Audit Quality Indicators: Perceptions of Junior-level Auditors

Purpose In an effort to develop an audit quality (AQ) framework specific to the US audit market, the Public Company Accounting Oversight Board (PCAOB) recently issued a concept release proposing 28 audit quality indicators (AQIs) along three dimensions: audit professionals, audit process and audit results. Using AQIs initially proposed by the PCAOB, as well as AQIs suggested by prior literature, the authors solicit perceptions from junior-level (senior and staff) auditors to investigate the current state of practice along many of the AQIs relating to audit professionals and audit process. Design/methodology/approach In the study, 78 junior-level auditors responded to the survey. Findings An analysis of the responses suggests auditors engage in activities and audit firms promote conditions that at times improve, and at other times, reduce audit quality. The authors find that individual auditors’ perceptions differ across experience level, gender and audit firm size for certain AQIs. Practical implications The study is useful to the PCAOB because it provides insights to help assess the value of potential AQIs in differentiating AQ. The study is also useful to other regulators because it describes audit staff and seniors’ perceptions of apparent firm and auditor compliance with accounting and auditing standards. Practitioners should find this information useful in helping to identify possible root causes of audit deficiencies, a challenge put forth to firms by the PCAOB. Originality/value This study provides academia with evidence on AQ from practicing auditors, which informs existing and future research along. The study complements existing work by showing how individual auditor characteristics (experience and gender) at the junior levels may impact AQ in practic

The Role of Evidence in Establishing Trust in Repositories

This article arises from work by the Digital Curation Centre (DCC) Working Group examining mechanisms to roll out audit and certification services for digital repositories in the United Kingdom. Our attempt to develop a program for applying audit and certification processes and tools took as its starting point the RLG-NARA Audit Checklist for Certifying Digital Repositories. Our intention was to appraise critically the checklist and conceive a means of applying its mechanics within a diverse range of repository environments. We were struck by the realization that while a great deal of effort has been invested in determining the characteristics of a 'trusted digital repository', far less effort has concentrated on the ways in which the presence of the attributes can be demonstrated and their qualities measured. With this in mind we sought to explore the role of evidence within the certification process, and to identify examples of the types of evidence (e.g., documentary, observational, and testimonial) that might be desirable during the course of a repository audit.

IT auditing, types and dimensions

The tangible presence of information technology, as a collection of tools to produce, process, save and exchange information, leads to creating information systems; on the other hand, nowadays that most companies use different systems of electronic data processing for accounting data process, the only way to analyze and validate reports is IT auditing. IT auditing is a systematic process of unbiased collection and evaluation of evidences as a backup for one or more claim of information systems, methods and organization operations. Evidence evaluation obtained in auditing shows that if information systems are secure, preserved data will be correct and firm's operation will be effective. On the other hand, observation of control activities and access to effective separation of duties through security control in information banks are the other benefits of using electronic programs of auditing. Since the main role of auditors is to accredit the auditing information, it is necessary for them to turn to this kind of auditing for presenting broader and up-to-date auditing services about auditing electronic data and they also should turn to this kind of auditing for collecting and testing auditing information and increase in auditing. IT auditing is a way for make sure of efficiency and effectiveness IT tools applied in providing reliable and correct financial lists and reports in organization which is in line with achieving the goals

IT auditing, types and dimensions

The tangible presence of information technology, as a collection of tools to produce, process, save and exchange information, leads to creating information systems; on the other hand, nowadays that most companies use different systems of electronic data processing for accounting data process, the only way to analyze and validate reports is IT auditing. IT auditing is a systematic process of unbiased collection and evaluation of evidences as a backup for one or more claim of information systems, methods and organization operations. Evidence evaluation obtained in auditing shows that if information systems are secure, preserved data will be correct and firm's operation will be effective. On the other hand, observation of control activities and access to effective separation of duties through security control in information banks are the other benefits of using electronic programs of auditing. Since the main role of auditors is to accredit the auditing information, it is necessary for them to turn to this kind of auditing for presenting broader and up-to-date auditing services about auditing electronic data and they also should turn to this kind of auditing for collecting and testing auditing information and increase in auditing. IT auditing is a way for make sure of efficiency and effectiveness IT tools applied in providing reliable and correct financial lists and reports in organization which is in line with achieving the goals

