Audit Committees and Internal Control Quality: Evidence from Nonprofit Hospitals Subject to the Single Audit Act

Pridgen, Annette; Wang, Karl J.

doi:10.1111/j.1099-1123.2012.00448.x

Cited by 19 publications

(13 citation statements)

References 26 publications

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“…Eldenburg and Krishnan (2003) (Tate 2009). Other studies in the nonprofit setting report similar results, i.e., large firms are associated with fewer internal control deficiencies (Keating et al 2005;Petrovits et al 2011;Lopez, Rich, and Smith 2013;Pridgen and Wang 2012). Finally, we note that while some studies separately identify other expert auditors, i.e., specialists, the impact of low expertise has not been previously considered.…”

supporting

confidence: 63%

A Comprehensive Analysis of Findings from Single Audits: The Implications of Auditee Type and Auditor Expertise

Waymire

Webb

West

2018

Journal of Governmental &Amp; Nonprofit Accounting

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Single audits provide critical accountability for federal grant awards. Our study comprehensively examines differences in single audit findings (related to both financial statements and major program compliance) by auditee type (state/local government and nonprofit) and across varying levels of auditor expertise. In a sample of 24,144 audit engagements over the period 2004 through 2010, nonprofit auditees report fewer internal control deficiencies than government auditees, but more instances of questioned costs related to major programs. Audits conducted by firms with lower single audit expertise are associated with fewer financial statement and major program compliance findings. The results by auditee type and auditor expertise are important to discussions of single audit quality.

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supporting

confidence: 63%

A Comprehensive Analysis of Findings from Single Audits: The Implications of Auditee Type and Auditor Expertise

Waymire

Webb

West

2018

Journal of Governmental &Amp; Nonprofit Accounting

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“…In this sense, the results of Abbott et al (2010) suggest that the focus of the internal audit function on internal control activities increases significantly if the audit committee supervises this function. The empirical results of Krishnan (2005) as well as Pridgen and Wang (2012) indicate that companies that have an audit committee are less likely to have problems of internal control. Therefore, I propose that:…”

Section: Audit Committees and Internal Control Qualitymentioning

confidence: 99%

“…Internal control quality: The quality of the internal control system is proxied by the frequency of problems in the design or application of internal control procedures (Pridgen and Wang, 2012). This proxy is complemented by the external auditor's assessment of the quality of the internal control before and after the establishment of the audit committee.…”

Section: Financial Reporting Qualitymentioning

confidence: 99%

Audit Committees and Bank Governance: the Case of Tunisian Banks

Hassine

2019

jcim

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This paper examines the impact of setting up new audit committees in Tunisian banks on their corporate governance. Specifically studied were the effects of the establishment of audit committees on boards of directors' effectiveness, internal auditor independence, external auditor effort, and internal control and financial reporting quality. The interview and survey methods were used to collect data from board members and the internal and external auditors of eight Tunisian banks shortly after they introduced audit committees on their boards. The main findings show that the establishment of new audit committees influences the breadth of the directors' discussions during board meetings. In some of the banks studied, the new audit committees improve the internal auditors' independence from top management, internal controls and financial reporting quality, and/or result in less effort by external auditors. Some of the interviewed external auditors view the new audit committees as a valuable governance mechanism, especially in cases of disagreement with management.

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“…In our review, 45 papers refer to complexity of the internal organization , also referred to as ‘firm complexity’, ‘client complexity’, ‘business complexity’, or ‘operating complexity’ (Ika & Ghazali, ; Pridgen & Wang, ; Sun, Wei & Xu, ; Bradbury & Redmayne, ; Khlif & Samaha, ). This category of complexity was used in many recent empirical studies, but is defined in largely numerical and static terms (e.g., the number of subsidiaries, the number of business segments and the number of locations).…”

Section: Interactive Complexity In the Internal Audit Literaturementioning

confidence: 99%

Auditing Interactive Complexity: Challenges for the Internal Audit Profession

2015

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This paper contributes to the debate on the future of internal auditing in the context of emerging and intensifying societal, technological and organizational complexity. We apply a critical essay approach to combine the theoretical insights from the field of complexity science and the field of internal auditing. We explore how the condition of intensifying interactive complexity relates to the principles and methodologies of the internal audit profession, now and in the near future. After positioning our paper in the internal audit literature, we argue that interactive complexity poses new challenges and dilemmas to the internal audit profession. We argue that it is crucial for the profession to renew its repertoire to deal with interactive complexity, but also to remain true to the core principles of the profession. We indicate several promising routes for research and debate on the future of internal audit that may help the profession to adapt to intensifying interactive complexity.

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Audit Committees and Internal Control Quality: Evidence from Nonprofit Hospitals Subject to the Single Audit Act

Cited by 19 publications

References 26 publications

A Comprehensive Analysis of Findings from Single Audits: The Implications of Auditee Type and Auditor Expertise

A Comprehensive Analysis of Findings from Single Audits: The Implications of Auditee Type and Auditor Expertise

Audit Committees and Bank Governance: the Case of Tunisian Banks

Auditing Interactive Complexity: Challenges for the Internal Audit Profession

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