Audit Skills Guide

This is a guide for the Audit Skills course CAC2103.
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Articles

AUDITING PRACTICES COMMITTEE DRAFT AUDITING GUIDELINE: VALUE FOR MONEY AUDITS Some full text available
The full text of a new draft guideline on value for money audits is provided. Guidance to auditors on the special factors to be taken into account in the application of auditing standards to value for money audits is offered.
note: Journal Article
The Malaysian market for audit services: ethnicity, multinational companies and auditor choice Some full text available

The purpose of this paper is to investigate the extent to which ethnic association (i.e. Chinese and Bumiputra ownerships) and national issues (i.e. the presence of foreign corporations) influence the auditservices market in Malaysia. Specifically, the paper aims to examine the effects of ethnicity and foreign ownership on choice of auditor.                                                          
Design/methodology/approach– Two logit models are used; the first is to test on ethnic auditor (Chinese/non‐Chinese) choice while the second is related to the choice of quality‐differentiated auditor. The data is obtained from annual reports of the population of the Bursa Malaysia listed companies for both the Main Board and the Second Board for the periods 1993‐1995.                                                                                                
Findings– The logit regressions confirm our prediction of ethnic networking and preferential treatment on the auditorselection process.                           
Research limitations/implications– The first limitation lies on the auditor choice model where the model is developed from a demand perspective, assuming that the auditors are willing to supply services to any client even though it is very unlikely in the real world. The model also assumes that the audit engagement process for foreign‐controlled companies is purely transacted in the Malaysian market. However, foreign multinational corporations might determine the selection of the auditor at the headquarter offices and the Malaysian subsidiaries might simply be directed to engage a given auditor. Another limitation relates to the results of the logit regressions as the study has documented an ethnic association between auditor and auditee rather than establishing a causal relationship.             
Practical implications– An important implication of these findings relates to auditor independence. The Malaysian Institute of Accountants (MIA) has made rules prescribing the code of professional conduct and ethics of public accountants known as the MIA By‐Laws (on Professional Conduct and Ethics) but it seems to neglect the diversity of local culture in addressing independence. Whilst the auditor is divorced from financial and familial interests, the ethnic sentiments might impair auditor independence especially in an audit conflict situation.                                                           
Originality/value– The paper provides important insights into the existence of Chinese business practices in Malaysia andauditor selection process in this country.
note: Journal Article.
A summary of the global Common Body of Knowledge 2006 (CBOK) study in internal auditing Some full text available
Purpose– The 2006 global Common Body of Knowledge (CBOK) study is part of an ongoing research program designed to document how internal auditing is practiced. The purpose of this paper is to summarize responses to three global surveys of internal auditors.                                  
Design/methodology/approach– Based on literature reviews and a pre‐scope questionnaire, the researchers develop three questionnaires that are answered by internal auditors world wide. Topics in the questionnaires, which are translated from English into 16 languages, include the attributes of an effective internal audit activity (IAA); compliance with The Institute of Internal Auditor (IIA) Standards; internal auditor skills, competencies, and knowledge; internalaudit tools and techniques; and emerging roles of the IAA.                                                                                                         
Findings– The profession of internal auditing is a rich resource for organizations as the IAA monitors the adequacy and effectiveness of management's internal control framework and contributes to the integrity of corporate governance; risk assessment; and financial, operating, and IT systems.                                                                                                  
Practical implications– The participation of IIA members from 91 countries and 9,366 usable responses provides information about the evolving role of internal auditing as a value‐added activity that helps an organization manage its risks and take advantage of opportunities. The CBOK 2006 database can be used to improve the understanding of the current state of internal auditing practices; anticipate the use of new skills, tools, and technologies; and promote the enhancement of standardization and performance of internal auditing world wide.                                                       
Originality/value– This paper summarizes information in the most comprehensive database ever to capture a current view of the global state of the internal audit profession.
note: Journal Article
Auditor concentration in a joint‐auditing environment: the French market 1997‐2003 Some full text available
Purpose– The French law uses joint‐auditing as an audit quality device. This regulation also indirectly preserves market competition by reducing the domination of the large audit firms. However, concerns emerge about the effects of recent auditor mergers on the effectiveness of joint‐auditing: the reduced number of audit suppliers may favour the development of too frequent joint‐auditing collaborations, causing routine cross‐reviews and interdependencies between co‐auditors. This study aims to address this issue.

