises and the bankruptcy of Big banks audited by the‘Big Four’auditors confirms that the external audit quality(EAQ)always remains insufficient compared to the desired quality.The quality weakness is due either to the bad audit company choice,although their sizes,or to the disrespect of the good audit rules.Because there is a lack of comparative studies in the framework of conventional and Islamic banks,this paper aims to compare the impact of EAQ on the financial performance(FP)of 180 conventional banks and 180 Islamic banks.FP and EAQ variables are collected from 56 countries over the period(2010-2020).To overcome the mystery of the best EAQ selection based on its impact on FP,this paper relied on the GLS estimator.Consequently,this paper concluded that the EAQ affected the conventional banks’FP,but it improved that of Islamic banks with a moderate impact.

A Feasibility Study on the Implementation of External Tax Audit in Malaysia

This study examines the feasibility of external tax audit implementation in Malaysia. External tax audit has been purported to enhance tax administration efficiency, deter tax evasion and noncompliance as well as improve tax collection for a nation. Therefore, this study solicits perceptions from various stakeholders on the new service while retaining the principle of justice that lies in the tax system. External tax audit refers to the process of business income tax returns being attested by other than the tax authority. External tax audit has been implemented successfully to increase tax compliance in some areas such as Taiwan, Bangladesh and United States of America. Therefore, this study examines the benefits and risks influencing the implementation of external tax audit in Malaysia from the viewpoints of corporate taxpayers and tax agents. Data is obtained through questionnaire from the selected respondents. Findings from multiple regression analysis reveal that tax agents and taxpayers agree with the implementation of this new service. For tax agents, the external tax audit has benefits and risks, while taxpayers believe that only benefits influence their agreement to the external tax audit. This study contributes to the tax literature by providing knowledge on the feasibility of external tax audit implementation in Malaysia.

On Outsourcing Internal Auditing

There is an ever growing tendency of outsourcing of internal auditing since the appearing of it in 1970s.The paper introduces the status quo and form of outsourcing of internal auditing and analyzes the advantage and disadvantage of it in western nations in order to offer references for the development of internal auditing in our nation.

Applying Internal Control Procedures for Detecting and Preventing Money Laundering Operations in Banks＂ A Field Study in the Hashemite Kingdom of Jordan

This study aimed at identifying the role and importance of internal control procedures for detecting and preventing money laundering operations in banks through defining the internal control procedures which contribute to detecting money laundering operations. These procedures include the guide and policies issued by the administration of banks in order to combat laundering money operations as well as to train employees on matters pertaining to the money laundering operations. The study showed the role of the internal control procedures in detecting practically the money laundering through the automated programs and the system of saving the files and records. Furthermore, the study showed the factors affecting the internal control procedures to anti-money laundering operations. The researcher used an analytical descriptive approach for collecting data which relate to the main elements of the study, analyzing and explaining them. This study aimed at building the theoretical framework depending on audit literature which addressed internal control system, anti-money laundering systems, and control procedures of anti-money laundering. Through the theoretical framework, a questionnaire related to the application of internal control procedures and its relation to anti-money laundering operations was designed. It was distributed to the population of the study which includes internal and external auditors and the head of anti-money laundering operations unit in the Jordanian banks. The study found that applying internal control procedures is important for detecting and preventing money laundering operations in the Jordanian banks and that there are factors affecting the nature and the extent of internal control standards pertaining to anti-money laundering operations in the Jordanian banks.

Annual report readability and corporate agency costs

Annual reports are the main sources of information for outside investors' investment decisions and enable shareholders to supervise the management.Difficulties with the readability of these reports may therefore have serious consequences. Using 19,221 firm-year observations of Chinese A-share listed firms from 2001 to 2015, we investigate the association between annual report readability and corporate agency costs, where readability is proxied by report file length and/or file size. We find that firms with better annual report readability experience lower agency costs, and the negative association between readability and agency costs is more pronounced in firms with higher external audit quality, internal control quality or analyst coverage. These results hold after several robustness checks. The positive effect of annual report readability is stronger in private firms than in state-owned enterprises, and becomes stronger after the implementation of new accounting standards in 2007. Readable annual reports can help in monitoring corporate insiders' opportunistic behavior and thus reduce agency costs.