International Journal of Auditing最新文献

{"title":"Can prohibitions of non-audit services and an expanded auditor liability improve audit quality?","authors":"Reiner Quick","doi":"10.1111/ijau.12268","DOIUrl":"10.1111/ijau.12268","url":null,"abstract":"<p>Law entrusts auditors to conduct statutory audits. They fulfil a societal role in providing an opinion on the truth and fairness of the financial statements of audited entities and reducing the risk of misstatement. The purpose of an audit is to enhance the credibility of financial reports prepared by management (Watts & Zimmerman, <span>1986</span>). Thereby, audits contribute to financial stability, trust and market confidence in the economy by protecting investors from agency risk, which in turn reduces the cost of capital for companies (European Commission, <span>2010</span>). To fulfil this function, auditors need to provide an adequate service quality. According to the generally accepted definition of DeAngelo (<span>1981</span>), audit quality is the market-assessed joint probability that an auditor will discover material misstatements (auditor competence) and report them (auditor independence). This definition stresses that providing a high factual audit quality is insufficient but that users must also perceive audit quality as appropriate. Accounting scandals like Carillion, a UK construction and facility services company, or Wirecard, a German fintech company, raise public suspicion of auditing failures and result in regulatory initiatives, which seek to improve audit quality.</p><p>In the UK, the regulatory response mainly focused on expanding the prohibition of non-audit services (NAS) by audit firms (Department for Business, Energy, & Industrial Strategy, <span>2021</span>). The provision of NAS to a public-interest entity (PIE) audit client is now limited to services regarding legally required reports and audit-related services (FRC, <span>2019</span>). Moreover, the Big 4 audit firms have to operationally separate their audit and NAS practices by 30 June 2024 (FRC, <span>2020</span>). The latter should ensure a focus on audit quality and protect auditors from influences from the NAS practice. The UK regulator even considered an audit-only firm approach, which would have resulted in a spin-off of UK audit firms' consulting arms (Marriage, <span>2018</span>). The German legislator, who originally made use of the European Union (EU) Member State option to allow certain tax and valuation services from the blacklist of prohibited NAS, just recently reversed this decision in response to the Wirecard scandal. More importantly, Germany significantly increased the existing liability caps in case of negligent misconduct. In audits of PIEs, auditor liability is now unlimited in cases of gross negligence. The EU also considers eliminating or setting more appropriate liability caps (Council of the European Union, <span>2021</span>).</p><p>From a theoretical point of view, the joint provision of audit and NAS exerts opposing effects on audit quality, and the overall impact remains unclear. The provision of NAS to audit clients may improve auditor's ability to detect material misstatements through knowledge spillovers (Arruñada, <span>","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"18-22"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ijau.12268","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41917233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Securing investor trust: Four elements for effective audit reform","authors":"John Boulton","doi":"10.1111/ijau.12260","DOIUrl":"10.1111/ijau.12260","url":null,"abstract":"","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"41-43"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41979853","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The future of audit: A personal perspective","authors":"James E. Barbour","doi":"10.1111/ijau.12259","DOIUrl":"10.1111/ijau.12259","url":null,"abstract":"","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"4-7"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48879176","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Audit reform: Examining the proposals from a liability perspective","authors":"Catriona Hyde","doi":"10.1111/ijau.12264","DOIUrl":"10.1111/ijau.12264","url":null,"abstract":"","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"12-13"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45099618","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Who stands for audit? A commentary on the ‘Brydon report’","authors":"W. Robert Knechel","doi":"10.1111/ijau.12265","DOIUrl":"10.1111/ijau.12265","url":null,"abstract":"","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"27-31"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44953162","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The future of auditing","authors":"Richard Murphy","doi":"10.1111/ijau.12266","DOIUrl":"https://doi.org/10.1111/ijau.12266","url":null,"abstract":"","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"44-47"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"137632591","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The super-auditor, perpetual beta and pervasive performativity","authors":"David Hatherly","doi":"10.1111/ijau.12263","DOIUrl":"10.1111/ijau.12263","url":null,"abstract":"<p>The paper advocates a ‘super-audit’ that assesses the company's future and what that says about the share price or another valuation. Most audit ‘failures’ relate to an assessment of the future whether that be going concern issues, impairments, long-term contracts, provisions, likely changes in the business environment and so forth. The paper suggests a focus on improving the auditor's skills in assessing the future and the leverage of such skills to look at market value added and the share price as a service to the investment community and those who rely on share prices being fair and reasonable. The super-audit report becomes akin to an investment analyst's research report and intended to be an influence on share prices. Many companies around the world currently receive little, or no, or low-quality research coverage. Inevitably many unanswered questions remain for the super-audit about appointment, remuneration, timings, legal liability, professional education and so forth. They are challenging but not insurmountable and make us think more deeply about the same challenges in relation to the conventional audit. The biggest challenge is how the auditor should progress the process of understanding the business and its future.</p>","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"23-26"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42848987","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Rebuilding trust and the role of audit: The impact of the UK audit reform proposals on other standard-setters","authors":"Roger Simnett","doi":"10.1111/ijau.12271","DOIUrl":"10.1111/ijau.12271","url":null,"abstract":"","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"32-36"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46976301","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Redressing the fundamental conflict of interest in public company audits","authors":"Steven E. Salterio","doi":"10.1111/ijau.12269","DOIUrl":"10.1111/ijau.12269","url":null,"abstract":"<p>The goal of various audit industry reforms is to better align the interests of the auditor with external stakeholders. These proposed reforms ignore the fundamental conflict of interest—‘the client’ hires, fires and determines the compensation for the auditor. This problem is fundamental in that ‘the client’ is normally the management or board of the firm who, on occasion, have reason to want to take advantage of the inherent imprecision in accounting for their benefit and subtlety pressure the auditor to achieve this. My evidence-based proposal takes advantage of the well-known aversion of managers and boards to government intervention. It incentivizes management and boards to demand rigorous audits by requiring regulatory bodies impose their choice of auditor on public companies that meet well-specified criteria that indicate poor-quality reporting (e.g., restatement of financial statements). This proposed reform retains the ‘on average’ benefits that extant research shows the current system of private sector auditing provides while stimulating greater managerial and director self-interest in high-quality financial reporting.</p>","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"48-53"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47088885","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Audit down but not out","authors":"Claire Grayston","doi":"10.1111/ijau.12262","DOIUrl":"10.1111/ijau.12262","url":null,"abstract":"","PeriodicalId":47092,"journal":{"name":"International Journal of Auditing","volume":"26 1","pages":"8-11"},"PeriodicalIF":2.0,"publicationDate":"2022-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48020162","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}