Expanding the education role to narrow the audit expectation gap: exploring the expectation gap’s existence among accounting students

Society perceives and expects more from auditor’s than what auditors can actually achieve. Society has been found to misperceive the role of an auditor, in particular, in regards to fraud, internal controls and going concern issues. Society’s differing perceptions and expectations of the auditing profession is known as the audit expectation gap. This study aims to explore the audit expectation gap’s existence among Wintec accounting students and the effect that education has on the audit expectation gap. This research intends to answer two research questions. First, does an audit expectation gap exist among Wintec accounting students? Second, what is the effect of education on the audit expectation gap? To answer these research questions, 20 Wintec accounting students have been interviewed. Ten students who have received an audit education, and ten students who have not received audit education. Qualitative data was collected from these interviews and analysed using a mixed methods approach. This study found that an audit education exists among Wintec accounting students. This study also found that education reduced the audit expectation gap, in particular, the deficient performance gap and the communication gap. However, while education did reduce the audit expectations gap, it was not eliminated. This study recommends that Wintec provides a more basic auditing education during introductory accounting papers, educating students on the role of an auditor. This study also recommends that education focuses on the practical use of an audit report, to increase student’s understandings of the information in the audit report, and how this information is communicated. Thus, the researcher believes that these recommendations will help to further reduce the audit expectation

Research in multi-cultural relationship building

This study aims to explore the ‘missing gap' between the values of an Accounting firm and the preference shown by Maaori on how they would like to be approached when wanting to build a trusted relationship within a business sense. This study makes use of qualitative approaches in which data is collected primarily through interviews and analysed to produce results and recommendations. The study found that Maaori would like to be approached in a way that makes sense to them and also identifies with their cultural proceedings. It also provides insight into how important trust is when establishing a relationship with Maaori. The study recommends that further studies conducted should interview a wider variety of focus groups to add different elements to this research and that FIRM A's small business department's offerings do not align with what Maaori want so need to be rethought to adapt to Maaor expectations

Analysis and optimization of distribution logistics for Just Water Company

This report details the various factors that affect the operational efficiency of distribution logistics. The research aimed at studying the existing components involved in the distribution logistics of Just Water. Distribution logistics begins at the end of the production line where the finished product is emerged until it reaches the customers. The literature review explains the key components of distribution logistics in an organisation. This research analyses the existing components of the distribution logistics of Just Water and discusses possible improvements that can be adapted to increase the overall efficiency of the distribution logistics operation. The background of the research is that Just Water faces difficulty with delivering its products on time during peak seasons. The research tries to unveil the reason for this delay and finds that the demands for extra water-out deliveries are interfering with the normal runs of the trucks, therein delaying their regular schedule. One another cause was found to be the shortage of supplies due to slow or less return logistics. The research suggests a change in the existing drop shipping distribution model and recommends the adaptation of intermediary or multi-stage distribution networks, possibly the ‘Last Mile Delivery’ configuration in order to reduce delivery lead-time, reduce transportation costs and improve customer satisfaction

The Moderating Effects of Top Management Support on the Relationship Between Internal Audit Quality and Organisational Performance of Nigerian Universities

This study investigate the relationship between internal audit quality (IAQ) and organizational performance with moderating variable of top management support in the federal universities in Nigeria. The independent variables consist of internal audit size (IAS), and internal audit reporting line (IARL) with organizational performance as the dependent variable. A total of 400 samples of senior internal auditors’ level were drawn from 40 Nigerian federal universities. Data was collected via questionnaires and distributed to internal auditors. 400 questionnaires were distributed, 342 were returned, 29 were rejected and 313 were retained. The data was analysed using both descriptive and inferential statistics for testing hypotheses. The results of the study after testing the direct relationship of the independent variables with the dependent variable reveals that there are no significant positive relationships be批tween the variables of IAS and IARL with organizational performance. While, the result of moderating effect of top management support in the relationship between the independent variables and organizational performance, have shown that IAS have positive and significant relationship with organizational performance, except IARL. The result shows strong correlation between the dimensions of IAQ and organizational performance and optimum performance in Nigerian federal universities is attainable when internal audit quality dimensions are functional. The study has contributed greatly in determining the effect of the moderating variable in the study which add value to the existing literature not only in the Nigerian federal universities but also the internal auditing practice in the Nigerian public sector. It is therefore recommended that the dimensions of internal audit quality should always be given attention a better service delivery and efficiency. Keywords: Internal Audit Quality, Top Management Support, Organizational Performance, Nigerian Federal Universitie

