Auditing Techniques to Avoid Cost Accounting Frauds

Akman, Vedat; Acar, Berkan; Kızıl, Cevdet

doi:10.5195/emaj.2020.210

Cited by 3 publications

(2 citation statements)

References 5 publications

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“…Although research on audit techniques that can prevent fraud and accounting errors are still limited, they are constantly increasing. Studies in this field contribute to the literature in the recent years (Aksoy and Uzay, 2021;Akman, Acar and Kızıl, 2020;Adalı and Kızıl, 2017;Kiracı, 2013;Şengür, 2011;ACFE, 2010;Kandemir, 2010;Çubukçu, 2009;ACFE, 2008;Kula, 2008;PWC, 2007 andBayraktar, 2007). Some of the research conducted are theoretical studies related to the forensic accounting science and auditing, while others are empirical studies.…”

Section: Literature Reviewmentioning

confidence: 99%

Auditing Techniques to Minimize Accounting Related Fraud and Errors: A Qualitative Analysis with the Interview Method

Kızıl

Muzır

Yılmaz

2021

emaj

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Accounting is more integrated with the technology today compared to the previous years. The increase in a variety of technological developments and commercial transactions has further increased the number and type of errors as well as frauds related to the accounting profession. This causes misleading information for several stakeholders. Stakeholdes sometimes make false decisions based on the financial statements created as a result of false and fraudulent transactions. In order to minimize the errors and frauds concerning the accounting system of enterprises, effective internal controls and auditing systems should be in order. It is evident that, setting up the required internal controls and auditing systems reduce asset losses and provide great benefits in the long run for firms. Existence of strong internal controls and auditing systems in enterprises has gained great importance in Turkey. This study provides information about the audit techniques that can minimize accounting related frauds and errors in businesses. The research includes and employs an interview with auditing professionals as the research methodology. Auditors working within three audit firms were selected by simple random sampling via the LinkedIn social media. The three participants were directed 10 semi- structured and open-ended questions. Qualitative analysis was adopted for this study. According to the results of research, companies use a number of tools to prevent accounting related frauds and errors. These most effective tools to minimize the frauds and errors are detected as internal auditing, internal controls and independent (external) auditing. Auditing professionals have high awareness about accounting related fraud and errors. But, auditor independency should be higher, proactive approach must be utilized and auditors must closely follow the new laws and regulations in addition to being familiar with the firms’s operations and sectors to minimize the fraud and errors. The Benford's law, artificial neural networks, analytical methods, data mining, red flags and analytical methods are commonly used by the auditors against frauds and errors. In general, the internal controls and auditing professions are in a much better situation today in Turkey compared to the previous years. But, this is still not adequate and there is a long way to complete ahead based on the opinions of auditing professionals.

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Section: Literature Reviewmentioning

confidence: 99%

Auditing Techniques to Minimize Accounting Related Fraud and Errors: A Qualitative Analysis with the Interview Method

Kızıl

Muzır

Yılmaz

2021

emaj

Self Cite

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“…The regression line coefficients also showed that (PO) has a substantial impact on audit risk, with a significant coefficient of (0.525) with a t value of 12.921 and a Sig t value of 0.000 less than 0.05. According to Akman, Acar, and Kizil (2020), PO can help a company reduce these typical audit risk problems. According to a study by Ali et al (2019), the effectiveness of the internal control and audit system in Jordanian public joint-stock companies is significantly impacted by the application of the COBIT system in terms of its dimensions (PO).…”

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The Impact of Information Technology Governance Under Cobit-5 Framework on Reducing the Audit Risk in Jordanian Companies

Alsaleem¹,

Husin²

2023

J. Professional Business Review

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Purpose: The goal of this study is to ascertain how the COBIT 5 framework, which consists of (Planning and organization, Acquire and implementation, Support and Delivery, Monitoring and evaluation, Guidance and Control), affects audit risk. Theoretical framework: IT governance (ITG) is a strategic and administrative procedure that aids in an organization's efficient and responsible usage of IT. The efficacy of audit control and audit process can be significantly impacted by COBIT5. Design/methodology/approach: This study used a quantitative approach, with questionnaires distributed to 450 workers from each of the 150 Jordanian companies. The three employees served as a representative sample from the finance, internal audit, and IT departments. A total of 371 sets of questionnaires were returned with complete responses and were further examined. The data analysis employed descriptive analysis, Pearson correlation, and multiple linear regressions. Findings: The results of this investigation revealed that every independent variable, including Cobit 5, had a favorable and substantial impact on the decrease of audit risk. one of the most important results of this study showed that Monitoring and evaluation is one of the most influential dimensions of ITG to reducing audit risks, and perhaps this may be due to the nature of the delivery of IT within companies’ systems and the implementation of their applications and services to be delivered. Research, Practical & Social implications: This study helps Jordanian companies to enhance the application of information technology governance, which contributes to raising the level of efficiency of their accounting systems and enabling them to compete. Originality/value: The findings showed that are a limited number of studies on IT governance and audit risk that have focused on developing countries, especially Jordan, and this is where the research comes in –to fill up the gap.

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The Impact of Accounting Fraud Which Leads to Financial Crimes: Accounting Fraud

Ustinova

2023

Financial Crimes

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Auditing Techniques to Avoid Cost Accounting Frauds

Cited by 3 publications

References 5 publications

Auditing Techniques to Minimize Accounting Related Fraud and Errors: A Qualitative Analysis with the Interview Method

Auditing Techniques to Minimize Accounting Related Fraud and Errors: A Qualitative Analysis with the Interview Method

The Impact of Information Technology Governance Under Cobit-5 Framework on Reducing the Audit Risk in Jordanian Companies

The Impact of Accounting Fraud Which Leads to Financial Crimes: Accounting Fraud

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