Impact of Technology on Auditing: Evidence in Developing Countries

<p>Internal auditing is crucial for evaluating and improving internal control processes within government entities. Its primary objective is to assess the effectiveness and efficiency of internal controls, risk management, and governance processes. By identifying weaknesses and suggesting improvements, internal auditors contribute to better resource utilization and accountability. Internal audits can be conducted at various levels within the government, including central agencies, ministries, departments, or individual entities. This allows for a comprehensive examination of different aspects of government operations. Supreme Audit Institutions (SAIs) are independent governmental bodies responsible for conducting external audits of public sector entities. They assess the effectiveness and efficiency of financial management, compliance with laws and regulations, and the overall stewardship of public resources. While internal auditors focus on assessing internal controls and ensuring the reliability of financial information, SAIs provide an external perspective on the quality and impact of internal auditing within government entities. This collaboration helps promote good governance, transparency, and accountability in the use of public resources. A robust control system, which includes internal control, risk management, and audit functions, is essential for good governance. It helps safeguard public funds and maintain public trust. Adopting a risk-based approach to integrity and implementing targeted controls can enhance efficiency and effectiveness in resource utilization. Collaboration with citizens, the media, and non-governmental organizations further strengthens the functioning of the control system. This engagement enhances transparency and accountability and ensures that the government is responsive to the needs and concerns of the public. Internal and external auditing by SAIs are vital components of the public financial management system. They work together to assess and improve government operations, enhance accountability, and ensure the efficient use of public resources, ultimately contributing to good governance. In Sierra Leone, SAIs is likened to Audit Service Sierra Leone (ASSL). The concurrent triangulation approach is a specific mixed methods model used in this study. The research findings reveal that the internal audit department of the University of Sierra Leone is not adequately resourced to perform its functions effectively. However, segregation of duties and access to information is maintained but requires a functional audit committee, an increased number of competent auditors, and auditing software.</p><p><strong>JEL:</strong> H83, M42, H11, H72, H76, K42, O17</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0771/a.php" alt="Hit counter" /></p>

This article aims to address audit role in corporate governance in the light of scientific literature. The foundation of this study is achieved by synthesizing current state of knowledge through quantitative and qualitative research. So we extracted the main lines of topics: conceptual levels on internal audit, corporate governance developments at national and international levels, internal audit in corporate governance of public and private entities from Romania and other corporate governance issues. As a research method, we used survey and data were processed using a statistical program. The novelty that we caught in the present paper is the analysis of the role of internal audit in the governance in public and private entities through two pillars: promoting ethics and values within the organization and ensuring effective organizational performance management/governance.

This study presents the role of internal public audit organized at the level of local public administration, the interdependence between internal audit and internal control as well as the specific ways of evaluating the management system and internal managerial control. The erroneous perception of the specific objectives of the internal public audit has often led to a reluctance on the part of the decision makers. Misunderstanding the role of internal audit is a major risk in the functioning of the decision-making system. The internal audit recommendations give assurance to the general management through the periodic evaluation of the main functional systems: the financial-accounting system, the public procurement system, the decision-making system and especially the management and internal managerial control system.

General Background: The financial performance of Sharia commercial banks is crucial for Indonesia's economic growth. Specific Background: This study explores the impact of Good Corporate Governance (GCG), Internal Audit, and Risk Management on the financial performance of Sharia banks, particularly after the enactment of Law No. 21 of 2008. Knowledge Gap: Existing literature shows mixed results regarding the effects of these governance factors, indicating a need for comprehensive analysis in the context of Sharia banking. Aims: The research aims to assess how GCG, Internal Audit, and Risk Management affect financial performance from 2018 to 2021. Results: Analysis of 44 Sharia banks reveals that while Internal Audit negatively affects performance, GCG and Risk Management have significant positive impacts. Novelty: This study introduces a thorough examination of Risk Management alongside GCG and Internal Audit, enhancing the understanding of their roles in Sharia banking. Implications: Findings highlight the importance of strengthening governance frameworks in Sharia banks to improve financial performance, providing insights for investors and policymakers. Highlights: Good Corporate Governance and Risk Management significantly enhance financial performance in Sharia banks. Internal Audit shows a negative impact on the financial performance, emphasizing the need for effective implementation. The study addresses a gap in literature by examining the interplay of GCG, Internal Audit, and Risk Management in the Sharia banking sector. Keywords: Good Corporate Governance, Internal Audit, Risk Management, Financial Performance, Sharia Banks

This study examines the relationship between internal audit functions and financial management performance in the public sector in Malaysia. The internal auditor is entrusted with a monitoring responsibility to ensure the integrity of the management of public funds. The need for effective monitoring by an internal auditor is increasing as a result of the Auditor General Report concerning weaknesses in the financial management of the public sector. The present study conducts a survey on 80 internal audit units of government agencies and organisations. Financial management performance is measured using the Financial Management Accountability Index issued by the National Audit Department. The results show that the effectiveness of internal audits in enhancing the financial management of public sector relates significantly to the competency of internal auditors, the size of internal audit units, and cooperation between the internal auditors and audit committees. The findings have policy implications concerning the staffing and training programmes of internal audit units that will help improve financial management performance in the public sector.

