Science topic

Financial Audit - Science topic

Financial Audit is an examination, review and verification of all financial accounts.
Questions related to Financial Audit
  • asked a question related to Financial Audit
Question
1 answer
Greetings to my fellow members of the academic research community,
My academic journey as a PhD student has presented me with a significant challenge. I've long aspired to join a research laboratory where scientific activities are conducted with genuine enthusiasm and dedication. My passion lies in the pursuit of knowledge and engaging in intellectual discourse with fellow researchers who share my enthusiasm for scientific exploration. Regrettably, my attempts to establish connections with various research laboratories, universities, and distinguished professors have not yielded the anticipated results. Despite my unwavering commitment to highlighting the availability of financial support from my institution, the responses have been somewhat limited. I've observed that colleagues from different academic institutions readily establish connections with research laboratories and professors, although it appears that their intentions often lean towards short-term engagements rather than meaningful contributions to laboratory work and the broader scope of scientific research. These colleagues seem to effortlessly secure acceptance letters from these research laboratories, prompting the question: What factors contribute to this noticeable difference in response? I humbly seek your guidance in shedding light on the underlying reasons for this discrepancy. Additionally, I would greatly appreciate any insights, advice, or strategies you may offer to increase the likelihood of receiving acceptance letters that genuinely reflect an interest in my research pursuits and pave the way for long-term collaborative relationships. I thank you for your invaluable assistance and wisdom.
Relevant answer
Answer
Yes, convincing and "selling" to others can be particularly difficult both in the Academy and in real life settings. In my own little world, I have found Action Research methodology helps when seeking to harness collaborators. Although it has more appeal to practitioners than academics.
  • asked a question related to Financial Audit
Question
6 answers
What are the possibilities for applications of artificial intelligence and Big Data Analytics in carrying out multi-criteria economic and financial analyses of business entities, analyses carried out on computerised Business Intelligence platforms?
What are the potential applications of machine learning, deep learning, artificial intelligence, Big Data Analytics and other Industry 4.0 technologies in conducting multi-criteria economic and financial analyses of the historical and current performance of economic entities and making predictions about the future development of their business, analyses carried out on computerised Business Intelligence platforms?
As a result of technological advances, the potential for the application of machine learning, deep learning, artificial intelligence, Big Data Analytics and other Industry 4.0 technologies to perform multi-criteria economic and financial analyses of the historical and current functioning of businesses and to make predictions about the future development of their business, analyses carried out on computerised Business Intelligence platforms, is rapidly increasing. New ICT information technologies and Industry 4.0, including Artificial Intelligence, Machine Learning, Deep Learning, Big Data Analytics but also Data Science, Smart Technologies, Cloud Computing, Machine Learning, Personal and Industrial Internet of Things, Autonomous Robots, Horizontal and Vertical Data System Integration, Multi-Criteria Simulation Models, Digital Twins, Additive Manufacturing, Blockchain, Cyber Security Instruments, Virtual and Augmented Reality and other Advanced Data Mining technologies support the management processes of a company, enterprise or financial institution. In recent years, the aforementioned new technologies are helping to improve the management processes of supply logistics, procurement, production, service offering; marketing communication and customer relationship management; risk management; cyber security management; economic and financial analysis management, financial auditing, etc. Therefore, within the framework of the technological advances taking place, including the increasing computational capabilities of successive generations of processors and operational memory installed in computers, increasing disk capacities, storage media, increasing data transfers, etc., the possibilities of applying artificial intelligence and Big Data Analytics in carrying out multi-criteria economic and financial analyses of business entities, analyses carried out on computerised Business Intelligence platforms, are successively increasing. Consequently, the possibilities for the application of multi-criteria analytics carried out on computerised Business Intelligence platforms are also increasing year on year, which also contributes to the improvement of organisational management processes.
In view of the above, I address the following question to the esteemed community of scientists and researchers:
What are the possibilities for the application of Machine Learning, Deep Learning, Artificial Intelligence and Big Data Analytics and other Industry 4.0 technologies in carrying out multi-criteria economic and financial analyses of the historical and current performance of business entities and making predictions about the future development of their business, analyses carried out on computerised Business Intelligence platforms?
What do you think about this topic?
What is your opinion on this subject?
Please respond,
I invite you all to discuss,
Thank you very much,
Best wishes,
Dariusz Prokopowicz
Relevant answer
  • asked a question related to Financial Audit
Question
24 answers
One of the main differences between Financial Audit and Forensic Audit is that the Financial Audit gives the guarantee that the financial statements that have been checked are true and fair and are reasonable whereas, Forensic Audit helps to analyze and investigate a certain set of transaction, if any fraud has been occurred.
The goal of this project is to set the record straight as much focus have been on the Financial Audit as the Fraud Detector.
The questions are: 1. Who then is the Fraud Detector, a Financial Auditor or a Forensic Auditor?
2. Why are Financial Auditors liable if failed in their audit duty to detect fraud within an organization?
Relevant answer
Answer
If the Financial Audit and Forensic Audit are distinct in their objectives, and the report from the Financial Audit may lead to a Forensic Audit, then why are Financial Auditors liable in cases of failure to unravel Frauds, in the case of the Arthur Andersen in the "Enron Scandal"? ...mind You, Arthur Andersen might have been reporting the Fraud Signals to the Enron Corporation Management for the need for a Forensic Audit but probably and deliberately they ignored the submissions/reports, however did they?
