• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.717-725
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• 2021

The study answers the awareness of taxpayers, tax authority services, tax socialization, tax collection, and account representative's controlling (monitoring) for compliance of the corporate Taxpayer. The study also examines the moderating effect of the tax audit to control the corporate Taxpayer's compliance. In this study, the method of non-probability sampling was used. The research data was gathered by handing out questionnaires at the Medan Kota Tax Office in Indonesia. The SEM method was used for data analysis through Lisrel 8.8 program. The findings of the study concluded that tax collection has a significant positive effect on corporate taxpayer's compliance and Tax audit moderates the relation between tax authority services and the account representative's controlling (monitoring) with corporate taxpayers' compliance. Also, tax socialization and account representative's controlling (monitoring) have a positive effect on the corporate taxpayer's compliance. In contrast, variables of taxpayer's awareness and tax authority services have a negative impact. Furthermore, tax audit does not moderate the relation between taxpayer awareness, tax socialization, and tax collection with the corporate taxpayer's compliance at Medan Kota Tax Office Indonesia. The findings suggest the Indonesian policymakers and tax authorities must create corporate legislation to handle compliance by leveraging the loopholes in tax legislation law and the tax audit system.

• The Journal of Asian Finance, Economics and Business
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• 제7권12호
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• pp.445-453
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• 2020

Independence is a factor which has a significant impact on auditing quality, especially in the recent times where the marketplace is increasingly demanding transparency. The independence of auditors is assessed based on the main criteria such as the reliability of the audit opinions, the accuracy, truthfulness of financial reports, and the objectivity in the opinions of the auditor. The study investigates the effects of non-audit services (NAS) on auditor independence in emerging economies such as Vietnam. Non-audit services include taxation services, management advisory services and outsourcing internal audit services. Based on previously relevant researches, the authors develop hypotheses and a regression model about non-audit services (independent variables) and audit independence (dependent variable). The research collects data by 5-scale Likert questionnaire. The findings indicate the relationship between NAS and auditor independence. Specifically, the results reveal two main factors that have influence on auditor independence, namely, taxation services and management advisory services. The results of our research can be considered as new findings and can be compared to previous researches in Vietnam, which establishes a new viewpoint about the relationship between the NAS and the independence of the auditor. This result can be implemented for countries or jurisdictions which are similar to Vietnam.

• The Journal of Asian Finance, Economics and Business
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• 제8권2호
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• pp.143-150
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• 2021

This study investigates and analyzes the difference in Indonesian banks' earnings quality in the pre-audit and post-audit period. This study also investigates the difference in audit quality done by public accounting firms. This study employs time series data taken from the unaudited and audited financial statements of banks listed on the Indonesia Stock Exchange in 2012-2016. Sample selection is made by using a purposive sampling method. The population of this study is 43 banks, and after checking the data for validity and reliability, the final sample size was 26 banks. Audit quality is operationalized with the size of the auditor. Earnings quality is proxied by accruals calculated using the Beaver and Engel (1996) model. The data analysis method used in this study is the paired-sample t-test and chow test. This study shows that there is no difference in earnings quality in the pre-audit and post-audit period. This study also reveals no difference in audit quality between the big four and non-big four auditors. These findings mean that independent auditors do not play a useful role in increasing the reliability of accounting information presented by management to stakeholders. Besides, this study's results do not verify the agency theory regarding auditors' role to minimize opportunistic management behavior in preparing financial statements.

• The Journal of Asian Finance, Economics and Business
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• 제8권2호
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• pp.243-253
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• 2021

This study aims to examine (1) the association between the chief executive officer tenure and audit quality, (2) the relationship between chief executive officer duality and audit quality, (3) the association between board independence and audit quality, (4) the relationship between board size and audit quality, and (5) the role of controlling variables (client size, leverage debt, and business complexity) in controlling these relationships. The research sample includes 325 financial reports from manufacturing firms listed in Amman Stock exchange over the 2014-2018 period. The study relationships are tested by using logistic regression. The results revealed a negative relationship, but not significant between CEO tenure and independent directors with audit quality. In addition, the results showed there is a negative effect of CEO duality on audit quality; also the results revealed that there is a statistically significant effect on the board of directors (board size) on the AQ. In general, the coefficient estimates of controlling variables show that client size and leverage debt positively affect audit quality, and on the contrary, business complexity has an insignificant positive relationship with audit quality. The summary of the study findings play an active role to external auditor opinion on business practice in towered the corporate governance system.

• 한국항해항만학회:학술대회논문집
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• 한국항해항만학회 2019년도 춘계학술대회
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• pp.242-243
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• 2019

IMO는 2005년 자발적 회원국 감사제도(VIMSAS)를 도입하여 총 67개 회원국에 대한 감사를 시행하였으며, 2016년 강제화(IMSAS) 하였다. 현재 174개 회원국을 대상으로 매년 25개국씩 협약이행 의무에 대한 감사를 7년 주기로 시행하고 있으며, 우리나라는 2020년 7월 수감 받을 예정이다. 이에 2020년 우리나라 감사에 대비하여 회원국 감사 지적사항을 최소화하고, IMO 협약 이행 및 시행에 대한 모범사례를 제시하기 위해 철저한 사전대비 필요한 시점이다. 본 논문에서는 2016년 강제화 된 IMSAS 감사결과를 대상으로 주요 발견사항 및 관찰사항을 분석하고, 타 회원국 감사 분석결과를 기반으로 국내 감사 종합전략을 제시하였다.

