................................................................................3 Problem Statement............................................................................................ ......4 Research Questions: .................................................................................. .........4 Hypothesis:..........................................................................................................4 Objectives............................................................................................................... .5 Significance of Study............................................................................... ................5 Literature Review.................................................................................................... ....6 Definition of Internal Audit...................................................................................6 Role of the Internal Auditor in governance ..........................................................7 Methodology................................................................................................... ............8 Research Design............................................................................................. ......8 Population............................................................................................................8 Sampling and Sampling Technique.......................................................................8 Data Collection...
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...strictly supervises the different national economic activities; as a result, the credibility of the auditing system plays a important role. Chinese government as well as some firms seek reliable and independent internal audit services. This paper will examine some factors which may cause lack of independence in Chinese internal audit systems, the difference between the internal auditing in China and in western countries. Based on interviews and questionnaires, suggestions are made for future improvement on the internal audit system in China. Key words: internal auditing, audit independence I INTRODUCTION The globalization of economy, complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever-increasing attention to internal controls and internal auditing. (Karagiorgos et al., 2009) The role of internal auditing is also evolving as reflected in the following definition ‘an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control as well as governance processes.’(IIA, 1999) In China, internal audit is defined as an ‘objective, independent monitoring and evaluation in an organization, and it will accomplish the goals of the organizations through examining and evaluating the appropriateness, legitimacy as well...
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...Review of Related Literature Hazard Analysis Critical Control Point System or HACCP is a system of food safety control based on a systematic approach to the identification and assessment of hazard associated with food operations and the definition of means for their control. As defined, because of its systematic approach it becomes increasingly essential as an effective means of ensuring food safety. In a study conducted by Bryan (1998), this systematic approach is regarded as proactive and trial and it aims to prevent problems. Further, the study showed that these can be achieved by responsive to address safety and quality control by integrating hygienic practice and start embracing HACCP principles as a primary means to achieve food safety and invest in plant sanitation and maintenance. In business according to Sheward (2006), the provision of safe food to airline passengers is a multi-billion dollar industry worldwide as recognized by the business sector worldwide in Food Safety in the business aviation environment. Moreover, in a separate study by the World Health Organization WHO (2007), HACCP has grown tremendously to become the accepted method for the safety assurance stemmed from the growing concern about food safety from consumers, health authorities, and food industry worldwide as regards to its application. Further, its importance in the prevention of food-borne diseases for over 20 years played and essential role in its developmental expansion by which the food...
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...CHAPTER 1 INTRODUCTION TO PROFESSIONAL RESEARCH Discussion Questions 1. Research in general involves the investigation and analysis of an issue in question. The researcher usually applies reasonable and reflective thinking to develop an answer to the issue or problem at hand. Research requires a clear definition of the problem, using professional databases to search the authoritative literature, reviewing and evaluating the data collected, drawing conclusions and communicating your results. 2. Accounting, auditing, or tax research involve a systematic and logical investigation of an issue or problem using the accountant’s professional judgment. Furthermore, accountants approach this problem using critical-thinking skills to obtain and document evidence underlying a conclusion relating to an issue or problem currently confronting the accountant or auditor. 3. Accounting, auditing, or tax research are necessary in order to determine the proper recording, classification, and disclosure of economic events; to determine compliance with authoritative pronouncements; or to determine the preferability of alternative accounting procedures. 4. The objective of accounting, auditing, or tax research is a systematic investigation of an issue or problem utilizing the researcher’s professional judgment to arrive at appropriate and timely conclusions regarding the issues at hand. 5. Research plays an important role within an accounting firm or department. It is critical...
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...Current Issues in Auditing Volume 9, Issue 2 2015 Pages P36–P41 American Accounting Association DOI: 10.2308/ciia-51279 PRACTITIONER SUMMARY How Client Identification and Client Commitment Uniquely Influence Auditor Objectivity David N. Herda and James J. Lavelle SUMMARY: This article summarizes our recent study, ‘‘Client Identification and Client Commitment in a Privately Held Client Setting: Unique Constructs with Opposite Effects on Auditor Objectivity’’ (Herda and Lavelle 2015), which examines how individual auditors’ identification with, and commitment to, privately held audit clients affects their objectivity. Based on a survey of 102 external auditors, we find that client identification is distinct from client commitment. This distinction is important because identification as a construct is easily and often confused with commitment, and the terms are often used interchangeably. Client identification entails auditors perceiving themselves as one with the client. In contrast, client commitment reflects a responsibility for and dedication to the client, but the auditor and client remain separate psychological entities. Consistent with prior research, we find that client identification impairs auditor objectivity. Conversely, we find that client commitment enhances auditor objectivity. Keywords: organizational identification; organizational commitment; social identity theory; social exchange theory; auditor objectivity. INTRODUCTION This paper...
