Respondents’ Perceptions on Quality Control Procedures for Statutory Financial Audit: A Survey

Generally, departments of accounting at universities in South Africa that are accredited by the South African Institute of Chartered Accountants (SAICA) mainly focus on teaching the syllabus as prescribed by the Institute. There is no research methodology module in this syllabus neither at undergraduate nor honours level. To qualify as a chartered accountant, one needs to pass an honours degree in accounting and write and pass two board exams. A qualified chartered accountant (CA/SA) will most likely encounter a research methodology module for the first time at master’s-degree level. Since 2008, in addition to teaching and learning and community engagement, the departments of accounting have embraced their scholarly activities, which include supervision and/or publishing. As a result, there is an increased effort by the departments of accounting to have its staff members with a chartered accountancy qualification to enrol for master’s and doctoral degrees (De Jager, Lubbe, Papageorgiou 2018). It is commonly believed that it seems easier to supervise students or write articles after attaining these qualifications. The purpose of this study was to investigate the barriers that are encountered by academics from a chartered accountancy background to engage in scholarly activities willingly. A qualitative research approach was followed in this study and data was collected by means of interviews. The population was accounting academics at the North-West University. The analysis of data was done qualitatively by means of thematic analysis. The findings revealed barriers such as not knowing where to start due to lack of background or knowledge in conducting research, time, workload, lack of management and lack of access to experienced mentors.

Against a backdrop of only 337 black chartered accountants in a total of approximately 20 000 in South Africa in 2003, the South African Institute of Chartered Accountants (SAICA) is reviewing its current transformation targets for 2005. Information was required to review the obstacles that black trainees in general and accountants in particular experience en route to qualifying. Accounting as a career was investigated from a theoretical point of view. A questionnaire was designed, which focused mainly on problems and barriers in respect of career guidance; funding and bursaries; role models in the profession; knowledge of the profession; and exposure to business. The questionnaire was distributed to all 755 black trainee accountants that were registered with SAICA. A total of 313 questionnaires were returned, representing a response rate of 41,45%. A lack of knowledge about the chartered accountancy profession and careers related to the profession was identified as one of the main reasons for the small number of blacks in the profession. Career guidance at school was stated as the main contributing factor in this regard. A lack of funding and of bursaries was stated as the second most important reason why students do not choose a career in accounting. Other important barriers identified include the limited nature of the work given to trainee accountants to do and the resulting limited work experience that they gain; a lack of black mentors in firms; racial bias on the part of supervisors; and a lack of recognition of and respect for the work completed. Black trainee accountants suggest that academic support programmes should be introduced to assist them to prepare for examinations, a forum should be established for students of Accounting in which they can interact with accounting professionals through workshops; a network group of professional black mentors in the business sector should be formed; and the advancement and retention of black members within the profession should be encouraged. Awareness programmes should be accorded a high priority in the short term.

The ability to recognize valuable business prospects is the primary meta-skill for entrepreneurship and can be deliberated through entrepreneurial alertness. In the opportunity identification perspective of entrepreneurship, inadequate attention is provided for the development of entrepreneurial alertness and its effectiveness among students pursuing professional or postgraduate courses in a specific discipline. Therefore, the present study determines the intervening role of entrepreneurial alertness in the causal association of students’ prior knowledge and experience on their entrepreneurial intention. The data of 408 final level students studying Chartered accountancy course from the Institute of Chartered Accountants of India (ICAI) were gathered through cluster sampling. The statistical method of structural equation modeling (SEM) is used to examine the postulated associations. The results indicate that the students’ knowledge and experience appropriately stimulate the alertness for potential business prospects, which further motivates the intention for entrepreneurial actions. The partial intervention of entrepreneurial alertness is also observed ensuring that the use of knowledge and experience in identifying profitable business opportunity increases the chances of selecting a successful entrepreneurial career. The findings of the study contribute to the promotion of early-stage entrepreneurship among students of a specific discipline.