Provincial Treasuries are responsible for assisting the National Treasury in enforcing compliance with the measures established in the South African constitution, which stipulates public sector expenditure control and transparency. This study aims to examine the relationship between internal audit effectiveness and financial accountability in the Provincial Treasuries of South Africa. The theoretical inclination is on the stewardship theory. The research is based on a quantitative approach and draws secondary data on internal audit and financial performance from the nine provincial treasuries of South Africa. Analyses were done using the fixed effect regression after conduction the Hausman tests, Augmented Dickey-Fuller tests (ADF) and Philips Perron (PP). Findings indicate that internal audit can enhance financial accountability across all the expenditure programmes of provincial treasuries in South Africa. Government departments should embrace internal audit as a monitoring tool to evaluate financial accountability and service delivery performance, but not as a punitive initiative. In addition, educational training of internal audit staff can be very effective in achieving government financial control. The paper provides a veritable case study to higher institutions regarding educational qualification versus experience implications on public sector internal audit and accountability; it also offers an agenda for further research.

The relevance of the article is determined by: the constant changes and challenges in the field of professional education and the development of public-private partnerships; the necessity for people to adapt to new technological and economic realities, which requires finding new ways of cooperation between public institutions and the private sector in education; the need for domestic professional education to create effective methodological recommendations for the development of public-private partnerships to improve the quality of professional education, enhance the competitiveness of graduates of professional (vocational-technical) education institutions in the labor market, and innovative development of the Ukrainian economy. Purpose: to conduct a theoretical analysis of public-private partnership in the field of professional (vocational-technical) education and determine the modern models of its operation. Methods: theoretical analysis of the source base – to study the normative documents and laws that regulate public-private partnership in the field of professional (vocational-technical) education and determine its various models; comparative analysis – to identify the common and distinctive characteristics of the identified models of public-private partnership, revealing the peculiarities of their operation; expert evaluation – to obtain recommendations regarding the prospects for the development of public-private partnership in the field of professional education in Ukraine. Results: an analysis of legislative and regulatory documents on the development of public-private partnerships has been carried out; contemporary models of public-private partnership have been identified and analyzed; their features and advantages have been revealed and characterized, which can be used to improve public-private partnership in the field of professional education in Ukraine; the existence of a link between the effectiveness of the partnership and the quality of future professionals' training has been noted; significant opportunities and prospects for this form of collaboration have been outlined. Conclusions. The modern models of public-private partnership in the field of professional (vocational-technical) education include: the partnership model at the legislative level (main attention is paid to the regulation of relations between public and private education entities through the adoption of relevant laws and regulations); the project collaboration model (focus is on the implementation of specific educational projects and programs in conjunction with private companies and organizations); the joint financing and resource provision model (partners jointly finance educational programs and provide access to necessary resources); the partnership model in the form of entrepreneurial activity (includes cooperation with private enterprises and the creation of joint educational enterprises). There is a growing interest from both public and private entities in participating in partnerships in the field of professional education, which can be favorable for the further development of this sector. The positive aspects of public-private partnership include improving the quality of education, expanding financing opportunities and access to resources, and creating practical opportunities for educational attainment. Challenges that exist in the development of the partnership include: the need for legislative regulation, ensuring transparency and effectiveness of cooperation, and resolving issues of intellectual property.

This study aims to analyze the effect of Good Corporate Governance (GCG) and Internal Audit on financial performance, with Firm Size as a moderating variable, in financial sector companies listed on the Indonesia Stock Exchange for the 2020-2023 period. The research adopts a quantitative approach using secondary data, analyzed through Smart PLS 3. The results indicate that the Good Corporate Governance (GCG) variable has a significant effect on financial performance, and Internal Audit also significantly impacts financial performance. However, Firm Size does not influence financial performance. Additionally, the findings reveal that Firm Size does not moderate the relationship between Good Corporate Governance (GCG) and financial performance, nor between Internal Audit and financial performance. This study concludes that Good Corporate Governance (GCG) and Internal Audit individually affect financial performance, but Firm Size does not play a moderating role in these relationships.

