The Role of Joint Audit in Audit Quality - Practitioners' Insights

The Role of Joint Audit in Audit Quality - Practitioners' Insights
Author: Oliver Marnet
Publisher:
Total Pages: 0
Release: 2022
Genre:
ISBN:

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Outside those jurisdictions where joint audit is regularly practiced, this audit model tends to be poorly understood and frequently remains subject to often repeated but unsubstantiated misapprehensions. Meanwhile, even reviews which set out to provide an objective and comprehensive overview of this mechanism may base their insights and recommendations on a somewhat selective analysis of prior research, partial citations, omissions, and discriminatory interpretation of research results. Meanwhile, academic research into external audit suffers from a multitude of methodological difficulties, and results in mixed, inconclusive, and contradictory results, where even minor changes to assumptions, environmental settings, modelling, and data selection can lead to widely differing conclusions. This also applies to research into joint audit , and perhaps more so. One outcome of this mixed experience is that calls for more empirical research along tried and tested, but debateable, methodologies into joint audit may offer limited promise for more persuasive insights on audit quality effects from any this model. This is not particularly helpful to the current discussion on audit reform, or on debates whether particular audit models and mechanisms might contribute to audit quality. In a reflection on decades of audit reform, Humphrey et al. (2018) suggest that there is a need to ask different questions in the exploration of ways and means to enhance the quality of audit and to allow audit to re-engage with its social role. These authors note a need for stakeholders to adopt a much greater diversity of inquiry, including an exploration of lessons from success as well as failure, and to reflect more deeply on the realities and experiences of audit practitioners. In a closely related discussion, Biehl et al. (2021), exploring issues underlying contradictory empirical results in the audit literature, encourage a focus on audit quality enhancing factors (Biehl et al, 2021).By presenting insights from practitioners, regulators, and audit committee chairs with first-hand experience of joint audit, together with reflections from stakeholders less familiar with its application, the present investigation seeks to expand and build on recent reports, inquiries, consultations and policy reform discussions on the role, future, and shape of external audit. Aiming to inform the discussion on audit reform, this study aims to de-mystify joint audit, sheds a critical light on this audit model, and hopes to provide stakeholders with a deeper understanding of what joint audit is, how it works in practice, and which key characteristics of this model may allow it to make a positive contribution to the quality of external audit.

Integrated Reporting and Audit Quality

Integrated Reporting and Audit Quality
Author: Chiara Demartini
Publisher: Springer
Total Pages: 136
Release: 2017-04-13
Genre: Business & Economics
ISBN: 3319488260

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This book analyzes the relationship between integrated reporting and audit quality within the European context, presenting empirical evidence and drawing on a broad review of the available literature in order to evaluate the ability of integrated reporting to enhance audit risk assessment. Dedicated sections first elucidate the concepts of integrated reporting and audit quality. The main integrated reporting frameworks are compared, the role of integrated reporting within a firm’s disclosure is examined, and all aspects of audit risk are discussed. The key question of the impacts of integrated reporting on the components of audit risk is then addressed in detail, with reference to empirical findings, their practical implications, and their limitations. The concluding section explores the future of corporate reporting and the development of the next integrated reporting framework and summarizes the insights that the analysis in the book offers into the relationship between integrated reporting and audit quality in the European setting.

From Joint to Single Audits - Audit Quality Differences and Auditor Pairings

From Joint to Single Audits - Audit Quality Differences and Auditor Pairings
Author: Claus Holm
Publisher:
Total Pages: 44
Release: 2017
Genre:
ISBN:

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This study analyses audit quality differences between audits by a single big audit firm and joint audits with either one or two big audit firms. We exploit the unique situation in Denmark beginning on 1 January 2005, at which time a long-standing mandatory joint audit system for listed companies was replaced by a voluntary joint audit system. First, we report the results of a survey of Danish CFOs' views on and their experiences with the choice of single or joint audits and their perceptions of audit quality. Second, based on data from the mandatory joint audit abolition year and the following two years, we test the audit quality differences using abnormal accruals. Most CFOs perceive that audit quality by a single big four audit firm is the same as it is in joint audits with either one or two big four audit firms. The results of our empirical analysis are in line with the perceptions. We find no evidence of audit quality differences between audits made by a single big four firm and those conducted by either of the two combinations of joint audits.

