Enforcement release evidence on the audit confirmation process: Implications for standard setters

Janvrin, Diane J.; Caster, Paul; Elder, Randy

doi:10.1016/j.racreg.2010.02.002

Cited by 11 publications

(3 citation statements)

References 5 publications

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“…Australia) or currently still being considered. Whilst to the best of our knowledge there is little evidence to suggest whether or how XBRL filings are being audited in all jurisdictions 127 XBRL and IFRS adoption and audit fees where XBRL use has been mandated (notable exceptions focusing on the US include Janvrin et al, 2010;Brands, 2013;Holzinger, 2013;La Rosa and Caserio, 2013;Roselli, 2013;Tysiac, 2013;Boyle et al, 2014;Shan and Troshani, 2014), being the first to address the impact of IFRS and XBRL, our study also can offer evidence to auditing practitioners that XBRL can reduce auditing costs and therefore encourage auditing of XBRL filings. Additionally, with auditing costs being reduced as a result of XBRL, auditors can reconsider the allocation of scarce internal auditing resources to other financial reporting activities after XBRL is introduced (Helliar et al, 1996).…”

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confidence: 99%

The effect of mandatory XBRL and IFRS adoption on audit fees

Shan

Troshani

2016

International Journal of Managerial Finance

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Purpose – The purpose of this paper is to evaluate the impact of the International Financial Reporting Standards (IFRS) and eXtensible Business Reporting Language (XBRL) on audit fees based on evidence from listed companies operating in an emerging economy. Whilst IFRS constitute high-quality accounting standards, XBRL represents a technology standard that can enhance the usability of IFRS and overall financial reporting transparency. Design/methodology/approach – Multivariate analyses are used on a sample of 1,798 firm-year observations between 2000 and 2011 from companies listed in the Shanghai Stock Exchange that were subject to XBRL and IFRS adoption mandates. Findings – The main results suggest that XBRL has a main negative effect on audit fees which is weaker for larger firms. Additionally, the authors find that IFRS increases audit fees for all companies. Whilst this effect is positive for firms of different sizes, it is weaker for larger firms. Research limitations/implications – Whilst the findings are applicable to the selected sample and may or may not be generaliseable to other economies, they can provide important implications for both regulators and companies that are undertaking IFRS convergence and XBRL implementation projects in developing economies around the world. Originality/value – This study offers a timely assessment of the economic consequences of IFRS and XBRL on listed companies operating in an emerging economy, in addition to providing an important basis upon which further research can be designed in order to extend the analysis.

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confidence: 99%

The effect of mandatory XBRL and IFRS adoption on audit fees

Shan

Troshani

2016

International Journal of Managerial Finance

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“…Thus, companies should employ internal auditors and these auditors should make information exchange with independent auditors. An internal auditor should cooperate with external auditor for account confirmation (Janvrin et al 2010). Another result of this study is that in case internal audit elements do not exist or in the event that internal auditors do not do their job properly, this will make the result of the independent auditor"s audit ineffective.…”

Section: Resultsmentioning

confidence: 97%

Audit Procedures and Responsibilities on Audit Decisions: An Examination for Kenya

Chesoli

Long’acha

2015

FOCUS

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The purpose of this study is to examine how internal audit procedures and responsibility perceptions of the auditors impact the audit decisions of independent external auditors. The questions of the research are answered by the certified public accountants (CPA) operating in Turkey and the establishments that audit companies independently. The results of the study show that the procedural efficiency of internal auditors in auditing and their taking responsibility have a positive impact on the decisions of independent external auditors. Another result of the study was that in the absence of internal audit elements in the company or in the case that internal auditors do not function properly, the audit result of the independent auditor will be more ineffective. In this respect, in order to get objective and reliable data from the independent external auditors, internal procedures should be streamlined and internal auditors should be willing to cooperate with external auditors more.

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“…In the audit process, to validate the authenticity of data owned by clients, CPA firms must request electronic confirmation from third parties, such as deposit/loan data from banks, information disclosures to the China Securities Regulatory Commission, and tax filings to tax authorities. In order to improve audit quality and mitigate audit risks, confirmation is a key component of the integrity of IT auditing (Janvrin, Caster, & Elder, 2010;Bergh, Hinna, Leka, & Zwetsloot, 2016;Axelsen, Green, & Ridley, 2017).…”

Section: Processing Integritymentioning

confidence: 99%

Cpa Firm’s Cloud Auditing Provider for Performance Evaluation and Improvement: An Empirical Case of China

Chen

Tzeng

2018

Technological and Economic Development of Economy

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While CPA (Certified Public Accountant) firms utilize cloud auditing technologies to generate auditing reports and convey information to their clients in the Internet of Things (IoT) Era, they often cannot determine whether cloud auditing is a secure and effective form of communication with clients. Strategies related to cloud auditing provider evaluation and improvement planning are inherently multiple attribute decision making (MADM) issues and are very important to the auditor industry. To overcome these problems, this paper proposes an evaluation and improvement planning model to be a reference for CPA firms selecting the best cloud auditing provider, and illustrates an application of such a model through an empirical case study. The DEMATEL (decisionmaking trial and evaluation laboratory) approach is first used to analyze the interactive influence relationship map (IIRM) between the criteria and dimensions of cloud auditing technology. DANP (DEMATEL-based ANP) is then employed to calculate the influential weights of the dimensions and criteria. Finally, the modified VIKOR method is utilized to provide improvement priorities for performance cloud auditing provider satisfaction. Based on expert interviews, the recommendations for improvement priorities are privacy, security, processing integrity, availability, and confidentiality. This approach is expected to support the auditor industry to systematically improve their cloud auditing provider selection.

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Enforcement release evidence on the audit confirmation process: Implications for standard setters

Cited by 11 publications

References 5 publications

The effect of mandatory XBRL and IFRS adoption on audit fees

The effect of mandatory XBRL and IFRS adoption on audit fees

Audit Procedures and Responsibilities on Audit Decisions: An Examination for Kenya

Cpa Firm’s Cloud Auditing Provider for Performance Evaluation and Improvement: An Empirical Case of China

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