quality is a means for auditors to detect material errors when presenting financial reports.In the public sector,audit quality can be seen from the quality of the information contained in information reports published...quality is a means for auditors to detect material errors when presenting financial reports.In the public sector,audit quality can be seen from the quality of the information contained in information reports published by the government to the public.Examinations carried out by internal inspectorate auditors include reviewing accounting,finance,operations,and others to protect against misstatements which could affect the quality of information displayed by the government through financial reports,performance,and compliance with laws and regulations to the public as transparency efforts to the public.This research aims to empirically test and analyze the influence of auditors’work experience and professionalism on audit quality partially and simultaneously at the Bandung Regency Regional Inspectorate.The population in this study were all auditors who worked at the Bandung Regency Regional Inspectorate with a sample of 35 auditors.The sampling technique used in this research was purposive sampling.A questionnaire was used for the data.This research uses multiple regression analysis,where the results of this research show that partially and simultaneously the variables of work experience and auditor professionalism have a positive and significant effect on audit quality.The implications of the results of this research state that work experience and professionalism are needed to improve audit quality because the results of this research show that work experience and auditor professionalism have a positive and significant effect on audit quality.展开更多
The paper is about how Lebanese auditors detect fraud in the course of their work and what they advise companies to implement in order to avoid fraudulent acts. For this purpose, various interviews were carded out fro...The paper is about how Lebanese auditors detect fraud in the course of their work and what they advise companies to implement in order to avoid fraudulent acts. For this purpose, various interviews were carded out from different experienced and well-reputed external auditors. This was also for their wide knowledge of all kinds of frauds. Data were taken from primary as well as secondary resources. The paper presents the theoretical and practical aspects. The theoretical part contains the accounting scandals, frauds, auditing processes, and auditor＇s responsibilities and tools for auditors to detect fraud. The practical part consists of case study analysis and detailed research processes.展开更多
The aim of this study is to determine the opinion related to the audit quality of independent auditors in Turkey.For this purpose,a study was carried out on the auditors operating in the TRC 1 region and having an aud...The aim of this study is to determine the opinion related to the audit quality of independent auditors in Turkey.For this purpose,a study was carried out on the auditors operating in the TRC 1 region and having an auditor certificate.Questionnaire method was used in the research.In the evaluation of the data,frequency,mean,and standard deviation were used as descriptive statistical methods.In addition,t-test and one-way ANOVA test were used to compare the data between independent groups.Research results show no significant difference between the opinions of the independent auditors according to various variables.展开更多
Do supply chain audits have real effects?We focus on the effect of shared auditors in the supply chain on corporate cost stickiness.When a supplier shares auditors with its customers,the shared auditors provide inform...Do supply chain audits have real effects?We focus on the effect of shared auditors in the supply chain on corporate cost stickiness.When a supplier shares auditors with its customers,the shared auditors provide informational advantages for suppliers’managers,thus revising their optimistic or pessimistic expectations and influencing suppliers’cost stickiness.Using a sample of Chinese A-share listed companies from 2009 to 2017,we explore the relationship between shared auditors and suppliers’cost stickiness conditional on management expectations.The results show that shared auditors in the supply chain reduce suppliers’cost stickiness significantly when suppliers’managers hold optimistic expectations,and increase suppliers’cost stickiness in cases of pessimistic expectations.Furthermore,the greater the number of shared auditors,the stronger the effect.Such effects are more pronounced when supplier firms share auditors with important customers,have higher demand uncertainty,and use big 10 auditors.展开更多
With reference to the Job Demands-Control Model,we empirically examine the effect of auditors' work stress on audit quality using a sample of Chinese A-share listed companies and their signature auditors from 2009...With reference to the Job Demands-Control Model,we empirically examine the effect of auditors' work stress on audit quality using a sample of Chinese A-share listed companies and their signature auditors from 2009 to 2013.The results show that(1) there is generally no pervasive deterioration in audit quality resulting from auditors' work stress;(2) there is a significant negative association between work stress and audit quality in the initial audits of new clients;and(3) the perception of work stress depends on auditors' individual characteristics.Auditors from international audit firms and those in the role of partner respond more strongly to work stress than industry experts.Auditors tend to react more intensively when dealing with state-owned companies.We suggest that audit firms attach more importance to auditors' work stress and rationalize their allocation of audit resources to ensure high audit quality.展开更多