Auditing Teams

Auditing Teams
Author: Mara Cameran
Publisher: Taylor & Francis
Total Pages: 133
Release: 2017-03-31
Genre: Business & Economics
ISBN: 1134825536

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The recent audit failures which have rocked financial markets worldwide have accentuated the need for a better understanding of the link between risk, control and audit quality; as well as emphasising the need to open the "black box" of the ways auditing firms actually function. Reflecting these imperatives, Auditing Teams unravels the organizational and management issues in audit firms that are key to achieving effectiveness in service provision. Specifically, this key research reflects upon the relevance and dynamics of auditing teams and their impact on auditing quality, and specifically responding to the recent claim from regulators which highlights auditing team characteristics as the source of wide variations in quality. By leveraging different perspectives – auditing, management accounting, organization and psychology – to investigate auditing teams and basing on evidence collected from the professional world, this book will provide a unique insight into the role of auditing teams on audit quality. It will be of great interest to scholars and advanced students in auditing, as well as to practitioners and regulators in the field.

Understanding Audit Quality

Understanding Audit Quality
Author: Brant E. Christensen
Publisher:
Total Pages: 61
Release: 2019
Genre:
ISBN:

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Projects seeking to define, measure, and evaluate audit quality are on the agendas of auditing standards setters as well as audit firms. The PCAOB currently provides information regarding audit quality through the release of inspection reports, and the Board intends to establish and report audit quality indicators. To provide additional perspective on audit quality, we obtain auditors' and investors' views, definitions, and indicators of audit quality. We find that investors' definitions of audit quality focus more on inputs to the audit process than do auditors', and that the two groups have differing views on the relation between PCAOB inspections and audit firm quality. We find a consensus that auditor characteristics may be the most important determinants of audit quality, and that restatements may be the most readily available signal of low audit quality. We relate responses to a generally accepted audit quality framework, provide support for archival audit research, and identify additional disclosures that participants suggest could signal audit quality. Taken together, we provide evidence regarding the construct of audit quality in the post-SOX environment, add substance to theoretical frameworks, evaluate many of the audit quality indicators proposed by the PCAOB, and suggest avenues for future research.

Improving Healthcare Quality in Europe Characteristics, Effectiveness and Implementation of Different Strategies

Improving Healthcare Quality in Europe Characteristics, Effectiveness and Implementation of Different Strategies
Author: OECD
Publisher: OECD Publishing
Total Pages: 447
Release: 2019-10-17
Genre:
ISBN: 9264805907

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This volume, developed by the Observatory together with OECD, provides an overall conceptual framework for understanding and applying strategies aimed at improving quality of care. Crucially, it summarizes available evidence on different quality strategies and provides recommendations for their implementation. This book is intended to help policy-makers to understand concepts of quality and to support them to evaluate single strategies and combinations of strategies.

Crossover of Audit and Evaluation Practices

Crossover of Audit and Evaluation Practices
Author: Maria Barrados
Publisher: Routledge
Total Pages: 372
Release: 2020-02-24
Genre: Business & Economics
ISBN: 1000042553

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Crossover of Audit and Evaluation Practices brings together academic analysis with insights from practitioners to discuss the potential for collaboration in audit and evaluation practices between three professional disciplines. Clearly written and thoughtfully organized, this volume is structured in three parts to deal with theory, practice issues and how the practices have worked together. • Part One provides definitions of performance audit, internal audit and program evaluation. • Part Two addresses several challenges that professionals face in applying these standards and principles. • Part Three contains examples of organizational collaboration between the practices, how they have worked together and the lessons that were learned from that experience. Specific cases from the Government Accountability Office, and UNESCO, UNDP and Inter-Americas Development Bank illustrate what has worked or not and suggest reasons why. Crossover of Audit and Evaluation Practices offers even the most skilled and experienced professional insight on how to bridge some of the divides. It will help generate a better understanding of the activities and services that are either imposed on them or are freely available and help to stimulate their optimal use.