Design/methodology/approach– The market shares, individual performance, and joint‐audit interconnections (attraction‐repulsion indices) of the main audit networks in France are investigated for the year 1997 and again for the year 2003.

Findings– Despite the concentration of the audit market for listed companies globally, descriptive market analyses suggest that competition in the audit market has not decreased: the PricewaterhouseCoopers merger in 1998 did not produce any gain in market share to the newly‐formed network; the French member of Arthur Andersen suffered an effective erosion of its audit portfolio resulting from the infamous Enron case; and some national audit networks have maintained significant market positions. Contrary to expectations, the increased concentration did not result in abnormally frequent collaborations between the main audit firms.

Research limitations/implications– The joint‐auditing interconnections are based on the number of common audit clients, and this approach does not take into account the different sizes of the auditees.

Originality/value– This paper is an original approach of auditor concentration in a joint‐auditing environment. To regulators, the results of this study suggest that joint‐auditing can be utilised as a mechanism to preserve market competition and thus potentially maintaining audit quality.
note: Journal article.
Auditor independence: an international perspective Some full text available
Examines the role of professional associations, governmental agencies, and international accounting andauditing bodies in promulgating standards to foster auditor independence domestically and abroad. Focuses specifically on the role played by the American Institute of Certified Public Accountants, the Institute of Internal Auditors (IIA), the Securities and Exchange Commission and the US Government Accounting Office. Also looks at other professional associations in banking, industry, and manufacturing sectors dealing with sensitive issues of auditors′ involvement in such matters as management advisory services, operating responsibilities, outsourcing, opinion shopping, auditor rotation, and other conflicts of interest which may impair auditor independence.
note: Journal Article
Auditors at Work: a Former Chief Auditor's View Some full text available
The author,  draws on his experience as a former chief auditor, to give a personal view of audit work. The role of the auditor, the organisational effects of rules and procedures, problems of motivation, the issue of audit independence and the operation of defence mechanisms in audit work are commented on and the main challenges are highlighted .
note: Journal Article
Perceptions of messages conveyed by review and audit reports Some full text available
This study compares the perceptions of the users and preparers of financial statements to those of auditors, concerning messages conveyed by review and audit reports. Concern has been expressed about the ability of different groups to differentiate between the level of assurance provided by these engagements. All groups perceived that review reports provided less assurance than audit reports. Users placed less responsibility on the auditor with a review, whilst preparers did not perceive any difference in the auditor’s responsibility. Preparers and users placed a greater responsibility on management than did auditors, for maintaining internal control and accounting records. Auditors had stronger beliefs concerning reliability of the financial information with both reports, reflecting the scepticism of users and preparers and a need for auditors to improve their performance if auditing is to achieve its social function. Auditors also need to improve communication of the level of assurance provided and extent of work performed, and perceptions of auditorindependence. The profession’s response to expectation gap issues has been largely defensive. This paper indicates a constructive and proactive approach is needed
note: Journal Article
Recurring issues in auditing: back to the future?
 This article explores the issues which concerned auditing practitioners more than 100 years ago and reexamines them in the present day context. These issues include: the role and scope of the audit, audit independence, theauditor’s report, competition between auditors, litigation against auditors, and governance and regulation of the profession.                                                                                                                                                   Many of these concerns remain unresolved. Develops an historical perspective which helps to explain the endurance of these issues and informs policy makers in their endeavour to devise permanent solutions. Examines the determination of the profession′s early leaders to discuss the problem and publicly notes the contrast with the deafening silence emanating from their counterparts today.
note: Journal Article
Result 7 no accessfull access Audit committees: practices, practitioners and praxis of governance

The purpose of this paper is to review and critique prior research on audit committees using a practice-theory lens. Research on audit committees has followed the same trajectory as early research on boards of directors, which has been criticised for its singular theoretical perspectives and methodologies that do not capture the complexity of real-world experiences/behaviours.                                                                          
Design/methodology/approach– The authors devise an analytical framework based on practice theory to conduct the review. The authors examine what audit committees should do (i.e. best practice) vs what audit committees actually do (i.e. actual activities in practice – praxis). Attributes of audit committee members, and the relationship dynamics relevant to their role execution (i.e. practitioners), are considered.                 
Findings– Research on boards has found that over-emphasis on agency theory’s monitoring role negatively impacts boards’ effectiveness. The authors invoke other theories in examining what audit committees do in practice. The authors characterise the role of audit committees as oversight not monitoring. The authors question whether, similar to auditing, audit committees are blamist tools or are genuinely orientated towards supporting improvements in organisational management systems. The authors unpack the ritualistic ceremonial behaviours and symbolic endeavours vs substantive engagement by audit committees. The analytical framework also considers the “guardianship circle” around audit committees in the form of the key practitioners and their relationships: audit committee members, auditors and managers.                                                              
Originality/value– Drawing on the analytical framework, the authors provide directions for further opportunities for research ofaudit committees.
note: Journal Article
Result 7 no accessfull access Audit committees: practices, practitioners and praxis of governance