IT auditing, types and dimensions

The tangible presence of information technology, as a collection of tools to produce, process, save and exchange information, leads to creating information systems; on the other hand, nowadays that most companies use different systems of electronic data processing for accounting data process, the only way to analyze and validate reports is IT auditing. IT auditing is a systematic process of unbiased collection and evaluation of evidences as a backup for one or more claim of information systems, methods and organization operations. Evidence evaluation obtained in auditing shows that if information systems are secure, preserved data will be correct and firm's operation will be effective. On the other hand, observation of control activities and access to effective separation of duties through security control in information banks are the other benefits of using electronic programs of auditing. Since the main role of auditors is to accredit the auditing information, it is necessary for them to turn to this kind of auditing for presenting broader and up-to-date auditing services about auditing electronic data and they also should turn to this kind of auditing for collecting and testing auditing information and increase in auditing. IT auditing is a way for make sure of efficiency and effectiveness IT tools applied in providing reliable and correct financial lists and reports in organization which is in line with achieving the goals

Security Information Sharing in Smart Grids: Persisting Security Audits to the Blockchain

This article belongs to the Special Issue Advanced Cybersecurity Services DesignWith the transformation in smart grids, power grid companies are becoming increasingly dependent on data networks. Data networks are used to transport information and commands for optimizing power grid operations: Planning, generation, transportation, and distribution. Performing periodic security audits is one of the required tasks for securing networks, and we proposed in a previous work autoauditor, a system to achieve automatic auditing. It was designed according to the specific requirements of power grid companies, such as scaling with the huge number of heterogeneous equipment in power grid companies. Though pentesting and security audits are required for continuous monitoring, collaboration is of utmost importance to fight cyber threats. In this paper we work on the accountability of audit results and explore how the list of audit result records can be included in a blockchain, since blockchains are by design resistant to data modification. Moreover, blockchains endowed with smart contracts functionality boost the automation of both digital evidence gathering, audit, and controlled information exchange. To our knowledge, no such system exists. We perform throughput evaluation to assess the feasibility of the system and show that the system is viable for adaptation to the inventory systems of electrical companies.This work has been supported by National R&D Projects TEC2017-84197-C4-1-R, TIN2017-84844-C2-1-R, by the Comunidad de Madrid project CYNAMON P2018/TCS-4566 and co-financed by European Structural Funds (ESF and FEDER), and by the Consejo Superior de Investigaciones Científicas (CSIC) under the project LINKA20216 ("Advancing in cybersecurity technologies", i-LINK+ program)

Big Data Analytics and Auditing: A Review and Synthesis of Literature

The use of data analytics in auditing is increasingly growing. The application of common data analytics to audit engagements appears to be lagging behind other areas of practice, even though data analytics is thought to represent the future of audit, and there are still few publications that have examined this influence. This article reviews data analytics in audits and its potential for future audit engagements to describe the evolution of this research trend and picture its future growth directions. Future audit research potential and difficulties are also discussed. Data analytics application in auditing has enormous potential for refining audit quality, decreasing errors, increasing process transparency, and enhancing stakeholders’ confidence. We conducted a systematic literature review using the PRISMA approach. A total of 100 articles published in English from January 2011 to November 2021 were identified through a systematic search of reputed databases, including Web of Science and Scopus and many others. Our analysis reveals that data analytics is a promising domain for the auditing practice as it improves audit efficiency and promotes audit work digital transformation. While reviewing the most pertinent literature in the context of data analytics in auditing, this study offers insights on potential new directions and waning views on big data analytics in auditing. Doi: 10.28991/ESJ-2023-07-02-023 Full Text: PD