The basic goal of accounting is to provide quality accounting information that will aid reliable decision-making. The quality level of this accounting information comes from the company＇s governance practices, thereb...The basic goal of accounting is to provide quality accounting information that will aid reliable decision-making. The quality level of this accounting information comes from the company＇s governance practices, thereby emphasizing the importance of corporate governance in companies. Recently, following the financial crises resulting in accounting scandals, attention has been moving towards internal audit function as an important factor in the structure of corporate governance. This paper therefore examined the extent of the relationship between internal audit function and the quality of accounting information of companies. The study adopted the survey research design. The research instrument employed was questionnaire which was administered to internal auditors of the ＂Big Four＂. Linear regression analysis was employed in the analysis of the data collected with the use of Statistical Packages for Social Sciences （SPSS）. The results revealed that there is a significant relationship between the internal audit characteristics and the quality of accounting information. It was recommended that in order to provide credibility to the financial statement, there should be a law in place mandating attachment of internal auditors report to the financial statement.展开更多
Understanding the root causes of fraud and learning about the most effective fraud prevention mechanisms are critical in reducing the incidence of financial fraud. Therefore, this study solicits the views of fraud inv...Understanding the root causes of fraud and learning about the most effective fraud prevention mechanisms are critical in reducing the incidence of financial fraud. Therefore, this study solicits the views of fraud investigators on the existence and effectiveness of fraud prevention mechanisms within Government-Linked Companies （GLCs）. Specifically, effective fraud prevention mechanisms （FPM） should be undertaken by five critical groups, namely the board of directors, audit committees, external auditors, internal auditors, and anti-fraud specialists. A total of 147 questionnaires were distributed to fraud investigators of all public listed GLCs in Malaysia. Out of those, a total of 45 usable responses were received, which represents an effective response rate of 30.6%. In terms of existence, the respondents ranked ＂management review of internal controls＂ and ＂external audits of financial statements＂ as the top-most FPMs. This was followed by other mechanisms such as operational audits, internal audits and internal control review/improvements by departments. Out of the 27 fraud prevention mechanisms, fraud investigators perceiyed surprise audits, fraud hotline, fraud prevention program and training, anti-fraud policy, fraud vulnerability reviews, operational audits, whistle-blowing policy, internal audit or fraud examination department, and, imposing penalty and disciplinary action as more effective than the others. Overall, this study provides important insights to practitioners and organizations in identifying fraud prevention mechanisms that are most effective.展开更多
Internal audit in Malaysian public and private sector organizations underwent a steady organic growth since gaining a foothold in the management process in the 1970s. The management of the Malaysian public sector is c...Internal audit in Malaysian public and private sector organizations underwent a steady organic growth since gaining a foothold in the management process in the 1970s. The management of the Malaysian public sector is continuously maturing in facilitating foreign input in national development, echoing similar advances expounded by the internal audit units of private sector organizations. The main difference being the public sector addresses the interest of a much wider group of stakeholders. Rapid development in infrastructures and industries positioned Malaysia on the fringes of globalization and the world market. This enlarges the crucial role of internal auditing to ensure transparency, integrity, quality and improved service delivery; among myriad positive aims, remain the end point of any process area. This study explored the significance of internal auditing in the Malaysian public sector, and its subsequent extent and influence in public sector hierarchy and decision making. Data was collected from responses to a questionnaire distributed to head of internal auditors, internal auditors and other staff of internal audit departments from various categories of public sector departments and agencies in Malaysia. The study concluded that the internal audit function in the public sector in Malaysia is curtailed by understaffing and hampered by inadequate support from top management while, the auditors seldom extend their full cooperation. The auditors themselves lack appropriate knowledge and training on effective auditing approaches. The negative perception accorded to internal audit led to inaction by management on recommended remedies which only serve to nullify the positive contribution internal audit potentially holds to elevate the service delivery quality of the public sector.展开更多
This paper features a case study, which looks at the use of financial and non-financial indicators （NFIs） of performance in the monitoring of a production process. It highlights the apparent deficiencies in the use ...This paper features a case study, which looks at the use of financial and non-financial indicators （NFIs） of performance in the monitoring of a production process. It highlights the apparent deficiencies in the use of some indicators and provides opportunities for the implementation of preferred alternatives and for improvements in the organization and evaluation of the production process.展开更多
Students are very familiar with their own universities and also are interested in improving their alma maters. The purpose of this research is to share insights about a project that can be used for both traditional Au...Students are very familiar with their own universities and also are interested in improving their alma maters. The purpose of this research is to share insights about a project that can be used for both traditional Auditing courses and the Internal Auditing course. The project requires that students ＂audit＂ certain elements of the universities＇ non-confidential finances as well as perform operational and compliance techniques. The project creates synergy for experiential learning and improvement of university operations. Examples of educational issues that were improved with the operational audits are： （1） better information posted for office hours and class times; （2） better scripting for professors＇ and staff＇s voicemail messages; and （3） campus safety improvements. The students also seemed more enthusiastic about auditing and happy to contribute to the excellence of their university.展开更多