The Enron scandal was a series of events involving dubious accounting practices that resulted in the bankruptcy of the energy, commodities, and services company Enron Corporation and the dissolution of the accounting firm Arthur Andersen.
Arthur Andersen was only the Financial Auditor and not the Forensic Auditor I think so why their dissolution?
What are your views on this?
  • asked a question related to Financial Audit
Question
15 answers
Which is best for fraud control? Internal audit vs External audit, Pre-audit vs Post-audit, Performance audit vs Financial audit?
Relevant answer
Answer
Ethics with self regulation!
  • asked a question related to Financial Audit
Question
8 answers
The analytics conducted on computerized Business Intelligence platforms is one of the key advanced information technology technologies of the fourth technological revolution, known as Industry 4.0.
The current technological revolution, known as Industry 4.0, is determined by the development of the following technologies of advanced information processing: Big Data database technologies, cloud computing, machine learning, Internet of Things, artificial intelligence, Business Intelligence and other advanced data mining technologies.
The analytics conducted on computerized Business Intelligence platforms currently supports business management processes, facilitates identification of opportunities and threats to business development, allows for quick generation of analytical reports on selected issues in the economic and financial situation of the business entity.
Do you agree with my opinion on this matter?
In view of the above, I am asking you the following question:
What future applications of analytics will be developed on computerized Business Intelligence platforms?
Please reply
I invite you to the discussion
The issues of the use of information contained in Big Data database systems for the purposes of conducting Business Intelligence analyzes are described in the publications:
I invite you to discussion and cooperation.
Best wishes
Relevant answer
Answer
Thank you very much for the interesting data provided regarding the application of Business Intelligence analytics.
Best regards,
Dariusz Prokopowicz
  • asked a question related to Financial Audit
Question
7 answers
Have the procedures for the development of reports and recommendations by the rating agencies already been improved compared to the situation before the global financial crisis of 2008?
Are the reports and recommendations issued by the rating agencies more honestly developed, in accordance with the principles of business ethics, have the procedures for their development and the objective information policy been improved and still function as before the global financial crisis of 2008?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Relevant answer
Answer
Credit rating agencies have come under increased scrutiny since the financial crisis. Their failure to recognise the threats to the financial system prior to the crisis coupled with their steady downgrading of European sovereign debt has led to much criticism, especially from European politicians and economists.... This examines the major agencies' influence, independence and performance and explores whether a publicly funded European agency would improve the situation... Tichy, G., Lannoo, K., Ap Gwilym, O., Alsakka, R., Masciandaro, D., & Paudyn, B. (2011). Credit rating agencies: Part of the solution or part of the problem?. Intereconomics, 46(5), 232-262.
  • asked a question related to Financial Audit
Question
8 answers
What are the methodological differences in the processes of examining economic effectiveness or specific selected issues, aspects in the scope of analyzing the effectiveness of a given business activity in a situation of comparison of analyzes carried out for small enterprises and large business entities conducting diversified economic activities?
For small business entities representing the SME sector, those operating in one area of ​​economic activity, the simplest solution is to select economic and financial indicators relevant to the needs, which determine specific issues of efficiency, eg fixed assets, current assets or other classified capital categories, production factors. It is also possible to analyze and measure the effectiveness of specific processes in an enterprise, the effectiveness of measures, specific investment projects, efficiency of logistics processes, work efficiency of employees, etc. For each of the mentioned types of effectiveness tests other economic or financial indicators are used.
However, in the situation of the analysis of complex, multi-factorial processes realized with economic entities, multifaceted processes covering various spheres of activity of a specific enterprise, covering the entirety of a large enterprise operating in various business areas and with the involvement of much larger financial resources for conducted economic efficiency analyzes, then they should Complex indicator models built from many interrelated economic, financial and other indicators can be used.
A good solution in this situation is the involvement of Business Intelligence technology using large data sets describing the functioning of a specific large enterprise, gathered in Big Data database systems. In addition, advanced data processing and analysis can be made using cloud computing technology. In addition, access to data, data update and commissioning of specific analyzes of economic performance research can be carried out from the level of mobile devices, i.e. through the use of the Internet of Things technology.
Do you agree with me on the above matter?
In the context of the above issues, I am asking you the following question:
What are the methodological differences in the processes of examining economic effectiveness or specific selected issues, aspects in the scope of analyzing the effectiveness of a given business activity in a situation of comparison of analyzes carried out for small enterprises and large business entities conducting diversified economic activities?
Please reply
I invite you to the discussion
Thank you very much
Best wishes
Relevant answer
Answer
...significant and inverse relationship between firm size and its efficiency based on
DEA model: in fact the larger the company its efficiency decreases. Thus, according to confirming
the inverse relationship between firm size and firm efficiency, it is recommended to investors and
managers to consider the efficiency index and the desired output with respect to investments
made according to the DEA models to achieve efficiency....
