• Safety and Health at Work
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• v.11 no.1
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• pp.10-18
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• 2020

Background: The elevated risk of occupational infection such as tuberculosis among health workers in many countries raises the question of whether the quality of occupational health and safety (OHS) and infection prevention and control (IPC) can be improved by auditing. The objectives of this study were to measure (1) audited compliance of primary health-care facilities in South Africa with national standards for OHS and IPC, (2) change in compliance at reaudit three years after baseline, and (3) the inter-rater reliability of the audit. Methods: The study analyzed audits of 60 primary health-care facilities in the Western Cape Province of South Africa. Baseline external audits in the time period 2011-2012 were compared with follow-up internal audits in 2014-2015. Audits at 25 facilities that had both internal and external audits conducted in 2014/2015 were used to measure reliability. Results: At baseline, 25% of 60 facilities were "noncompliant" (audit score<50%), 48% "conditionally compliant" (score >50 < 80%), and only 27% "compliant" (score >80%). Overall, there was no significant improvement in compliance three years after baseline. Percentage agreement on specific items between internal and external audits ranged from 28% to 92% and kappa from -0.8 to 0.41 (poor to moderate). Conclusion: Low baseline compliance with OHS-IPC measures and lack of improvement over three years reflect the difficulties of quality improvement in these domains. Low inter-rater reliability of the audit instrument undermines the audit process. Evidence-based investment of effort is required if repeat auditing is to contribute to occupational risk reduction for health workers.

• 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.

• The Journal of Industrial Distribution & Business
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• v.10 no.5
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• pp.77-86
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• 2019

Purpose - The present study examined the reliability of accounting information based on the pay slice (CPS) information of chief executive officers (CEOs) in the service industry. The difference in the size of CPS under the capitalist system can be used as an index to gauge the influence of top management. Research design, data, and methodology - In accordance with the amendment of the Financial Investment Services and Capital Market Act in 2013, the pay information of individual registered executives with annual salary of more than 500 million won has been disclosed. The sample of the current study is 232 companies listed on the Korea Exchange excluding financial services from 2013 to 2015, when the individual pay-slice information for registration officers was published in the business report in accordance with the revision of the Capital Market Act. The financial data required for this study were extracted from the FnGuide and the TS-2000. With the data, we tested the relationship between CPS and accounting information reliability through a linear regression analysis. Results - The first result showed that the relationship between the CPS and human resource in internal accounting control system in the service industry is significantly negative only with the accounting department personnel. This result implied that the CEO can negatively affect the retention of the accounting department in the firm. Second, both the CPS and quality of audit in the service industry are negatively related both to audit fees and to audit time. Nonetheless, the relationship between the number of the auditor and the CPS is insignificant. This result indicated that the CEO can negatively affect audit fees and audit time of external auditors. The results of the present study suggested that CPS information may have a negative impact on the reliability of accounting information. Conclusion - This study is the first study to examine the reliability of CPS and accounting information for the service industry in terms of human resources in internal accounting control system and audit quality. Therefore, the present study is expected to provide some useful information to economic decision-making of various external parties for service firms.

• Journal of East Asia Management
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• v.4 no.1
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• pp.23-51
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• 2023

We investigate whether the association between management overconfident tone and the level of audit effort measured by audit fees and hours differs depending on the level of earnings management. Prior studies suggest that firms led by overconfident managers are likely to initiate risky investments, report low quality financial statements, and have material weaknesses in internal control system. These characteristics, combined together, result in higher audit risk. At the same time, auditors assess audit risk based on the quality of financial reporting, measured by level of earnings management. As a result, the assess audit risk is likely to reflect the combined effect of management overconfidence and the level of earnings management. In this paper, we investigate whether auditors differentiate the effects of real earnings management (REM) and accrual-based earnings management (AEM) when they assess the audit risk related management overconfident. Using the CEO's letter published in 2018, we measure the CEO's tone representing the degree of overconfidence (i.e., activity). Based on this measure, we find that the positive association between managerial overconfident tone and audit effort is more pronounced as the level of REM is higher. However, we find that the baseline association does not vary depending on the level of AEM. These results suggest that auditors consider the managerial overconfident severer when such characteristic accompany the higher level of REM, which can be outcome of aggressive business decisions possibly leading to the higher audit risks. We further find that these results are stronger for Big 4 auditors and continuing auditors. This paper contributes to the literature and practice as follows. First, we provide contextual evidence on how auditors reflect managerial characteristics in the audit process by documenting that auditors actively increase their audit efforts only when overconfident managerial characteristics are highly likely to lead to audit risk. This result suggests that auditors conduct external auditing considering both the efficiency and effectiveness of the audit process. Second, we suggest that auditors use information obtained from a wide range of sources to identify audit risks. Our results provide evidence of how the auditing standards, which do not provide detailed guidelines for audit risk assessment, are being applied in practice. Finally, our results also enhance the understanding of how audit fees are determined. Combined with the studies related to audit pricing, we provide the important reference for discussion between the auditor and the auditee about the audit fee that has created acute tension after the enforcement of the new External Audit Act.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.6
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• pp.127-137
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• 2022