Today＇s global trends need to be clearly explained to enable the efficient functioning of capital markets for the purpose of the country＇s economic development. Promotion of a strong internal audit function plays a ...Today＇s global trends need to be clearly explained to enable the efficient functioning of capital markets for the purpose of the country＇s economic development. Promotion of a strong internal audit function plays a key role in assisting the board to discharge its governance responsibilities. The internal audit needs to exert its important function for refining corporate governance procedures, improving internal control, and strengthening risk management. The rules concerning internal auditing issued by the Banking Regulation and Supervision Agency, Capital Markets Board of Turkey, and other public societies have contributed to the development of internal auditing in Turkey. The Capital Markets Board of Turkey published “Communiqu6 Serial： IV, Noi 56 on Identification and Application of Corporate Governance Principles” （Official Gazette dated December 30, 2011, No. 28158）. In Part 4.2.4 of these principles, it was stated that “The board of directors supervise the efficiency of risk management and internal control systems at least once a year. Information about existence, operation, and efficiency of internal control and internal audit is given by annual report”. The objective of this study is to analyze the structure of internal audit function-related information on the annual reports of companies that are included in the Borsa Istanbul. Annual reports of 192 manufacturing companies listed on Borsa Istanbul were examined by content analysis method.展开更多
With the increasing popularity of computer assisted audit techniques, this paper discussed the major role of computer audit played in internal audit. From these two aspects： the enterprises＇ financial revenue and ex...With the increasing popularity of computer assisted audit techniques, this paper discussed the major role of computer audit played in internal audit. From these two aspects： the enterprises＇ financial revenue and expenditure, and material purchase using computer audit to introdnce two kinds of audit methods which are Monetary unit sampling and SQL database query method. Finally, give problems and suggestions for it.展开更多
This paper takes Principal-agent Theory as the basic analysis flame to analyze the modern corporate principal and agent in a state of the two sides in asymmetric information on the basis of self-interest maximization,...This paper takes Principal-agent Theory as the basic analysis flame to analyze the modern corporate principal and agent in a state of the two sides in asymmetric information on the basis of self-interest maximization, and the game strategy which revolves the information disclosure and hideaway to launch, and therefore can get the game way which causes the auditing institution. The equilibrium in game of the information disclosure causes the auditing institution, the expense and cost which the audit profession consumes is the company governs reduces the information not asymmetrical diligently center essential agency costs.展开更多
The Audit Committee is a very important part in the enterprise, its main role is on behalf of the Board of Directors to review, monitor and evaluate the cotnpany＇ s internal control. Playing the role of the audit com...The Audit Committee is a very important part in the enterprise, its main role is on behalf of the Board of Directors to review, monitor and evaluate the cotnpany＇ s internal control. Playing the role of the audit committee can help prevent the economic crisis because of poor management, prevent the phenomenon of corporate embezzlement and accounting fraud. It is an important role in internal control. The thesis begins with an introduction to the Audit Committee, and analyzes the characteristics of Audit Committee and effectiveness of internal controls.展开更多
文摘The basic goal of accounting is to provide quality accounting information that will aid reliable decision-making. The quality level of this accounting information comes from the company＇s governance practices, thereby emphasizing the importance of corporate governance in companies. Recently, following the financial crises resulting in accounting scandals, attention has been moving towards internal audit function as an important factor in the structure of corporate governance. This paper therefore examined the extent of the relationship between internal audit function and the quality of accounting information of companies. The study adopted the survey research design. The research instrument employed was questionnaire which was administered to internal auditors of the ＂Big Four＂. Linear regression analysis was employed in the analysis of the data collected with the use of Statistical Packages for Social Sciences （SPSS）. The results revealed that there is a significant relationship between the internal audit characteristics and the quality of accounting information. It was recommended that in order to provide credibility to the financial statement, there should be a law in place mandating attachment of internal auditors report to the financial statement.
文摘Understanding the root causes of fraud and learning about the most effective fraud prevention mechanisms are critical in reducing the incidence of financial fraud. Therefore, this study solicits the views of fraud investigators on the existence and effectiveness of fraud prevention mechanisms within Government-Linked Companies （GLCs）. Specifically, effective fraud prevention mechanisms （FPM） should be undertaken by five critical groups, namely the board of directors, audit committees, external auditors, internal auditors, and anti-fraud specialists. A total of 147 questionnaires were distributed to fraud investigators of all public listed GLCs in Malaysia. Out of those, a total of 45 usable responses were received, which represents an effective response rate of 30.6%. In terms of existence, the respondents ranked ＂management review of internal controls＂ and ＂external audits of financial statements＂ as the top-most FPMs. This was followed by other mechanisms such as operational audits, internal audits and internal control review/improvements by departments. Out of the 27 fraud prevention mechanisms, fraud investigators perceiyed surprise audits, fraud hotline, fraud prevention program and training, anti-fraud policy, fraud vulnerability reviews, operational audits, whistle-blowing policy, internal audit or fraud examination department, and, imposing penalty and disciplinary action as more effective than the others. Overall, this study provides important insights to practitioners and organizations in identifying fraud prevention mechanisms that are most effective.