Against the background of China’s strengthening of finance and accounting supervision,this study examines the practice among listed companies of changing signing auditors at the last minute and explores whether Chine...Against the background of China’s strengthening of finance and accounting supervision,this study examines the practice among listed companies of changing signing auditors at the last minute and explores whether Chinese investors can capture this information in a timely manner.We find that China’s capital market responds significantly negatively to these last-minute changes,implying that investors perceive a potential negative impact of this behavior.Crosssectional analyses suggest that the characteristics of the change event,recent corporate events,and accounting firm capability significantly affect the stock price response.Furthermore,in terms of the individual characteristics of signing auditors,external investors appear to comprehensively consider busyness level,industry experience,and the timing of the change to determine the causes and effects of the auditor change and make different market reactions accordingly.In addition,consistent with investor perceptions,we find that last-minute changes significantly impair the quality of financial statements,indicating that external investors’judgments based on information about changes in signing auditors are rational and effective.展开更多
Using propensity score matching （PSM） and the difference-in- difference （DID） approach, this paper explores the characteristics of listed Chinese firms that voluntarily disclose auditors＇ reports on internal cont...Using propensity score matching （PSM） and the difference-in- difference （DID） approach, this paper explores the characteristics of listed Chinese firms that voluntarily disclose auditors＇ reports on internal control and the economic consequences. Using a sample of non-financial firms listed on the main boards of the Shanghai Stock Exchange and the Shenzhen Stock Exchange between 2006 and 2010, we find that firms are more likely to voluntarily disclose their auditors＇ reports on internal control if they have higher state ownership, lower managerial ownership, sanction records, audit committees, non-Big Four auditors as their auditors of annual financial reports, unqualified auditors＇ opinions on financial reports, less board independence, after controlling for firm size, liabilities, performance, and history. Moreover, as compared to a control group that exhibits similar characteristics, firms that voluntarily disclose auditors＇ reports on internal control are associated with positive earnings quality and negative cost of equity capital.展开更多
Unlike previous studies in which a single index was used to measure audit quality, this study establishes a new comprehensive index to measure audit quality via Discretionary Accrual, as estimated by Jones' basic ...Unlike previous studies in which a single index was used to measure audit quality, this study establishes a new comprehensive index to measure audit quality via Discretionary Accrual, as estimated by Jones' basic model(1991) and Audit Opinions. The former is used to measure the quality of financial statements, and the latter is used to measure the auditors' independence in the mainstream international literature. We examine whether and how an auditor's gender affects the quality of his or her audits under the framework of empathy theory and gender role socialization theory. Using a large sample of 9861 auditor-firm-year observations from Chinese A-share–listed companies from 2011 to 2015, we find that the audit quality of signed auditors shows significant gender differences: these significant gender differences differ from the findings of previous studies that female auditors could provide a higherquality audit than male auditors; that is, in our study the audit quality of the male auditors exceeds that of the female auditors. After distinguishing the positive and negative directions of the Discretionary Accrual, we find no significant gender differences in audit quality between male and female auditors when the earnings had been adjusted upward by the client; that is, female and male auditors had the same audit risk perception. However, when the client adjusted earnings downward, which indicates a lower audit risk for theauditor, the audit quality of female auditors was significantly lower than that of the male auditors. After controlling for the age and position of the auditors,we also find that the gender differences in the auditors' audit quality decreased significantly or even disappeared when the auditor's age exceeded 45 years and/or their position was manager or above. These results are consistent with the empathy theory and gender role socialization theory.展开更多
After issuing the 1998 Accounting Standards, Chinese regulators implemented additional regulations in 2001 governing write-downs of impaired assets and required assessment of recoverable amounts for four additional as...After issuing the 1998 Accounting Standards, Chinese regulators implemented additional regulations in 2001 governing write-downs of impaired assets and required assessment of recoverable amounts for four additional asset categories. As the recoverable value cannot be obtained objectively, management can discretionally assess the magnitude of write-downs to affect bottom-line profit. This study used 7258 firm-year observations in China from 1998 to2005 to examine whether the percentage of asset write-downs by statecontrolled firms differs from non-state-controlled firms, conditional upon more conservative financial reporting rules, and investigate whether local auditors support managerial decisions on asset write-downs. The empirical findings support the tendency of state-controlled ownerships to have lower asset write-downs. Local auditors also support managerial decisions on asset write-downs, especially when the companies are controlled by local governments.展开更多
On July 24th, Lectra's Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the first half of 2025, which have been subject to a limited review by the Statutory Auditors.