This article builds on prior calls to liberalise accounting education both globally and within a South African context, where the accounting curricula tend to have a technical and vocational bias. The authors specifically focus on the chartered accountancy (CA) education landscape in the country, where they call for the adoption of global citizenship education (GCE) within the CA education curricula. The authors’ contention is that if notions of GCE manifest within the CA education landscape, they increase students’ chances to become liberated and empowered. Additionally, they argue that adopting notions of GCE within the CA education pedagogy is vital to the development of citizenship competencies and relational acumen as outlined by the new CA2025 competency framework drawn up by the South African Institute of Chartered Accountants (SAICA). Finally, the authors contend that there are significant challenges to implementing GCE within the current CA education context, but they contend that these challenges do not minimise the urgent imperative for CA education to produce chartered accountants (CAs) who are both technically astute, as well as socially and ethically aware, within a global context.

This study aims to analyze the influence of competence, independence, professional skepticism, and audit fees on audit quality with cloud computing as a moderation variable in Public Accounting Firms in Indonesia. This study uses a saturated sample method or census, involving 156 auditors from a total of 472 Public Accounting Firms in Indonesia as respondents. The data analysis technique used is SEM (Structural Equation Modelling) with the help of Smart PLS 3.0 software. Data analysis includes descriptive statistical tests, validity and reliability tests through outer model tests which include convergent validity, discriminatory validity, composite reliability, and inner model tests. The results showed that professional competence, independence, and skepticism had a positive and significant influence on audit quality, while audit fees did not show a significant influence on audit quality. In addition, cloud computing as a moderation variable strengthens the relationship between competence and independence on audit quality significantly, but does not have a moderation impact on the relationship between professional skepticism and audit fees on audit quality. This research makes a practical contribution to Public Accounting Firms in evaluating strategies and policies to prevent future audit quality declines.

Increasing numbers of women are entering Chartered Accountancy. Focuses on the Scottish perspective exploring recruitment, examination performance and career progress. No discernable gender differences were found in recruitment and early career structure, although women do perform better in the examination process. However, at senior manager and particularly partner levels differences do arise. Examines by way of a case‐study approach, interviewing all the women partners in the “big six” Scottish offices, why so few reach the top. Also analyses their personal profiles in an attempt to construct role models for women who aspire to this level. Women choose to opt out of the top, prioritizing and balancing their lifestyles in a different manner to men. The barrier is there‐fore one of choice, although some form of discrimination was mentioned by two‐thirds of the women. The observations within the six firms were also different, suggesting that varying attitudes had been experienced.

<b>MARCH 2013 PLACEMENT ADS</b>

Audit software for data analytics, most commonly known as Generalised Audit Software (GAS), has been used by audit organisations since the deployment of IT in business organisations. The use and importance of GAS has increased with the growth in the sophistication and proliferation of IT within business organisations. Despite this development, recent studies have reported that GAS is still underused and identified that the factor contributing most to such underutilisation of GAS is access to organisational data. Although the current state of GAS enables auditors to directly access data stored in databases, it is still uncommon for auditors to use this GAS capability. Auditors more commonly obtain organisational data from the auditees’ staff by using secondary storage devices. The audit literature has found problems associated with analysing auditee-provided data, for example, being presented with manipulated data and has, therefore, advocated the importance of having direct access to organisational data. The literature further claims that having direct access to organisational data would provide greater benefits to audit organisations from their investments in GAS through, for example, improved audit efficiency and effectiveness. The audit literature, however, provides limited empirical evidence to support such a recommendation. This thesis seeks empirical evidence on the impact of having direct access to organisational data on the quality of auditor’s analytical tests as representing the dimension of actual audit quality. Drawing on the theory of flow, a supportive condition for innovative behaviour, this study posits that having direct access to organisational data facilitates the creation of a flow state. When auditors experience flow state, they are motivated to use GAS more innovatively. Further, as auditors’ innovative use of GAS increases, auditors are better able to identify successful applications of GAS that, in turn, improve the quality of their analytical tests. This thesis uses a mixed-method approach involving both interviews and a survey to gather data to test its research hypotheses. The interviews and the survey targeted auditors with differing levels of seniority who have used GAS or are actively involved in using it for auditing. The results show support for the research model. The results indicate that, having a sense of control over the use of GAS, the ability to focus on interactions using GAS, the extent of auditors’ professional scepticism, and having knowledge/skills of GAS motivates auditors to use GAS innovatively. The results also indicate that, when the innovative use of GAS increases, the quality of analytical tests also increases. Analysis of the impact of having direct, compared to indirect, access to organisational data shows a statistically significant moderating effect on the extent of auditors’ professional scepticism and on their ability to focus on their interactions with GAS. The results indicate that auditors’ professional scepticism increases, while their ability to focus on the interaction decreases when they have direct access to organisational data. Analysis of the effect of direct access also found no statistically significant difference in the quality of auditor’s analytical tests. These findings enrich current discussion within IT auditing literature on the effectiveness of IT-based audit procedures to obtain audit evidence. This thesis demonstrates that innovative use of GAS is an appropriate link between IT-based audit methods and audit quality, a matter that has been barely elaborated. Additionally, this thesis identifies that the length of GAS experience affects both auditors’ preferences about type of data access (i.e., direct versus indirect access) and their perceptions of the benefits of data access on audit quality. Audit organisations might, therefore, conceive strategies to shorten the time required to realise the benefits of using GAS to directly access organisational data.

