Impact of Information Technology on Audit Quality: European Listed Companies' Evidence

Crucean, Andreea Claudia; Haţegan, Camelia-Daniela

doi:10.1108/978-1-80455-566-820231018

Cited by 6 publications

(4 citation statements)

References 1 publication

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“…The results are different from previous studies because there are few studies that analyzed a single topic of KAM (Crucean and Hategan 2023), as there is more research that showed factors that influenced the reporting of KAMs by auditors (Pinto and Morais 2018;Özcan 2021).…”

Section: Discussioncontrasting

confidence: 80%

“…Less frequent subjects were those related to information technology (IT), fraud risk, and related parties' transactions. The previous study showed that the most reported KAM related to IT was in the field of finance, insurance, and real estate (Crucean and Hategan 2023); therefore, the company's activity influences the subject of the revealed KAMs.…”

Section: Key Audit Matters Disclosurementioning

confidence: 99%

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Disclosure of Key Audit Matters: European Listed Companies’ Evidence on Related Parties Transactions

PASC

Haţegan

2023

IJFS

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The growing expenses, dependence on IT for business operations, and growing requirements regarding related party transaction (RPT) reporting impose the need for increased attention to this area. The paper’s objective is to examine the nature of RPTs, identified by auditors as a key audit matter (KAMs), challenges and solutions to problems related to risk management, and the detection of factors affecting audit quality. The research methodology is qualitative, with an analysis of the level of disclosure of KAMs reported by auditors from the Related Parties category, grouped by type of auditors, their opinion, year, country, and fields of activity. Data were collected from the Audit Analytics database and filtered by category KAM: Related parties, period 2013–2021. The selection resulted in 111 companies reporting 248 KAMs related to RPTs, from which most were reported in 2017–2019. Of these, nearly two-thirds were reported by auditors from the Big4 category. Most KAMs were reported by companies in the U.K., Germany, and France, and the industries with the most KAMs were finance, insurance, and real estate. In conclusion, there are factors that can affect audit quality due to the reporting of RPTs, but by identifying them, the audit process can be better managed, thus increasing its efficiency.

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Section: Discussioncontrasting

confidence: 80%

Section: Key Audit Matters Disclosurementioning

confidence: 99%

Disclosure of Key Audit Matters: European Listed Companies’ Evidence on Related Parties Transactions

PASC

Haţegan

2023

IJFS

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“…Several studies have highlighted the significant impact of information technology on the implementation of Risk-Based Audit (RBA) and audit quality. For instance, a study by Rawashdeh, Bakhit, and Al-Okdeh found that control risk plays a mediating role in the adoption of AI-based predictive analysis in professional audits (Crucean & Hategan, 2023). Additionally, Alsaleem and Husin's study demonstrated that the COBIT 5 framework, which focuses on IT governance, can significantly affect audit risk (Awni et al, 2023).…”

Section: H3: There Is No Impact Of the Experience And Efficiency Of T...mentioning

confidence: 99%

The Effect of the Characteristics of the Audit Firm and Client on the Application of the Business Risk Audit Approach

Hobaishi,

Sharabi,

Mehgani

et al. 2024

EJAAFR

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The purpose of this study is to identify the impact of certain fundamental characteristics of audit firms and their clients on the application of the business risk audit approach in Yemen, as well as to identify the responses implemented by these firms and companies to these characteristics. The study uses a descriptive-analytical approach, where the data collected through the questionnaire are described and analyzed using appropriate statistical methods. The study sample included 60 auditors from 42 audit firms and 8 individual offices, with a focus on larger offices and those associated with international audit offices, as they are more likely to apply the business risk-based audit approach. Data was sourced from the Ministry of Industry and Trade’s publications on licensed audit offices. Out of 50 electronic and 10 paper questionnaires distributed, 38 responses were received, representing a response rate of 63.33%. The results showed that the characteristics related to the audit firm have a varying impact on the application of the business risk audit approach and that the specialization of the audit firm in the client's business is the most influential factor in this regard. The results also showed that the characteristics related to audit clients do not affect the application of the business risk audit approach, indicating the existence of other factors that may affect this approach. This study is one of the few studies that address the application of the business risk audit approach in the Yemeni context, highlighting the factors affecting this application and its challenges. The study also provides some recommendations to improve audit quality and deal with business risks.

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“…Studies by Alawneh et al [25] and Sachan et al [26] demonstrate that digitalizing audits can improve the efficiency and effectiveness of audits using information technology. Digitalization also enables early detection of discrepancies and deviations in government financial management, thus preventing fraud [27]. Additionally, Veerankutty & Ali [28] highlight the importance of technological support and clear regulations to ensure the successful implementation of digital audits in the public sector.…”

Section: Impact Of Internal Government Audit On the Implementation Of...mentioning

confidence: 99%

Highlighting the Role of Internal Government Audits in Enhancing e-Budgeting Practices in Bengkulu City

Gaol,

Suryani

2024

JDAH

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This study highlights the role of internal government audits in enhancing e-budgeting practices in the Bengkulu City Government. Using a qualitative approach with a case study design, data were collected through semi-structured interviews, participatory observation, and document analysis. The findings indicate that the digitalization of internal audits using the Data Collection System (DCS) enhances transparency and accountability in regional financial management. However, challenges include the quality of uploaded data, limited skilled human resources, adequate technological infrastructure, and resistance to change from employees accustomed to manual systems. Recommendations include continuous training enhancement and effective change management strategies to optimize e-budgeting implementation. Further research in other regions is recommended to share best practices and improve public financial management.

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Impact of Information Technology on Audit Quality: European Listed Companies' Evidence

Cited by 6 publications

References 1 publication

Disclosure of Key Audit Matters: European Listed Companies’ Evidence on Related Parties Transactions

Disclosure of Key Audit Matters: European Listed Companies’ Evidence on Related Parties Transactions

The Effect of the Characteristics of the Audit Firm and Client on the Application of the Business Risk Audit Approach

Highlighting the Role of Internal Government Audits in Enhancing e-Budgeting Practices in Bengkulu City

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