The traditional profit-based criteria have recognized defects the important of which is
being manipulated by various accounting procedures and reliance on the limiting principles of
conservation and retrospection. Thus, it is necessary to find some new parameters in order to
sensibly study companies’ performance. In this regard, data envelopment analysis (DEA) is
considered as a new way to do this. The main effect of this technique is that all previous variables
for assessing performance are simultaneously or individually included. In such models, raw
accounting data, financial ratios, economic variables, and nonfinancial data and factors can be
used (Musavizadeh, 2010)...Razmi et al., 2014
  • asked a question related to Financial Audit
Question
9 answers
Big Data Analytics has revolutionized various sectors.Let us explore its impact on accounting, auditing and financial reporting
Relevant answer
Answer
The accounting and finance data is a subset of enterprise data which includes broader operational and transactional data that can be used for analysis and forecasting. From the literature, there is the broader view of big data which includes new types of internal and external data much of which is unstructured but yields new insights into business performance, risks and opportunities. This more global view of data encompasses social media data which is increasingly gathered as part of companies’ online strategies
  • asked a question related to Financial Audit
Question
9 answers
Almost one year after the application of IFRS 9, we can carry out ex-post analyzes on the "Business Model" envisaged by this principle, which came into force in January 2018 to precisely understand how to objectively identify the business model and then apply it optimally in the IFRS 9
  • asked a question related to Financial Audit
Question
8 answers
Can you use Business Intelligence analytics for research into any type of business, including those run by innovative, technological startups?
Can Business Intelligence analytics be used to research and analyze the effectiveness of business operations carried out by innovative technological startups?
Are expensive computerized systems and analytical platforms on which Business Intelligence analytics tools are built are currently also available for business entities functioning as innovative, technological startups?
The first computerized systems and analytical platforms on which the Business Intelligence analytics tools were built were, due to the high construction costs of these systems, available mainly to large enterprises, corporations and financial institutions. However, as part of technical progress in IT and the dissemination of business analytics tools, successively computerized systems and analytical platforms on which Business Intelligence analytics tools are built are also available for smaller companies, currently mainly located in the SME sector.
Currently, IT companies that produce ready-made multi-functional, multi-module computerized systems and analytical platforms Business Intelligence also create versions dedicated to specific types of business entities representing also the SME sector. Informatized systems and analytical platforms on which Business Intelligence analytics tools are built facilitate the ongoing economic and financial analyzes of business entities and are helpful in the process of company management. I described the above issues in my scientific publications, to which links are given below.
Do you agree with my opinion on this matter?
In view of the above, I am asking you the following question:
Is it possible to apply Business Intelligence analytics to the study of business activities of innovative startups?
Please reply
I invite you to the discussion
Dear Colleagues and Friends from RG
The key aspects and determinants of applications of data processing technologies in Big Data database systems are described in the following publications:
I invite you to discussion and cooperation.
Best wishes
Relevant answer
Answer
Possible, but other approaches may be more successful, particulary new and innovative.
  • asked a question related to Financial Audit
Question
3 answers
Limited research performed indicate that the student's reading skills including analytical analysis and comprehension of decrease as they progress in the years of study. In the past the students were subjected to a generic reading programme only in their first year.
Any contributions on how to improve their reading skills and experiments performed on Financial auditing.
Relevant answer
Answer
The modern method is to use image learning and segmentation lessons into sections and then merge
  • asked a question related to Financial Audit
Question
40 answers
I will do an Internship at one of the big four at Financial services. I'm free to choose any audit topic.
Relevant answer
Answer
Chris Kelly, that's right.
And more than that, I feel like some large audit companies might have spotted frauds but looked the other way because of the fear of loosing a client if they made the fraud public.
Therefore, I have thought for a long time that if there was no 'client- service provider' relationship between audit companies and audited companies (for example, if audit companies were publicly appointed), frauds would arise earlier.
Maybe this could be analysed.
  • asked a question related to Financial Audit
Question
6 answers
The role of internal and external audit to prevent and detect financial statement fraud.
How can external and internal audit prevent and detect fraud in financial statement.
Relevant answer
  • asked a question related to Financial Audit
Question
5 answers
I want papers pdf about the effect of auditing the financial statements in NGOs on their performance
Relevant answer
Answer
Willems, J. Seven trade-offs in measuring nonprofit performance and effectiveness / J. Willems, S. Boenigk, M. Jegers // Voluntas. – 2014. – No. 25. – Pp. 1648–1670.
Delia Corina Mihaltan et al. Analysing the financial effectiveness of the nonprofits. Case study on health nonprofits / Procedia Economics and Finance. – 2015. – No. 26. – Pp. 367 – 374.
  • asked a question related to Financial Audit
Question
10 answers
Is there any any possibilities to find some context to make all certification be  equal in term of importance?
Relevant answer
Answer
I agree with you all and add ACCA as a well-known letters in finance world.
  • asked a question related to Financial Audit
Question
2 answers
It audit, financial audit
Relevant answer
I think the following two articles might help in answering your question:
The impact of information technology on the audit process: an assessment of the state of the art and implications for the future
JL Bierstaker, P Burnaby… - Managerial Auditing …, 2001 - emeraldinsight.com
An examination of audit information technology use and perceived importance
D Janvrin, J Bierstaker, DJ Lowe - Accounting Horizons, 2008 - aaajournals.org
  • asked a question related to Financial Audit
Question
4 answers
Stagliano and Sillup (2014) conducted a case study centered on assessing the impact of Securities and Exchange Commission (SEC) cybercrime disclosure guidance on reporting corporations.  By which, they questioned the largest publicly held firms in the United States pharmaceutical industry.  From a financial perspective, the researchers’ total questioned corporations held 96.1% of 2011 reported industry assets and received 96.9% of 2011 industry revenues.  Resultantly, the author concluded that little had changed over the previous five years regarding financial disclosure of cybercrime risks by management.  The authors demonstrated United States SEC registrants are prone to ignore or disregard the guidance for additional disclosures in their regulatory filings.
