• Journal of Convergence for Information Technology
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• v.11 no.9
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• pp.75-83
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• 2021

This research is to analyze how an introduction of full-time quality control("QC") personnel system in audit firms influences on audit quality and verify how important it is to establish the quality control system for auditing quality. We measure audit quality as the level of discretionary accruals and compare the differences between audit firms with QC and without QC. In addition, we analyze the difference in audit qualities between before and after activating the full-time QC personnel system by comparing audit quality of before 2015 with that of after 2016. The results of this study are summarized as follows. First, the audit quality is higher when audit firms have QC personnel. Second, the audit quality is improved after the introduction of the full-time QC personnel system.

• Journal of Information Technology Services
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• v.15 no.1
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• pp.113-129
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• 2016

Recently, as Information System projects tend to be more complex, the importance of Information System Audit increases. In the same context, the need for the resident IS Audit also increases, which is supposed to deal with the possible risks and urgent issues by providing the appropriate support and timely coordination during IS project. Basically, for the effective IS Audit, the IS audit team members should be able to understand such a business context as work characteristics, business knowledge, goals, and culture of the organization. The audit team members should also be able to share the various knowledge of Information Technology and audit procedure with the owner of the project. Especially, for the resident audit, it is more important to fill the gaps in expertise between project owner and audit team. However, any studies on the need of common knowledge base (knowledge complementarities) in the IS audit have not been done so far. The purpose of this study is to analyze whether the knowledge complementarity based on inter-organizational communication between the project owner and audit team members makes an effect on the fidelity and performance of IS audit. In order to do this, the relationship among inter-organizational communication and knowledge complementarity, the fidelity of IS audit service, and performance of IS audit has been analyzed, using Structural Equation Model. The result shows that all the relationship is significant, which means that knowledge complementarity between the two different interest groups should be an effective factor on the fidelity and performance of IS audit. This result implies that, for better quality of IS Audit service, how to acquire the knowledge complementarity between the project owner and Audit team should be considered seriously as well as systematically in the process of IS Audit.

• Journal of Korean Society for Quality Management
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• v.50 no.4
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• pp.735-749
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• 2022

Purpose: The purpose of this study is to investigate whether the Management Discussion and Analysis (MD&A) has an impact on auditors' audit efforts. MD&A is a means of disclosure that provides information about a company from the management's perspective in financial reporting. The MD&A is a standardized format of nonfinancial information that can be useful for the stake-holders. The auditors have incentives to utilize the nonfinancial information contained in the MD&A for their decision-making. We posit that the MD&A disclosure quality is associated with the level of audit efforts. Methods: We hand-collect the disclosure data from the Financial Supervisory Service of Korea (the Korean SEC). Results: By employing two measures of audit efforts, we document evidence that the quality of MD&A is associated with both audit hours and audit fees. Conclusion: It implies that the auditors perform intensive audit work for companies with high-quality disclosure of MD&A. The study contributes to the literature by providing the first approach to examine the association between the MD&A disclosure and audit efforts.

• Journal of Korean Society for Quality Management
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• v.29 no.4
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• pp.18-37
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• 2001

On this research, recognizing that ship inspection and audit services are closely related in Improving ship safety, the importance of active quality managements of ship inspection and audit services have been notified. For this research, based on previous research results, Quality managements of ship inspection and audit services were divided into the following aspects; the source of quality managements, execution of quality managements and outcome of quality managements. The results of this study is as follows. Overall, it is clearly shown that the elements of quality managements execution such as management responsibilities, resource management., product realization, measurement and analyzation, and improvement had also acted as a mediator between the relation of quality managements source and outcome.

