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An increasing number of earnings restatements along with many allegations of financial statement fraud committed by high profile companies (e.g. Enron, WorldCom, Global Crossing, Adelphia) has eroded the public confidence in corporate governance, the financial reporting process, and audit functions. The Sarbanes‐Oxley Act of 2002 was an attempt to regain confidence and trust in corporate America and the accounting profession. The Act addresses corporate scandals and the perceived crisis in the auditing profession. Some of its provisions relate to the audit committee oversight function over corporate governance, financial reporting, internal control structure, internal audit functions, and external audit services. This study examines three types of audit committee disclosures: the annual report of the audit committee; reporting of the audit committee charter in the proxy statement at least once every three years; and disclosure in the proxy statement of whether the audit committee had fulfilled its responsibilities as specified in the charter. This study conducts a content analysis on audit committee disclosures of Fortune 100 companies.

This paper aims to analyze Public Companies Accounting Oversight Board (PCAOB) inspection reports on audit reports of those inspected accounting firms in Brazil, Russia, India and China (BRIC). In meeting the requirements of the Sarbanes-Oxley Act, the PCAOB conducts inspections on audit reports of firms listed on the New York Stock Exchange.

The reports include those submitted by both the US audit parent firms and their secondary firms located outside the USA. In each PCAOB report, it unravels the nature of audit deficiencies. The focus is on Big Four because they play a dominant role in the marketplace and issuers’ market capitalization. All the seven-year deficiencies are documented since publications of the reports from 2004 to 2012.

Of the 37 reports, 19 (51 per cent) were issued relating to audits conducted by the Big Four. Out of these 19 reports, 10 (53 per cent) contain inspection criticism. These include audit quality and common recurring audit deficiencies.

This paper is based solely on those inspection reports published by the PCAOB.

The findings have significant implications to audit firms and the audit profession on improving audit quality, firms’ internal control and reports.

No known prior research paper is available on the ramifications of the PCAOB’s inspection reports relating to BRIC.

Describes how audit reports issued by the General Accounting Office (GAO) can be used to teach internal auditing students not only about audit reports, but the wide subject‐matter examined by internal auditors. Audit reports are available free from the GAO. Details how students learn by comparing the GAO reports with the recommendations in textbooks and journal articles.

The Centre for Reviews and Dissemination was commissioned to conduct a systmatic review of clinical audits undertaken to assess the implementation and effectiveness of the National Health Service (NHS) two‐week waiting time policy for cancer referrals in England and Wales. This paper highlights the logistical difficulties experienced by the review team in trying to obtain information from the NHS, and discusses what needs to be done in order to improve the reporting and usefulness of clinical audit reports.

A total of 650 key individuals within NHS Trusts and Strategic Health Authorities were contacted for copies of relevant audits. Other key individuals and organisations across the NHS were also contacted, web sites of key organisations searched, requests for audits on relevant e‐mail discussion lists posted and electronic databases and conference proceedings searched.

Finds that many trusts do not appear to hold a centralised record of what clinical audits have been performed within the trust. In many instances several follow‐up contacts were necessary. The majority of included audits were poorly reported, with fewer than half providing sufficient detail on methodological aspects for the audit to be reproducible.

There should be a system of recording ongoing and completed audits conducted within the NHS, to ensure that audit reports are produced and accessible. The NHS needs to make sure that not only are appropriate audit methods used but that audit reports are written up in sufficient detail to allow the reader to ascertain how the audit was conducted and to assess the validity of the results. Documentary evidence of action plans would make it easier for those not directly involved in the audit to assess if, and in what ways, the audit findings are being acted upon to improve existing practices and procedures.

This paper discusses what needs to be done in order to improve the reporting and usefulness of clinical audit reports.

Conducting an audit is an input. Gaining effective action on the findings is an output. Auditors need therefore to involve their clients more in the total process.

It is clear that the trend toward measuring and managing greenhouse gas (GHG) emissions on a global scale is not slowing, even though different countries and geographic regions are approaching the issue with different points of view and different levels of vigor. Along with an increase in measuring and managing GHG emissions, enterprises around the world should expect to see a higher level of independent assurance and audit reporting needed. The purpose of this paper is to identify and discuss the challenges and opportunities that accompany GHG emissions accounting and auditing, as well as the supply chain and operational dependencies that are different from traditional financial auditing.

This paper explores the challenges and opportunities from measuring and auditing GHG emissions, and contrasts audits of sustainability information with more traditional financial auditing. It also explores some of the issues in supply chain and operational dependencies that are important in measuring and auditing GHG emissions and are different from more traditional accounting practices.

With the importance of processes to independently audit GHG emissions and natural resource consumption expected to grow in the future, it is important to understand how past experience with financial accounting and auditing can play a role in shaping the future for environmental stewardship. This paper shows that there are a number of key differences between financial and carbon auditing, which must be considered as enterprises begin to consider how to best support increasingly important sustainability reporting. As more publicly traded firms voluntarily issue sustainability reports and new legislation drives a greater need for standardized carbon accounting, so too will the need for auditing GHG emissions grow. This paper explains that GHG auditing will require cross‐functional skills with operational and process knowledge, accounting capabilities and an understanding of how operational data correlates with estimates for GHG emissions.

