Search results1 – 3 of 3
The purpose of this study is to gather the perceptions of the Shari'ah committee members on what and how they safeguard and strengthen their independence in fact and…
The purpose of this study is to gather the perceptions of the Shari'ah committee members on what and how they safeguard and strengthen their independence in fact and independence in appearance during the discharge of their duties.
Data were gathered through semi-structured interviews with 13 Shari'ah committee members from 13 different Islamic financial institutions (IFIs).
Based on the Islamic worldview and agency theory, the findings suggest that safeguard measures within the context of the Shari'ah committee are strengthened by the following factors: presence of competencies, personal characteristics of the Shari'ah committee members, board engagement, role of the chairman in the Shari'ah committee and accountability to God. Based on the agency theory, it can be suggested that the characteristics of the Shari'ah committee and the presence of an effective governance structure are able to minimise threats to the independence of the Shari'ah committee and enhance its effectiveness.
The insights from this study highlight that proper and fit criteria need to be enhanced to ensure the independence of the Shari'ah committee members when performing their roles for IFIs. Moreover, it shows that board engagement and chairman involvement in overseeing the Shari'ah committee in the discharge of its duties is able to improve the independence of the Shari'ah committee both in fact and in appearance.
This study contributes to the evidence on safeguard measures in the Malaysian context, which is highly regulated in relation to the Shari'ah governance practices in IFIs. This evidence could be considered by other Shari'ah committees in different contexts.
The role of big data and data analytics in the audit engagement process is evident. Notwithstanding, understanding how big data influences cognitive processes and…
The role of big data and data analytics in the audit engagement process is evident. Notwithstanding, understanding how big data influences cognitive processes and, consequently, on the auditors’ judgment decision-making process is limited. The purpose of this paper is to present a conceptual framework on the cognitive process that may influence auditors’ judgment decision-making in the big data environment. The proposed framework predicts the relationships among data visualization integration, data processing modes, task complexity and auditors’ judgment decision-making.
The methodology to accomplish the conceptual framework is based on a thorough literature review that consists of theoretical discussions and comparative studies of other authors’ works and thinking. It also involves summarizing and interpreting previous contributions subjectively and narratively and extending the work in some fashion. Based on this approach, this paper formulates four propositions about data visualization integration, data processing modes, task complexity and auditors’ judgment decision-making. The proposed framework was built from cognitive theory addressing how auditors process data into useful information to make judgment decision-making.
The proposed framework expects that the cognitive process of data visualization integration and intuitive data processing mode will improve auditors’ judgment decision-making. This paper also contends that task complexity may influence the cognitive process of data visualization integration and processing modes because of the voluminous nature of data and the complexity of business processes. Hence, it is also expected that the relationships between data visualization integration and audit judgment decision-making and between processing mode and audit judgment decision-making will be moderated by task complexity.
There is a dearth of studies examining how big data and big data analytics affect auditors’ cognitive processes in making decisions. This paper will help researchers and auditors understand the behavioral consequences of data visualization integration and data processing mode in making judgment decision-making, given a certain level of task complexity.
With the advent of big data and the evolution of innovative audit procedures, the constructed framework can be used as a theoretical foundation for future empirical studies concerning auditors’ judgment decision-making. It highlights the potential of big data to transform the nature and practice of accounting and auditing.
The purpose of this paper is to examine, from the agency perspective, the influence of internal audit and audit committee attributes, as well as risk management and…
The purpose of this paper is to examine, from the agency perspective, the influence of internal audit and audit committee attributes, as well as risk management and internal control systems, on the implementation of risk-based auditing among public-listed companies in Malaysia.
A questionnaire survey was distributed to the in-house internal audit function in approximately 620 public-listed companies. Consequently, data from 117 heads of the internal audit function was collected and analyzed.
The findings indicate that “audit committee review and concern” and “risk management system” are significantly and positively related to the implementation of risk-based auditing. Most importantly, the results indicate the importance of audit committee inputs and concerns in reviewing internal audit activities. Empirically, the findings also suggest that a more formalized risk environment would foster the existence of a strong risk-aware culture and hence provides a strong foundation for internal audit to implement risk-based auditing. However, internal audit experience, size of internal audit function, audit committee qualifications, and internal control system are not found to be significant predictors of the presence of risk-based auditing.
This study examined only risk-based auditing practices in the in-house internal audit function of public-listed companies; hence, the findings cannot be generalized to all Malaysian-listed companies that outsource or co-source their internal audit activities.
An effective internal monitoring mechanism and better quality of internal audit work will minimize potential risks that prevent the achievement of company objectives, reduce propensity to falsify financial information, and improve financial reporting quality.
This study contributes evidence concerning the relationship between internal monitoring mechanisms and the implementation of risk-based auditing among in-house internal audit activity.