• The Journal of Asian Finance, Economics and Business
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• 제8권5호
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• pp.151-156
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• 2021

This paper empirically examines the relationship between one of the major corporate governance attributes; family ownership and the audit committee activity across a sample of 430 publicly traded firms on the Saudi Stock Exchange (Tadawul) for the period 2012-2019. Using the Pooled OLS regression, this study finds that family ownership is negatively associated with audit committee activity. This study reported that family ownership is negatively associated with audit committee activity, giving support to the convergence-of-interest hypothesis. Therefore, the existence of family ownership as a monitoring corporate governance mechanism substitutes the audit committee activity as another monitoring mechanism. This study provides empirical evidence on the associations of two internal corporate governance mechanisms, namely; family ownership and audit committee activity in the Saudi context where there is a paucity of research in this area. The findings of this study provide a new understanding regarding the extent to which family ownership impacts the activity of audit committees in manufacturing companies. Similarly, the companies' management, external auditors, bankers, and companies would also benefit from understanding the influential factors of the audit committee activities.

• The Journal of Asian Finance, Economics and Business
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• 제8권2호
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• pp.223-230
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• 2021

The concept of Shariah-based internal audit has received increasing attention from researchers in recent times especially since Islamic financial institutions have been developing in several Asian countries like Bangladesh. To avoid financial irregularities and to maintain Shariah-based financial transactions, an effective Shariah-based internal audit system is extremely important for Islamic financial institutions such as Islamic banks. Hence, the objective of this study is to determine the factors that influence the effectiveness of the Shariah-based audit system. Study data has been gathered from Shariah auditors, members of the Shariah board and audit committee of six private Islamic banks in Dhaka, Bangladesh. A total of 210 survey questionnaires were sent and finally 136 responses were retained, indicating a final sample size of n=136, with a survey feedback rate of 65%. The study adopted a quantitative measure and collected only primary data, followed by convenience sampling. SPSS has been used to run necessary statistical interpretation. Results reveal that auditor's work autonomy, level of competency, and work performance significantly impact the Shariah-based internal audit effectiveness. The study findings can be adopted as guidelines to improve the overall effectiveness of the Shariah-based internal audit system in Islamic financial institutions.

• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.797-808
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• 2021

This study examines the interaction between internal auditors' personality traits and the internal audit function effectiveness. It also investigates the effect of such interacted variables on financial reporting quality. This study employed a questionnaire survey to collect data from 193 internal auditors of Jordanian companies listed on the Amman Stock Exchange. The study model is validated and tested using the partial least squares structural equation modelling. The results reveal that all the examined personality traits of internal auditors significantly impact internal audit function effectiveness except for the extraversion trait. The results also show that personality traits have indirect effects on financial reporting quality via internal audit function effectiveness. These results suggest that internal auditors with high scores on openness to experience, emotional stability, and conscientiousness traits can be among the most significant contributors to the internal audit function effectiveness. The results also suggest that internal auditors' personality traits can be regarded as an internal audit function intangible resource that enhances effectiveness. The study's findings might be of interest to many different parties interested in enhancing internal audit function effectiveness and boosting the financial reporting quality, such as external and internal auditors, auditees, human resource departments, and Chief Internal Audit Executives.

• The Journal of Asian Finance, Economics and Business
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• 제7권4호
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• pp.41-50
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• 2020

The paper aims to investigate auditors, auditing firms and other external factors that affect quality of information technology audit in Vietnam. We conducted 2 types of data collections including direct and on survey. For direct survey, we sent directly to auditors at the training classes organized by State Securities Exchanges Commission. An online survey was established and Google doc link was provided to the Big4 and non-Big4 auditors. We received 138 survey responses in that 90 auditors came from Big4 and 48 auditors from non-Big4 firms. The data are analyzed using a factor analysis and compare means approaches to illustrate the potential IT audit quality factors and identify differences between two groups of auditors. The results show that independence and accounting knowledge and audit skills are the most important factors. And since external auditors perform many assurance services, the independence is critical. The result also shows that the auditors need to have enough competent and professional skills when conducting an audit, especially within an IT environment that requires high quality. The findings suggest a similar pattern of two groups in the context of Vietnam and some factors of auditors and auditing firms appear to have a statistically significant impact on quality of IT audit.

• 아태비즈니스연구
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• 제11권3호
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• pp.123-136
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• 2020

Purpose - This study is to verify the impact of the documentation of key audit matters on the value relevance of accounting information in accordance with the revised accounting audit standards in 2017. Investors will be able to identify the company's significant financial risks through key audit matters and use them to make investment decisions. Design/methodology/approach - From 2011 to 2019, the final sample is 290, based on the December settlement of accounts listed on the securities market. Ohlson (1995) was used to verify the incremental link between net income and the book value as a determinant of corporate value. Findings - First, the key audit matters in the financial industry was found to have a negative (-) effect that was significant to the value relevance of accounting Information. In addition, the value of the interaction between the key audit matters and the net income is a significant (+) relationship with the share price and the value of the interaction between the key audit matters and the book value is a significant (-) relationship with the share price. This means that the key audit matters is the determining factor of corporate value, positively reflects the accounting information in net income and negatively reflects the accounting information in book value. Second, among the key audit matters, the fair value assessment of financial instruments and the adequacy of premiums reserve have a significant impact on the value relevance of accounting information. Research implications or Originality - The results of this study suggest that investors recognize key audit matters as information about the company's major financial risks and reflect them differently in the value relevance of accounting information.