This study explores ethical violations and audit failures in various large-scale corporate fraud cases.Using a qualitative descriptive method and based on secondary data from documented fraud cases and published audit...This study explores ethical violations and audit failures in various large-scale corporate fraud cases.Using a qualitative descriptive method and based on secondary data from documented fraud cases and published audit reports,the study applies the Fraud Triangle framework,focusing on how weak integrity,objectivity,and professional competence have undermined public trust in the auditing profession.Using a qualitative descriptive method and the Fraud Triangle framework,which includes pressure,opportunity,and rationalization,the study analyzes cases from Indonesia(SNP Finance,Jiwasraya),China(Evergrande),and Germany(Wirecard).The analysis reveals that many audit failures observed in this study appear to stem more from ethical challenges than from technical incapability,driven by client pressure,weak internal controls,and compromised auditor independence.These cases demonstrate a recurring global pattern in which auditors neglect their responsibility to act in the public interest.展开更多
This study explores ethical violations and audit failures in various large-scale corporate fraud cases.Using a qualitative descriptive method and based on secondary data from documented fraud cases and published audit...This study explores ethical violations and audit failures in various large-scale corporate fraud cases.Using a qualitative descriptive method and based on secondary data from documented fraud cases and published audit reports,the study applies the Fraud Triangle framework,focusing on how weak integrity,objectivity,and professional competence have undermined public trust in the auditing profession.Using a qualitative descriptive method and the Fraud Triangle framework,which includes pressure,opportunity,and rationalization,the study analyzes cases from Indonesia(SNP Finance,Jiwasraya),China(Evergrande),and Germany(Wirecard).The analysis reveals that many audit failures observed in this study appear to stem more from ethical challenges than from technical incapability,driven by client pressure,weak internal controls,and compromised auditor independence.These cases demonstrate a recurring global pattern in which auditors neglect their responsibility to act in the public interest.展开更多
This study examines the impact of banks’environmental,social,and governance(ESG)disclosure assurance(BEDA)on borrowing enterprises’ESG performance to investigate China’s bank-enterprise loan relationships.Using man...This study examines the impact of banks’environmental,social,and governance(ESG)disclosure assurance(BEDA)on borrowing enterprises’ESG performance to investigate China’s bank-enterprise loan relationships.Using manually collected bank loan relationship data and financial data of Chinese listed companies from 2010 to 2021,our findings reveal that BEDA significantly enhances borrowers’ESG performance.Moreover,this effect is more pronounced when banks have a higher information demand,better internal controls,and share auditors with borrowers;when borrowers operate in environmentally sensitive industries,and in the period following the Paris Agreement signing.Among the individual ESG subcategories,the impact of BEDA on borrowers’ESG performance is primarily reflected in environmental(E)and social(S)considerations.Finally,we do not find that BEDA significantly suppresses banks’greenwashing.These findings indicate that BEDA has an informational or advisory influence on banks’ESG governance rather than a supervisory role at this stage of sustainability reporting development.This study suggests that policymakers should guide BEDA’s evolution from a passive information tool to a proactive governance tool,facilitating enterprises in achieving sub‐stantive ESG transformations while reducing systemic greenwashing risks.展开更多
This article takes listed companies in China's A-share market that underwent voluntary auditor changes from 2021 to 2024 as the research object,and empirically examines the impact of voluntary auditor changes on c...This article takes listed companies in China's A-share market that underwent voluntary auditor changes from 2021 to 2024 as the research object,and empirically examines the impact of voluntary auditor changes on corporate audit fees.The research results show that:(1)voluntary auditor changes significantly reduce corporate audit fees,indicating that companies have bargaining advantages in auditor selection and can achieve cost savings by changing auditors;(2)The new regulatory regulations released in 2023 have significantly changed the audit pricing mechanism,so that voluntary changes no longer have a fee reduction effect;(3)When establishing an audit committee for a company,voluntary auditor changes can significantly reduce audit fees;(4)When state-owned enterprises voluntarily change auditors,the cost reduction effect of audit fees is more significant;(5)Voluntary auditor changes have partially mediated the cost reduction effect on audit fees by reducing the proportion of non audit services.This article provides empirical evidence for enterprises to optimize their auditor selection strategies,and also provides insights for regulatory authorities to identify irrational low price competition in the audit market and regulate pricing order.展开更多