References
Stagliano, A. J., & Sillup, G. P. (2014). Transparency and risk assessment reporting: A case study sector survey of cybercrime disclosures. Journal of Business and Economics, 5, 1134-1140. doi:10.15341/jbe(2155-7950)/07.05.2014/017
  • asked a question related to Financial Audit
Question
3 answers
I am running an event study for the US M&As. Some stocks have complete data but some of them have less data. How to deal with this issue while preparing data for the event study. 
Relevant answer
Answer
Dear Awais
Usually, you should be able to run your event study with the missing values.
Alternatively, you can either:
1) Replace the missing stock values with the median (or mean) values of the total stock values in the distribution.
2) Or, you can decide to exclude stocks that do not have complete stock data and such adjustments should be made for both the pre-announcement and post-announcement period while noting that you need to have equal event window in the pre-M&A announcement and post-M&A announcement period.
Hope this helps!
Regards
Peterson
  • asked a question related to Financial Audit
Question
7 answers
Could anyone recommend a database where I can find a proper archival data about Internal Audit Functions in Australian listed companies?
Hello everyone,
I am considering a potential research project based on an archival data about Internal Audit Functions (IAF), Audit Committees (AC) and other corporate governance functions in Australian companies. I want to know the number of the defined population to decide the feasibility of regression analysis. Thus, I need some key statistics such as the number of listed companies that have an IAF and AC, their structures, and reporting mechanisms of IAF.
Is there a database or a particular way of collecting such information or the full data (other than a survey)?
I sincerely appreciate your help,
Hamed
Relevant answer
Answer
Hamed, you can try OSIRIS database which provides Information on listed companies - globally. Maybe you can also try ORIANA which provides company information specific Asia-Pacific region. All the best! 
  • asked a question related to Financial Audit
Question
3 answers
With the passage of time the market conditions have changed. Like the accounting measures such as the current assets, the fixed assets or the total debt of a firm now in 2016 is very different than those in 1980's or 1990's. If we talk about general market conditions or the market as a whole what sort of conclusion can we infer? 
Do the total asset of firms increased/decreased?
Do the total liabilities of firm increased/decreased?
does the market capitalization of the overall market increase/decreased? 
Relevant answer
Answer
Take a look at:  
The Efficient Markets Hypothesis
Jonathan Clarke, Tomas Jandik, Gershon Mandelker 
  • asked a question related to Financial Audit
Question
10 answers
Dear all,
An increasing number of listed firms are using XBRL in the reporting process.Would this complicate the audit approaches and audit implications?
Also, in the auditees' perspectives, what is the costs-benefits of using XBRL? Please share your views, experiences and thoughts, thanks
Background:
Since 2004, the Securities and Exchange Commission (SEC) expects firms to use eXtensible Business Reporting Language (XBRL) to file their reports. This helps tag a firm’s financial information using a computer readable and searchable engine. Investors are demanding assurance on the tagging process but the Public Company Accounting Oversight Board (PCAOB) has yet to issue a guidance on attesting the engagements regarding XBRL financial information furnished under the SEC’s current voluntary filer program, which relies on the auditor agreeing a paper version of the XBRL-related documents to the information in the official EDGAR filing. This approach is deemed adequate for the current paper-oriented reporting paradigm but once the filing in XBRL becomes mandatory, this will affect the way financial and non-financial data are reported, used and attested. The current audit focus on reconciling only the XBRL output with the paper submissions may not completely address this paradigm shift and may add costs to the rising audit costs and delays of issuing audit opinions.
Relevant answer
Answer
Dear all,
If you or your professional contacts are using XBRL for audit/assurance purposes, please share the cost-benefits, thanks
Gin
  • asked a question related to Financial Audit
Question
5 answers
I have a firm with several events in a year so that the event window of one event overlapps with the estimation window of another event. How do I deal with that? Do I need to leave the events out that have an other event in their estimation window?
Relevant answer
Answer
I suggest that you set the estimation window before the first event that occurs in you sample. this is viable if you have enough data before the date of the first event to get reasonably accurate estimates of the stock returns' model.
  • asked a question related to Financial Audit
Question
9 answers
How can access data on audit fees charged by audit firms to LISTED banks operating in Africa? I need the past 12 years data on audit fees in Africa and would appreciate if one can assist where to locate such a data base.
Does any one know if there is a LISTED bank in Africa not audited by any of the big 4 auditors? It appears the big 4- Delloite,PWC,Ernst and Young and KPMG dominate this field. For the risks in banks, do firms get out of these big 4 even where they have made some mistakes?
Regards
Erick Outa
Relevant answer
Answer
Erick, I just googled the following phrase: "Big 4" and and "banking" and "audit fees"
If you do that, you'll find some interesting links. NOTICE TO ANYONE who doesn't know how to use Google to find answers to your questions. Go to these tutorials: 
and 
Some links:
If I can do that, Erick, you can, too, my friend!
