AUDIT QUALITY: TO THE ISSUE OF REFINING THE CONCEPT

The purpose of the article is to systematize and generalize the existing approaches to interpret the audit quality concept and judge it as for its implementation. The strictest demand for high quality audit is one of the important trends, which have become clear recently. The further development of audit at all levels is inextricably linked to improving its quality. Audit information is the basis for management decisions, so improving the audit information quality, and therefore, audit quality, will improve the quality of management decisions, which will inevitably affect the economic and financial situation at all the management levels, and reduce information risk during decision-making by all the financial information users. The importance of the audit information quality in modern economic processes has also been considered. The audit impact on the development of economic processes at the micro- and macro-levels has been studied. Theoretical insights into the issue of determining audit quality have been analyzed, which is crucial both for the methodology of audit performance and audit quality evaluation, and for audit information reliability, thus being useful for all the financial information users. These theoretical insights also have a significant impact on the practical audit activities, the reliability of the information provided, its quality indicators and other factors that are important for audit information users. It has been proven that the main criterion for audit information quality is its reliability and compliance with the actual state of the audited entity. The study of the causes of the global economic crisis, which unfolded in 2008 with all its severity, revealed a range of problems caused by decisions made on the basis of audited financial statements. Among the main causes of this financial crisis, in addition to the general economic ones, is, firstly, accounting quality and audit quality, which significantly contributed to the bankruptcy of key financial institutions, thus leading to the crisis; and secondly, insufficient control over possible fraud by audited enterprises. Both are the result of low quality audit. A new definition of audit quality is given, which differs greatly from most of the current ones. This, in turn, makes it possible to more accurately and correctly identify the directions, methods, principles and other components of audits, considerably improving their quality. In the long run, improving audit quality should significantly reduce the risks of crisis development in the real sector of economy. Keywords: audit quality, audit, audit services, evaluation, control, reliability, actual state, audited object. JEL Classification M42 Formulas: 0; fig.: 0; tabl.: 2; bibl.: 31.

Audit Information and Technology Environment

This article discusses the issues of assessing the information and technological environment of the audit for the organization of decision-making in management with the allocation of the main constituent elements necessary for the implementation of target settings. The main objects of research are considered. The prerequisites for the use of artificial intelligence in the audit process are considered.

Robotic Process Automation for the Extraction of Audit Information: A Use Case

The reconciliation of audit evidence to the audit subject matter is a key and recurring audit procedure. Before reconciling information, data needs to be extracted from the audit subject matter, which is often in a Portable Document Format (PDF). Reconciliations are a recurring task for every new version of the audit subject matter. Large audit firms tend to “offshore” simple and repetitive audit tasks such as reconciliations to shared service centers. Offshoring however comes at the expense of coordination costs, delays in the process and challenges regarding the liability risk to the auditor. This paper presents an open-source algorithm to extract data from (draft) annual reports (PDF files) using Python to automate, rather than outsource, the data extraction for reconciliations. The algorithm resulted in a significant time saving for the audit of a large Dutch asset management firm. Researchers apply the algorithm to minimize hand-collection of financial statement data.

Tactical Audit Planning

Audit scheduling – determining the audit timetable of a firm by assigning auditors to tasks over a planning horizon – is a crucial yet complex planning activity. Audit information is vital to guarantee operational efficiency and ensure the conformity of firm practices with the legal panorama. Nevertheless, audit departments are expensive, hence frequently under-dimensioned. Depending on the size of a firm and how constrained resources are, even finding a feasible audit schedule can be challenging. This paper reviews and systematizes mathematical programming models for tactical audit scheduling. Research directions are devised, considering the gaps that the systematization allows to reveal. Findings suggest that modelling and solving problems from real organizations and accounting for travel times and auditor eligibility, for a given audit activity, are the most appropriate directions for researchers to channel their efforts.

Behavioral Invisibility

This chapter focuses on assessing data reliability, using data provided by AUDCO (a large auditing company) from more than forty thousand audits spanning seven-years across twelve countries and thirteen industries. It highlights China, which reports very high levels of unreliable audit information, and examines the role played by a “gray” actor — the audit consulting company (ACC) — in helping suppliers “pass” audits. ACCs provide a variety of services, including falsification of audit records. The chapter then considers how ACCs “advertise” their services and how they work, through a detailed analysis of an audit consultant's work logs, as well as an assessment of why ACCs may be so successful. The analysis suggests that getting a clear picture of what is really happening in a factory requires a nuanced understanding of the nature of the data that auditors examine. It points to the need for auditors to be better trained at spotting falsified data but also to triangulate with other data and information sources (perhaps from workers). Ultimately, the results show that the lack of reliable data provided to auditors is a major reason for the decoupling we see between private regulation practices and sustainable improvements in working conditions in global supply chains across multiple industries and countries.