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... Australian School of Business, University of New South Wales, Sydney 2052, Australia b a b s t r a c t We address the following overarching questions: What kind of accountability framework could regulators use to (a) motivate auditors to improve audit quality, and (b) evaluate how well auditors have carried out their duties? We draw on research in accounting, economics, psychology, and neuroscience to critique the accountabilities, incentives, and learning opportunities embedded in auditors’ extant regulatory environment. We first establish that forward-looking estimates are the basis for most financial statement information and that some of these estimates are highly uncertain, which increases the challenges faced by auditors. We propose an accountability framework with two dimensions: rewards versus penalties and processes versus outcomes. We show that auditors’ current regulatory accountabilities generally are in the form of penalties rather than rewards and primarily depend on audit outcomes rather than attributes of auditors’ judgment processes. We provide evidence from a range of disciplines that questions the suitability of the present system for improving the quality of auditors’ judgments and the quality of evaluations of...
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...LONG-TERM AUDITOR - CLIENT RELATIONSHIP ON AUDIT QUALITY IN SMEs INTRODUCTION 1.1 BACKGROUND TO THE STUDY Small and medium-sized enterprises (SMEs) play a vital role in the economy of any country, and the impact of their growth is experienced positively across the overall economy. As stated by the European Commission report, Small and Medium-sized Entities (SMEs) represent 99% of all the entities operating in Europe, and have been important for both the social and economic developments in Europe. In Europe, micro-enterprises within the SMEs are considered to be the real giants of European economy, and are the ones with fewer than 10 employees. As per the stats of Eurostat, 67% of the privatesector jobs in Europe are created by SMEs, which represents a major share in the overall economy of a country (European Commission, 2008). Most SMEs encounter limited financial as well as non-financial resources. They depend upon the creditors like banks and other financial institutions, or private equity. In this regard, banks have become one of the major sources for SMEs fulfilling their financial requirements. However, banks are less likely to provide loans without any reasonable assurance of creditability of the firms. Banks generally rely on the financial information of the firms. They do prefer credible audited financial statements by independent auditors as a matter of assurance. In other words, most banks view auditing as a guarantee for the quality of information disclosed in companies...
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...International Journal of Accounting & Information Management The role of corporate governance in convergence with IFRS: evidence from China Yu Chen Zabihollah Rezaee Downloaded by UNIVERSITI MALAYSIA SABAH At 05:16 06 October 2015 (PT) Article information: To cite this document: Yu Chen Zabihollah Rezaee, (2012),"The role of corporate governance in convergence with IFRS: evidence from China", International Journal of Accounting & Information Management, Vol. 20 Iss 2 pp. 171 - 188 Permanent link to this document: http://dx.doi.org/10.1108/18347641211218470 Downloaded on: 06 October 2015, At: 05:16 (PT) References: this document contains references to 50 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 1824 times since 2012* Users who downloaded this article also downloaded: Songlan Peng, Kathryn Bewley, (2010),"Adaptability to fair value accounting in an emerging economy: A case study of China's IFRS convergence", Accounting, Auditing & Accountability Journal, Vol. 23 Iss 8 pp. 982-1011 http://dx.doi.org/10.1108/09513571011092529 Randy Moser, (2014),"IFRS and convergence in China and the USA", Journal of Technology Management in China, Vol. 9 Iss 1 pp. 56-66 http://dx.doi.org/10.1108/JTMC-12-2013-0042 Ronita D. Singh, Susan Newberry, (2008),"Corporate governance and International Financial Reporting Standard (IFRS): The case of developing countries", Research in Accounting in...
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...EVALUATING QUALITY MANAGEMENT IN UNIVERSITY DEPARTMENTS Abstract Purpose Despite the abundance of research on quality management there is no universal consensus on how best to measure quality in higher education. This paper undertakes a critical evaluation of the different methods used to assess the quality of provision in higher education departments in the UK. Methodology Drawing on relevant literature, the authors develop a quality audit tool that incorporates all key components of effective quality management programmes and apply it to a single UK case study department. Findings The findings suggest that the potential for quality enhancement is determined by the manner in which the evaluation is conducted and subsequent change implemented. Perhaps unsurprisingly there is currently an emphasis on internally derived quantitative data and there is potential to enhance the management of the quality of HE programmes. Research Limitations/Implications This article has concentrated on the development of the quality audit tool and tested this within one UK department. Work is underway to now test the tool on an international basis. Paper type Research paper Key Words quality, higher education EVALUATING QUALITY MANAGEMENT IN UNIVERSITY DEPARTMENTS Introduction In many countries and many cultures, the issue of quality management has been firmly on the agenda of higher education institutions for quite some time. Higher education for the masses...
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...Discuss the Need for Outsourcing the Internal Audit Function in A Company Traditional internal audit function is defined as an independent appraisal activity to review internal control activities in companies. Dezoort (2001) implies that with the extension of business activities, the internal audit function has evolved from the traditional supervision to value adding which includes a wider scale of audit-related work so as to maximize the value of a business company. This focus on adding value to the corporation through a variety of internal audit services has raised concerns about the ability of in-house auditors to perform the wider-scale audit function in a more professional and cost-saving manner (Chapman and Anderson, 2002). Due to fierce market competitions and overcapacities, company managements set out to downsize company staff and put the focus on its profit-producing business, tending to outsource (referred to the practice that one accounting firm provides audit-related services for a business organization) internal audit function to engage external specialists to present a highly cost-saving and professional performance. Although some evidence suggests that there are many limitations of outsourced activities, this essay asserts that outsourced internal audit function plays an essential role in the development process of a corporation and there is a need to outsource that function. In consequence, these positive effects on companies will be described principally...
