The audit expectation gap is critical to the auditing profession because the greater the unfulfilled expectations from the public, the lower is the credibility, earning potential and prestige associated with the work...The audit expectation gap is critical to the auditing profession because the greater the unfulfilled expectations from the public, the lower is the credibility, earning potential and prestige associated with the work of auditors. The aim of this paper is to uncover the causes of an audit expectation gap. It is revealed that the existence of an audit expectation gap is due to complicated nature of an audit function; conflicting role of auditors; retrospective evaluation of auditors＇ performance; time lag in responding to changing expectation; and self-regulation process of the auditing profession.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
I the context of the Corporate Governance Code enactment in Japan, we examine how newly introduced outside directors in Japanese boards obtain information to take part in the decision-making process. We conducted a sy...I the context of the Corporate Governance Code enactment in Japan, we examine how newly introduced outside directors in Japanese boards obtain information to take part in the decision-making process. We conducted a systematic review of the literature and found 18 peer-reviewed publications in a time span between 2000 and 2016 that described the asymmetry of information between the insider group of board directors （including the CEO） and the outside board members. Our fmdings show that for the course of more than a decade, despite all changes and reforms, the role of board directors, whether insiders or outsiders, is still supplementary. They are treated more as advisors than active part in the decision-making process. We reveal different insider sources of information as forming social ties with the CEO and/or inside board directors and collaboration with Audit ＆ Supervisory Board （Kansayaku）, which can help reduce this asymmetry and improve the decision-making process. We assume that it will be easier for the outsiders to establish contacts and form social ties with the Audit ＆ Supervisory Board members because of their unspoken lower status and thus to obtain more information about the company internal affairs and discussions that take place during the informal meetings, where only insiders （including the CEO） are present.展开更多
We seek a discussion about the most suitable feedback control structure for stock trading under the consideration of proportional transaction costs. Suitability refers to robustness and performance capability. Both ar...We seek a discussion about the most suitable feedback control structure for stock trading under the consideration of proportional transaction costs. Suitability refers to robustness and performance capability. Both are tested by considering different one-step ahead prediction qualities, including the ideal case （perfect price-ahead prediction）, correct prediction of the direction of change in daily stock prices and the worst-case （wrong price rate sign-prediction at all sampling intervals）. Feedback control structures are partitioned into two general classes： stochastic model predictive control （SMPC） and genetic. For the former class, three controllers are discussed, whereby it is distinguished between two Markowitz- and one dynamic hedging-inspired SMPC formulation. For the latter class, five trading algorithms are disucssed, whereby it is distinguished between two different moving average （MA） based strategies, two trading range （TR） based strategies, and one strategy based on historical optimal （HistOpt） trajectories. This paper also gives a preliminary discussion about how modified dynamic hedging-inspired SMPC formulations may serve as alternatives to Markowitz portfolio optimization. The combinations of all of the eight controllers with five different one-step ahead prediction methods are backtested for daily trading of the 30 components of the German stock market index DAX for the time period between November 27, 2015 and November 25, 2016.展开更多
This study aims to know the role of external auditor in protecting the financial information listed in the financial statements in the Jordanian industrial companies. The sample of this study consisted of 70 auditors ...This study aims to know the role of external auditor in protecting the financial information listed in the financial statements in the Jordanian industrial companies. The sample of this study consisted of 70 auditors who work for Jordanian industrial companies, whereas a questionnaire survey was designed and distributed to them. A total of 68 questionnaires were received that are valid for statistical analysis accounting for 97% of the overall distributed questiormaires; and the questionnaires have been analyzed using SPSS statistical software. The results of the study revealed that the external auditor uses the information technology in examining the financial information listed in the financial statements. Also, it was found that the external auditor is keen to ensure the credibility of the financial statements of the company. The study recommended the external auditor in the Jordanian industrial companies to be more interested in updating the company＇s electronic financial system.展开更多
When several scandals damaged the USA business environment, ethics education became a mandate for students in several states. Ethical theories were integrated into the business curriculum and the students are expected...When several scandals damaged the USA business environment, ethics education became a mandate for students in several states. Ethical theories were integrated into the business curriculum and the students are expected to apply these theories to the real world. The purpose of this research is to provide information related to the students＇ applications as they named their ＂most ethical＂ person and communicated the reasoning behind their selection.展开更多
Previous research on the relationship between audit partner tenure and audit quality assumed that auditors conducted auditing works in a stable external environment where the corporate and management behavior was high...Previous research on the relationship between audit partner tenure and audit quality assumed that auditors conducted auditing works in a stable external environment where the corporate and management behavior was highly predictable. This study uses the joint tenure between audit partners and management to explain audit quality, because corporate directors would consider an appropriate adjustment in the management to deal with a dramatic change in the external environment. First, we examined whether there is a significant association between audit partner tenure and audit quality after the implementation of mandatory audit partner rotation by using the auditor tenure only. We addressed this issue by using a sample of Taiwan Residents companies and found no significant association between audit partner tenure and the magnitude of discretionary accruals （DA）, a common proxy for audit quality. Second, we tested the relationship between audit partner tenure and audit quality under the consideration of industry structure stability. The result exhibits a negative relation between audit partner tenure and audit quality under the control of industry structural stability which is measured by a proxy variable, the joint tenure between audit partner and management. Third, we investigated whether the association does exist between joint tenure of auditors and management and audit quality. We also addressed this issue by using Taiwan Residents data and found a significant association between the joint tenure of auditor and management and the magnitude of DA. Our findings provide evidence that the use of a mandatory rotation rule is an ineffective way to improve audit quality.展开更多
文摘The audit expectation gap is critical to the auditing profession because the greater the unfulfilled expectations from the public, the lower is the credibility, earning potential and prestige associated with the work of auditors. The aim of this paper is to uncover the causes of an audit expectation gap. It is revealed that the existence of an audit expectation gap is due to complicated nature of an audit function; conflicting role of auditors; retrospective evaluation of auditors＇ performance; time lag in responding to changing expectation; and self-regulation process of the auditing profession.
