• The Journal of Asian Finance, Economics and Business
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• v.8 no.1
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• pp.343-352
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• 2021

This study aims to identify the impact of the audit approach based on business risks (i.e., external environment risk, operations risk, information risk) in reducing unsystematic risks (i.e., operational risk, credit risk, liquidity risk, capital risk, and administrative risk) in Jordanian banks. To reduce the effect of unsystematic risks and, thus, improve banking performance, an audit approach based on business risks has emerged. To achieve the objectives, this study relied on descriptive statistics and the regression approach to study twenty-five Jordanian banks. The researcher used the intentional sampling method represented by employees of the accounting, financial and control departments in Jordanian banks. Seventeen banks contributed to the study, with a percentage of 68%, totaling 356 employees. A questionnaire was designed to obtain the data, and due to homogeneity among the sampling members, a purposive sample was drawn and 300 questionnaires were distributed. The results of the study found a statistically significant effect of the audit approach based on business risks with its combined dimensions on reducing unsystematic risks in Jordanian banks. The results of the study also found a statistically significant effect of the business risk-based audit approach with its combined dimensions on reducing operational risks in Jordanian banks.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.2
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• pp.89-97
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• 2020

This study was conducted to examine how independent audit firms in Vietnam understand and use risk based audit approach (RBAA) in audit practice. To answer the research questions, the researchers used primary and secondary data collected from 2018 to 2019. The results from the interview survey showed that audit firms were aware of the advantages of adopting RBAA. However, RBAA is practiced to a moderate extent by audit firms in Vietnam. Big 4 audit firms use RBAA more popularly than Non-Big 4 audit firms. The causes of the difference are the disadvantages of adopting RBAA and client's characteristics such as relevant guideline, audit fees, auditors' knowledge and experience. Besides, the study investigated factors impacting on the RBAA adoption by distributing a questionnaire to 246 auditors of 126 audit firms in Vietnam. A set of statistical appropriate methods where used through SPSS software version 22.0. The results indicated that there were six factors influencing RBAA adoption including: Auditor's ability, Technological development, Audit fees, auditors' motivation, Audit time and client's risk. Of which, auditor's ability and technological development are factors that have the most significant and positive impacts on the adoption of RBAA. Additional implications were argued in the final section of this study.

• Proceedings of the Korea Inteligent Information System Society Conference
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• 2003.05a
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• pp.338-346
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• 2003

Information Technology (IT) and the internet have been major drivers the changes in all aspects of the business processes and activities. They have brought major changes to the financial statements audit environment as well, which in turn has required modifications in audit procedures. There exist, however, certain difficulties with current audit procedures especially for the assessment of the level of control risk. This assessment is primarily based on the auditors' professional judgment and experiences, not based on the objective hies or criteria. To overcome these difficulties, this paper proposes a prototype decision support model named CRAS-CBR using case based reasoning (CBR) to support auditors in making their professional judgment on the assessment of the level of control risk of the general accounting system in the manufacturing industry. To validate the performance, we compare our proposed model with benchmark performances in terms of classification accuracy for the level of control risk. Our experimental results showed CRAS-CBR outperforms a statistical model (MDA) and staff auditor performance in average hit ratio.

• Journal of Distribution Science
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• v.15 no.8
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• pp.47-54
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• 2017

Purpose - According to agency theory, managers have incentives to adjust firm revenues to meet earnings expectations or delay bad news disclosure because of performance-based compensation and their reputation in the market. When the bad news accumulates, stock prices fail to reflect all available information. Thus, market prices of stocks are higher than their intrinsic value. After all, bad news crosses the tipping point, it comes out all at once. That results in stock crashes. Auditors can decrease stock crash risk by reducing agency costs through their informational role. Especially, stock price crash risk is expected to be lower for firms adopting high-quality audits. We focus on distribution and service industry to examine the relation between audit quality and stock price crash risk. Industry specialization and auditor size are used as proxies for auditor quality. Research design, data and methodology - Our sample contains distribution and service industry firms listed in KOSPI and KOSDAQ during a period of 2004-2011. We use a logistic regression to test whether auditor quality influences crash risk. Auditor quality was measured by industry specialist auditor and Big4 / non-Big4 dichotomy. Following the approach in prior researches, we use firm-specific weekly returns to measure crash risk. Firms experiencing at least one stock price crash in a specific week during year are classified as the high risk group. Results - The result of analyzing 429 companies in distribution and service industry is summarized as follows: Above all, it is shown that higher audit quality has a significant negative(-) effect on the crash risk. Crash risk is alleviated for firms audited by industry specialist auditors and Big 4 audit firms. Therefore, our results show that hypotheses are supported. Conclusions - This study is very meaningful as the first study which investigated the effects of high audit quality on stock price crash risk. We provide evidence that high-quality auditors reduce stock price crash risk. Our finding implies that the risk of extreme losses can be reduced through screening of high-quality auditors. Therefore investors and regulators may utilize our findings in their investment and rule making decisions.

• 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.

