Auditing service providers: supporting auditors in cross-organizational settings

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to shed light on the particular information needs of external auditors performing information technology (IT) audits at service providers in cross-organizational settings and to promote a software-based approach towards their satisfaction. The approach is intended to supplement the manual approaches currently adopted by auditors to procure information in such settings. Design/methodology/approach -The authors analyzed data collected by means of a series of 16 interviews and four think-aloud sessions with experienced professionals. Findings -Information procurement is perceived as tedious by auditors and largely relies on repeat interviews and perusal of documents. Given the growing complexity of cross-organizational settings, manual approaches to information procurement are reaching their limits. A considerable portion of the information required is often stored by service providers using software that is inaccessible to auditors. The authors argue that a software-based approach providing an interface for auditors to access relevant information held by such software presents an avenue worth exploring. Practical implications -The authors outline how the information stored by service providers using software can be made accessible with reasonable effort. Complementing manual approaches to information procurement with an audit interface would reduce workload and increase quality. Originality/value -The concept of an audit interface represents a novel and promising approach to meeting the information needs of auditors performing IT audits in cross-organizational settings more effectively. Both auditors and service providers would benefit from its implementation.

Block-holders and Monitoring Mechanisms in Nigeria

“…Some others are just on internal auditing only (Moorthy, Seetharaman, Mohamed, Gopalan & San 2011;Soh & Martinov-Bennie 2011). Some others are just on external auditing only (Bachlechner et al 2014;Chow 2012). Very few combine directorship and internal auditing or directorship and external auditing while few others combine internal and external auditing (Chen & Zhou 2007;Sarens, De Beelde & Everaert 2009;Pizzini et al 2011).…”

“…The study defines monitoring mechanisms (MM) as a means of providing adequate and sufficient information to the users of financial statements and protecting the interests of the shareholders. Bachlechner, Thalmann, and Manhart (2014), examines auditing service providers as related to cross-organizational settings using face-toface and 14 telephone interviews. The study defines MM as a means of identifying and satisfying the information needs of the principal by making sure that adequate controls are in place.…”

Future of Audit with Pro-Auditor With Data Analytics

“…According to research, a centralized database is extremely crucial in the hierarchy of audit procedures. According [7], crucial audit information that may be held by data providers should be stored in a database. A centralized database is the backbone of an audit firm as mentioned by [6], the database of an audit firm should be a platform where information can be retrieved easily and since the database is centralized, it will improve the quality of audit.…”

Quality-differentiated Auditors, Block-holders and Monitoring Mechanisms

“…The study defines monitoring mechanisms as the process by which companies provide adequate and satisfactory information through financial statements to protect the shareholders' interests. The study of Bachlechner et al (2014), on how auditing service providers relate to cross-organizational settings used data from 2 face-to-face and 14 telephone interviews. Monitoring mechanisms, according to the study are the tools by which companies identify and satisfy the information needs of the shareholders through adequate controls.…”

“…Some are only on internal auditing (Moorthy, Seetharaman, Mohamed, Gopalan, & San, 2011;Soh & Martinov-Bennie, 2011;). Some others are on external auditing alone (Bachlechner, Thalmann, & Manhart, 2014;Chow, 2012;). Very few examine directorship and internal auditing or directorship and external auditing while others investigate internal and external auditing (Pizzini, Lin, Vargus, & Ziegenfuss, 2014;Sarens, De Beelde, & Everaert, 2009;Chen & Zhou, 2007).…”