• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.867-875
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• 2020

Quality internal audit (IA) plays a crucial role in accountability, transparency and preserving public properties. This paper gives a brief background of the IA system in Yemen and examines its impact with regards to financial performance in Yemeni commercial banks based on five factors: (i) independence of IAs, (ii) adherence to IA standards, (iii) governance principles implementation, (iv) size of the IA, and (v) frequency of internal audits committees' meetings. The primary data for the study were collected through a questionnaire prepared for this purpose. Fifty questionnaires were distributed out of which forty-two were retrieved and valid in the analysis process. For the empirical analysis, descriptive analysis and T-test were used for verification of the research hypotheses. Results revealed that sticking to standards internal audit, internal auditors' independence and quality governance have significant impact on banks' financial performance, while the size of internal audits committees, as well as their meeting, frequently has insignificant positive impact on banks' performance. Moreover, the country results show that the use of automated internal audit in banks has an impact on improving financial performance. This article provides avenues for further studies, mainly in developing countries, including Yemen, in quality internal audit and financial performance.

• The Journal of the Korea Contents Association
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• v.15 no.7
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• pp.477-488
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• 2015

This study investigates the association between non-audit services and audit quality, using a sample of firms in which audit services and non-audit services are provided by a same audit firm. This study extends previous studies by separating auditors into Big4 and Non-Big4 audit firms as each group may have different incentives to impair their independence. According to the empirical results, audit quality, proxied by absolute value of discretionary accruals has significant negative association with non-audit service fee for Non-Big4 audit firms, but not for Big4 audit firms, suggesting that Non-Big4 audit firms may impair their independence with increased non-audit service fees. Non-Big4 audit firms are known to be relatively small and local firms that might be highly economically dependent upon a specific client firm whereas Big4 audit firms are not. This results may be of interest to regulators and capital market investors and standard setters who concern a recent trend of increasing non-audit services that are provided by an audit firm which also provides audit service at the same time.

• The Journal of the Korea Contents Association
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• v.20 no.1
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• pp.427-436
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• 2020

Prior literature shows that audit market concentration which is measured as the Herfindahl index is negatively associated with audit quality in Korea. This study analyzes whether characteristics of an audit committee have effect on the relation between audit market concentration and audit quality. This is because it is expected that effective audit committees restrict the tendency of dominant auditors to neglect their duties. The empirical results of this study using the sample firms having an audit committee listed in the Korea Composite Stock Price Index market for 2006-2015 are summarized as follows. First, consistent with prior research, audit quality decreases as audit market concentration increases. However, audit quality is not lowered as audit market concentration rises only when the audit committee has financial expertise among representative characteristics of an audit committee - independence, financial expertise, and activity. This research finds contributions in that it explores the effect of audit committee characteristics on audit quality in consideration of audit market concentration and utilizes the differential types of the characteristics of an audit committee at the same time.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.51-60
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• 2020

The paper examines the characteristics and causes of the expectation gap of audit and assurance services. The paper has conducted three surveys with three target groups. In the first survey, participants are auditors, users of audit reports are subject in the second survey and in the third survey, and students major in auditing are selected. The content of the survey aims to find out the differences in perception of the survey participants on two issues: (i) responsibilities of auditors for detection frauds, errors, protection of the enterprise's assets and financial scandals, and (ii) the role of audit and auditors in making investment decisions and investor's belief. The research carried out survey from March to September 2019 with 165 responds. The collected data was processed by statistical software SPSS, version 23, and Mann-Whitney U test was used to analyze the results of the audit expectation gap between the auditor group and the users of audit report group and between the student group and users of audit report group. The results showed that there exists an expectation gap in the responsibility of auditors for detection of all frauds, errors and protection enterprise's assets. Recommendations include strengthening audit standards, penalizing bad practices and ensuring auditor's independence.

