Time budget pressure on audit quality with audit structure, independence, and audit supervision as moderating variable

Jati, I Ketut; Suprasto, Herkulanus Bambang

doi:10.21744/irjmis.v7n6.997

Cited by 5 publications

(4 citation statements)

References 7 publications

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“…However, Reid et al (2019) found this relation between the KAMs and the audit cost insignificant; they mention in the limitation that the auditor may have borne some additional costs related to the new standards but did not pass along these costs to the firm as audit fees. Previous literature argues that the pressure on the auditor may also increase audit fees (Jati and Suprasto, 2020). So, the firm management will pay a cost for adopting the KAMs.…”

Section: Key Audit Mattersmentioning

confidence: 99%

The key audit matters and the audit cost: does governance matter?

Elmarzouky

Hussainey

Abdelfattah

2022

IJAIM

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Purpose This paper aims to investigate the relationship between key audit matters (KAMs) and audit costs and whether board size and independence affect this relationship. Furthermore, this paper examines the moderating effect of corporate governance on the relationship between KAMs and audit costs. Design/methodology/approach The authors hypothesise that disclosing more KAMs in the audit report is positively associated with audit costs because of the greater effort. The agency theory suggests that firms with good governance will mitigate the agency conflict of interest and improve financial reporting quality. Thus, good governance might moderate the relationship between reported KAMs and audit costs. The authors use a quantitative approach. The authors are using a sample of the UK FTSE all-share non-financial firms from 2014 to 2018 for the UK Financial Times Stock Exchange all-share non-financial firms. Findings The authors provide evidence of a significant positive relationship between KAMs and audit costs. The relationship is relatively higher when considering the independent directors' percentage as a moderating factor. These results came consistent with the agency theory literature. However, the authors found no empirical evidence to support a moderating effect of board size on the relationship between KAMs and audit cost. Practical implications The finding benefits the regulatory setters to better understand the consequences of the new auditing standards. This paper has theoretical and practical implications for regulators, standard setters, professional bodies, shareholders and academics. Originality/value This paper contributes to the literature assessing the regulatory changes related to audit reform and adds to the debate on the impact on audit costs. This paper underlines governance factors as a moderating role in this relationship between KAMs and audit costs.

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Section: Key Audit Mattersmentioning

confidence: 99%

The key audit matters and the audit cost: does governance matter?

Elmarzouky

Hussainey

Abdelfattah

2022

IJAIM

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“…This means that there is a linear relationship between the leadership and organizational culture in influencing individual behavior. This is the reason why organizational culture can be categorized as a derivation of subjective norm constructs in TPB theory (Kustina et al, 2019;Jati & Suprasto, 2020;Sanjaya Adi Putra, & Dwirandra, 2019).…”

Section: Introductionmentioning

confidence: 99%

effect of independence, professionalism, and experience of internal auditors on fraud prevention with organizational culture as moderating variable

et al. 2022

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This study aims to examine the effect of independence, professionalism, and experience of internal auditors on fraud prevention with organizational culture as a moderating variable. The research data were collected through questionnaires, the research respondents were the internal auditors of Rural Banks in Bali. The method of determining the sample using purposive sampling with the criteria of internal auditors who have more then a year work experience, with 140 respondents. The data analysis technique used in this research is Path Analysis (SEM-PLS). The results showed that the independence, professionalism, and experience of internal auditors had a positive effect on fraud prevention; and organizational culture strengthen the positive influence of independence, professionalism, and experience of internal auditors on fraud prevention.

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“…First, it improves audit work efficiency and enhances the audit supervision function [25]. The internal governance structure and its independence affect auditing effect [42][43][44][45]. This reform has changed the internal governance structure by strengthening the direct leadership of higher-level audit institutions over lower-level audit institutions, thus facilitating the strategic allocation of audit resources and the consolidation of audit capacity.…”

Section: Vertical Management Auditing Reform and Carbon Productivitymentioning

confidence: 99%

The Impact of Auditing Centralization on Carbon Productivity: Evidence From China’s Vertical Management Auditing Reform

Lin,

Qian,

Zhang

et al. 2024

Pol. J. Environ. Stud.

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Vertical management auditing reforms achieve the centralization of audit institutions. The centralized structure of the auditing institutions affects their performance. This paper verifies the positive effect of vertical management auditing reform on carbon productivity through a difference-in-differences method. The conclusion still holds after robustness tests. Moreover, the policy effects only make sense when government officials face low promotion pressure or high public scrutiny pressure. The mechanism analysis shows that the vertical management auditing reform can improve carbon productivity by strengthening environmental regulation, promoting industrial structure rationalization, and improving regional green innovation and energy efficiency. This paper enriches the research on the relationship between auditing centralization and carbon productivity.

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Time budget pressure on audit quality with audit structure, independence, and audit supervision as moderating variable

Cited by 5 publications

References 7 publications

The key audit matters and the audit cost: does governance matter?

The key audit matters and the audit cost: does governance matter?

effect of independence, professionalism, and experience of internal auditors on fraud prevention with organizational culture as moderating variable

The Impact of Auditing Centralization on Carbon Productivity: Evidence From China’s Vertical Management Auditing Reform

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