• Proceedings of the KSR Conference
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• 2003.10b
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• pp.223-228
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• 2003

Risk Management does not mean accepting a risk but having a good grasp of, eliminating and controling the exact causes of known hazards. Good safety management plan or system for the safety of any systems need to include the procedures about standing safety goals, related technical information, time schedule, audit programs, etc at least. In this paper the summeries on general risk assessment techniques and the examples of risk assessment system and railway risk management strategies used in UK, Australia and Canada are introduced, and applicable establishment procedures for domestic railway industries are proposed.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.41 no.4
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• pp.70-80
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• 2018

The International Organization for Standardization (ISO) published ISO 9001 Quality Management System (QMS)-Requirements in 1987 and has revised four times since then. ISO 9001:2015 is the latest edition. This latest edition has two most noticeable changes. The first major change of new edition focuses on performance with an emphasis on Risk-Based Thinking (RBT) to enhance the process approach. The new edition consists of ten clauses whose first three clauses are largely same as older edition but risks are clearly stated and stressed in last seven clauses, emphasizing on Plan-Do-Check-Act cycle at all levels in the organization. The second major change is that the new edition has the same overall structure as other ISO management system standards known as High Level Structure (HLS) with Annex SL. The companies obtained the certificate of new ISO 9001:2015 QMS by September 15, 2018 in order to maintain as an ISO QMS registered firm. In this article we collected transition audit data from more than 100 companies that registered ISO 9001:2015 QMS for recent three years. We performed a statistical analysis to disclose the relationships between the characteristics of companies and the minor nonconformities found in ISO 9001:2015 requirements during transition audit processes. We also aim to interpret the findings and deduce the implications of the statistical results.

• The Korean Journal of Air & Space Law and Policy
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• v.28 no.1
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• pp.73-96
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• 2013

ICAO's Universal Safety Oversight Audit Programme (USOAP) was initially launched in January 1995, in response to widespread concerns about the adequacy of aviation safety oversight around the world. The recent reduction in aircraft accidents and effective role that is evaluated on the basis of these results, and in 2013 the existing 'snapshot approach' to 'regular monitoring system (USOAP-Continuous Monitoring Approach)' was converted to. ICAO aviation safety assessment of the state in today's international community 'aviation safety credibility' as objective indicators to judge the enormous impact on the aviation industry, the state is not satisfactory, especially if the results of the evaluation and expansion of code-share airline ban, reduced international air transit passengers, including premium increases business and economic penalties should. In addition, ICAO implementation of the existing laws and regulations(Prescriptive Approach), but based on the Risk-based prevention model, Proactive Approach introduced the concept of aviation safety system, including international aviation safety policy has been to switch paradigms. This new ICAO international aviation safety policy also applies to the Government of the Republic of Korea in line with the aviation safey policies have changed. In particular, the systematic implementation of safety management for the existing laws and regulations in the center of the safety oversight system of risk-based introduction of the concept of proactive safety management, and According to international standards ICAO aviation service providers operate their own Safety Management System was set out in Aviation Law ever. In addition, the aviation safety is at the center of the field of the safety of aircraft operations and maintenance for the promotion is promoting various safety policies. This new paradigm shift in the international aviation safety policy in line with our state in the international community with the most exemplary aviation safety system firmly established itself as a model, the Government will strengthen the competitiveness of our aviation plans to support. To do this, the government, airlines, aviation officials try all the practical effect would be expected.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.18 no.8
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• pp.2082-2102
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• 2024

Accurate segmentation of magnetic resonance (MR) images is crucial for providing doctors with effective quantitative information for diagnosis. However, the presence of weak boundaries, intensity inhomogeneity, and noise in the images poses challenges for segmentation models to achieve optimal results. While deep learning models can offer relatively accurate results, the scarcity of labeled medical imaging data increases the risk of overfitting. To tackle this issue, this paper proposes a novel fuzzy c-means (FCM) model that integrates a deep learning approach. To address the limited accuracy of traditional FCM models, which employ Euclidean distance as a distance measure, we introduce a measurement function based on the skewed normal distribution. This function enables us to capture more precise information about the distribution of the image. Additionally, we construct a regularization term based on the Kullback-Leibler (KL) divergence of high-confidence deep learning results. This regularization term helps enhance the final segmentation accuracy of the model. Moreover, we incorporate orthogonal basis functions to estimate the bias field and integrate it into the improved FCM method. This integration allows our method to simultaneously segment the image and estimate the bias field. The experimental results on both simulated and real brain MR images demonstrate the robustness of our method, highlighting its superiority over other advanced segmentation algorithms.

• Proceedings of the Korea Water Resources Association Conference
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• 2022.05a
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• pp.305-305
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• 2022

A better approach for assessing meteorological drought occurrences is increasingly important in mitigating and adapting to the impacts of climate change, as well as strategies for developing early warning systems. The present study defines meteorological droughts as a period with an abnormal precipitation deficit based on monthly precipitation data of 18 gauging stations for the Han River watershed in the past (1974-2015). This study utilizes a Bayesian parameter estimation approach to analyze the effects of climate change on future drought (2025-2065) in the Han River Basin using the Coupled Model Intercomparison Project Phase 6 (CMIP6) with four bias-corrected general circulation models (GCMs) under the Shared Socioeconomic Pathway (SSP)2-4.5 scenario. Given that drought is defined by several dependent variables, the evaluation of this phenomenon should be based on multivariate analysis. Two main characteristics of drought (severity and duration) were extracted from precipitation anomalies in the past and near-future periods using the copula function. Three parameters of the Archimedean family copulas, Frank, Clayton, and Gumbel copula, were selected to fit with drought severity and duration. The results reveal that the lower parts and middle of the Han River basin have faced severe drought conditions in the near future. Also, the bivariate analysis using copula showed that, according to both indicators, the study area would experience droughts with greater severity and duration in the future as compared with the historical period.