AUDIT INFORMASI PADA UPT BAHASA UNIVERSITAS NUSA CENDANA

This research aims to present the results of the study about the information management practice through conducting an Information Audit (IA). The research was conducted at Language Centre of Nusa Cendana University in Kupang – East Nusa Tenggara. The information audit was conducted to examine (1) the existing information resources available to the staf of Language Centre and (2) to find out the information problems faced by the staf in the Language Centre.Case study research methodology was applied with document analysis, questionnaire and interviews were used for data collection. All data were analysed manually, where data from questionnaire was generated directly to Microsft Excel to create a list of information resources. Further, Thematic analysis method was used to analyse the interview data to find general themes of information problem. Study found that documents, websites,and information system were the information resources used by the staf. While, People, Timeliness, and Technology were the main information problems faced by the staf. This study recommended that Language Centre must create an information policy, conduct a digital literacy or computer training for the employees to improve their performance in using technology and create an integrated information system. It is also important that university can also conducting information audit for whole units, faculties in Undana in order to create a general information policy for university to have a better information management practice as well as to help the university to achieve its strategic goals. Keywords: Information Management, Information Audit, Information Resources, Case Study, Information problems.

Pengukuran Tingkat Kapabilitas Sistem Tata Kelola TI Menggunakan Cobit 5 dengan ISO 38500

<p align="center"><strong>Abstrak</strong><strong></strong></p><p><strong> </strong>Penggunaan sistem informasi dan teknologi informasi pada suatu organisasi sangat dibutuhkan karena sistem informasi sangat berpengaruh dalam menunjang kinerja suatu organisasi. Tata kelola sistem informasi sangat dibutuhkan untuk mencapai penyelenggaraan institusi yang lebih efisien dan efektif. Unit Pelaksanaan Teknis Teknologi Informasi dan Komunikasi (UPT TIK) Universitas Negeri Semarang (Unnes) memiliki beberapa bagian divisi yaitu divisi data, sistem informasi dan layanan, dan infrastruktur. Penelitian ini menggunakan COBIT 5 dengan ISO 38500 untuk audit sistem informasi tata kelola TI pada UPT TIK. Tujuan penelitian ini untuk mengukur tingkat kapabilitas tata kelola TI sehingga dapat dijadikan acuan dalam memperbaiki sistem tata kelola TI. Data penelitian diperoleh dari UPT TIK berupa visi misi institusi dengan dokumen pendukung antara lain dokumen rencana kerja dan kuisioner. Dari hasil penelitian audit menggunakan COBIT 5 dengan ISO 38500 diperoleh 17 Domain COBIT 5 dengan tingkat kapabilitas 2. Hal ini berarti pada tingkat managed proses, institusi telah melakukan perencanaan, pengontrolan dan penyesuaian terhadap proses TI yang sedang berlangsung. Penelitian ini menghasilkan nilai GAP sebesar 1 yang diperoleh dari selisih antara target yaitu 3 dengan tingkat kapabilitas sebesar 2. Dengan ini dapat dikatakan bahwa kombinasi COBIT 5 dan ISO 38500 dapat dijadikan acuan dalam memperbaiki sistem tata kelola TI.</p><p> </p><p align="center"><strong><em>Abstract</em></strong><strong><em></em></strong></p><p><strong><em> </em></strong><em>The usage of information systems and information technology in an organization is essential since information system is very important in supporting the performance of an organization. Information system governance is required to attain more efficient and effective performance of institutions. The technical implementation unit of information technology and communication (UPT TIK) State University of Semarang (Unnes) having several divisions that is the data division, information systems and services, and the infrastructure. This study applied COBIT 5 with ISO 38500 to audit information system of IT governance of UPT TIK. The purpose of this research is to measure the capabilities of IT governance so it can be used as reference in improving the information system management. The research data is obtained from UPT TIK in form of the vision and mission of institution with the supporting documents such as the document of work plan and questionnaires. The audit research using COBIT 5 with ISO 38500 obtained 17domains COBIT 5 with a capability level of 2. This means on the managed process level, institution have done planning, control and adjustments to the Information Technology on-going process. This research gained a GAP value of 1 from the margin between the targets of 3 with a capability level of 2. Therefore, it can be described that the combination of COBIT 5 and ISO 38500 can be used as a reference in improving IT governance systems.</em></p>