This study examines the separate influence of independence and financial experience on audit committee relations with the internal audit function. Using data from Australia and New Zealand, the study focuses on audit committees and internal audit in both private and public sector entities. Data were collected by means of a questionnaire sent to chief internal auditors. The results suggest that independence and accounting experience have a complementary impact on audit committee relations with internal audit. Independence is more associated with issues of process while accounting experience is associated with the extent that the audit committee reviews the work of the internal audit function. There are also some differences based on country and sector. Overall, the findings have important implications for regulators in light of recent calls for audit committee members to have accounting expertise in addition to being independent.

The existence of the public sector is conditioned by meeting the needs of citizens for public goods and services. Business under constant public scrutiny poses challenges to public sector entities in the form of effectiveness and efficiency in providing services on the one hand, and achieving satisfactory financial performance on the other. Measuring the performance of entities in the public sector can be problematic precisely for the reason that it is necessary to measure the performance of entities whose operations are aimed at meeting public needs and not at making a profit. Therefore, the goals of these entities are taken as a starting point when establishing an adequate performance measurement system. Bearing in mind that the public sector is at the service of the citizens of a country, the question of measuring business performance, as well as the question of public supervision in public sector entities, arises. State audit, financial management and control and internal audit, as elements of public supervision, should ensure fair and true presentation of results and performance of business in public sector entities.

This manuscript deals with and reports on the qualitative exploration of and analysis into the most pertinent, yet severely ignored concept of “institutional/organisational reputation and integrity” in public administration and management. The study was inspired and motivated by the fact that even though theme plays a significant role in influencing trust and support in our public and private entities alike, very little has been written about the concept. The article commences by providing a general theoretical background to and definition of this theme. It also presents a brief overview on the roles of and the importance this largely neglected concept has in enhancing, consolidating, and improving the position of governance and service delivery of both our public and private entities. More significantly, the author identifies four (4) phases/facets/dimensions that are associated with institutional/organisational reputation and integrity, namely: Performative reputation; Moral reputation; Procedural reputation; and Technical reputation, and uses them as the hallmarks for this qualitative exploratory analysis. Methodologically, the study employs a qualitative phenomenological and empirical research paradigm and design, to understand the functionality and performance of institutional/organisational reputation and integrity within the context of South African public and private entities. Qualitative data collection and gathering methods such as (Participant observation; In-depth interviewing; Document study; and Case study) and qualitative data analysis and interpretation techniques such as (Qualitative Content analysis; and qualitative Case analysis) are used to collect and gather data and to analyse and interpret data respectively. The population of the study is described as comprising of all public and private entities serving the people and doing business in South Africa. A judgmental and/or purposive sampling technique is employed as a way of selecting study participants. Findings will be arrived at, and on their basis, recommendations will be clearly provided and articulated.

The recent collapse of major commercial banks in Kenya, including Imperial and Chase bank, which are currently under receivership, has raised concerns about the effectiveness of their audit practices in ensuring stability and improved financial performance. These failures have put pressure on commercial banks to reconsider how they align their internal audit processes to ensure stability and financial improvement. Consequently, this study aimed to assess the impact of internal audit on the financial performance of commercial banks listed on the Nairobi Securities Exchange (NSE). The study was guided by reliability theory. Using a descriptive survey design, the target population consisted of 10 commercial banks listed on the NSE. The unit of observation included 86 respondents from various roles within these banks, such as senior finance managers, credit managers, operations managers, risk managers, and internal auditors. Both primary and secondary data were utilized in the study. Primary data on internal audit practices were collected through a semi-structured questionnaire employing a Likert-type scale, while secondary data on the financial performance of the commercial banks were obtained from their audited financial reports. The gathered questionnaire data were quantitatively analyzed using SPSS software, incorporating descriptive statistics (mean and standard deviation) as well as inferential statistics, specifically regression coefficients and bivariate correlation, to examine the relationship between the dependent and independent variables. The study's findings revealed a significant relationship between internal audit, asset safeguarding, risk management, compliance with laws, and the dependent variables, which included return on assets, net income, and liquidity. These relationships were evident from the regression analysis conducted. Consequently, the study concluded that internal audit systems have an impact on the financial performance of commercial banks. The study recommends that commercial banks listed on the NSE reassess their internal audit systems and strengthen any identified weaknesses to enhance their financial performance. Furthermore, the study suggests that future research could explore the effects of new banking regulations, such as Basel Accord III, on the financial performance of commercial banks.

