• Management & Information Systems Review
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• v.10
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• pp.117-133
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• 2002

In December 1999, the AICPA introduced WebTrust, a electronic commerce assurance service of ensuring safe trading on the web, in order to effect consumer confidence into electronic commerce. Shortly afterwards, CPA associations of other advanced nations, such as Canada, Australia, also adopted this service. This study focuses on introduction of electronic commerce assurance service of ensuring safe trading on the web. WebTrust assurance service expected to be the international standard in electronic commerce in the near future and not only as a source of income for domestic accounting firms, which have simpler income structure than the international counterparts, but also as catalyst for stimulating electronic commerce. The findings of the study are expected to contribute to accounting practice, academy of accounting and electronic commerce firms in the following ways. Domestically, as Korea is considering using the electronic commerce assurance service, this study will help promote adoption of WebTrust assurance service. This study has shown, in the midst of declining income of accounting firms by audit, a way to increase their audit boundary.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.627-637
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• 2021

This research extends the literature on the effect of board characteristics and ownership structure on audit fees; these factors affect the firm's agency costs and how the auditor assesses various risks, hence the audit efforts and fees. The paper introduces political connections as a determinant of audit fees for the first time in Jordan, where the political connection is prevalent and affects decision making on the Jordanian boards. The sample consists of 109 manufacturing and service firms listed on the Amman Stock Exchange (ASE) over the years 2012-2019. Data is obtained from the ASE and the company's annual reports. Board characteristics are measured by board size, independence, leadership duality, meetings frequency, political connections, and audit committee. Ownership structure was measured by concentration, foreign ownership, and Institutional ownership. The study hypotheses were tested by using Generalized Least Squares regression. The Findings showed that larger boards, politically connected firms, and firms with leadership duality are more likely to pay higher fees. Besides, Firms with greater foreign ownership pay less fees, whereas the rest of the variables are insignificant. Results suggest that political connections play a major role in determining audit fees; this provides a recommendation to policymakers in Jordan to reconsider regulations regarding political connections.

• 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.

• Journal of Service Research and Studies
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• v.9 no.2
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• pp.31-40
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• 2019

In this paper, we have studied the improvement of operational control for the enhancement of business continuity of information system becoming more important with the development of information technology such as big data, Iot, and artificial intelligence. The operational management and audit guidance of the current information system, which is coming in the fourth industrial age, where various services, data and industries are converged, is based on the existing general information system pattern and needs to be improved. The provision of services at fixed times is linked to the survival of enterprises and countries and serves as a key element. Therefore, it is necessary to study the application of optimized check items of the operation audits to minimize the service interruption damage of the information system and to provide the stable service in terms of business continuity management. To accomplish this, the check items presented in the operational control of the information system were derived by combining the PDCA step contents and 8 resource requirements provided in ISO 22301. From the point of view of increasing the business continuity according to the derivation criteria of the inspection items, the operational inspection check items were derived by exemplifying the improved check items and review items of the information system operation audit and the products to be checked during the operational audit. The check items were divided into management audit improvement check items for service continuity management, and operational audit improvement check items for performance and availability management. The average score of the IT professionals' survey on the suitability of the proposed checklist was 4.63, which was concluded to be appropriate.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.13 no.4
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• pp.2198-2222
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• 2019

The cloud storage service becomes a rising trend based on the cloud computing, which promotes the remote data integrity auditing a hot topic. Some research can audit the integrity and correctness of user data and solve the problem of user privacy leakage. However, these schemes cannot use fewer data blocks to achieve better auditing results. In this paper, we figure out that the random sampling used in most auditing schemes is not well apply to the problem of cloud service provider (CSP) deleting the data that users rarely use, and we adopt the probability proportionate to size sampling (PPS) to handle such situation. A new scheme named improving audit efficiency of remote data for cloud storage is designed. The proposed scheme supports the public auditing with fewer data blocks and constrains the server's malicious behavior to extend the auditing cycle. Compared with the relevant schemes, the experimental results show that the proposed scheme is more effective.