This paper aims to investigate the impact of corporate governance on the quality of integrated reporting. Corporate governance includes internal (board size, board independence, and board diversity) and external (audit quality and enforcement) governance factors. This paper develops an index to capture the quality of integrated reporting by employing the completeness of information required by the International Integrated Reporting Council (IIRC). For an international sample, the paper manually collects 160 integrated reports along with internal and external governance factors and employs multivariate analyses to examine the association between these governance factors and the quality of integrated reporting. The empirical results suggest that firms with a larger board of directors, a larger proportion of female members on board, and located in countries with enforcement for integrated reporting requirements have a higher quality of integrated reporting. Our conclusions still hold after accounting for several conditions, including the industry-fixed and year-fixed effects. Together, these results suggest that both internal and external governance factors are important determinants for the quality of integrating reporting. These results have several theoretical and practical implications as they fulfill the absence of relevant studies on addressing the impact of internal and external corporate governance factors on the quality of integrated reporting.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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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.

• Journal of Internet Computing and Services
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• v.18 no.3
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• pp.71-83
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• 2017

In recent years, by utilizing the greatest strengths of process mining, the various research activities have been actively progressed to use auditing work of business organization. On the other hand, there is insufficient research on systematic and efficient analysis of massive data generated under big data environment using process mining, and proactive monitoring of risk management from audit side, which is one of important management activities of corporate organization. In this study, we intend to realize Hadoop-based internal audit integrated real-time monitoring system in order to detect the abnormal symptoms in prevent accidents in advance. Through the integrated real-time monitoring system for purchasing audit, we intend to realize strengthen the delivery management of purchasing materials ordered, reduce cost of purchase, manage competitive companies, prevent fraud, comply with regulations, and adhere to internal control accounting system. As a result, we can provide information that can be immediately executed due to enhanced purchase audit integrated real-time monitoring by analyzing data efficiently using process mining via Hadoop-based systems. From an integrated viewpoint, it is possible to manage the business status, by processing a large amount of work at a high speed faster than the continuous monitoring, the effectiveness of the quality improvement of the purchase audit and the innovation of the purchase process appears.

• Asia-Pacific Journal of Business
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• v.14 no.4
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• pp.255-273
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• 2023

Purpose - This study examines whether internal control has an effect on stock price informativeness about future earnings. High quality internal control provides continuous assurance for the quality of financial reports, and these future earnings-related information is accurately reflected in the current stock price. Design/methodology/approach - This study collected 12,862 data from 2006 to 2021 in China to make an empirical analysis using the future earnings response coefficient (FERC) and the multiple regression analysis were hired in order to analyze the data. Findings - We find that internal control strengthens the association between current returns and future earnings, indicating that more information about future earnings is reflected in current stock prices. This positive effect exists in both the main board market and the growth enterprise market of China's stock market, especially in the main board market after the implementation of the internal control policy. In addition, we find that the positive effect is weaker for firms that report internal control deficiencies or receives non unqualified internal control audit opinions. The results using earnings persistence yield similar findings, further supporting the results based on the FERC model. Research Implications or Originality - Our tests provide strong evidence that the quality of internal control affects FERC in China stock market.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.41 no.4
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• pp.160-170
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• 2018

This paper is an exploratory study on the success factors of Defence Quality Management System (DQMS) which is the certification system granted by the military for improving the quality of munitions. DQMS is established by adding military requirements to the ISO standard, thus, we especially focus on the additional requirements to figure out success key factors of DQMS certification. The 51 additional requirements of Korean Defense Specification (KDS) are empirically investigated from 67 companies that acquired DQMS certification. Firstly, we conduct an independent t-tests on 51 additional requirements of KDS 0050-900-3 to determine if there is a difference between an easily certified company and a hard-to-certify company, and obtain 8 requirements such as 'Internal propagation of performance', 'Preparation of documented work instructions', 'Work instructions in the workplace', 'Documentation of equipment management', 'Inventory management', 'Packaging and identification', 'Guarantee of access to internal audit result for customers', 'Notification to the customer for improper product.' Secondly, we carry out an factor analysis to the 51 additional requirements for classification, and figure out that 4 requirements among the 8 requirements above mentioned are grouped together in the same factor. The 4 requirements are 'Preparation of documented work instructions', 'Work instructions in the workplace', 'Packaging and identification', and 'Guarantee of access to internal audit result for customers.' The result of this paper will provide useful information to the company preparing for DQMS.

• International Journal of Advanced Culture Technology
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• v.8 no.4
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• pp.8-17
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• 2020

This study aims to draw up comprehensive ethical management practices so that companies can be reborn as high-quality companies not only at the level of management efficiency but also at the level of corporate integrity. -The main focus of in this study is as follows: To curb corrupt practices in the corporate sector, it is necessary to strengthen the monitoring function and accountability system of audits (internal audits, full-time audits, audit committees, external audits). In order for these system improvements to be made reliably, it is necessary to periodically measure and evaluate employee satisfaction with the overall personnel system.