• Management & Information Systems Review
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• v.7
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• pp.141-168
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• 2001

The causes that the transparency of Korean accounting information was rated low, a short supply of faithful and transparent accounting information from the limitation of external audit environment must be pointed out. Purpose of the external audit is a expression of the auditors about that financial statements an enterprise made public were appropriately drew up in accordance with the corporate accounting principles from important point of view. Analysis of the audit opinion and so fourth according to 6,541 individual audit reports and introduced to the bill securities forward committee as a subject of external audit according to the raw of corporation external audit show that considerable change to the contents of audit report. This show as it is that uncertainty of future that is now being faced by our enterprise, because corporation which present audit reports since 1997 because of enterprise dishonor and contents of existence probability as a continued enterprise following to general economic crisis after 1998 occupy important position in special matters of audit report. Also, increase in special matters is due to application of the corporate accounting principles revised on December 11, 1998. In 1999, audit opinion under limitation(limitation, incongruity and rejecting opinion) increased greatly according to existence doubt as a continued enterprise, and this is the consequence of strengthening audit to the continues enterprise because of limited enterprise dishonor according to the stagnancy of business activities after 1997. Now financial supervisory service put in effect electromagnetic public announcement system about a project report of listed corporation (including an audit report) keeping pace with a documentary public announcement system as first phase since 1999 and expand to the unlisted corporation from 2000. As electromagnetic public announcement of public announcement documents including audit documents of external audit subject get a duty, approach of external user to the accounting information will be easier. Fixation of this system will make deep and wide analysis to the audit opinion, and this will draw up a plan to reconsider confidence of accounting information.

• Journal of Digital Convergence
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• v.10 no.11
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• pp.11-27
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• 2012

The purpose of this study was to suggest a guideline for systematic and practical critical success factors of the External IT audit. For this purpose, an integrated conceptual model is developed considers that the service quality, and the IS(Information Systems) success with a contingency viewpoint. The model is tested using 254 data of IS projects which procured the external IT auditing service in public sector of Korea. The results of this study are as follows. First, service quality attributes of responsiveness, reliability, and tangibility have positive influence on IS implementation process quality. Second, the external IT audit quality obviously contributes to IS implementation success considering both IS implementation process quality and IS system quality. However it has positive influence on the process quality directly and the system quality indirectly.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.4
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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.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.1
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• pp.59-69
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• 2019

The auditor, an important instrument of corporate governance, ensures the transparency and accountability of the firm to the stakeholders. The objective of this paper is to explore the impact of audit characteristics on firm performance. In this study, external audit quality (BIG4), frequencies of audit committee meetings, and audit committee size are used as the proxies of audit characteristics and firm performance is measured through ROA, profit margin and EPS. A total of 503 firm years are considered as sample size from the listed manufacturing firms of Dhaka Stock Exchange (DSE) during the period of 2013 to 2017 to find out the impact of audit characteristics on firm performance. In this study, multivariate regression analysis is conducted using the pooled OLS method. Moreover, time dummy and lag model of multivariate analysis are also analyzed as robust check. The multivariate regression results find that external audit quality (BIG4) and audit committee size are significantly positively associated with firm performance. This study also finds that there is a significant negative relationship between audit committee meeting and firm performance. This study recommends that the regulatory authority and audit committee should review the frequencies of audit committee meeting to make it more effective to ensure better firm performance.

• Journal of Korean Society for Quality Management
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• v.50 no.1
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• pp.77-89
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• 2022

Purpose: In order to improve the audit quality of a company, an in-depth analysis is required to categorize the audit report in the form of a text document containing the details of the external audit. This study introduces a systematic methodology to extract keywords for each group that determines the differences between groups such as 'audit plan' and 'interim audit' using audit reports collected in the form of text documents. Methods: The first step of the proposed methodology is to preprocess the document through text mining. In the second step, the documents are classified into groups using machine learning techniques and based on this, important vocabularies that have a dominant influence on the performance of classification are extracted. In the third step, the association rules for each group's documents are found. In the last step, the final keywords for each group representing the characteristics of each group are extracted by comparing the important vocabulary for classification with the important vocabulary representing the association rules of each group. Results: This study quantitatively calculates the importance value of the vocabulary used in the audit report based on machine learning rather than the qualitative research method such as the existing literature search, expert evaluation, and Delphi technique. From the case study of this study, it was found that the extracted keywords describe the characteristics of each group well. Conclusion: This study is meaningful in that it has laid the foundation for quantitatively conducting follow-up studies related to key vocabulary in each stage of auditing.

• International Journal of Advanced Culture Technology
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• v.10 no.3
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• pp.202-209
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• 2022

This study investigates the association between corporate international diversification and audit fees and audit hours. Korean firms' overseas investment has rapidly increased in recent years and the trend of international diversification is expected to accelerate in the future. Thus, it is important to investigate how auditors respond to globally diversified firms. Our empirical findings show that internationally diversified firms incur higher audit fees and audit hours. This suggests that auditors perceive global diversification as being a higher business risk and require higher external audit fees so that they can decrease audit risk arising from inherent organizational complexity. Further, auditors expand audit procedures to collect more audit evidences, exerting increased audit effort. This study provides empirical evidences that corporate global diversification results in higher audit fees and audit hours. Auditors may refer to these results when planning their audit and determining audit fees and audit hours.