  • asked a question related to Financial Audit
Question
5 answers
The new ISA for auditor reports required the addition of new sections including other matters and going concern issues what criteria can auditors apply to ensure still a short auditor reports ?
Relevant answer
Answer
Dear Mohamed Hegazy 
Greetings,
Please find the attached file about your topic be good for you ,
Best Regards
  • asked a question related to Financial Audit
Question
8 answers
How do you see the possible practical application of a balanced scorecard for auditing firms? Can you provide references for published articles or research studies in this respect?
Relevant answer
Answer
Thank you all for your kind suggestions. However, I am more interested to identify obstacles or limitations for the practical application of the BSC for audit firms ? As an example of what I think of there are contradictions between auditors maintaining their independence and trying to satisfy their clients or providing value added services. What might be the other factors which should be considered when developing a BSC in this respect
  • asked a question related to Financial Audit
Question
6 answers
the percentage of financial restatement  was increasing 17 times from 1996-2004 however the recent data from audit analytics showed that there's been declining of impactful restatement as much as 22% from 2010-2014. Since reputation nowadays place in first rank into management concern, was it possible that before 2004 the managers haven't been concerned that much about their reputation once they do restatement? thanks
Relevant answer
Answer
Dear Scholar,
I understand and agree with others  that Corporate Reputation is important for an organisation from day one. With regard to your question:
whether was it possible that before 2004 the managers haven't been concerned that much about their reputation once they do restatement? 
I have three points:
1) Organizations were concerned about Corporate Reputation in the past but with the recent developments in Financial Reporting where major emphasis is on Disclosures (eg:SOX, 2002) the restatements increased initially. May be the companies were adopting and reviewing their financial statements in the light of the changes. With increased understanding of the requirements, the companies are able to state their financial performance more correctly.
2)  Another reason may be the rising costs of financial restatement in terms of time, money and other resources may have made the companies strenghten their audit committees over a period of time so may be there is a visible decline.
3) Nowadays investors are better informed than before and understand financial statements rightly. Given this assumption, the companies dont want to damage the corporate reputation by financial restatements unless otherwise very essential. This may be another reason.
Best Regards
  • asked a question related to Financial Audit
Question
8 answers
Tax audit as the critical review of the tax situation of a physical person or legal entity with a view to formulating an appreciation. Because their transactions are so numerous and complicated, both the companies and the tax auditors must rely on strong internal controls to ensure that information is classified and recorded properly for tax purposes According to Krishnan et al. (2013) find that Auditor provides tax services are connected with earnings management in the firm. In the same way the authors assumed that the auditor how provides tax services can improve financial reporting and audit quality. Few of literature review propose the discussion between auditor-provided tax services audit non-auditor provided tax services post-SOX. Maydew and Shackelford (2006) find the ratio of tax fees to audit fees change between 2001 to 2004 respectively from 1 to 0.25.
Relevant answer
Answer
Dear Souflence,
An attestation service provides an opinion on whether a set of financial statements is presented fairly whereas a tax service is a non audit service that estimates the amount owe to the Inland Revenue, state or local governments or authorities.
Hope these are useful
Gin
  • asked a question related to Financial Audit
Question
12 answers
I want use 6-months financial data of some companies financial reports to create an DEA model. Suppose that we have these financial reports:
6-2013
12-2013
6-2014
12-2014
6-2015
12-2015
We can use data extracted from these financial reports in DEA? Suppose that we need "Labor Costs" in DEA. The labor costs value for 6-2013 is 160,000$, the labors costs for 12-2013 is 300,000$,  6-2014 value is 164,000$ and finally the labor costs for 12-2014 is 310,000$. You can see that labor costs for 6-2013 is comparable with 6-2014 and labor costs for 6-2013 is labor costs from first day of 2013 until 2013 mid-year but labor costs of 12-2013 is full year labor costs (certainly higher value comparing to 2013 mid-year).
We can use this data in DEA or we should only use yearly financial reports?
Relevant answer
Answer
Dear Eghbal Rahimikia
Greetings,
I think annual data more effective,
Best Regards
  • asked a question related to Financial Audit
Question
6 answers
Please can you share some research paper about  the relation between tax audit and internal control in the firm 
Relevant answer
Answer
In developed countries, large corporations are subject to frequent scrutiny by tax authorities. "Tax" includes not just income taxes but also value-added taxes, commodity taxes, royalty payments and other government levies. All of these categories are subject to tax audits. 
Because their transactions are so numerous and complicated, both the companies and the tax auditors must rely on strong internal controls to ensure that information is classified and recorded properly for tax purposes. When internal control is strong, tax audits can be done efficiently, without undue disruption to the companies' operations. When internal control is weak, the auditors must seek additional information. The companies bear the costs of producing this information in a credible format. Such costs can be huge if the internal control system is in disarray; indeed, a tax audit may be so invasive as to threaten a company's continuing existence. 
So investing in strong internal control is efficient for both operational purposes and for tax reporting purposes. For operational purposes, strong internal control ensures that resources are obtained and used efficiently and effectively in accomplishing organizational objectives. For tax purposes, strong internal control ensures that information is classified and recorded properly in fulfilling the organization's obligation to government bodies. 
