Auditor interventions that reduce auditor liability judgments

Chambers, Valerie A.; Reckers, Philip M.J.

doi:10.1016/j.adiac.2022.100614

Cited by 2 publications

(4 citation statements)

References 67 publications

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“…Regarding the total liabilities variable (TLIA) to investigate the auditor's liability and price of excess cash holdings for foreign businesses, according to (Smith et al 2021), it is noted that auditors require a fee premium for foreign-incorporated businesses with large cash holdings. According to (Chambers and Reckers 2022), other analyses should be made regarding the effects of the auditor's choices in order not to cause liabilities. While investigating whether governments support businesses through the distribution of public revenues and expenditures in the form of subsidies, grants, and taxes to have sustainability of profit, according to (Lulaj and Dragusha 2022) and (Lulaj 2022), the country must support businesses through the fair distribution of expenses or public revenues for businesses to have stability in cases of financial crises.…”

Section: Discussionmentioning

confidence: 99%

Investigating Accounting Factors through Audited Financial Statements in Businesses toward a Circular Economy: Why a Sustainable Profit through Qualified Staff and Investment in Technology?

Lulaj

Dragusha

Hysa

2023

Administrative Sciences

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This study examines the investigation of accounting factors through audited financial statements in businesses by analyzing the qualified staff and investment in technology for sustainable profit. Therefore, the main goal is to analyze whether qualified staff and investment in technology affect the sustainability of profit in businesses through the investigation of accounting factors in the audited financial statements toward a circular economy, more specifically in these financial items: total assets (TASS), and intangible assets (IASS), total liabilities (TLIA), total income (TREV), and net financial income (NFI), based on questions about which financial items businesses should take care of, as well as businesses that do not invest in technologies and skilled staff: does this hinder profit sustainability? Therefore, for this study, data are collected from the financial statements (balance sheet and income statement) of (N = 800) businesses according to their activity (manufacturing businesses = 256, service businesses = 192, and distribution businesses = 353) during the period (2020–2022). The results show that each of the variables and factors had a significant impact on sustainable profit through the circular economy in (N = 800) businesses. However, to have a sustainable profit in business, it is strongly recommended to pay attention to these findings: businesses should (a) be careful with total liabilities, (b) increase the performance of total assets, (c) increase the performance of net financial income, (d) increase the performance of total business income, and (e) increase and develop the skills of workers, as well as improve technology (equipment, machinery, etc.). With implications and limitations, it was difficult to access some of the financial statements; there are only a limited number of variables, so the same models can be analyzed for other businesses, variables, and countries.

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Section: Discussionmentioning

confidence: 99%

Investigating Accounting Factors through Audited Financial Statements in Businesses toward a Circular Economy: Why a Sustainable Profit through Qualified Staff and Investment in Technology?

Lulaj

Dragusha

Hysa

2023

Administrative Sciences

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“…Hung and Cheng (2018) define competence as the expertise of a person who plays a continuous role in which the movement is through the learning process from knowing something. The results of research by Chambers and Reckers (2022) show that the ability of auditors has a significant effect on fraud detection in public sector organizations with a positive coefficient, meaning that the higher the auditor's ability, the more it will increase the detection of fraud in public sector organizations.…”

Section: Auditor Competencementioning

confidence: 99%

“…An auditor should not consider that the management of the entity being examined is dishonest, but also should not assume that the honesty of such management is no longer disputed. Research by Chambers and Reckers (2022) states that one of the causes of auditors' failure to detect fraud is the low level of audit skepticism. Auditors who have skepticism will tend to be critical and continue to question audit evidence that is not yet clear about its veracity and will evaluate critically the audit evidence.…”

Section: The Influence Of Professional Skepticism In Fraudulent Finan...mentioning

confidence: 99%

“…Auditors to be able to find or detect fraud must have and maintain their competence through continuous professional education by attending existing functional education and training. Chambers and Reckers (2022) state that in conducting the examination, the torturer must collectively have knowledge of the torture standards that are in accordance with the type of examination and have the education and expertise to eradicate this knowledge in the examination carried out. In addition, the examiner must also have knowledge about the environment of the entity, the program, and the activities it checks.…”

Section: The Effect Of Auditor Competence In Detecting the Misconduct...mentioning

confidence: 99%

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An Analysis of Auditors’ Characteristic and Non-Characteristic Components on Detecting The Fraudulent Occurrences in Public Sectors

Aisyaturrahmi

2022

Utsaha

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This study is to examine the influence of the auditors’ characteristic and non-characteristic components on detecting the fraudulent occurrences in the public sectors. Specifically, this study focuses on financial statement fraud as it has the most negative impacts on the society and beyond. This study is developed by the empirical evidence from Indonesian external auditors. The author in the initial stage creates hypotheses to explain the interaction processes between the auditors’ characteristic and non-characteristic components on detecting the fraudulent occurrences in the public sectors. The results of this study concluded that audit procedures and strategies have a significant effect on detecting financial statement fraud in public sector organizations. Meanwhile, The auditors competence is not significantly responsible in detecting financial statement fraud in public sector organizations. The auditors independence and professional skepticism has a significant effect on detecting fraudulent reports in public sector organizations. Thus, the auditor objectivity has no significant effect on the success of detecting financial statement fraud in public sector organizations.

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Auditor interventions that reduce auditor liability judgments

Cited by 2 publications

References 67 publications

Investigating Accounting Factors through Audited Financial Statements in Businesses toward a Circular Economy: Why a Sustainable Profit through Qualified Staff and Investment in Technology?

Investigating Accounting Factors through Audited Financial Statements in Businesses toward a Circular Economy: Why a Sustainable Profit through Qualified Staff and Investment in Technology?

An Analysis of Auditors’ Characteristic and Non-Characteristic Components on Detecting The Fraudulent Occurrences in Public Sectors

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