• Management & Information Systems Review
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• v.35 no.1
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• pp.189-206
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• 2016

It was required to attach the documents on the details of external audit including the number of the participants in external audit, audited parts and audit times under the Article 7-2 on the audit report to the accounting audit report from 2014 in accordance with the amendment to the Act on External Audit of Stock Companies. This study aim to calculate the audit fee based on the estimated cost of service calculation of the government contribution agencies by reflecting the implementation of the revised external audit. This study calculated the audit fee for the target company (a listed company assumed to have no internal control risks and relevant audit risks for unqualified opinion in the previous year, 100 billion won of total amount of asset, manufacturing company in the previous year and preliminary client request) by putting together four items of expenditure including employment costs, expenditure, general management expenses and profit in accordance with the calculation system of cost of service under the State Contract Act. Then, it used the data collected from the documents on the details of the revised external audit after requesting estimation on the target company with the estimated cost to Big-4 accounting firms to identify the participants and times of the accounting audit. The employment costs applied 150% of participation rate of the base price of employment costs for the academic research service cost in 2014, the expenditure used the average value of accounting firms of corporate business management analysis of the Bank of Korea (2013), the general management expenses applied 5% of the general management rate of service business under Article 7-1 of the Enforcement Rule of the Act on Contracts to which the State is a Party and the profit applied 10% of profit rate of service business under Article 7-2 of the Enforcement Rule of the Act on Contracts to which the State is a Party. Based on the calculation of the estimated costs by applying the above, the audit fee was estimated at 50,617,769won. Although the result is not the optimal audit fee, it may be used as a basic scale to compare the audit fees of companies without criteria. Also, such amendment to the Act on External Audit of Stock Companies may improve independence of auditors and transparency of the accounting system rather than previous announcing only the total audit times.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.2
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• pp.93-102
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• 2022

The goal of this study was to see how big data analytics (BDA) affected external audit procedures in the Middle East. The measurement model and structural model of this investigation were evaluated using PLS-SEM (3.3.3). The study sample members were (361) auditors who work in auditing companies in Kuwait, Saudi Arabia, the United Arab Emirates, Jordan, Bahrain, Egypt, Lebanon, and Iraq. A questionnaire was chosen to the study sample members electronically, and the study sample members were (5093) auditors who work in auditing companies in Kuwait, Saudi Arabia, the United Arab Emirates, Jordan, Bahrain, Egypt, Lebanon, and Iraq. To choose the sample, the researchers used a stratified random sampling procedure. The findings show that BDA has an impact on audit procedures at all phases of the auditing process, where it contributes to information delivery that helps auditors understand the client's internal and external environments, which in turn influences the choice to accept the audit assignment. Furthermore, by providing essential information, BDA enables auditors to simply run analytical procedures, estimate client risks, and understand and evaluate the internal control system. As a result, auditors must develop their abilities in the BDA field, as it adds to the creation of additional value for both auditors and their clients.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.5
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• pp.41-50
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• 2020

The paper investigates the factors that affect the demand for a voluntary audit of small and medium-sized enterprises (SMEs) in Vietnam. A structured questionnaire survey of 284 SMEs was employed, preceded by in-depth interviews with auditors and SMEs' managers. The research used logistic regression estimator to address econometric issues and to improve the accuracy of the regression coefficients. The results show that the degree of director's view on voluntary audit, related stakeholder, degree of recommendation, and firm size have a statistically significant positive effect on audit decisions of SMEs while degree of audit fee has a statistically significant negative effect, and degree of subjective norm does not affect. This indicated that SMEs are more likely to have an external audit if they have some typical features: it is becoming larger in terms of size, and the directors consider that the audit has a relative benefit outweighing its cost. The research results suggested that Vietnam Government should make a statutory audit of SMEs' financial statements rather than make it an option for SMEs. The auditing firms were also recommended to actively take their audit services to SMEs rather than waiting for the SMEs' managers to contact them for their services.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.8
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• pp.61-67
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• 2020

This paper examines whether the combination of risk management and audit committee functions are associated with audit report lag. Audit report lag is considered an important aspect of the financial reporting. The financial reports are the main source of information for shareholders through which they make their decisions and it assists in reducing the information asymmetry. As the internal control mechanisms substitute the external ones, the internal board committees formed by the board of directors can reduce the audit work and, consequently, reduces the audit report lag. A key committee is the risk management committee. This paper examines whether the combination of risk management and audit committee functions are associated with audit report lag. We posit that a combination of such functions in one committee refereed as audit committee affects the audit report delay. Data were obtained from 198 manufacturing companies listed on the Saudi Stock Exchange (Tadawul) for the years 2016-2018. A pooled OLS regression analysis shows that a combination of risk management and audit committee functions in a stand-alone committee named "audit committee" is associated with longer audit report lag. The outcomes suggest companies should prioritize the establishment of standalone risk management committee with activities separated from those of audit committees.