This study aims to determine the effect of Audit Professional Skepticism and Auditor Expertise on Audit Quality. The analytical tool used is to tabulate the questionnaire, collect data in the form of validity and reliability tests. The hypothesis in this study is that there is an effect of the Professional Skepticism of the Audit and the Expertise of the Auditor on Audit Quality. To test this hypothesis, the SPSS data analysis tool was used. The results obtained based on the validity test show that all statements in the questionnaire are declared valid. For the reliability test of all variables, the composite reliability value or Crobach's alpha value was stated to be reliable. And for Hypothesis Test based on R-Square, T-Statistics and Significance Value shows that all hypotheses are accepted. The results of this hypothesis state that professional audit skepticism and auditor expertise have an effect on audit quality.

This study empirically examines the influence of competence and independence on professional skepticism and its relationship to audit quality (BPKP Representative Office of South Sulawesi Province). This research is descriptive quantitative research, which uses primary data. The sample of this research is the Auditor of the BPKP Representative Office of South Sulawesi Province, amounting to 46 people. The hypothesis test used is Structural Equation Modeling (SEM) analysis based on variance, namely Partial Least Square (PLS). The results of this study indicate that competence has a positive and significant effect on professional skepticism, independence has a positive and significant effect on professional skepticism, competence has a positive and significant impact on audit quality, independence has a positive and significant effect on audit quality and professional skepticism has a positive impact and essential to audit quality.

This research paper explores in-depth the audit procedures followed by Chartered Accountant (CA) firms, emphasizing the significance of standardized auditing practices in achieving financial transparency, accountability, and statutory compliance.It focuses on each audit stage-planning, risk assessment, internal control evaluation, substantive procedures, evidence gathering, documentation, and reporting-offering a holistic view of the auditing process.By combining primary data from practicing auditors and secondary literature from regulatory sources such as ICAI, this paper examines the real-world challenges faced by auditors and how evolving technology and regulatory frameworks are reshaping auditing in India.Auditing plays a critical role in establishing trust in financial information presented by organizations.With increasing scrutiny from stakeholders, including investors, regulators, and financial institutions, the importance of accurate audits cannot be overstated.Chartered Accountant firms in India follow auditing standards set by the Institute of Chartered Accountants of India (ICAI) under the Companies Act, 2013.These firms conduct a variety of audits-statutory, internal, tax, compliance, forensicand each audit demands a structured, evidence-based approach.The present study investigates the audit lifecycle in Chartered Accountant firms, assessing how theory aligns with practice, and analyzing the impact of digital tools, client behavior, auditor training, and regulatory expectations on audit quality. Statement of the ProblemDespite the well-laid standards by ICAI, practical auditing often encounters inconsistencies and challenges: Are CA firms uniformly applying audit procedures across engagements?How do firms ensure compliance with ICAI's auditing standards amidst dynamic client demands?What role does technology play in transforming audit procedures?How do auditors deal with independence threats, especially with long-term clients?What are the recurring challenges CA firms face while conducting audits? Objectives of the Study1. To analyze each phase of the audit cycle followed by CA firms.2. To assess the implementation and adherence to ICAI auditing standards.3. To identify the tools and technologies used in modern auditing practices.4. To explore the ethical dilemmas and independence issues in audits.5. To examine the role of documentation and audit evidence in forming opinions.6.To recommend enhancements to existing audit methodologies and firm practices. Scope of the StudyThis research focuses on statutory audit procedures conducted by small and mid-sized CA firms in India.It spans various industry sectors including manufacturing, IT services, retail, and financial services.The paper limits itself to external audits and excludes tax and internal audits unless mentioned contextually.

