Determinants of audit report modifications in Finnish municipalities

Paananen, Mikko; Rönkkö, Jaakko; Zerni, Mikko; Hay, David

doi:10.1016/j.jaccpubpol.2020.106777

Cited by 10 publications

(3 citation statements)

References 35 publications

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“…More recently, Paananen et al . (2021) stated that audit report modifications were related to economic performance, competition between political parties and decentralized decision making.…”

Section: Theory and Prior Researchmentioning

confidence: 99%

“…More recently, Paananen et al (2021) stated that audit report modifications were related to economic performance, competition between political parties and decentralized decision making. The results show that weak economic performance and a more decentralized decision-making process increase the probability of audit report modifications, while less competition between political parties makes audit report modifications less likely.…”

Section: Prior Researchmentioning

confidence: 99%

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The influence of internal audit departments on external municipal audit reports

Lopes

Almeida

Leite

et al. 2023

JPBAFM

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PurposeThe purpose of this paper is to examine whether the voluntary implementation of an internal audit department (IAD) by municipalities has any influence on external auditors' opinions.Design/methodology/approachThis study population comprises the 308 Portuguese municipalities, from which the authors extracted a sample of 179. Financial and audit reports were collected from the period under analysis (2014–2017). The sample was then divided into two groups: municipalities that had voluntarily implemented an IAD and those that had not. Internal audit departments were characterized according to their robustness – whether they were more or less robust. First, a descriptive statistical analysis of the dataset was performed to analyze the representativeness of the sample and to extract insights. To address the research questions, ordinal random effect regression models were considered.FindingsContrary to the authors' expectations, the voluntary implementation of an IAD had no influence on the audit report type. However, when the authors refined the approach to include the robustness of the IAD, it became clear that this variable does influence the report issued by the external auditor.Originality/valueThis paper contributes to the current literature by determining the effects of the robustness of IADs on municipality audit reports. As far as the authors know, this paper is novel. Since auditing plays an important role in the transparency of public financial statements and in promoting equity, this study shows that a robust IAD is an advantage in the pursuit of these goals.

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Section: Theory and Prior Researchmentioning

confidence: 99%

Section: Prior Researchmentioning

confidence: 99%

The influence of internal audit departments on external municipal audit reports

Lopes

Almeida

Leite

et al. 2023

JPBAFM

View full text Add to dashboard Cite

show abstract

“…Financial report publication will be postponed unless the review takes longer than the law permits. The audit process takes longer since delays in financial report publication may indicate problems with financial reports (Aksoy et al, 2021;Paananen et al, 2021). Since the basis for deciding whether to buy or sell a company's stock is the financial statements' profit data, this might cause participants in the capital market to react negatively (Adiputra & Hermawan, 2020).…”

Section: Introductionmentioning

confidence: 99%

Analysis of Solvability, Liquidity, and Company Size on Audit Delay With Audit Quality as Moderation

Karina,

Kusumawardhani

2023

JRAK

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Delays in submitting financial reports are caused by the length of audit delay, of which there are various internal and external factors that affect audit delay. This study aimed to examine the direct and indirect effects of internal and external factor on audit delay use a moderating variable. The SEM-PLS technique was used to analyze data from 105 financial statements of 105 mining companies listed on the IDX from 2017-2021 based on purposive sampling with various criteria. The result showed that liquidity, solvency, company size, and audit quality significantly affect audit delays. Other result, audit quality can moderate the impact of solvency and firm size on audit delay but cannot moderate liquidity. The implications of this research for mining companies are to focus on financial performance because it can affect the length of audit delay, which will determine the good and bad assessment of a company.

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Public Financial Management: Budgeting, Accountability and Auditing

Oulasvirta,

Rönkkö

2023

Governance and Public Management

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Determinants of audit report modifications in Finnish municipalities

Cited by 10 publications

References 35 publications

The influence of internal audit departments on external municipal audit reports

The influence of internal audit departments on external municipal audit reports

Analysis of Solvability, Liquidity, and Company Size on Audit Delay With Audit Quality as Moderation

Public Financial Management: Budgeting, Accountability and Auditing

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