Nowadays, earnings management is a hot issue, but most of the researches focus on the incentives of earnings management and few of them refer to the effect of audit quality on earnings management. In this study, we di...Nowadays, earnings management is a hot issue, but most of the researches focus on the incentives of earnings management and few of them refer to the effect of audit quality on earnings management. In this study, we directly examine the effect of external audit quality on earnings management by using discretionary accruals. We find that the discretionary accruals of non-dual audit companies are significantly greater than those of dual audit companies. We also find that clients of non-First Ten auditors intend to report greater discretionary accruals than those of First Ten auditors.展开更多
With the recent technological developments,massive vehicular ad hoc networks(VANETs)have been established,enabling numerous vehicles and their respective Road Side Unit(RSU)components to communicate with oneanother.Th...With the recent technological developments,massive vehicular ad hoc networks(VANETs)have been established,enabling numerous vehicles and their respective Road Side Unit(RSU)components to communicate with oneanother.The best way to enhance traffic flow for vehicles and traffic management departments is to share thedata they receive.There needs to be more protection for the VANET systems.An effective and safe methodof outsourcing is suggested,which reduces computation costs by achieving data security using a homomorphicmapping based on the conjugate operation of matrices.This research proposes a VANET-based data outsourcingsystem to fix the issues.To keep data outsourcing secure,the suggested model takes cryptography models intoaccount.Fog will keep the generated keys for the purpose of vehicle authentication.For controlling and overseeingthe outsourced data while preserving privacy,the suggested approach considers the Trusted Certified Auditor(TCA).Using the secret key,TCA can identify the genuine identity of VANETs when harmful messages aredetected.The proposed model develops a TCA-based unique static vehicle labeling system using cryptography(TCA-USVLC)for secure data outsourcing and privacy preservation in VANETs.The proposed model calculatesthe trust of vehicles in 16 ms for an average of 180 vehicles and achieves 98.6%accuracy for data encryption toprovide security.The proposedmodel achieved 98.5%accuracy in data outsourcing and 98.6%accuracy in privacypreservation in fog-enabled VANETs.Elliptical curve cryptography models can be applied in the future for betterencryption and decryption rates with lightweight cryptography operations.展开更多
Auditing standards require external auditors to provide reasonable assurance that the financial statements are free from material misstatements, either due to fraud or error. Inability of the external auditors to dete...Auditing standards require external auditors to provide reasonable assurance that the financial statements are free from material misstatements, either due to fraud or error. Inability of the external auditors to detect the material misstatements, particularly fraud, may expose them to litigation. The present study aims to examine the effect of personality factors （i.e., neuroticism, extraversion, conscientiousness, openness to experience and agreeableness） on the external auditors＇ ability to detect the likelihood of fraud. An experimental approach is adopted by sending case materials to audit partners and audit managers attached to auditing firms operating in Malaysia. The result shows that personality does not have a positive effect on the external auditors＇ ability to detect the likelihood of fraud.展开更多
Internal auditors hold a unique position in their organizations to prevent, deter, and detect corporate wrongdoings. However, the role of this profession in investigating their ethical decision-making behaviors toward...Internal auditors hold a unique position in their organizations to prevent, deter, and detect corporate wrongdoings. However, the role of this profession in investigating their ethical decision-making behaviors towards internal whistle-blowing intentions has been very often neglected. Furthermore, although extensive researches have been undertaken on the issue of whistle blowing globally, empirical studies on this area are still scarce in Malaysia. This paper examines internal whistle-blowing intentions among internal auditors in Malaysia by utilizing three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors＇ ethical decision-making processes. The likelihood for internal whistle-blowing intentions was significant among internal auditors＇ ethical judgments for all the three vignettes. Demographic factors （gender, age, and tenure） and other individual factors （locus of control and organizational commitment） failed to explain the likelihood of internal auditors＇ internal whistle-blowing intentions. Findings should aid researchers in their understandings of the determinants of individuals＇ internal whistle-blowing behaviors.展开更多