SAS No. 99. - Consideration of Fraud in a Financial Statement Audit, to supersede SAS No. 82 (AICPA 2002), requires auditors to conduct fraud brainstorming sessions on every audit. Brainstorming aims to improve auditors' professional skepticism and reduce their cognitive dissonance. So they can more effectively evaluate the potential of fraud when investigating financial statements. Despite SAS No 99., Auditors continue to fail at modifying their standard audit procedures in response to fraud risk. The Public Company Accounting Oversight Board (PCAOB) cited a lack of professional skepticism as the primary cause of inconsistent brainstorming sessions. Our experiment advances Carpenter's (2007) study by investigating whether the Certified Fraud Examiner’s designation enhances fraud risk detection by improving professional skepticism and brainstorming quality in audit teams. The results should inform regulators, academic researchers, and audit practitioners. It can shift how accounting educators and industry professionals prepare auditors to effectively evaluate unstructured fraud cues to lessen the impact of fraud losses and save investors hundreds of millions of dollars in economic value.

Inspectorate is part of the Government Internal Supervision Apparatus which has the main duties and functions of supervision over government administration. The purpose of the audit process is to produce quality audits with one of the indicators being an objective report. The objectivity of the audit report can be obtained when the auditor is able to apply his professional ethics and has a professional skepticism. These two things can be obtained by auditors, one of which is through the level of education. This study was conducted on 85 auditors at the West Java Provincial Inspectorate as respondents with quantitative research methods with descriptive and verifiable approaches. The data source is primary data using questionnaires. The purpose of this study is to determine the influence of ethics and professional skepticism on audit quality both simultaneously and partially, as well as the role of education level as a moderation variable in influencing it. The technical analysis of this study uses Moderated Regression Analysis. The results showed that ethics and professional skepticism had an effect on the quality of audits both simultaneously and partially. The level of education is not able to moderate the influence of ethics and professional skepticism on audit quality.

Financial statement fraud can result in significant losses for stakeholders including investors, creditors, and the government. As a result, the auditor is crucial in identifying and stopping such fraud. The auditor's professional skepticism and sense of self-efficacy are two aspects that might affect their capacity to spot fraud. Among the firms listed on the Indonesia Stock Exchange, this study intends to investigate the impact of professional skepticism and self-efficacy on identifying financial statement fraud. A total of 147 respondents participated in the quantitative research approach, which employed a purposive sample strategy. Data was gathered through questionnaires delivered to respondents who participated in the company's auditing procedure. A multiple linear regression analysis was used to examine the data that had been gathered. The study's findings indicate a substantial relationship between professional skepticism and self-efficacy and the ability to identify financial statement fraud. Identifying financial statement fraud is specifically positively and significantly impacted by professional skepticism and self-efficacy. These findings can significantly contribute to practitioners' and academics' abilities to identify situations of fake financial statement.

This study aims to analyze the influence of professional code of ethics, independence, and auditor accountability on audit quality, as well as to examine the role of professional skepticism as a moderating variable. The research background is based on the importance of auditors' professional behavior in ensuring audit quality amid the increasing complexity of financial statements and the pressures of the audit environment. This study uses a quantitative approach with a survey method through questionnaires distributed to auditors working at Public Accounting Firms in South Jakarta. The data were analyzed using Structural Equation Modeling-PLS (SmartPLS). The results of the study show that professional code of ethics, independence, accountability, and professional skepticism have a significant effect on audit quality. In addition, the findings also show that professional skepticism positively moderates the relationships between accountability, independence, and professional code of ethics on audit quality. Such moderation reinforces the influence of the independent variables, which means that the application of ethics, independent attitudes, and auditors' sense of responsibility will have a more optimal impact when auditors have a high level of skepticism. This study confirms that the combination of ethical aspects, professional behavior, independence, and skepticism are important factors in forming reliable audit quality. These findings provide implications for Public Accounting Firms to strengthen ethics training, independence policies, and the development of professional skepticism as part of efforts to improve audit quality.