文摘Internal audit in Malaysian public and private sector organizations underwent a steady organic growth since gaining a foothold in the management process in the 1970s. The management of the Malaysian public sector is continuously maturing in facilitating foreign input in national development, echoing similar advances expounded by the internal audit units of private sector organizations. The main difference being the public sector addresses the interest of a much wider group of stakeholders. Rapid development in infrastructures and industries positioned Malaysia on the fringes of globalization and the world market. This enlarges the crucial role of internal auditing to ensure transparency, integrity, quality and improved service delivery; among myriad positive aims, remain the end point of any process area. This study explored the significance of internal auditing in the Malaysian public sector, and its subsequent extent and influence in public sector hierarchy and decision making. Data was collected from responses to a questionnaire distributed to head of internal auditors, internal auditors and other staff of internal audit departments from various categories of public sector departments and agencies in Malaysia. The study concluded that the internal audit function in the public sector in Malaysia is curtailed by understaffing and hampered by inadequate support from top management while, the auditors seldom extend their full cooperation. The auditors themselves lack appropriate knowledge and training on effective auditing approaches. The negative perception accorded to internal audit led to inaction by management on recommended remedies which only serve to nullify the positive contribution internal audit potentially holds to elevate the service delivery quality of the public sector.
文摘This paper features a case study, which looks at the use of financial and non-financial indicators （NFIs） of performance in the monitoring of a production process. It highlights the apparent deficiencies in the use of some indicators and provides opportunities for the implementation of preferred alternatives and for improvements in the organization and evaluation of the production process.
文摘Students are very familiar with their own universities and also are interested in improving their alma maters. The purpose of this research is to share insights about a project that can be used for both traditional Auditing courses and the Internal Auditing course. The project requires that students ＂audit＂ certain elements of the universities＇ non-confidential finances as well as perform operational and compliance techniques. The project creates synergy for experiential learning and improvement of university operations. Examples of educational issues that were improved with the operational audits are： （1） better information posted for office hours and class times; （2） better scripting for professors＇ and staff＇s voicemail messages; and （3） campus safety improvements. The students also seemed more enthusiastic about auditing and happy to contribute to the excellence of their university.
文摘Today＇s global trends need to be clearly explained to enable the efficient functioning of capital markets for the purpose of the country＇s economic development. Promotion of a strong internal audit function plays a key role in assisting the board to discharge its governance responsibilities. The internal audit needs to exert its important function for refining corporate governance procedures, improving internal control, and strengthening risk management. The rules concerning internal auditing issued by the Banking Regulation and Supervision Agency, Capital Markets Board of Turkey, and other public societies have contributed to the development of internal auditing in Turkey. The Capital Markets Board of Turkey published “Communiqu6 Serial： IV, Noi 56 on Identification and Application of Corporate Governance Principles” （Official Gazette dated December 30, 2011, No. 28158）. In Part 4.2.4 of these principles, it was stated that “The board of directors supervise the efficiency of risk management and internal control systems at least once a year. Information about existence, operation, and efficiency of internal control and internal audit is given by annual report”. The objective of this study is to analyze the structure of internal audit function-related information on the annual reports of companies that are included in the Borsa Istanbul. Annual reports of 192 manufacturing companies listed on Borsa Istanbul were examined by content analysis method.
文摘With the increasing popularity of computer assisted audit techniques, this paper discussed the major role of computer audit played in internal audit. From these two aspects： the enterprises＇ financial revenue and expenditure, and material purchase using computer audit to introdnce two kinds of audit methods which are Monetary unit sampling and SQL database query method. Finally, give problems and suggestions for it.
文摘This paper takes Principal-agent Theory as the basic analysis flame to analyze the modern corporate principal and agent in a state of the two sides in asymmetric information on the basis of self-interest maximization, and the game strategy which revolves the information disclosure and hideaway to launch, and therefore can get the game way which causes the auditing institution. The equilibrium in game of the information disclosure causes the auditing institution, the expense and cost which the audit profession consumes is the company governs reduces the information not asymmetrical diligently center essential agency costs.
文摘The Audit Committee is a very important part in the enterprise, its main role is on behalf of the Board of Directors to review, monitor and evaluate the cotnpany＇ s internal control. Playing the role of the audit committee can help prevent the economic crisis because of poor management, prevent the phenomenon of corporate embezzlement and accounting fraud. It is an important role in internal control. The thesis begins with an introduction to the Audit Committee, and analyzes the characteristics of Audit Committee and effectiveness of internal controls.