文摘quality is a means for auditors to detect material errors when presenting financial reports.In the public sector,audit quality can be seen from the quality of the information contained in information reports published by the government to the public.Examinations carried out by internal inspectorate auditors include reviewing accounting,finance,operations,and others to protect against misstatements which could affect the quality of information displayed by the government through financial reports,performance,and compliance with laws and regulations to the public as transparency efforts to the public.This research aims to empirically test and analyze the influence of auditors’work experience and professionalism on audit quality partially and simultaneously at the Bandung Regency Regional Inspectorate.The population in this study were all auditors who worked at the Bandung Regency Regional Inspectorate with a sample of 35 auditors.The sampling technique used in this research was purposive sampling.A questionnaire was used for the data.This research uses multiple regression analysis,where the results of this research show that partially and simultaneously the variables of work experience and auditor professionalism have a positive and significant effect on audit quality.The implications of the results of this research state that work experience and professionalism are needed to improve audit quality because the results of this research show that work experience and auditor professionalism have a positive and significant effect on audit quality.
文摘The paper is about how Lebanese auditors detect fraud in the course of their work and what they advise companies to implement in order to avoid fraudulent acts. For this purpose, various interviews were carded out from different experienced and well-reputed external auditors. This was also for their wide knowledge of all kinds of frauds. Data were taken from primary as well as secondary resources. The paper presents the theoretical and practical aspects. The theoretical part contains the accounting scandals, frauds, auditing processes, and auditor＇s responsibilities and tools for auditors to detect fraud. The practical part consists of case study analysis and detailed research processes.
文摘The aim of this study is to determine the opinion related to the audit quality of independent auditors in Turkey.For this purpose,a study was carried out on the auditors operating in the TRC 1 region and having an auditor certificate.Questionnaire method was used in the research.In the evaluation of the data,frequency,mean,and standard deviation were used as descriptive statistical methods.In addition,t-test and one-way ANOVA test were used to compare the data between independent groups.Research results show no significant difference between the opinions of the independent auditors according to various variables.
基金the National Social Science Foundation of China(Major Project 13&ZD146)the Fundamental Research Funds for the Central Universities of China(No.JBK19072018153)for their support.
文摘Do supply chain audits have real effects?We focus on the effect of shared auditors in the supply chain on corporate cost stickiness.When a supplier shares auditors with its customers,the shared auditors provide informational advantages for suppliers’managers,thus revising their optimistic or pessimistic expectations and influencing suppliers’cost stickiness.Using a sample of Chinese A-share listed companies from 2009 to 2017,we explore the relationship between shared auditors and suppliers’cost stickiness conditional on management expectations.The results show that shared auditors in the supply chain reduce suppliers’cost stickiness significantly when suppliers’managers hold optimistic expectations,and increase suppliers’cost stickiness in cases of pessimistic expectations.Furthermore,the greater the number of shared auditors,the stronger the effect.Such effects are more pronounced when supplier firms share auditors with important customers,have higher demand uncertainty,and use big 10 auditors.
基金financial support from the National Natural Science Foundation of China(Nos. 71662021 and 71462014)
文摘With reference to the Job Demands-Control Model,we empirically examine the effect of auditors' work stress on audit quality using a sample of Chinese A-share listed companies and their signature auditors from 2009 to 2013.The results show that(1) there is generally no pervasive deterioration in audit quality resulting from auditors' work stress;(2) there is a significant negative association between work stress and audit quality in the initial audits of new clients;and(3) the perception of work stress depends on auditors' individual characteristics.Auditors from international audit firms and those in the role of partner respond more strongly to work stress than industry experts.Auditors tend to react more intensively when dealing with state-owned companies.We suggest that audit firms attach more importance to auditors' work stress and rationalize their allocation of audit resources to ensure high audit quality.
