• Journal of Industrial Convergence
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• v.3 no.2
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• pp.29-50
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• 2005

Audit review is the system to review the audit procedures performed and the audit opinion expressed by the independent auditors. The public audit review performed by Financial Supervisory Service (FSS) is regarded as one of the most important means to maintain the reliability of accounting information in Korea. We examinate the effect of audit review on earnings quality by using ERC (earnings response coefficient). We find that ERC of the sample group which issued the audit error reports after they were reviewed by SSB is more effective and higher than one of the non-reviewed group, matching group. We infer that the audit review system has the effectiveness in Korea.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.135-145
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• 2022

To improve audit quality, certain Chinese auditing firms have added a third-level review by an additional signing auditor to the general evaluation by a signing auditor team consisting of an engagement auditor and a partner. Nonetheless, our research-based on 36,033 firm-year observations from 2004 to 2019 reveals that compared to the general review system, auditor teams under the three-level review system are less likely to issue modified audit opinions when abnormal financial conditions arise. This finding suggests that, while larger auditor teams' knowledge, experience, and information advantages can theoretically sharpen their judgment, their performance is more susceptible to interference from divergent opinions, the diffusion of responsibility, and lower energy invested by individual auditors, ultimately impairing their judgment regarding the audited enterprises' abnormal financial conditions. That is, the three-level review system, which aims to improve audit quality, actually worsens audit quality. This conclusion remains valid after the problems of heteroscedasticity and endogeneity are addressed by using firm-level cluster robust standard errors and two-stage regression. We hope that our research will draw the attention of auditing firms, prompting them to reconsider the rationality of the three-level review system.

• Journal of Information Technology Services
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• v.11 no.4
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• pp.107-121
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• 2012

The core infra-technology in the ubiquitous era, RFID which has taken action from the public institution with the pilot projects as well as the practical projects is gradually extending its spectrum to the private enterprises. Along with its expansion, the audit required on the RFID-based information system is also growing in the industry. Especially, since RFID-based information systems, especially compared to other information systems, are likely to be exposed to many threats, the security audit for them is being emphasized. This paper suggests security audit checking items for the RFID-based information system, which can be used to perform the efficient security audit. The security audit checking items consist of eight basic checking items, each of which consists of detailed review items and can be applied for each building steps of the system(analysis, design, implementation, testing, and development). Finally, this paper confirmed the efficiency of the security audit checking items proposed in this paper through survey by the experienced auditors and analysis of practical audit cases.

• Korean System Dynamics Review
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• v.12 no.3
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• pp.25-46
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• 2011

Recently, performance auditing system of governmen is carried out as most promising framework of government audit. Performance audit by the Board of Audit and Inspection of Korea involves assessing the causes and effects of government policies, programs, and Institutions with the criteria of economy, efficiency, effectiveness. Performance auditing will contribute to strengthening the values of objective assessments of whether public resources are responsibly and effectively managed to achieve intended results. Nevertheless, there seems to be a problems appears in implementation of audit. That is the problems of tendency return to legitimacy audit which is result from the lack of strong approach and methodology. So, this study purpose to developing stronger audit concepts and methods that add to the process and framework of traditional performance auditing system. First, this study evaluates the limitation of current performance auditing system with the perspective of systems thinking. Second, this study analyzes the process and method of current system and develop the conceptual model of the Dynamics Audit System using the system dynamics methodology, which focused on the appropriate auditing process and framework.

• Journal of the Korea Society of Computer and Information
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• v.17 no.10
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• pp.203-216
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• 2012

For the successful operation of the current organization, the importance of the information system is further increasing, and audit for the information system construction is also spreading according to the mandatory of information system audit. However our country's information system audit still does not deal with various risks and the improvement plan of it is desperately needed since bad practices are often happened while performing audit for the various information system projects. Therefore, this paper proposed improved review items for the quality improvement of information system construction by analysing data of information system audit projects and risk occurrence projects that are performed by the domestic large SI company during four years. In addition, this paper verified the effectiveness of the improved review items proposed in this paper by applying them to actual information system project examples.

• Journal of the Korean Professional Engineers Association
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• v.34 no.4
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• pp.65-68
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• 2001

The role of information system(IS) audit is growing more important according to rapid change of Information technology. This article is to introduce what is IS audit, purpose and effect of IS audit. Now most clients of private IS audit services companies are the public sector. Korean public sectors invest a lot of money to build or implement their information system. Most of their systems are developed by system intergration companies. But they do not have professional engineers to evaluate and review outsourced information system. Therefore they must use outside private professional engineers for sysem auditing. We, including writer, established the first IS audit sevice company in Korea on September in 1997. After that about 15 IS audit service companies are established until now. The effect of IS audit is highly evaluated In public sector by the clients Most clients think IS audit service contributed to upgrade the quality of software and standard the methodology of developing system