The purpose of this paper is to review and critique prior research on audit committees using a practice-theory lens. Research on audit committees has followed the same trajectory as early research on boards of directors, which has been criticised for its singular theoretical perspectives and methodologies that do not capture the complexity of real-world experiences/behaviours.                                                                          
Design/methodology/approach– The authors devise an analytical framework based on practice theory to conduct the review. The authors examine what audit committees should do (i.e. best practice) vs what audit committees actually do (i.e. actual activities in practice – praxis). Attributes of audit committee members, and the relationship dynamics relevant to their role execution (i.e. practitioners), are considered.                 
Findings– Research on boards has found that over-emphasis on agency theory’s monitoring role negatively impacts boards’ effectiveness. The authors invoke other theories in examining what audit committees do in practice. The authors characterise the role of audit committees as oversight not monitoring. The authors question whether, similar to auditing, audit committees are blamist tools or are genuinely orientated towards supporting improvements in organisational management systems. The authors unpack the ritualistic ceremonial behaviours and symbolic endeavours vs substantive engagement by audit committees. The analytical framework also considers the “guardianship circle” around audit committees in the form of the key practitioners and their relationships: audit committee members, auditors and managers.                                                              
Originality/value– Drawing on the analytical framework, the authors provide directions for further opportunities for research ofaudit committees.
note: Journal Article
Result 7 no accessfull access Audit committees: practices, practitioners and praxis of governance

The purpose of this paper is to review and critique prior research on audit committees using a practice-theory lens. Research on audit committees has followed the same trajectory as early research on boards of directors, which has been criticised for its singular theoretical perspectives and methodologies that do not capture the complexity of real-world experiences/behaviours.                                                                          
Design/methodology/approach– The authors devise an analytical framework based on practice theory to conduct the review. The authors examine what audit committees should do (i.e. best practice) vs what audit committees actually do (i.e. actual activities in practice – praxis). Attributes of audit committee members, and the relationship dynamics relevant to their role execution (i.e. practitioners), are considered.                 
Findings– Research on boards has found that over-emphasis on agency theory’s monitoring role negatively impacts boards’ effectiveness. The authors invoke other theories in examining what audit committees do in practice. The authors characterise the role of audit committees as oversight not monitoring. The authors question whether, similar to auditing, audit committees are blamist tools or are genuinely orientated towards supporting improvements in organisational management systems. The authors unpack the ritualistic ceremonial behaviours and symbolic endeavours vs substantive engagement by audit committees. The analytical framework also considers the “guardianship circle” around audit committees in the form of the key practitioners and their relationships: audit committee members, auditors and managers.                                                              
Originality/value– Drawing on the analytical framework, the authors provide directions for further opportunities for research ofaudit committees.
note: Journal Article
Result 7 no accessfull access Audit committees: practices, practitioners and praxis of governance