基金support from the National Natural Science Foundation of China(Grants No.72362023 and No.72062020)Social Science Foundation for Youth of Jiangxi Province(Grant No.23GL31)Jiangxi University of Finance and Economics“Class A”Discipline Innovation Team(Capital Market Financial Behavior Innovation Team).
文摘Against the background of China’s strengthening of finance and accounting supervision,this study examines the practice among listed companies of changing signing auditors at the last minute and explores whether Chinese investors can capture this information in a timely manner.We find that China’s capital market responds significantly negatively to these last-minute changes,implying that investors perceive a potential negative impact of this behavior.Crosssectional analyses suggest that the characteristics of the change event,recent corporate events,and accounting firm capability significantly affect the stock price response.Furthermore,in terms of the individual characteristics of signing auditors,external investors appear to comprehensively consider busyness level,industry experience,and the timing of the change to determine the causes and effects of the auditor change and make different market reactions accordingly.In addition,consistent with investor perceptions,we find that last-minute changes significantly impair the quality of financial statements,indicating that external investors’judgments based on information about changes in signing auditors are rational and effective.
基金Acknowledgements The author gratefully acknowledges the financial supports from the National Natural Science Foundation of China （No. 70940025） and the Humanities and Social Science Research Project of Ministry of Education of China （No. 11YJC630270）.
文摘Using propensity score matching （PSM） and the difference-in- difference （DID） approach, this paper explores the characteristics of listed Chinese firms that voluntarily disclose auditors＇ reports on internal control and the economic consequences. Using a sample of non-financial firms listed on the main boards of the Shanghai Stock Exchange and the Shenzhen Stock Exchange between 2006 and 2010, we find that firms are more likely to voluntarily disclose their auditors＇ reports on internal control if they have higher state ownership, lower managerial ownership, sanction records, audit committees, non-Big Four auditors as their auditors of annual financial reports, unqualified auditors＇ opinions on financial reports, less board independence, after controlling for firm size, liabilities, performance, and history. Moreover, as compared to a control group that exhibits similar characteristics, firms that voluntarily disclose auditors＇ reports on internal control are associated with positive earnings quality and negative cost of equity capital.
基金supported by grants from the National Natural Science Foundation of China(Project Nos.71572197,71372150,71461001 and 71790603)Key projects of Planning leading Group Office of philosophy and Social Science of Guangxi Zhuang Autonomous region–China(Project No.15AGL001)+1 种基金General Project of Humanities and Social Sciences Research Project of Education Department of Guangxi Zhuang Autonomous region–China(Project No.YB2014346)Special Support Program of the National Accounting Leadership Project of the Ministry of Finance of China(2016)
文摘Unlike previous studies in which a single index was used to measure audit quality, this study establishes a new comprehensive index to measure audit quality via Discretionary Accrual, as estimated by Jones' basic model(1991) and Audit Opinions. The former is used to measure the quality of financial statements, and the latter is used to measure the auditors' independence in the mainstream international literature. We examine whether and how an auditor's gender affects the quality of his or her audits under the framework of empathy theory and gender role socialization theory. Using a large sample of 9861 auditor-firm-year observations from Chinese A-share–listed companies from 2011 to 2015, we find that the audit quality of signed auditors shows significant gender differences: these significant gender differences differ from the findings of previous studies that female auditors could provide a higherquality audit than male auditors; that is, in our study the audit quality of the male auditors exceeds that of the female auditors. After distinguishing the positive and negative directions of the Discretionary Accrual, we find no significant gender differences in audit quality between male and female auditors when the earnings had been adjusted upward by the client; that is, female and male auditors had the same audit risk perception. However, when the client adjusted earnings downward, which indicates a lower audit risk for theauditor, the audit quality of female auditors was significantly lower than that of the male auditors. After controlling for the age and position of the auditors,we also find that the gender differences in the auditors' audit quality decreased significantly or even disappeared when the auditor's age exceeded 45 years and/or their position was manager or above. These results are consistent with the empathy theory and gender role socialization theory.