Corporate motivation for integrated management system implementation : why do firms engage in integration of management systems: a literature review & research agenda\ud

Integration of management systems such as for quality, environment, occupational health and safety, risk management, and corporate social responsibilities is a viable organisational approach to cost reduction, efficient utilization of resources, greater motivation of employees, and better compliance to social obligations and stakeholders‘ requirements. Identification of drivers for corporate motivation for IMS decision making and its implementation is a matter of interest for academicians, practitioners, industry, and government regulatory agencies; paradoxically literature on this subject is pretty thin. This paper describes the literature review and research agenda for the exploration of drivers of IMS implementation and factors influencing IMS implementation. The exploratory research is meant to be executed by an inductive approach through case studies in Pakistani manufacturing firms

Internal audit’s role in the Portuguese Air Force and its influence on organisational sustainability

Mestrado Bolonha em Contabilidade, Fiscalidade e Finanças EmpresariaisInternal audit (IA) has undergone significant changes in its area of activity and the way it operates, whereby today plays an active role in the sustainability of organisations. Facing this new paradigm, this dissertation first defines the Portuguese Air Force’s (PAF) IA roles and then studies its influence on organisation sustainability while exploring the moderating effect of human resources management practices (HRMP). To this end, we collected data from all PAF internal auditors through two surveys and used Ordinary Least Squares multiple regression to analyse the hypotheses. The results showed that PAF’s IA is following the IA tendencies worldwide and, more than that, it can positively affect an organisation's sustainability orientation. This study further complements this relationship showing that it is affected by context, namely, in the presence of HRMP oriented to that end. This study reinforces the literature on IA matters, mainly regarding its relationship with sustainability. Furthermore, it provides evidence of the possible moderating effect of HRMP. Finally, it extends to the Armed Forces, an area of research primarily conducted in the private sector.A auditoria interna (AI) sofreu alterações significativas na sua área de atividade e no seu modo de funcionamento, desempenhando hoje um papel ativo na sustentabilidade das organizações. Face a este novo paradigma, esta dissertação define primeiro os papeis da AI da Força Aérea Portuguesa (FAP) e depois estuda a sua influência na sustentabilidade da organização, explorando ao mesmo tempo o efeito moderador das práticas de gestão de recursos humanos (PGRH). Para o efeito, recolhemos dados de todos os auditores internos da FAP através de dois inquéritos e utilizámos a regressão múltipla pelo método dos mínimos quadrados para analisar as hipóteses. Os resultados mostraram que a AI da FAP está a seguir as tendências da AI a nível mundial e, mais do que isso, pode afetar positivamente a orientação para a sustentabilidade de uma organização. Este estudo complementa ainda mais esta relação, mostrando que é afetada pelo contexto, nomeadamente, na presença de PGRH orientadas para esse fim. Este estudo reforça a literatura sobre questões de AI, principalmente no que diz respeito à sua relação com a sustentabilidade. Além disso, fornece provas do possível efeito moderador das PGRH. Por fim, estende-se às Forças Armadas, uma área de investigação conduzida principalmente no sector privado.info:eu-repo/semantics/publishedVersio

Towards a General Theory of Financial Control for Organisations

In this paper, a theory of accounting, control and accounting-related areas is outlined.It is based on a number of previous research-oriented books published over several decades and the author´s specific own experiences from internal and external processes with organisations in focus.Consistency and integrative power of the ideas have been tested in relation to certain books in various fields outside the core of the subject:theatre,sociology, applied systems theory,economic history, institutional theory and economics.The general approach can be described in simple terms as follows.There are global value chains, from resources to output that are in use.These chains change with time.Uncertainty and unpredictability prevail for the present state and for possible changes; to some extent it is possible to estimate risks of the future. At any moment, each organisation has taken some limited position on a chain.Each organisation has a hierarchy which lies above operations. Over time, chains, organisations, hierarchies, output and personal functions vary. According to the approach, insights into control problems for every organisation and system can be gained by analysing relationships between global value chains and a hierarchy of one or several organisations.Time is crucial.financial control; management control; public administration; financial entities; financial reporting; dependencies; function-driven organisations; pay-driven organisations; transfer-driven organisations; supervisory boards; mass media; auditors; natural systems; panarchy; pseudo-commercial units; inter-organisational control; long-term control; short-term effects; hierarchies; global value chains; vertical control; horizontal control; corporate governance; remote control; controllability; transparency; values-in-use; values-in-exchange; fair values; historical costing; opportunity costs; product costing; transfer pricing; local optimization; time-bound optimization; longitudinal relationships.