• Management & Information Systems Review
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• v.31 no.1
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• pp.221-246
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• 2012

The study examines the effects that non-audit service and firm's ownership structure might have on the value relevance directly or indirectly. This investigation is based on prior research which suggests that the audit firms' non-audit services is likely to adversely affect investors' perceptions of the credibility of financial reporting and that corporate governance are likely to mitigate the adverse this kind of non-audit services effects. The sample consists of non-banking firms listed on the Korea Exchange that reported annual financial statements over the period from 2004 to 2008. In the setting, stock returns as proxy for capital market response, auditor quality(measured as the discretionary accruals) is endogenously determined. This study employs a structural equation model to take into account the endogenous variables under study. The analysis influences through the path analysis that ownership structure suppress the market response through audit quality and also the non-audit service have influence on the market response through audit quality. The results of this study contribute to the literature in the following ways. First, this provides direct evidence that there is a negative association between audit firms' client importance and the value relevance. Second, the findings that the negative association is attenuated for audit quality support the findings of prior studies which present that corporate governance provide higher credibility of financial reports.

• Journal of Service Research and Studies
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• v.11 no.1
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• pp.45-58
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• 2021

Requirements engineering can be seen as proceeding with various processes and activities such as extraction, analysis, specification, management, and verification without temporal and spatial constraints in the development environment of information systems that are becoming large and decentralized. Developing requirements well and conducting continuous evaluation and management is the shortcut to success in project management, and it is recognized as a very important matter in relation to requirements in the information system audit. When we conduct information system audit and conducting projects subject to audit, we need to improve the required engineering aspect. Therefore, this study derives inspection items suitable for the target project by referring to the audit inspection manual and audit inspection guide when conducting the current audit, and relates to the required engineering aspect among the contents of the inspection guide for each business type that is the basis for deriving the inspection items were derived for each audit point/audit area for the project management and quality assurance project type corresponding to the inspection items. The suitability of the extracted occupation items was verified through a questionnaire survey by experts.

• Journal of Advanced Navigation Technology
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• v.16 no.6
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• pp.1080-1091
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• 2012

Information system for audit target that was done in the past business unit system presided over the development process for an integrated information system in three steps further from the audit step 2 step-by-doing, for in the presiding quality party check for the information systems audit requirements of social responsibility is growing. Therefore, efforts are needed for research on factors affecting the quality of the audit and audit improve the quality in order to improve the quality of the Methodist This study, the general auditor competence and supervision, empowerment and the causal relationship between the quality of service, presided over by a model that can be analyzed in the field to develop and take advantage of the auditor's general theory of leadership was developed from existing research capabilities identification and analysis on a supervisor's empowerment survey conducted for the auditor to perform Methodist, its contents and using the LISREL structural equation methods were empirically tested.

• The KIPS Transactions:PartC
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• v.8C no.5
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• pp.597-606
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• 2001

In this paper, we propose the delay sensitive traffic and a high bandwidth QoS service in order to supply real-time traffic such as VoIP, multimedia service. We use IntServ over DiffServ network to supply end-to-end QoS service in the IETF. We define the proposed QoS services which are Best, Good, Default service. We analyze the performance using NS simulator with end to end QoS service in IntServ over DiffServ network. The proposed billing system uses the Accounting, Authentication, Authorization (AAA) functions of RADIUS protocol and proposes the dynamic pricing method according to network usage state using end-to-end QoS of IntServ over DiffServ network. In order to secure billing system, we design and implement audit trail system by the IEEE POSIX.1E standard.

• Information Systems Review
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• v.11 no.1
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• pp.85-106
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• 2009

Current trend of audit is to check the physical aspects of developed information system, such as checking the budget constraints, time constraints or functional fluency etc. However, ultimate goal of information system is to help the organization to achieve the competency over their competitors. Also, there are three different interest groups in system auditing, like audit requesting group, audited group and audit group, who may have different points of interests in auditing. Current auditing process, however, ignores this point, and so does not check the differences between three groups. This study tries to develop new auditing method to cure these two problems. Contributions of this study may be summarized as follows. First, Redefine Information Systems Audit from a service point of view. Second, Divide the audit related person into three groups, and their different needs toward the information system was analyzed. Third, Analyze and compare the main interests of three groups, and weights of each groups to each indexes were calculated. Fourth, Fuzzy theory was applied to quantify the qualitative answers, which may minimize the ambiguity of questionnaire replies.