E-Commerce Audit Judgment Expertise: Does Expertise in System Change Management and Information Technology Auditing Mediate E-Commerce Audit Judgment Expertise?

A global survey of 203 E-commerce auditors was conducted to investigate the perceptions about the potential determinants of expertise in E-commerce audits. We hypothesize and find evidence indicating that information technology and communication expertise are positively related to expertise in E-commerce audit judgment. We also find that system change management expertise and information technology audit expertise mediate this relationship.E-commerce Audit Judgment, IT Audit, Structural Equations Modeling

Image and Reputational Impact on Managers' Assessment of Auditing Activities

The efficient use of knowledge assets allows organizations to compete more effectively in the marketplace. Some of these knowledge assets are embedded in an organization socialization and internalization processes. Image and reputation may better leverage knowledge by strengthening its core capabilities of knowledge assets. Image and reputation is viewed as a collective 'perception' pertaining to a person, group, or organization's attributes. We suggest that by combining the use of reputational data and structural equation modeling of narrative analysis, we can build a better process theory along with better explanations in general. Throughput modeling techniques are used in this research to capitalize on how line managers' narratives are captured in framing their international environment, the information used, as well as deciding whether audits are assisting them in promoting increase profits or decrease expenses. This model is useful in highlighting the elements that support a view of managers being proactive. This analysis captures forward looking throughput modeling techniques whereby in-house managerial procedures can help aid and assist line managers performing their primary functions. Findings indicated that managers' perception of image/reputation influence what they viewed as important knowledge assets relating to productivity and profitability. --

Improvement of the Model of Using Analytical Procedures at Internal Auditing of a Bank

From 2014 the number of banks in Ukraine essentially decreased from 180 to 76 for 01.07.2019. The unstable situation was traced in the country for this period of time. Liquidation of 104 banks demonstrated that they couldn't manage their risks and make correct managerial decisions timely, and also the system of internal control functioned badly. Just this system includes a subdivision of internal auditing that didn't cope with timely revelation of inexactitudes, so reasonable recommendations as to managerial decisions weren't elaborated. For providing functions of internal auditing of a bank, the subdivision uses auditing procedures. They include analytical procedures that, in their turn, are principal for attaining aims of an auditing task. The article considers most urgent questions of using analytical procedures in internal bank auditing. The essence of the definition of “analytical procedures” has been considered and specified. Analytical procedures have been separated from the composition of auditing ones, and their theoretical aspect has been analyzed. The classification of methods of analytical procedures has been analyzed for getting auditing evidences. Analytical procedures consist of methods of internal system estimation and bank financial condition analysis and also analysis of their business-processes. Advantages and defects of methodical components of analytical procedures have been presented and analyzed. The stages of an auditing task have been studied. Analytical procedures are considered at three stages of internal auditing: planning, performing the engagement and resulting, demonstrated through the prism of economic analysis. International standards of the professional practice of internal auditing that regulate it are considered. Questions of working papers that generalize a result of using analytical procedures are separated

Cross-cultural impact on the budgeting cycle: a preliminary analysis of Anglo-American and Libyan companies operating in Libyan oil sector

[Abstract]: Globalization is causing the rapid integration of markets, nations, and technology, which facilitates faster contact between people, corporations, and nations. However, there is a failure to notice cultural differences that exist between workforces across nations. Thus all staff needs to have cultural sensitivity, which could be helped by studying cross-cultural differences. Current understanding of how and why specific budget aspects and budgeting processes are different could be attributed to cultural differences. This study utilizes societal cultural dimensions identified by Hofstede to identify differences in budgets and budgeting process between Libyan and Anglo-American companies operating in Libyan oil sector. Some preliminary analysis is discussed

Time-series cross-sectional environmental performance and disclosure relationship:specific evidence from a less-developed country

This paper relies on ‘vulnerability and exploitability’ framework to submit new insights into legitimacy theory and voluntary disclosure theory using specific empirical evidence from the Nigerian oil and gas industry. The study connects the voluntary and legitimizing disclosure behaviors, regarding carbon emission due to gas flaring, of dominant companies in the Nigerian upstream petroleum sector to the vulnerability and exploitability of Nigeria as a less developed country. The hypothesized relations between gas flaring-related environmental performance and two forms of its disclosure (volume and substance) are estimated and tested using Prais-Winsten regression with Panel Corrected Standard Errors (PCSE). While the paper uses Data Envelopment Analysis (DEA) to measure gas flaring-related carbon performance, the two forms of gas flaring-related disclosures are measured using content analysis. We document significant positive and negative association between gas flaring-related carbon emission performance, on one hand, and the volumetric disclosure and disclosure substance on the other hand. These results imply that while the positive relation confirms the vulnerable nature of Nigeria as a less developed country, the negative relation is linked to the country’s exploitability. It is also empirically established that environmental performance is one of the key factors responsible for the undulating trend in the volume of environmental disclosures by large corporations operating in less-developed countries

The development of social and environmental accounting research 1995-2000

This paper reviews five years of social and environmental accounting literature (from 1995-2000) in an attempt to evaluate the current position. The methodology used follows that employed in Mathews (1997a) which covered a period of 25 years in three time periods: 1971-1980; 1981-1990; and 1991- 1995. The literature was classified into several sub-groups including empirical studies, normative statements, philosophical discussion, non-accounting literature, teaching programmes and text books, regulatory frameworks, and other reviews. In this review a number of new sub-categories have been employed as appropriate. The author is able to conclude on an optimistic note. The additions to the literature during the period 1995-2000 are encouraging. Researchers in this area are perhaps less naïve and more experienced than previously, and this, when added to their enthusiasm should lead to penetrating observations and commentaries over the next five years

Optimal auditing with scoring: theory and application to insurance fraud

This article makes a bridge between the theory of optimal auditing and the scoring methodology in an asymmetric information setting. Our application is meant for insurance claims fraud, but it can be applied to many other activities that use the scoring approach. Fraud signals are classified based on the degree to which they reveal an increasing probability of fraud. We show that the optimal auditing strategy takes the form of a “Red Flags Strategy” which consists in referring claims to a Special Investigative Unit (SIU) when certain fraud indicators are observed. The auditing policy acts as a deterrence device and we explain why it requires the commitment of the insurer and how it should affect the incentives of SIU staffs. The characterization of the optimal auditing strategy is robust to some degree of signal manipulation by defrauders as well as to the imperfect information of defrauders about the audit frequency. The model is calibrated with data from a large European insurance company. We show that it is possible to improve our results by separating different groups of insureds with different moral costs of fraud. Finally, our results indicate how the deterrence effect of the audit scheme can be taken into account and how it affects the optimal auditing strategy.Audit, scoring, insurance fraud, red flags strategy, fraud indicators, suspicion index, moral cost of fraud, deterrence effect, signal manipulation.