The Valuation And Reporting Of Reputation Risk Management Capability

The Financial Statements prepared and audited in today’s economic environment can be traced to the industrial era, when tangible assets such as machinery were the engines of growth. In this era, financial accountants endorsed or invented rules based on the historical cost doctrine that yielded values which had no counterparts in commercial reality – often book valuations were sheer fictions, and thus managing the risk associated with those valuations became a meaningless exercise. This was especially the case when intangible assets such as an organisation’s Brand Equity and Reputation were kept off the Balance Sheet, thus making the valuations even more fictitious. This has resulted today in knowledge-economy companies reporting book values widely divergent of market values. These fictitious financial reports were then audited, and the auditors were paid well by the preparers of the statements to hold that the statements gave a true and fair view of the state of affairs of the company. When some of these companies failed spectacularly due to the mismatch between commercial reality and reported values, the reason for failure was pinpointed to the irreparable damage to the company’s reputation due to the lack of adequate risk management procedures, resulting in a failure traced to an organisation’s products, services, information systems or external auditors. Since the spectacular collapses of Enron and WorldCom in the international stage, many countries have introduced either mandatory or voluntary corporate governance procedures. In the USA, SOX 404 makes mandatory the reporting of all significant risks in a company’s annual reports, albeit outside of the financial statements, as an off-balance sheet item. This paper argues that the overriding reason for governance is ultimately the safeguarding of an organisation’s reputation, and that this requires an integrated approach where the ‘accountees’ (corporations), and its investors and regulators are provided with appropriate information by the ‘accountors’, i.e. the accounting profession. It also argues that although the current professional accounting standards result in financial statements that are not adequate for the proper governance, an integrated approach can be taken where reputation risk can not only be managed and valued; it can also be incorporated in these financial statements. The paper provides a valuation model based on the premise that risk management should not be based on what the organisation has, but instead what the organisation can do, i.e. its capability to manage and enhance its reputation in order to ultimately generate incremental future cash flow. It then suggests an approach that auditors can take to determine its strategic capability of sustaining and generating value via reputation enhancement. Finally, the paper considers the role of the Risk Manager, and how an empowered open-book approach to communicating and financial reporting can provide significant motivational benefits in risk reduction and reputation enhancement that ultimately result in increased value

IT fit on auditors’ performance in Yemen

The alignment between the importance and utilisation of IT (IT fit), and the impact of IT fit on organisational performance has been an issue of concern for many researchers. Therefore, this study examined the effect of organisational, social, individual, and environmental factors on IT fit and on auditors’ performance as well as the influence of IT fit on auditors’ performance. It also examined the mediating effect of IT fit on the relationship between these independent variables and auditors’ performance. Data from 274 auditors were analyzed using the PLS-SEM. The results indicate that auditors perceived their utilisation of IT utilisation to be less than the importance of IT, hence providing important insights into the importance and the utilisation of technologies in the context of audit work in Yemen. The findings suggest that information systems audit in Yemen is still at the minimum level. Further analyses on the effect of the independent variables, namely IT knowledge, facilitating resources, IT trust, competitive pressure, management support, client’s complexity of the IT system, internalisation and cognitive style, on IT fit show them to be positive and significant. Interestingly, IT fit is found to be a mediator between these eight variables and auditors’ performance. This study also finds that management support, IT knowledge, IT trust, internalisation, IT training, client’s complexity of the IT System, cognitive style and IT fit have positive and significant effects on auditors’ performance. The three most important variables are IT knowledge, facilitating resources, and management support. The findings suggest the important role of IT fit in increasing the effect of these variables on auditors’ performance. Therefore, audit firms and professional bodies need to focus on the issue of IT fit to increase the performance of their auditors

Money and Audit Practice in the UK Public Sector

This paper uses both role theory and audit expectations gap theory to critically evaluate the ability of Value for Money (VfM) audit procedures to improve performance in UK public sector organisations. Our paper reports on an empirical study of seventeen auditors and twenty two representatives of VfM client organisations. The results show that although the VfM audit plays a part in enhancing the institutional performance of the public sector, much of the audit‟s practices have not been institutionalised in the audited bodies as had previously been assumed. Questions were raised about the relevance of the auditors‟ experience and knowledge of the audited body‟s activities. Our results also indicate significant role conflicts in the VfM process. Three types of conflict could be identified; (a) conflict between the VfM auditors‟ roles and their own professional values and standards (person-role conflict); (b) conflict between the VfM auditors‟ capabilities and their role requirements (role overload), and (c) conflict between the auditors and the auditees (inter-sender conflict)