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...PBSA 811 PEC – Individual Assignment MANUSCRIPT REVIEW FORM Student: 25807609 Name: Ngwanasegolo Walter Solomon MakgaiLecturer’ s name: Professor Pieter BuysModule name: Financial Reporting PBSA811Title of manuscript: Independent Reviews: Perceptions of Chartered Accountants (South Africa) Journal: Southern African Journal of Accountability and Auditing Research Vol. 12: 2011 (25-36) | | 1. Are the Title and Abstract Appropriate? Explain On the one hand, the paper title does not seem to fully capture the essence of the paper. The meaning is ambiguous in that, it might either mean the perceptions of chartered accountants study is conducted by an independent review, or, it might suggest that the study is about how Chartered accountants perceive independent reviews. On the other hand, the authors (Odendaal and De Jager, 2011) have rightly specified that the study applies to Chattered Accountants in South Africa. The research findings are based on this geographical location. But while the title could have been more comprehensive, the abstract seems sufficient in that it summarises the study objective as to “determine the perceptions of Chartered Accountants (South Africa) regarding independent reviews” and goes on to report the process of data collection (questionnaire) as well as the summarised findings of the study. Recommendations are also outlined in the abstract. The abstract therefore provides a concise summary of what the reader should expect in the entire...
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...Auditor Independence and Non-Audit Services: A Literature Review Vivien Beattie University of Stirling and Stella Fearnley University of Portsmouth TABLE OF CONTENTS Page List of tables and list of figures About the authors v vi List of abbreviations vii Executive summary ix Part 1 Auditor independence 1 Introduction 1 1.1 1 1.2 The ‘problem’ of non-audit services (NAS) 1 1.3 The current UK regulatory and professional environment 2 1.4 Motivation for this study 3 1.5 2 The role of audit in regulating capital markets Structure of report 3 Auditor independence 4 2.1 Introduction 4 2.2 Definitions of auditor independence 4 2.3 Economic models of auditor independence not including NAS 5 2.4 Models of auditor pricing and independence in the presence of NAS 5 2.5 2.6 Economic power models of auditor independence Moral psychology, ethical reasoning and independence 8 8 2.7 Broader based studies into auditor decision making 9 2.8 Summary and comments 11 Part 2 Current regulatory frameworks 3 Auditor independence and NAS: analysis of current regulatory frameworks 3.1 Introduction 13 13 3.2 Regulation of auditor independence 13 3.3 Independence in professional and legal regulatory frameworks 13 3.4 3.5 Independence and NAS Overall economic dependence 19 22 3.6 Small companies 22 ...
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...completion of a team effectiveness audit. The audit asked members of the Learning and Development team/workstream to answer seven questions on a 5 point Likert Scale of 1 being strongly disagree to 5 being strongly agree. An introduction to the team selected, the 5 point Likert Scale and the results of the audit can be found in appendix A. As a team we reviewed the results of the audit. The statement that received the strongest consensus of agreement of 4.6 was “we have a strong team identity – we know what the team is here to achieve and we know who is in the team.” No one was surprised that this first question had been...
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...Accreditation Audit: AFT2 task 2 1 Accreditation Audit: AFT2 Task 2 Confidential—For internal use only to support performance improvement activities. This information is provided within the confidentiality protections of state statute. It is not to be distributed outside the quality assurance, performance improvement, peer review process. Accreditation Audit: AFT2 task 2 2 Analysis of Key Components RCA: Child Abduction Please note that the root cause analysis and action plan must show evidence of an analysis within the key components as outlined on the root cause analysis matrix for the specific type of event. An area on the matrix that may not have an identified process breakdown should still be summarized to determine that the component was evaluated. Brief description of event Briefly summarize the circumstances surrounding the occurrence including the patient outcome (e.g., death, loss of function). A 3-‐year-‐old female pediatric patient...
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...18001 standard: A literature review 5 The audit process: challenges and some propositions for improvement 6 Challenges 6 Propositions for improvement 7 Conclusion 8 Bibliography 9 Executive Summary This report is prepared to provide a brief description about the audit process of OHSAS 18001, which is a framework to effectively manage the Occupational health and safety policies including compliance with the legislation that applies to organization’s activities and identified hazards. As defined the objective of the standard is to have a clear management structure with defined authority and responsibility, clear objectives for improvement, with measurable results and a structured approach to risk assessment (Montero, Araque, and Rey, 2009).This also includes the monitoring of health and safety management failures, auditing of performance and review of policies and objectives according to the standard. In my previous organization in Bangladesh, we have started working towards qualifying for the OHSAS 18001 certificate and I was responsible as an internal auditor for the process. In this process, I also had the opportunity to work with the external auditor (certification audit). In the auditing process, I have monitored health and safety management failures, auditing of performance and managed to review of policies and objectives as suggested by the external auditor. In this report, some brief discussion has been made about the literature review about the framework...
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