• Journal of Distribution Science
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• v.22 no.4
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• pp.59-68
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• 2024

Purpose: The function of internal audit is to help achieve company goals and targets by minimizing the impact of business risks. The distribution of internal audit activities in carrying out control and supervision covers all aspects or activities at all levels of management. The aim of the research is to determine the distribution of risk-based internal audit effectiveness assessments in companies. Data and Research Design Methodology: Researchers examined research trends regarding things that could influence the distribution of the effectiveness of the internal audit function from 2007 to 2023.This research used a systematic literature review (SLR) research method. This research used 23 papers sourced from the Scopus database. Results: The distribution of the effectiveness of audit services provided by internal auditors is more influenced by the personal characteristics of internal auditors and has little to do with the leadership of the chief internal auditor, technology, and risk management. Conclusion: The distribution of monitoring services provided by internal auditors covers all levels of departments or divisions of the organization. The assessment of internal audit effectiveness is more influenced by the auditor's personal attributes such as independence, competence, and management support.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.627-637
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• 2021

This research extends the literature on the effect of board characteristics and ownership structure on audit fees; these factors affect the firm's agency costs and how the auditor assesses various risks, hence the audit efforts and fees. The paper introduces political connections as a determinant of audit fees for the first time in Jordan, where the political connection is prevalent and affects decision making on the Jordanian boards. The sample consists of 109 manufacturing and service firms listed on the Amman Stock Exchange (ASE) over the years 2012-2019. Data is obtained from the ASE and the company's annual reports. Board characteristics are measured by board size, independence, leadership duality, meetings frequency, political connections, and audit committee. Ownership structure was measured by concentration, foreign ownership, and Institutional ownership. The study hypotheses were tested by using Generalized Least Squares regression. The Findings showed that larger boards, politically connected firms, and firms with leadership duality are more likely to pay higher fees. Besides, Firms with greater foreign ownership pay less fees, whereas the rest of the variables are insignificant. Results suggest that political connections play a major role in determining audit fees; this provides a recommendation to policymakers in Jordan to reconsider regulations regarding political connections.

• The Journal of Economics, Marketing and Management
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• v.3 no.2
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• pp.1-8
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• 2015

In this paper, the effects of auditor change on audit quality in companies accepted in Tehran stock exchange placed review and we assessed the presence or absence of a significant correlation between them. to assess the quality of data auditing and tax distortions, falsification of accounting estimates, distortion of rules, distortion caused by mistakes in applying accounting policies and other distortions are used as the dependent variable Is. the sample group consisted of 56 companies as experimental group and a control group of 56 other companies a 4-year period, during the years 2011 to 2014 were studied. data needed for research discovery success ratio distortion before and after the change of auditor. To test the research hypotheses paired comparison method is used.

• Journal of the Korean Mathematical Society
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• v.51 no.4
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• pp.735-749
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• 2014

This paper studies the asymptotic behavior of the finite-time ruin probability in a jump-diffusion risk model with constant force of interest, upper tail asymptotically independent claims and a general counting arrival process. Particularly, if the claim inter-arrival times follow a certain dependence structure, the obtained result also covers the case of the infinite-time ruin probability.

• The KIPS Transactions:PartD
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• v.9D no.3
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• pp.467-476
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• 2002

Importance of Information Systems in banking industry is higher than that of other industries. This study, based on a case study of a bank, analyzes the current status of information systems (IS) audit and proposes future directions in the area of IS control and audit. Major problems identified in the study include deficiency of IS and audit process, and inability of audit function to improve IS process. In addition, deficiency of staffing level and investment in R&D, and lack of competency and independence of audit staff are identified. In order to solve the problems, the following directions were proposed proper division of functions among audit related departments, utilization of outside audit function, and adoption of CSA, CAAT, career path program, risk-based audit approach. The results of the studs will provide valuable implications to banks and companies in other industries. Also the research framework employed in the study can be utilized in the future research in IS control and audit.

• Journal of Distribution Science
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• v.11 no.6
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• pp.5-11
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• 2013

Purpose - The main question in this study is whether there is any relationship between corporate governance variables and earnings quality. The size of the board and audit committee, the number of stockholding managers and non-executive directors, and management quality are considered as independent corporate governance variables in the hypotheses. Research design, data, and methodology - Earnings quality is used as the dependent variable. Input from the abovementioned variables are drawn from 94 listed companies in the Tehran Stock Exchange for the period between 2006 and 2010. Results - This study examines corporate governance aspects such as the size of the board of directors, the number of shares held by the board, the board's independence, and the percentage of non-executive directors. The results show that establishing an audit committee has a significant role in ensuring higher quality reported earnings. Conclusions - The regression statistics output reveals a meaningful relationship between earnings quality and the size of the board of directors, the number of non-executive directors, and the size of the audit committee. This result indicates that improving earnings quality requires that the size of the board of directors be taken into account.