• Journal of the Korea Society of Computer and Information
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• v.17 no.4
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• pp.173-184
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• 2012

As a result of the compulsory of information system audit and a rise in audit demand, the quality improvement of information system audit is being emphasized. However, since the current information system audit heavily depends on the auditor's experience, skill, and subjective judgments, it incurs distrust in the objectivity and reliability of audit results from audit interest person. Furthermore, so far research activities aimed at securing the objectivity and reliability of audits have not been adequately carried out. Therefore, this paper presents a quantitative method for information system audit evaluation in order to contribute to the quality improvement of overall information system audit through securing compliance, objectivity, and reliability of information system audit. The quantitative method is largely composed of two sectors, such as evaluation areas and items, scores calculation for evaluation items, and can generally apply the information system audit standard to information system audit evaluation.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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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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• v.8 no.4
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• pp.769-776
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• 2021

The focus of this study is to investigate the effect of earnings management and audit quality on the cost of equity capital and also examines whether audit quality acts as a moderating variable for the effect of earnings management on the cost of equity capital. The population in this study are companies from the consumer goods industry sector listed on the Indonesia Stock Exchange (IDX) during the 2016-2018 period. This sector was chosen because it is a sector that is able to survive in conditions of economic decline, so it becomes a good investment opportunity in the future. The sample selection was carried out using purposive sampling technique. By using the Moderated Regression Analysis (MRA) technique, the results show that earnings management has a positive effect on the cost of equity capital. Conversely, companies with good audit quality will bear lower cost of equity capital. The moderating hypothesis test results show that audit quality moderates the effect of earnings management on the cost of equity capital. This means that, even though the company carries out earnings management, investors have more confidence in the results of audits conducted by qualified auditors so that the cost of equity capital is low.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.7
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• pp.179-185
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• 2020

This study examines the relationship between the effectiveness of an audit committee and the amount of audit fees. The sample consists of 130 manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2016-2017. Data are obtained from the IDX and company's annual reports. The effectiveness of an audit committee is measured by independent audit committee size, frequency of audit committee meetings, and expertise of the audit committee. Results show first that the size of the independent audit committee has a positive effect on audit fees. This finding suggests that an increase in the number of independent audit committee members produces a higher quality of reporting, and so they tend to choose a reputable public accountant. Second, the frequency of its meetings has positive effects on audit fees. It suggests that the more effective the supervision of the committee to improve audit quality, the higher the audit fees to be paid. However, this study fails to provide evidence that the expertise of the audit committee affects audit fees. The result of this study suggests that the audit committee tends to adopt the demand approach based on the reputation of the public accounting firm accountant firm in determining the amount of audit fees.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.4
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• pp.107-119
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• 2020

The study investigates the effect of the widened daily stock price limits on the usefulness of accounting information in Korea: 1) whether investors place a higher importance on audit quality, an indicator of the reliability of accounting information, and 2) whether there are differences in the relationships between audit quality and stock-price earning-rates two years before and after June 15, 2016. This study employs samples of two years (2013 to 2015) before the widening and two years after the widening (2016 to 2017). The samples are limited to the companies listed on the Korea Stock Exchange, accounting settled in December, collected from Fn-Guide and TS-2000 of the Korea Listed Companies Association. The results show that the positive association between audit quality and stock return was increased during the later period, compared to the preceding period. This tendency was more evident in companies with higher debt ratios and companies with lower levels of income smoothing, which is considered to have higher risks. The findings suggest that it is the first study evaluating the effect of widening daily stock price limits, made on June 15, 2015, on the usefulness of audit quality information by examining the relevance between audit quality and stock return.

• KIPS Transactions on Software and Data Engineering
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• v.8 no.5
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• pp.179-186
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• 2019

Information system audit, which provides effective diagnosis and inspection of IT governance, is applied to all aspects from planning to development and operation. However, there is a difficulty in carrying out the audit because the system for the specialized university IT project is not developed. Therefore, it is necessary to set the internal system as the audit-based application framework in order to apply it to university IT governance. In this paper, we propose a audit-based application framework of university information system developed for university. The framework has a difference from the existing audit system. By using this framework, it is possible to present a standard for the university IT project and easily approach and use it in the field. And it can be used for direct audit through this framework in the level of the auditor as well as the HQ admin. The framework categorizes the audit into three major dimensions and suggests a method that can be applied to the university information system audit through the UAFP(University Audit Framework Process) and quality assurance.