  • asked a question related to Financial Audit
Question
7 answers
Is there any review paper or exactly related paper available on social networks of directors or auditors in audit research?
thank you
Relevant answer
Answer
Dear Sir
Thanks a lot for sharing. I am looking for any paper on connections in companies. Kindly share any other stuff on corporate domain.
thanks a lot  
  • asked a question related to Financial Audit
Question
5 answers
I am going to study the effect of the auditors industry specialization on audit risk.
Relevant answer
Answer
Go through the attached files herewith
  • asked a question related to Financial Audit
Question
12 answers
Fiscal Board is a specific and independent board for monitoring financial statements, different from auditing board, because they shall be fully composed by independent members on supporting minority shareholders, in addition to others features.
Relevant answer
Answer
In Egypt we have similar requirements as SOX but not yet fully implemented through the Egyptian Financial Supervisory Authority (EFSA) and audit committee which must be formed from only independent board members should ensure compliance with such requirements and their minutes (for listed companies) must be submitted for review by EFSA.
  • asked a question related to Financial Audit
Question
16 answers
Dear all
Currently i am doing a research on budget management and control in one public hospital. As such, one of my objectives is to examine the differences between budgeted and actual performances in the hospital if any, and to find out some possible causes for the existing differences. But the  the budget report of the hospital is unaudited. It has not been audited by independent external auditors such as Office of Auditor General (OFAG) or any other authorized private auditors. My question is, is it advisable to use the budget report as a secondary data for my analysis? Will it jeopardize trustworthiness or credibility of the study in any way?  
Relevant answer
Answer
Dear all, 
In my opinion, if you use that data,  you have to report that in the conclusion section of your paper or thesis, and explain why you have use it ( because it would take lots of time until you obtain the certification, and then you have assumed that it is correct).
All papers/thesis has strengths and weaknesses.
Have a nice time
Helena
  • asked a question related to Financial Audit
Question
11 answers
Do you professional skepticism to the Auditor of recent trends in auditing research?
Relevant answer
Answer
I would suggest skepticism involves not believing reported information until it has been tested.  Being critical - not in a negative way but in a way which seeks to affirm (or deny) factual accuracy.  It has always been a requirement of the audit profession, not a recent phenomenon.  With experience skepticism enables us to penetrate into false information and debunk it if needed. 
  • asked a question related to Financial Audit
Question
12 answers
What are the ways that the MASB can improve on the financial reporting standard in Malaysia?
Relevant answer
Answer
Dear Mr Ahmed
There is a question on does comprehensive aspect reflect transparency. We know IFRS is practice based. If you feel we accountant just need to follow rules without limiting the scope of professional judgement, how can you improve financial reporting?
The question on regulatory bodies do care on that or not.
  • asked a question related to Financial Audit
Question
4 answers
Hi everybody,
I have the following problem. I must evaluate the post-acquisition success and identify (estimate) the real synergies from historical accountant data and cargo volume data. The merger (one seaport) have bought 10% share of another company, specialized for rail cargo transport. The deal was done in 2008 on the basis of positive valutation report of audit financial advisory company. The Cash Discount Flow methodology was used for future projection of synergy (about 40 Mio EUR) for post- acquisition period. But afterwards, in 2014 the revision was carried out which implied that the value of synergies was deeply overestimated and there is no evidence of any synergies. Since the management is now jeopardized to be prosecuted, I am interested in which methodology would be most convenient for evaluation of real synergies. I know that there exist some methods from the field of financial economics, such as estimation of abnormal return (which is correlated with long-term financial performance, see Healy et al., 1992), accountant methods, etc. Would be instead possible to apply some other (statistical, econometrics, or system dynamics) approach, which would be based on model related to past accountant data (revenues, assets, cash flow, equity, etc.) of both firms, past valutation report data (projected synergies before acqusition), historical cargo throughput data of the port, and past cargo volume data transported by the rail of acquired firm. Maybe past macroeconomic indicators (GDP) would be also included in model. I have in mind a simulation (scenario playing) model, or perhaps time series model, or structural equation model, and so on. I would be very grateful for any advice. Thank you.
Dejan
Relevant answer
Answer
Dear Prof. Mallick,
thank you for your suggestions. I have had red your paper, which was a very useful guideline. I think that combined model could be developed on the basis of the following research areas: Econometrics, Structural Equation modeling, Financial analysis and Economics, Investment, Asset and Revenue management, and Business Explanatory and Predictive Analytics.
Best regards,
Dejan
  • asked a question related to Financial Audit
Question
1 answer
Details mainly regarding how forensic accountants lack the skills required to detect and prevent fraud early and quickly compared to the US and UK.
Relevant answer
Answer
Your question is incomplete.  Improve What? send complete question please.
Ishola Akintoye
  • asked a question related to Financial Audit
Question
3 answers
If we assume that audit firm rotation has an effect on financial reporting quality and audit partner rotation has an effect on financial reporting quality. Thus, it could be expected that the effect of audit partner rotation has second-order effect on financial reporting quality. So, how to test this effect?
Relevant answer
Answer
I guess you can test the effect of audit partner rotation on reduced audit quality/financial reporting quality in accounting firms via questionnaire 
All the best
  • asked a question related to Financial Audit
Question
5 answers
Hi friends, I am carrying out research on the challenges faced in preserving and conserving financial records. I have realized that there is less content on preservation and conservation online. Please help!. Thank you!