Statutory Audits in Europe

Statutory Audits in Europe
Author: Michael Kend
Publisher: Taylor & Francis
Total Pages: 150
Release: 2023-03-10
Genre: Business & Economics
ISBN: 1000850382

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In the aftermath of the Global Financial Crisis, corporate collapses, accounting scandals, and concerns around competition and auditor choice, the European Commission (EC) promoted the preparation of various reports on audit policy to support a harmonisation process of European auditing regulation. Consequently, the European Union (EU) Audit Regulation and Directive was implemented from 2016. This book provides a timely picture of the audit sector and how it responds to regulatory and technological challenges. It analyses the impact of EU reforms on audit practices by comparing the UK and Italy, which, representing two very different regulatory and cultural contexts, will offer insight into how the efforts at standardising audit regulation may lead to very different organisational firm responses within Europe. It addresses issues relating to public policy work and the concerns faced by the market for audit and assurance services, in promoting audit quality, better communication about the role of the auditor, capital market stability and confidence, and auditor independence. Moreover, it highlights what the future of auditing might look like in the EU particularly now that the UK has left, and how meeting public expectations will continue to be a struggle for the accounting profession given the many problems ahead. The book encourages a deeper awareness of the challenges faced by those that monitor and certify the financial statements of the world’s largest public companies and contributes to the general understanding of this controversial industry. It will serve as a useful guide to the recent EU audit reforms, not only for academics, and research students but also to regulators, policymakers, standard setters, industry professionals, and business executives worldwide.

Breaking the Barrier - On the Use of Joint Audits in the Internal Audit Profession

Breaking the Barrier - On the Use of Joint Audits in the Internal Audit Profession
Author: Joel Behrend
Publisher:
Total Pages: 53
Release: 2019
Genre:
ISBN:

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With the growing importance of internal auditing, academics and practitioners emphasize the importance of an adequate and adaptable staffing approach of the function. Since internal audit resources are considered a crucial component of internal audit quality, we investigate the circumstances that cause internal auditors to perform audits together with functional experts from within or outside of the organization. These joint audits serve as ad hoc resource augmentations and represent a viable alternative to additional staff purchases or even a full outsourcing of the internal audit function (IAF).Using survey data from three national chapters of the Institute of Internal Auditors, we consider three IAF dimensions (structure and resources, activities and processes, environmental factors) associated with resource augmentations. Our findings provide evidence that internal auditors engage in joint audits when the IAF is comparatively small and competent, and when internal audit focus lies on risk and strategyrelated tasks. Our findings further suggest that decentralizing the internal audit department provides incentives for joint audits.

Internal Audit Quality

Internal Audit Quality
Author: Sally-Anne Pitt
Publisher: John Wiley & Sons
Total Pages: 405
Release: 2014-09-29
Genre: Business & Economics
ISBN: 1118715519

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Deliver increased value by embedding quality into internal audit activities Internal Audit Quality: Developing a Quality Assurance and Improvement Program is a comprehensive and authoritative guide to better practice internal auditing. Written by a global expert in audit quality, this guide is the first to provide complete coverage of the elements that comprise an effective internal audit quality assurance and improvement program. Readers will find practical solutions for monitoring and measuring internal audit performance drawn from The IIA's International Standards for the Professional Practice of Internal Auditing, and complemented by advice and case studies from leading audit practitioners from five different continents. Major corporate and financial collapses over the past decade have challenged the value of internal audit. With an increased focus on internal audit's role in good governance, management is increasingly demanding that internal audit provides assurance of the quality of its own activities. The IIA standards provide a framework for audit quality in the form of mandatory guidance . Recent research indicates that the majority of internal audit functions do not fully comply with the standards and, as a result, are not servicing the needs of their organizations as well as they might. Internal Audit Quality offers a roadmap to internal audit quality, providing readers the guidance they need to: Embed quality into all elements of internal audit from strategic and operational planning down to day-to-day tasks Create well-defined internal audit programs and procedures Independently self-assess internal audit quality and performance Conform with the IIA standards and better practice Provide assurance over internal audit efficiency and effectiveness Deliver value by meeting stakeholder expectations As a key component of good governance, internal audit is on the rise. The days of retrospective, compliance-focused auditing is a thing of the past. Organizations expect more of internal audit, and many internal audit activities are accepting the challenge. Rather than relying on audit supervision and external assessments, modern auditors are embedding quality into audit activities to create effective programs. For the auditor looking to distinguish themselves as leading edge, Internal Audit Quality provides the guidance that enables the right work, at the right time, in the right way.