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I the context of the Corporate Governance Code enactment in Japan, we examine how newly introduced outside directors in Japanese boards obtain information to take part in the decision-making process. We conducted a systematic review of the literature and found 18 peer-reviewed publications in a time span between 2000 and 2016 that described the asymmetry of information between the insider group of board directors （including the CEO） and the outside board members. Our fmdings show that for the course of more than a decade, despite all changes and reforms, the role of board directors, whether insiders or outsiders, is still supplementary. They are treated more as advisors than active part in the decision-making process. We reveal different insider sources of information as forming social ties with the CEO and/or inside board directors and collaboration with Audit ＆ Supervisory Board （Kansayaku）, which can help reduce this asymmetry and improve the decision-making process. We assume that it will be easier for the outsiders to establish contacts and form social ties with the Audit ＆ Supervisory Board members because of their unspoken lower status and thus to obtain more information about the company internal affairs and discussions that take place during the informal meetings, where only insiders （including the CEO） are present.
文摘We seek a discussion about the most suitable feedback control structure for stock trading under the consideration of proportional transaction costs. Suitability refers to robustness and performance capability. Both are tested by considering different one-step ahead prediction qualities, including the ideal case （perfect price-ahead prediction）, correct prediction of the direction of change in daily stock prices and the worst-case （wrong price rate sign-prediction at all sampling intervals）. Feedback control structures are partitioned into two general classes： stochastic model predictive control （SMPC） and genetic. For the former class, three controllers are discussed, whereby it is distinguished between two Markowitz- and one dynamic hedging-inspired SMPC formulation. For the latter class, five trading algorithms are disucssed, whereby it is distinguished between two different moving average （MA） based strategies, two trading range （TR） based strategies, and one strategy based on historical optimal （HistOpt） trajectories. This paper also gives a preliminary discussion about how modified dynamic hedging-inspired SMPC formulations may serve as alternatives to Markowitz portfolio optimization. The combinations of all of the eight controllers with five different one-step ahead prediction methods are backtested for daily trading of the 30 components of the German stock market index DAX for the time period between November 27, 2015 and November 25, 2016.
文摘This study aims to know the role of external auditor in protecting the financial information listed in the financial statements in the Jordanian industrial companies. The sample of this study consisted of 70 auditors who work for Jordanian industrial companies, whereas a questionnaire survey was designed and distributed to them. A total of 68 questionnaires were received that are valid for statistical analysis accounting for 97% of the overall distributed questiormaires; and the questionnaires have been analyzed using SPSS statistical software. The results of the study revealed that the external auditor uses the information technology in examining the financial information listed in the financial statements. Also, it was found that the external auditor is keen to ensure the credibility of the financial statements of the company. The study recommended the external auditor in the Jordanian industrial companies to be more interested in updating the company＇s electronic financial system.
文摘When several scandals damaged the USA business environment, ethics education became a mandate for students in several states. Ethical theories were integrated into the business curriculum and the students are expected to apply these theories to the real world. The purpose of this research is to provide information related to the students＇ applications as they named their ＂most ethical＂ person and communicated the reasoning behind their selection.
文摘Previous research on the relationship between audit partner tenure and audit quality assumed that auditors conducted auditing works in a stable external environment where the corporate and management behavior was highly predictable. This study uses the joint tenure between audit partners and management to explain audit quality, because corporate directors would consider an appropriate adjustment in the management to deal with a dramatic change in the external environment. First, we examined whether there is a significant association between audit partner tenure and audit quality after the implementation of mandatory audit partner rotation by using the auditor tenure only. We addressed this issue by using a sample of Taiwan Residents companies and found no significant association between audit partner tenure and the magnitude of discretionary accruals （DA）, a common proxy for audit quality. Second, we tested the relationship between audit partner tenure and audit quality under the consideration of industry structure stability. The result exhibits a negative relation between audit partner tenure and audit quality under the control of industry structural stability which is measured by a proxy variable, the joint tenure between audit partner and management. Third, we investigated whether the association does exist between joint tenure of auditors and management and audit quality. We also addressed this issue by using Taiwan Residents data and found a significant association between the joint tenure of auditor and management and the magnitude of DA. Our findings provide evidence that the use of a mandatory rotation rule is an ineffective way to improve audit quality.