基金funded by grants from the Hong Kong Polytechnic University,Lingnan University,Hang Seng Management College and the Research Grants Council of the Hong Kong Special Administrative Region,China(Project No.UGC/IDS14/15)
文摘After issuing the 1998 Accounting Standards, Chinese regulators implemented additional regulations in 2001 governing write-downs of impaired assets and required assessment of recoverable amounts for four additional asset categories. As the recoverable value cannot be obtained objectively, management can discretionally assess the magnitude of write-downs to affect bottom-line profit. This study used 7258 firm-year observations in China from 1998 to2005 to examine whether the percentage of asset write-downs by statecontrolled firms differs from non-state-controlled firms, conditional upon more conservative financial reporting rules, and investigate whether local auditors support managerial decisions on asset write-downs. The empirical findings support the tendency of state-controlled ownerships to have lower asset write-downs. Local auditors also support managerial decisions on asset write-downs, especially when the companies are controlled by local governments.
文摘On July 24th, Lectra's Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the first half of 2025, which have been subject to a limited review by the Statutory Auditors.
文摘This study explores ethical violations and audit failures in various large-scale corporate fraud cases.Using a qualitative descriptive method and based on secondary data from documented fraud cases and published audit reports,the study applies the Fraud Triangle framework,focusing on how weak integrity,objectivity,and professional competence have undermined public trust in the auditing profession.Using a qualitative descriptive method and the Fraud Triangle framework,which includes pressure,opportunity,and rationalization,the study analyzes cases from Indonesia(SNP Finance,Jiwasraya),China(Evergrande),and Germany(Wirecard).The analysis reveals that many audit failures observed in this study appear to stem more from ethical challenges than from technical incapability,driven by client pressure,weak internal controls,and compromised auditor independence.These cases demonstrate a recurring global pattern in which auditors neglect their responsibility to act in the public interest.
文摘This study explores ethical violations and audit failures in various large-scale corporate fraud cases.Using a qualitative descriptive method and based on secondary data from documented fraud cases and published audit reports,the study applies the Fraud Triangle framework,focusing on how weak integrity,objectivity,and professional competence have undermined public trust in the auditing profession.Using a qualitative descriptive method and the Fraud Triangle framework,which includes pressure,opportunity,and rationalization,the study analyzes cases from Indonesia(SNP Finance,Jiwasraya),China(Evergrande),and Germany(Wirecard).The analysis reveals that many audit failures observed in this study appear to stem more from ethical challenges than from technical incapability,driven by client pressure,weak internal controls,and compromised auditor independence.These cases demonstrate a recurring global pattern in which auditors neglect their responsibility to act in the public interest.
基金supported by the National Natural Science Foundation of China[Grant No.72102187,72102197]the General Program of Soft Science Research Project for Chengdu Science and Technology Bureau[Grant No.2025-RK00-00076-ZF]Project of the Center for Systems Science and Enterprise Development,a Key Re‐search Base for Social Sciences in Sichuan Province[Grant No.Xq24C09]and the Chengdu High-Quality Development Research Cen‐ter Project[Grant No.yb2024103].
文摘This study examines the impact of banks’environmental,social,and governance(ESG)disclosure assurance(BEDA)on borrowing enterprises’ESG performance to investigate China’s bank-enterprise loan relationships.Using manually collected bank loan relationship data and financial data of Chinese listed companies from 2010 to 2021,our findings reveal that BEDA significantly enhances borrowers’ESG performance.Moreover,this effect is more pronounced when banks have a higher information demand,better internal controls,and share auditors with borrowers;when borrowers operate in environmentally sensitive industries,and in the period following the Paris Agreement signing.Among the individual ESG subcategories,the impact of BEDA on borrowers’ESG performance is primarily reflected in environmental(E)and social(S)considerations.Finally,we do not find that BEDA significantly suppresses banks’greenwashing.These findings indicate that BEDA has an informational or advisory influence on banks’ESG governance rather than a supervisory role at this stage of sustainability reporting development.This study suggests that policymakers should guide BEDA’s evolution from a passive information tool to a proactive governance tool,facilitating enterprises in achieving sub‐stantive ESG transformations while reducing systemic greenwashing risks.
基金supported by the National Natural Science Foundation of China under Grant No.72362001titled'Compensation Incentive Mechanism of Accounting Firms:Theoretical Framework,Incentive Effect Test,and Optimization Reconstruction'.