The purpose of this paper is to review and critique prior research on audit committees using a practice-theory lens. Research on audit committees has followed the same trajectory as early research on boards of directors, which has been criticised for its singular theoretical perspectives and methodologies that do not capture the complexity of real-world experiences/behaviours.                                                                          
Design/methodology/approach– The authors devise an analytical framework based on practice theory to conduct the review. The authors examine what audit committees should do (i.e. best practice) vs what audit committees actually do (i.e. actual activities in practice – praxis). Attributes of audit committee members, and the relationship dynamics relevant to their role execution (i.e. practitioners), are considered.                 
Findings– Research on boards has found that over-emphasis on agency theory’s monitoring role negatively impacts boards’ effectiveness. The authors invoke other theories in examining what audit committees do in practice. The authors characterise the role of audit committees as oversight not monitoring. The authors question whether, similar to auditing, audit committees are blamist tools or are genuinely orientated towards supporting improvements in organisational management systems. The authors unpack the ritualistic ceremonial behaviours and symbolic endeavours vs substantive engagement by audit committees. The analytical framework also considers the “guardianship circle” around audit committees in the form of the key practitioners and their relationships: audit committee members, auditors and managers.                                                              
Originality/value– Drawing on the analytical framework, the authors provide directions for further opportunities for research ofaudit committees.
note: Journal Article
The Asia Pacific literature review on internal auditing Some full text available
Purpose– By conducting the 2006 global Common Body of Knowledge (CBOK) study, The Institute of Internal Auditors(IIA) attempts to better understand the expanding scope of internal auditing practice throughout the world. The purpose of this review of recent internal auditing literature in Asia Pacific is to document how the internalaudit function is changing in response to the shifts in global business practices.                                      
Design/methodology/approach– The literature in Asia Pacific is reviewed with a focus on developments that have implications for the expanded scope of internal auditing and the changing skill sets of internal auditors. This focus has implications for CBOK 2006.                                                
Findings– The literature indicates a paradigm shift in the activities performed by internal auditors. The increasing complexity of business transactions, a more dynamic regulatory environment in Asia Pacific, and significant advances in information technology have resulted in opportunities and challenges for internal auditors. Although in 2004, The IIA responded to the changing organizational environment by updating the professional practices framework, more work needs to be done to prepare internal auditors for the expanded set of skills and knowledge required to perform audits of the future.                                                                                                      
Originality/value– By presenting an overview of past literature in Asia Pacific and discussing the shifting demands on internalaudit services, the researchers hope to motivate further research in the field .
note: Journal Article
The Audit Committee: An International Perspective
Highlights the role played by the Securities and Exchange Commission (SEC), the New York Stock Exchange (NYSE), the American Institute of Certified Public Accountants (AICPA), The Institute of Internal Auditors (IIA), the Treadway Commission, and other professional organizations in furthering the establishment of auditcommittees in the USA. In the international arena, the UK Cadbury Committee, the Australian Borsch Committee, and the Canadian Macdonald Commission have influenced the widespread use of corporateaudit committees in their respective countries. The guidelines on audit committees set by the IIA, AICPA, SEC, and the Treadway Commission have had a tremendous impact worldwide. Cultural differences may, however, limit the formation and effectiveness of audit committees globally even though auditing is a relatively homogeneous profession. The Institute of Internal Auditors, as an international professional association, may wish to consider the cultural dimensions of corporate governance in formulating professional internal auditing standards dealing with the structure and functions of audit committees internationally
note: Journal Article
The audit crunch: reforming auditing Some full text available
Purpose– The purpose of this paper is to stimulate debates about contemporary auditing practices.

Design/methodology/approach– The paper builds a generalised theory of auditing to pose some questions about the basic auditing model, notions of audit quality and the possibility that some transactions cannot be audited in the traditional way.

Findings– It is argued that the basic auditing model is flawed since it makes auditors financially dependent on companies. The conventional approach to “audit quality” is also incomplete as it pays little attention to the organisational and social context of auditing. It also argues that as companies have diversified into new forms of investment and complex financial instruments, some transactions may be not be capable of being audited in the traditional way.

Research limitations/implications– The paper does not offer a comprehensive critique of contemporary auditing issues. Rather it is a focus on some selected issues.

Practical implications– The paper encourages reflections on contemporary practices and offers some suggestions for reforms.

Originality/value– The paper is a combination of theory, evidence and speculation on contemporary issues.
note: Journal Article

Journals/Magazines

International Journal of Accounting & Information Management Some full text available
The International Journal of Accounting & Information Management publishes research in accounting, finance and information management with a special emphasis given to the interaction between these areas of research in an international context and in either the private or public sectors. Aiming to bridge the knowledge gap between researchers and practitioners who are conducting research, the journal covers issues arising in:

Information systems
Accounting information management
Innovation and technology in accounting
Accounting standards and reporting
Capital market efficiency
note: Journal
Accounting, Auditing & Accountability Journal Some full text available
This jornal is dedicated to the advancement of accounting knowledge, the Accounting, Auditing & Accountability Journal publishes high quality manuscripts concerning the interaction between accounting/auditing and their socio-economic and political environments, encouraging critical analysis of policy and practice in these areas. The journal also seeks to encourage debate about the philosophies and traditions which underpin the accounting profession, the implications of new policy alternatives and the impact of accountancy on the socio-economic and political environment.