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The Texas Hydrogen Highway project has showcased a hydrogen fuel cell transit bus and hydrogen fueling infrastructure that was designed and built through previous support from various public and private sector entities. The aim of this project has been to increase awareness among transit agencies and other public entities on these transportation technologies, and to place such technologies into commercial applications, such as a public transit agency. The initial project concept developed in 2004 was to show that a skid-mounted, fully-integrated, factory-built and tested hydrogen fueling station could be used to simplify the design, and lower the cost of fueling infrastructure for fuel cell vehicles. The approach was to design, engineer, build, and test the integrated fueling station at the factory then install it at a site that offered educational and technical resources and provide an opportunity to showcase both the fueling station and advanced hydrogen vehicles. The two primary technology components include: Hydrogen Fueling Station: The hydrogen fueling infrastructure was designed and built by Gas Technology Institute primarily through a funding grant from the Texas Commission on Environmental Quality. It includes hydrogen production, clean-up, compression, storage, and dispensing. The station consists of a steam methane reformer, gas clean-up system, gas compressor and 48 kilograms of hydrogen storage capacity for dispensing at 5000 psig. The station is skid-mounted for easy installation and can be relocated if needed. It includes a dispenser that is designed to provide temperaturecompensated fills using a control algorithm. The total station daily capacity is approximately 50 kilograms. Fuel Cell Bus: The transit passenger bus built by Ebus, a company located in Downey, CA, was commissioned and acquired by GTI prior to this project. It is a fuel cell plug-in hybrid electric vehicle which is ADA compliant, has air conditioning sufficient for Texas operations, and regenerative braking for battery charging. It uses a 19.3 kW Ballard PEM fuel cell, will store 12.6 kg of hydrogen at 350 Bar, and includes a 60 kWh battery storage system. The objectives of the project included the following: (a) To advance commercialization of hydrogen-powered transit buses and supporting infrastructure; (b) To provide public outreach and education by showcasing the operation of a 22-foot fuel cell hybrid shuttle bus and Texas first hydrogen fueling infrastructure; and (c) To showcase operation of zero-emissions vehicle for potential transit applications. As mentioned above, the project successfully demonstrated an early vehicle technology, the Ebus plug-in hybrid fuel cell bus, and that success has led to the acquisition of a more advanced vehicle that can take advantage of the same fueling infrastructure. Needed hydrogen station improvements have been identified that will enhance the capabilities of the fueling infrastructure to serve the new bus and to meet the transit agency needs. Over the course of this project, public officials, local government staff, and transit operators were engaged in outreach and education activities that acquainted them with the real world operation of a fuel cell bus and fueling infrastructure. Transit staff members in the Dallas/Ft. Worth region were invited to a workshop in Arlington, Texas at the North Central Texas Council of Governments to participate in a workshop on hydrogen and fuel cells, and to see the fuel cell bus in operation. The bus was trucked to the meeting for this purpose so that participants could see and ride the bus. Austin area transit staff members visited the fueling site in Austin to be briefed on the bus and to participate in a fueling demonstration. This led to further meetings to determine how a fuel cell bus and fueling station could be deployed at Capital Metro Transit. Target urban regions that expressed additional interest during the project in response to the outreach meetings and showcase events include San Antonio and Austin, Texas. In summary, the project objectives were achieved in the following ways: Through presentations and papers provided to a variety of audiences in multiple venues, the project team fulfilled its goal of providing education and outreach on hydrogen technology to statewide audiences. The project team generated interest that exists well beyond the completion of the project, and indeed, helped to generate financial support for a subsequent hydrogen vehicle project in Austin. The University of Texas, Center for ElectroMechanics operated the fuel cell-electric Ebus vehicle for over 13,000 miles in Austin, Texas in a variety of routes and loading configurations. The project took advantage of prior efforts that created a hydrogen fueling station and fuel cell electric-hybrid bus and continued to verify their technical foundation, while informing and educating potential future users of how these technologies work.

The general aim of this study is to assess the relationships between external and internal auditors concerning cooperation and trust as resources integrated in organizations' lines of defense, to favor solid, opportune, and transparent decision‐making in organs of governance. More precisely, the specific aims are: (1) to analyze the relationship between trust and cooperation; (2) to explore and analyze the categories of the mutually important factors for trust and cooperation; and (3) to analyze the differences between internal and external auditors. To achieve these goals, quantitative and exploratory research was undertaken, with data collection through surveys directed to the two auditor groups (internal and external) in Portugal. In order to analyze if there were relations between trust and cooperation, logistic regression was performed. Based on exploratory factor analysis of principal components, it was possible to extract three factors for cooperation and trust: (1) work performance, (2) coordination/collaboration, and (3) competence. A multiple linear regression was also used to check the differences between internal and external auditors for the three factors identified. From the two groups involved in this study, it was possible to gain each group's perception of the professional relationship concerning cooperation and trust as determinant variables in auditing. It was found that there is still a long way to go and that each group has slightly different perceptions. This study contributes to the scientific and professional community regarding the perception of cooperation and trust between these professionals.