文摘This article takes listed companies in China's A-share market that underwent voluntary auditor changes from 2021 to 2024 as the research object,and empirically examines the impact of voluntary auditor changes on corporate audit fees.The research results show that:(1)voluntary auditor changes significantly reduce corporate audit fees,indicating that companies have bargaining advantages in auditor selection and can achieve cost savings by changing auditors;(2)The new regulatory regulations released in 2023 have significantly changed the audit pricing mechanism,so that voluntary changes no longer have a fee reduction effect;(3)When establishing an audit committee for a company,voluntary auditor changes can significantly reduce audit fees;(4)When state-owned enterprises voluntarily change auditors,the cost reduction effect of audit fees is more significant;(5)Voluntary auditor changes have partially mediated the cost reduction effect on audit fees by reducing the proportion of non audit services.This article provides empirical evidence for enterprises to optimize their auditor selection strategies,and also provides insights for regulatory authorities to identify irrational low price competition in the audit market and regulate pricing order.
文摘Nowadays, earnings management is a hot issue, but most of the researches focus on the incentives of earnings management and few of them refer to the effect of audit quality on earnings management. In this study, we directly examine the effect of external audit quality on earnings management by using discretionary accruals. We find that the discretionary accruals of non-dual audit companies are significantly greater than those of dual audit companies. We also find that clients of non-First Ten auditors intend to report greater discretionary accruals than those of First Ten auditors.
文摘With the recent technological developments,massive vehicular ad hoc networks(VANETs)have been established,enabling numerous vehicles and their respective Road Side Unit(RSU)components to communicate with oneanother.The best way to enhance traffic flow for vehicles and traffic management departments is to share thedata they receive.There needs to be more protection for the VANET systems.An effective and safe methodof outsourcing is suggested,which reduces computation costs by achieving data security using a homomorphicmapping based on the conjugate operation of matrices.This research proposes a VANET-based data outsourcingsystem to fix the issues.To keep data outsourcing secure,the suggested model takes cryptography models intoaccount.Fog will keep the generated keys for the purpose of vehicle authentication.For controlling and overseeingthe outsourced data while preserving privacy,the suggested approach considers the Trusted Certified Auditor(TCA).Using the secret key,TCA can identify the genuine identity of VANETs when harmful messages aredetected.The proposed model develops a TCA-based unique static vehicle labeling system using cryptography(TCA-USVLC)for secure data outsourcing and privacy preservation in VANETs.The proposed model calculatesthe trust of vehicles in 16 ms for an average of 180 vehicles and achieves 98.6%accuracy for data encryption toprovide security.The proposedmodel achieved 98.5%accuracy in data outsourcing and 98.6%accuracy in privacypreservation in fog-enabled VANETs.Elliptical curve cryptography models can be applied in the future for betterencryption and decryption rates with lightweight cryptography operations.
文摘Auditing standards require external auditors to provide reasonable assurance that the financial statements are free from material misstatements, either due to fraud or error. Inability of the external auditors to detect the material misstatements, particularly fraud, may expose them to litigation. The present study aims to examine the effect of personality factors （i.e., neuroticism, extraversion, conscientiousness, openness to experience and agreeableness） on the external auditors＇ ability to detect the likelihood of fraud. An experimental approach is adopted by sending case materials to audit partners and audit managers attached to auditing firms operating in Malaysia. The result shows that personality does not have a positive effect on the external auditors＇ ability to detect the likelihood of fraud.
文摘Internal auditors hold a unique position in their organizations to prevent, deter, and detect corporate wrongdoings. However, the role of this profession in investigating their ethical decision-making behaviors towards internal whistle-blowing intentions has been very often neglected. Furthermore, although extensive researches have been undertaken on the issue of whistle blowing globally, empirical studies on this area are still scarce in Malaysia. This paper examines internal whistle-blowing intentions among internal auditors in Malaysia by utilizing three independent vignettes. A mail survey was conducted to investigate demographic and individual factors that could influence internal auditors＇ ethical decision-making processes. The likelihood for internal whistle-blowing intentions was significant among internal auditors＇ ethical judgments for all the three vignettes. Demographic factors （gender, age, and tenure） and other individual factors （locus of control and organizational commitment） failed to explain the likelihood of internal auditors＇ internal whistle-blowing intentions. Findings should aid researchers in their understandings of the determinants of individuals＇ internal whistle-blowing behaviors.
