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The purpose of this study was to determine current practices for two salient aspects of the audits1 of listed South African long‐term insurers by empirically analysing prevailing practices. First, current practices for the composition of the audit teams responsible for these audits are determined. Thereafter current practice is determined for the proportion of audit time spent by the different specialists on audit teams on the audit of the high‐risk components of policy liabilities and the related earnings. When allocating audit staff and establishing continuing professional development plans for staff the auditors of all listed and unlisted South African long‐term insurers could use the findings of the study as benchmarks.

The purpose of this paper is to investigate the impact of financial restatement on corporate dividend payment. Firms that announce financial restatements rupture their corporate reputation and adversely affect investors’ confidence. Consequently, firms must attempt to regain lost reputation and market confidence.

This study uses the US regulatory setting to examine the association between corporate dividend policy and financial restatement over the 2001–2017 financial years.

The findings evidence a robust positive association between financial restatement and dividend payouts, indicating that firms pay higher dividends following the year of financial restatement. Several sensitivity tests were conducted to confirm the robustness of the findings.

Prior research indicates that corporate dividend payouts enhance a firm’s reputation by reducing information asymmetry and providing a positive signal to investors regarding future financial performance. This study provides valuable evidence that dividend payout can be used as a channel for image restoration by firms with lost reputations because of financial restatement.

In many companies, product managers are under increasing time pressure. They are generalists in a marketing world that is increasingly specialized and complex. There are more tasks to perform, more specialist skills to acquire, more fires to fight, and less time for thinking and strategic planning. If their general management skills are to be used effectively, product managers must be able to focus their time on the tasks that exploit these skills and help their businesses to grow. The product management audit surveys product managers on how they actually spend their time and how they would ideally spend it to really build their businesses. Data from the audit can help to establish time allocation priorities for product managers and uncover potential time allocation problems before they become critical. We will first review the changes in the marketing environment that are putting pressure on the product management system. Second, we will show how any consumer, industrial, or service company can conduct a product management audit to find out how product management personnel are spending their time and why, and how satisfied they are with their jobs, the support provided, and rewards they are receiving. Third, we will illustrate the type of data that the audit can generate and present key findings from responses to audit surveys by over 300 product management personnel from 20 strategic business units in six Fortune 500 consumer goods companies. Finally, we will explain how one multidivision packaged goods company used an audit to identify problems within its product management organization and determine the actions needed to correct them.

Reports on a survey of how product managers, experiencing increased time pressure, would like to spend their time compared with how they actually spend it. Reviews the changes in the marketing environment currently exerting pressure on the product management system. Explains the implementation of a product management audit. Presents findings from actual audit surveys and shows how one company used an audit to identify and solve problems within its product management organization. Concludes that the product management audit is an excellent tool for producing hard data which may be missed by management by walking around.

The purpose of this paper is to describe, illustrate and provide a deeper understanding of team composition and labor allocation in audit teams by quantifying the exact value of resources at different levels of the audit production. Audit teams have been considered as a black box in audit research. Therefore, this paper reports descriptive statistics on (levels and proportions of) hours and costs allocated to auditor ranks (and the number and value, i.e. billing rates, of auditors for different ranks and the entire team) to shed new light on audit teams.

This study uses a proprietary data set containing disaggregated information on hours, costs and billing rates for each team member in each of 908 audit engagements. The data are provided by a Swedish Big 4 audit firm. The study uses a purely descriptive approach and categorizes auditors into seven ranks. As size and the publicly listed status are crucial determinants of audit production, the paper splits engagements in public and private companies and reports statistics for size quartiles of both public and private clients.

The paper provides descriptive statistics for (1) client size, (2) audit team members, (3) audit hours, (4) audit costs, (5) proportion of audit hours, (6) proportion of audit costs, (7) billing rates and (8) variation of billing rates. Results show that compared to private clients, the audit firm allocates higher effort from auditors in higher ranks and lower effort from auditors in lower ranks to public clients. Another finding is that allocation varies with client size for private clients, but less so for public clients.

In an area with sparse literature, this descriptive study serves as a first step to improve our understanding and guide future research. It provides concrete support for previously known theory.

As organizations are downsized, re‐engineering and the span of control inflates, the need for self‐regulation and control grows. This need has seen the growth in the provision of internal auditing services in the UK. Demonstrates the linkage between ensuring quality by benchmarking, and the required vehicle for understanding the internal audit development needs of UK organizations. Shows the requirements by the use of nine organizations where internal auditing has been developed to give the organization a competitive advantage. Focuses on the critical success elements that are required by developing internal audit departments.

This study aims to examine the effects of allocation of audit hours to year-round audits and audit partners on audit quality when a new partner is appointed.

Using proprietary data of partners’ names and audit hours in the year-round context, the authors build a model testing input factors related to audit production and new partner assignment in 1,209 Korean listed firms during the period of 2015–2018.

The results show that in the partner rotation, the more audit hours spent, the more audit hours are allocated to the year-round audit, or more nonpartners’ audit hours are allocated to the year-round audit, the higher the audit quality. Subsample analyses show that these findings are concentrated in firms with longer audit tenure or low audit risk.

The findings may provide regulatory authorities with practical guidelines concerning partner rotation and how to allocate audit hours to different audit stages and ranks (partner vs staff).

To the best of the authors’ knowledge, this study provides the first evidence of the joint effects of partner rotation and audit hour allocation on audit quality.

The second of two articles dealing with a survey of health care internal auditing in the United States. The first article appeared in Vol. 7 No. 6, 1992. The second article builds on the first and deals with: the allocation of time to various internal audit activities and the rationale employed to determine such allocations; the structure of the board of directors and the relationship of the board to the internal audit function; the power, conflict and risks associated with health care entities; and finally the working relationship that exists between the internal and external auditors.

Clinical audit may undergo organisational change as the new primary care trusts assume responsibility for community health services. Very little has been published, however, about community‐based audit. A survey of audit activities involving clinical audit staff was carried out in seven acute hospital trusts and seven community trusts in south east England in 1997. Audit staff completed survey forms for 65 acute projects and 75 community projects on defined topics. Managers in community trusts were much more likely to initiate audit projects or act as lead investigators than managers in the acute trusts, and they more frequently received copies of project reports. Clinical audit staff in community trusts participated more fully in the various phases of the audit process than staff in the acute trusts. If the best of the conventions for community audit practice are transferred to primary care trusts, the foundations of their clinical governance programmes should be strengthened.