Coverage includes, but is not limited to:

Alternative explanations for observed practice.
Critical and historical perspective on current issues and problems.
Field study based theory development
Limitations in present accounting measurement
Political influences on policy making
Social and political aspects of accounting standards
The broadening scope of the reporting constituency.
note: Journal
Accounting, Auditing & Accountability Journal, Some full text available
Dedicated to the advancement of accounting knowledge, the Accounting, Auditing & Accountability Journal publishes high quality manuscripts concerning the interaction between accounting/auditing and their socio-economic and political environments, encouraging critical analysis of policy and practice in these areas. The journal also seeks to encourage debate about the philosophies and traditions which underpin the accounting profession, the implications of new policy alternatives and the impact of accountancy on the socio-economic and political environment.

Coverage includes, but is not limited to:

Alternative explanations for observed practice.
Critical and historical perspective on current issues and problems.
Field study based theory development
Limitations in present accounting measurement
Political influences on policy making
Social and political aspects of accounting standards
The broadening scope of the reporting constituency
African Journal of Accounting, Economics, Finance and Banking Research openURL
This is a bi-annual, peer-reviewed research journal that provides a publication outlet for practical and theoretical issues related to Africa. This journal is interested in country or industry specific issues that relate to accounting, economics, finance and banking. As a result of the need for enhanced development in the African continent, special consideration will be given to papers that not only highlight problems but also proffer solutions and make targeted policy recommendations. This AJAFBR attempts to encourage scholars, academicians and professionals to engage more in Africa-related research and provide a forum for the exchange of ideas. The journal publishes the highest quality articles in all business related disciplines especially in the areas of accounting, economics, finance and banking academic disciplines.
note: Journal
African Journal of Accounting, Economics, Finance and Banking Research openURL
This is a bi-annual, peer-reviewed research journal that provides a publication outlet for practical and theoretical issues related to Africa. This journal is interested in country or industry specific issues that relate to accounting, economics, finance and banking. As a result of the need for enhanced development in the African continent, special consideration will be given to papers that not only highlight problems but also proffer solutions and make targeted policy recommendations. This AJAFBR attempts to encourage scholars, academicians and professionals to engage more in Africa-related research and provide a forum for the exchange of ideas. The journal publishes the highest quality articles in all business related disciplines especially in the areas of accounting, economics, finance and banking academic disciplines.
note: Journal
African Journal of Economic and Management Studies Some full text available
African Journal of Economic and Management Studies (AJEMS) advances both theoretical and empirical research, informs policies and practices, and improves understanding of how economic and business decisions shape the lives of Africans. AJEMS is a multidisciplinary journal and welcomes papers from all the major disciplines in economics, business and management studies. 
note: Journal
African Journal of Economic and Management Studies Some full text available
African Journal of Economic and Management Studies (AJEMS) advances both theoretical and empirical research, informs policies and practices, and improves understanding of how economic and business decisions shape the lives of Africans. AJEMS is a multidisciplinary journal and welcomes papers from all the major disciplines in economics, business and management studies. 
note: Journal
African Journal of Economic and Management Studies Some full text available
African Journal of Economic and Management Studies (AJEMS) advances both theoretical and empirical research, informs policies and practices, and improves understanding of how economic and business decisions shape the lives of Africans. AJEMS is a multidisciplinary journal and welcomes papers from all the major disciplines in economics, business and management studies. 
note: Journal
African Journal of Economic and Management Studies Some full text available
African Journal of Economic and Management Studies (AJEMS) advances both theoretical and empirical research, informs policies and practices, and improves understanding of how economic and business decisions shape the lives of Africans. AJEMS is a multidisciplinary journal and welcomes papers from all the major disciplines in economics, business and management studies. 
note: Journal
Managerial Auditing Journal Some full text available
The Managerial Auditing Journal provides a dynamic global forum for the examination of current research and practice in auditing and assurance (internal and external; financial and non-financial). The journal addresses the relation between theory and practice by exploring trends, paradigms and perspectives, including the ethical, social, environmental and economic aspects of contemporary assurance, management performance and governance issues. The journal pushes new boundaries for audit and assurance research by seeking to identify new knowledge and practice through the promotion of a dialogue between academics and practitioners. 

Open Access Resources

Directory of Open Access Resources Some full text available
The Directory of Open Access Resources (OpenDOAR) aims to provide a comprehensive and authoritative list of academic open access repositories for end-users who wish to find particular archives or who wish to break down repositories by locale, content or other measures. Users can search for repositories by the following regions: Africa, Asia, Australasia, Caribbean, Central America, Europe, North America, and South America.
note: Institutional Repositories
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