Relevant answer
Answer
Maintenance and security. It costs a lot for firms to maintain (and continuously updating) data as well as secure data in a reliable and conducive environment. Accessibility in term of where, when and who is equality important. Printed copy is a good backup in case of blackouts or caused by any other natural disasters, but may not be friendly to the environment and costs. It needs a balance. Keep those that are essential and relevant.
  • asked a question related to Financial Audit
Question
4 answers
 
Hi,
I am doing research on largest U.S. manufacturing companies' audit fees and auditors for 2014 and would like to know if there's more convenient way to find the audit fees and auditors besides digging all the way into company's 10-K? I have 60 companies to do research on.
Thank you so much!
Relevant answer
Answer
collect your information directly from companies'
  • asked a question related to Financial Audit
Question
11 answers
Why do we report dividend payments as financing activities on the cash-flow statement?
Relevant answer
Answer
There are two strategies to consider:
1. The general philosophy is that dividend payments are considered to be Financing Activities because these are payments to the investors (shareholders) who actually are co-finincing the company. These dividend payments may be interpreted as "variable interests" to the investors of equity for their risk taken in the company (for the company, these represent a part of the cost of equity). Though, the company has per se no obligation to pay divedends; it is just a periodic circular decision if to do so or not (in contrary to the costs of debt financing, where the interests are determined by a contract).
2. But if the company has a kind of  "commitmend / promise" to periodically pay dividends and this is actually implicitly expected by the investors, then it makes sense to treat the periodical occuring dividend payments as Operational Cash Flow. The key indicator for the company in this context is the Free Cash Flow: The company has a better transparency and control on its capability of generating Free Cash Flows.
What´s import: Once made a dicison whith which stategy to proceed, the company shall stick to it consistently.
You can find a hint on how a company can treat dividend payments by consulting IAS 7.34: "Dividend paid may be classified as a financing cash flow because they are a cost of obtaining financial resources. Alternatively, dividends paid may be classified as a component of cash flows from operating activities in order to assist users to determine the ability of an entity to pay dividends out of operating cash flows."
  • asked a question related to Financial Audit
Question
5 answers
Boards of directors  have two main activities: Advising and Monitoring. The last quoted role was extensively treated in the literature. For example, the auditing  committee was examined with a lot of details. But what about the advising part of the role of the board of directors? How to measure the implication of directors in the advising side of the board's activity?
Relevant answer
Answer
In my opinion, to measure the ability of the board to advise we should investigate the background of the members of the board (previous professional experience, relational network, education, role, etc.). In other words, we should investigate the board considering a multicultural perspective. For example, one or more board members who come from the financial institutions, they will have on the one hand the right experience in the financial sector, and on the other hand, appropriate skills to dialogue with the banking industry. The gap that I have found so far, according to my humble experience, is that this aspect have been little investigated. Future research should investigate on human and relational capital of the members of the board.
  • asked a question related to Financial Audit
Question
8 answers
Does number of periods that a member of audit committee remains on the board affect financial reporting quality?
Relevant answer
Answer
Intuitively I would have thought 'yes' to your question, in that the longer a member serves on the audit committee the better acquainted he/she should become with the financial statements and underlying estimations. But there would also be other factors to consider such as the member's financial literacy, extent of other commitments (which could change over time), and other behavioural influences.  For instance, if there were conflicts of interest, length of tenure on the audit commitment could have a negative impact on financial statement quality.  Conversely also, a newly appointed member may bring much needed fresh challenge to the quality of the financials. 
  • asked a question related to Financial Audit
Question
8 answers
I am working on the Assessment of Quality of Internet Financial Reporting (IFR) by firms in Saudi Arabia. For this purpose I will select a sample of firms that practice IFR. Their disclosure will be checked against the standard disclosure norms. If I prepare a checklist of the quality parameters for financial disclosure, what should be the ideal methodology to see the compliance of these firms and to test the main hypothesis that "Firms in Saudi Arabia practicing IFR comply with standard disclosure norm". I will probe further if there special norms for IFR. In that case I will use those quality parameters applicable for IFR.
Relevant answer
Answer
Najmul -
You noted that you "...will select a sample of firms," but your sampling methodology is unclear. Whatever you do, I have one suggestion: stratify carefully so that characteristics may be isolated. If you want to look at each of the strata, that isn't exactly stratification, which is to help increase accuracy of overall inference, but the grouping process is still very important, perhaps more so. You can perhaps have an indication as to how differences in categorizations impact the data. But beware of spurious results that can occur. There should be theory to backup any differences you find. Theory first and then data confirmation.
If you categorize the data, you may even be able to treat them as response propensity groups. It depends upon your sampling and any estimation methodology. Also, if you do any regression studies, if that is possible, or descriptive statistics, categorizing your data will also be helpful. It is best if you can use specific characteristics to make these groupings/'strata,' but you might have to 'stratify' by size of firm.
I am not clear on this type of study, but I do think that sampling from population subgroups/'strata ' is probably helpful, regardless.
Cheers - Jim 
  • asked a question related to Financial Audit
Question
14 answers
Looking for evidence that indicates that auditors prefer not to have to override accounting standards to show a true and fair fiew or fair presentation and possible reasons for this.
Relevant answer
Answer
I am aware of the legal requirements. I am more concerned with whether auditors prefer to follow the standards without applying the override and if this is the case what are their reasons.