Much existing work addresses why, where, how, and who should be measuring and managing GHG emissions, but little attention is being given to the unique challenges that must be overcome in order to achieve reporting transparency. Independent auditing of GHG emissions has maintained a low profile while reporting is voluntary and standards are not fully agreed upon. However, with the possibility of legally binding legislation on the horizon, enterprises that are prepared to audit their GHG emissions and resolve issues early will be well positioned from both a compliance and market‐competition perspective.

Examines the influence of various audit firm and client characteristics on compliance with Generally Accepted Auditing Standards’ (GAAS) reporting standards for private sector audits performed by small audit firms. Because prior studies in this area have focused on public sector audits, an important contribution of this study is the use of an observable quality measure as the dependent variable on audits performed in the private sector. Obtains data for the study from the quality reviews of firms licensed to practise in the State of Arkansas during the years 1989‐1991. Suggests that audit fees, the complexity of the engagement and membership in the state Certified Public Accountants’ society are positively related to compliance with GAAS reporting standards on private sector engagements performed by small audit firms. In addition, firm size is negatively related to compliance with GAAS reporting standards on private sector engagements performed by small audit firms.

The purpose of this research is to investigate the link between external audit quality and integrated reporting (IR) quality in the Jordanian market, a developing market. Furthermore, the research model considers the mediating effect of earnings management practices and the moderating effect of board gender diversity. As a result, it intends to provide further empirical evidence in this area.

This research investigates its model using data from Jordanian services companies listed on the Amman Stock Exchange (ASE) during the period 2013–2022. With 430 company-year observations, the current research’s sample includes all companies in the research population for which complete data were available during the period under investigation. Data relevant to the research setting were obtained from annual disclosures and the ASE's database.

The findings of this research show that audit firm size and audit firm specialty have a positive influence on IR quality, but audit firm tenure does not. External audit quality (as proxied by the size, specialty and turnover of the audit firm) had a negative impact on earnings management practices, while earnings management practices had a negative impact on IR quality. Additionally, the findings reveal that earnings management practices completely mediate the relationship between two external audit quality proxies (audit firm size and audit firm specialty) and IR quality. Furthermore, in terms of the moderating impact of board gender diversity, it is obvious that board gender diversity favorably moderates the relationships between all external audit quality proxies and IR quality.

Using agency theory and stakeholder theory, this investigation fills a gap in previous literature by adding scientific explanations and empirical evidence from the Jordanian market, a developing market, in the context of the impact of audit quality on IR quality, mediated by earnings management and moderated by board gender diversity.

The purpose of this study is to examine the impact of key audit matters (KAMs) on the timeliness of financial statement reporting, measured as audit report lag (ARL), within the context of Kuwait's evolving financial market.

Using a sample of 136 unique firms and 841 firm-year observations over the period 2016–2022, the study employs a random effects model on a panel data set to examine the correlation between the number and type of KAMs disclosed in audit reports and the length of ARL. In addition, we employ sub-sample analysis and two-stage least squares (2SLS) regression to enhance overall reliability.

The results indicate a positive relationship between an increased number of reported KAMs and the length of ARL. Specific categories of KAMs, such as those related to investments and the implementation of new standards, also significantly impact the delay. Additionally, the findings reaffirm the importance of several determinants of ARL, which is consistent with prior research.

This study is among the first to offer new insights by examining the relationship between both the number and specific types and/or categories of KAMs on ARL in emerging markets.

This study investigates the impact of organizational culture on the governance transparency of audit firms operating in the emerging market of the United Arab Emirates. The study unpacks how organizational culture influences audit firms' perceptions and practices regarding transparency in leadership, operations and reporting.

The primary data for this study is collected through an online survey distributed to auditing firms in the UAE, with statistical analysis conducted using multiple regression models and robustness checks. The survey is designed to assess transparency practices in leadership, operations and reporting based on the Financial Reporting Council’s (UK) audit firm governance code. Then, the data is analyzed using SPSS software, representing a diverse sample of auditors from different firm types, ownership structures and sizes.

The study reveals that organizational culture significantly influences audit firms' perceptions of governance transparency practices. Specifically, cultural aspects such as public interest, improvements and consultation positively and significantly impact voluntary transparency in leadership, operations and reporting. Notably, reporting practices are particularly affected by organizational cultural norms and values. Furthermore, transparency practices vary based on audit firms' size, type and industry. These findings offer valuable guidance for audit firms, regulators and accounting standards setters in developing suitable governance mechanisms for global audit firms, including developed and developing countries.

Future studies may extend the scope by including additional transparency issues such as independent non-executives and dialogue practices. Further, it would be valuable to investigate the influence of organizational culture components, such as symbols and assumptions shared by employees, on governance transparency and to include an additional set of control variables, such as corporate governance. By incorporating these aspects into research, a more comprehensive understanding of transparency practices within organizations can be achieved.

This study offers directions for stakeholders in the audit industry, aiding them in developing effective governance strategies both locally and internationally. The study further highlights ways audit firms can foster a culture of transparency, regulators can establish relevant frameworks, and accounting standards setters can contribute to developing consistent and appropriate governance mechanisms across different countries.

This study explores the influence of organizational culture on governance transparency in UAE audit firms, emphasizing the role of cultural elements in shaping transparency practices. It provides insights for enhancing governance mechanisms in global audit firms. Previous studies dealt with different determinants of audit behavior and performance. This study extends this prior literature by focusing on organizational culture as a vital underlying informal mechanism for controlling agency relationships.