• Journal of Information Technology Applications and Management
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• v.25 no.3
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• pp.29-41
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• 2018

The purpose of constructing university information system is for improvement in diversification and throughput of information, streamlines business processes, rapid exchange of information, sharing of information, decision-making information, and securing educational facilities. Similar to business information technology system, university information system does not have a review system for sharing and overlapping investment of information. Due to the lack of project management for outsourcing and vulnerability of system suitability, system audit is absolutely needed for the university information system. This paper especially focuses on an operational phase in the audit of university information system. Additionally, we proposed operating model and checklists of the university information system based on Management Guidelines of ITIL V3 Operational and Information System. We derived the checklists of operation audit by each domain of service strategy, service design, service transition, service operation, and continual service improvement. As the result, this study appear to have more than average satisfaction the suitability results were.

• The Journal of KAIRB
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• v.6 no.2
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• pp.48-55
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• 2024

Purpose: The purpose of this study is to introduce the Institutional Review Board (IRB) member-based internal audit method performed at A University Hospital, a secondary medical institution, and to identify the differences in audit results according to the characteristics of each auditor and the factors affecting the internal audit results. Furthermore, we will find out what needs to be improved in the internal audits to achieve Quality assurance (QA) objectives for human subject research conducted in medical institutions. Methods: The auditors were divided into group A (IRB member belonging to institution A) and group B (clinical trial QA administrator belonging to other institutions) and independently inspected the 2 studies using the same internal audit checklist (consisting of 11 domains, 130 items), and the differences in the internal inspection checklists written by each auditor were compared and analyzed. Results: In the case of audit for the study 1, the number of missing checklists is 1 for group A and 0 for group B, and the number of the matters to be pointed out is 1 for group A and 12 for group B. In the case of audit for the study 2, the number of missing checklists is 2 for both A and B, and the number of points is 5 for A and 4 for B. The differences in the internal audit results written by each auditor that the authors verified are summarized as follows. First, there were more comments from group B auditor than from group A auditor. Second, the results may vary because each auditor has different criteria for evaluating the appropriateness of an item. Third, there are cases where the questions on the checklist are vague or the definition is not clear, so they have the same opinion but check it with different answers. Fourth, if the auditors make a mistake when filling out the checklist, it causes to led to different the results. Conclusion: We propose the following items that should be improved in order to conduct consistent and efficient internal audits. First, it is necessary to test the tool in order to carry out reliable and consistent internal audits. Second, it is necessary to complete specialized training related to internal audit before conducting internal audit. Third, before notifying the audit results, it is necessary to have a procedure or a final review system to check whether the audit contents are appropriate. Fourth, Institutional support is needed to recruit specialized personnel for internal audits.

• Hwankyungkyoyuk
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• v.20 no.4
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• pp.1-11
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• 2007

The purpose of this study is to develope energy eco-audit evaluation scheme for the sustainable energy management at schools in accordance with education for sustainable development. Energy eco-audit evaluation scheme was developed through critical review of preexisting evaluation methods, consensus searching for the process from field. The results of this study are as follows. The school energy eco-audit evaluation scheme has three criteria: data collection, energy program, and environmental review. First, criteria of data collection includes general affairs, school building construction, and energy use. Second, criteria of energy program stresses school administration system such as the democratic decision-making process and structures. Third, criteria of environmental review includes reporting process and preparing teaching/learning materials for sustainable energy management. In conclusion, school energy eco-audit evaluation scheme could find a new way to achieve extended effect for sustainable energy management in school. It also could continue to seek opportunities to raise their awareness of energy issue and environment. School committee and whole school are involved to continue to implement present action plan and prepare updated plan in order to reduce environmental impact in school. By doing so, it would be possible to play important role in both school administration and education for sustainable development.

• Management & Information Systems Review
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• v.33 no.5
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• pp.71-84
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• 2014

We examine evidence on the relationship between firms that targeted by the Financial Supervisory Service for allegedly manipulating annual earnings and accounting quality measured by the discretionary accruals, an issue with important public policy implications. The main purpose of this paper is to empirically investigate the extent to which Korean WDS(Window Dressing Settlement) firms identified by the financial supervisory service in their audit review exhibit higher level of accounting quality in order to avoid any potential negative effects and to regain public confidence after audit review. In this study, we analyzed 51 WDS firms and 102 control firms which traded in the Korean Stock Exchange market during the period from 2000 to the 2010. The number of observations subject to various tests are 251 and 502 firm-years for WDS and control samples respectively across the 5 year sample period. The results of the study show that the accounting quality after auditor review be significantly improved. This result suggests that the FSS's audit review system would control the accounting quality and then improve the transparency of the accounting information. Thus it may be suggested that the current audit review system is efficient ways to lead listed firms to provide transparent financial statements.