  • asked a question related to Financial Audit
Question
4 answers
Reasons why auditors might prefer Rules based over Principles Based accounting.
Relevant answer
Answer
   
Robert
Pardon me.The precise citation is " CFOs in our experiments exhibit more agreement and are less likely to report aggressively under a less precise (more principles-based) standard than under a more precise(more rules-based) standard" and the authors are
Agoglia, C., Doupnik, C., and Tsakumis, G. 2011. ‘Principles-Based versus Rules-Based Accounting Standards: The Influence of Standard Precision and Audit Committee Strength on Financial Reporting Decisions,’ The Accounting Review American Accounting Association 86(3): 747–767.
The authors caution that  their experiments focus on a setting in which the rules-based standard has been unable to curb aggressive reporting (i.e., the lease capitalization decision),even given a strong regulatory environment in which there is general concern over aggressive reporting choices. I bet this matter could be interpreted in several ways.
Thanks for holding me to account.I was writing off my mind but you sent me back to the books.
Best wishes for the new year.
Erick Outa
  • asked a question related to Financial Audit
Question
4 answers
I wanna know if the continuous learning influence the internal audit effectiveness
Relevant answer
Answer
I can potentially offer you a case study.  There are a number of articles from internal audit practitioner journals evidencing continuous learning with resulting benefits to internal audit effectiveness measured in dollar terms, typically millions of dollars saved.  Examples attached. 
The continuous learning methodologies used are Action Learning (Reg Revans) and Action Research (Kurt Lewin), which are more qualitative, consultative and less mechanistic than, say, Six Sigma. 
  • asked a question related to Financial Audit
Question
2 answers
Integrated reporting and audit.
Relevant answer
Answer
You might the link below helpful. Standards for the Knowledge and Skills of Social Auditors http://www.verite.org/sites/default/files/images/Standards_for_the_Knowledge_and_Skills_of_Social_Auditors_October_2009_0.pdf
  • asked a question related to Financial Audit
Question
1 answer
Sales revenue is always the largest item in the financial statements and most manipulations are effected through this very item. Sales audit will not only help in checkmating these manipulations but also in developing good customer profiles that will enhance projections on sales revenue and developments.
Relevant answer
In general, as in every industry,revenue recognition is a presumed risk of material mistatement.There are certain procedures and controls, which if correctly applied and followed, those risk should be minimised (if not at all eliminated).
I think is all about dealing with the right professionals who know their business and how to deal not only with the tax authorities but also with the other various stakeholders as well.
  • asked a question related to Financial Audit
Question
1 answer
Audit risk can be quantified as there are various matrix's in other disciplines that support quantification.
Relevant answer
Answer
The issue is that various researchers do not recognize the risk models as an acceptable model. Could you elaborate on the specific model you have in mind?
  • asked a question related to Financial Audit
Question
8 answers
We have a multicultural group of students and their performance needs to improve.
Relevant answer
Answer
case study is the best way to teach auditing to group of student. It also helpful to make interesting and also improve performance of the student.
  • asked a question related to Financial Audit
Question
7 answers
The NASDAQ is presently considering a rule change that will require its listed companies to establish and maintain an Internal Audit Function (IAF). Similarly, the New York Stock Exchange (NYSE) listing rules mandate the presence of an IAF (NYSE Section 303A.07). However, the NYSE does not address the effectiveness of the IAF. Having an IAF is not the same as having a value-adding and effective IAF. The NASDAQ may consider demanding organizations to establish and maintain an effective IAF. What do you think?
Relevant answer
Answer
Yes, of course. In my work I consider the Italian conduct code named "Capuano code" (see it in www.borsaitaliana.it) in a critical perspective. In its rules (which are a kind of "soft law" rules) the "collegio sindacale" is named as "the top of the chain of controls", particularly in listed companies; but actually it is not. All information and powers about the organizational stucture of the company go to the board of directors, which is considered as the only recipient of the information flow and the exclusive owner of the power to Determine and change that structure, Including the internal audit function. On the contrary, I believe that the organizational structure of the company, and the IAF, must be put under the control of the supervisory board ("collegio sindacale"), which assesses its adequacy and Reliability. Furthermore, I say that the IAF and the Identification of an internal control Is not mandatory in listed companies and Purely optional in others; in both listed and not listed companies, I believe that the choice to establish whether or not the function and to Identify whether or not the responsible is a Discretionary choice To be determined by directors, subject to critical review by the supervisory boards and dependent on factors other than the status of listed company: nature and sine of the enterprise, membership of a group of enterprises, Territorial structure and so on.
I Hope this short abstract was useful. DC
  • asked a question related to Financial Audit
Question
4 answers
It is great that we're developing discussion papers on how to compile an integrated report, but little attention is being placed on the assurance thereof.
Relevant answer
Answer
Maybe we should also reevaluate the need for an audit of the integrated report? As you mentioned, the integrated report is supposed to be company-specific. I am not sure if the current assurance model (particularly when it comes to non-financial measure and forecasted information) can allow the auditor to express an opinion providing a high level of assurance on the integrated report. Requiring a formal audit of the report could, therefore, result in the modification of information that would otherwise have been provided to stakeholders simply for the purpose of enabling the auditor to sign off on the report. Paradoxically the audit of the integrated report could actually end up detracting from the relevance and reliability of the report!