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1 – 10 of over 15000
Article
Publication date: 8 June 2012

Wei Chen, Sifeng Liu, Wally J. Smieliauskas and Gerhard Trippen

Consistent with the requirements of online auditing performance assessments, the purpose of this paper is to propose an influence factors analysis method using analytic hierarchy…

1081

Abstract

Purpose

Consistent with the requirements of online auditing performance assessments, the purpose of this paper is to propose an influence factors analysis method using analytic hierarchy process (AHP) and grey incidence analysis (GIA) to analyze the importance degree of influence factors on online auditing performance quantitatively.

Design/methodology/approach

A grey incidence model is developed to analyze the influence factors of online auditing performance based on the characteristics of online auditing. Then, the AHP is used to compute the weights of each assessment criterion of online auditing, and the performance of online auditing are computed. Finally, representing the performance assessment results computed by AHP and values of each assessment criterion as two sequences, GIA is used to analyze the importance degree of influence factors of online auditing performance quantitatively.

Findings

The main, secondary and minor influence factors of performance assessment of the online auditing project are identified. For online auditing projects, costs incurred are not the main influence factors of performance. Online auditing projects with higher benefits, higher quality and better design are the really effective ones. Besides, there is no direct relationship between the value of the weight of each criterion and the value of the degree of grey incidence.

Practical implications

The results of this study provide useful decision information to implement online auditing projects.

Originality/value

An effective method for analyzing the importance degree of influence factors of online auditing performance quantitatively is provided in this study.

Article
Publication date: 4 January 2016

Lucian Cristian Eni

The purpose of this paper is to introduce a new concept: the online collaborative audit system, and to design a prototype system at the national level for financial auditors…

1351

Abstract

Purpose

The purpose of this paper is to introduce a new concept: the online collaborative audit system, and to design a prototype system at the national level for financial auditors, members of a supervisory body.

Design/methodology/approach

Conceptualization, modelling, analysis, imagination, scientific abstraction and review of legislation are the research methods used.

Findings

An online collaborative audit system is defined as an interorganizational system which uses the methods of collaborative intelligence among the stakeholders of the audit process (audit firms, auditees, supervision bodies) in a given geographical area (e.g. country) and which is based on the Internet. By assessing the design of the system, we could anticipate that an online collaborative system is feasible to implement. The main characteristics of an online collaborative audit system are geographical dispersion, collaboration between the stakeholders of the audit process, electronic management of the audit documents, online/continuous auditing and dynamic virtual teams, etc.

Practical implications

The system presented in this paper aims to cover the research gap which exists in this area and also to produce a change of paradigm in the sense that nowadays the technology allows us to move the audit results to an integrated national platform for audit stakeholders. In this way, the transparency of audit results increases and the role of audit becomes more predictive compared with the traditional way of performing an audit. Compared with the research in the field, the system presented in this paper is innovative in the sense that it not only allows online auditing but also gathers the national audit community in a virtual environment, which allows information sharing and improvement of information access.

Social implications

The online collaborative system for audit, which promotes collaboration between a large number of auditors and which is based on the networks of the supervision bodies, could be implemented not only by Romania, on which this research is based, but also by other countries.

Originality/value

The online collaborative systems for audit, which promotes collaboration between a large number of auditors and which is based on the networks of the supervision bodies, could be implemented not only by Romania but also by other countries.

Details

Managerial Auditing Journal, vol. 31 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 14 August 2020

Wei Chen, Wally Smieliauskas and Sifeng Liu

An important issue in online auditing is how to improve the reliability of online auditing in order to reduce the overall audit risk. In this paper, a reliability assessment and…

Abstract

Purpose

An important issue in online auditing is how to improve the reliability of online auditing in order to reduce the overall audit risk. In this paper, a reliability assessment and early-warning method of online auditing based on RC (rank centroid), AHP (analytic hierarchy process) and GM (1,1) is proposed from the perspective of information technology (IT) audit risk control.

Design/methodology/approach

The paper begins by structuring the AHP hierarchy to the reliability assessment of online auditing used in China. Then, RC is used to rank the importance of the assessment criteria. Pairwise comparisons of criteria are made based on the rank results of RC, and this leads to a matrix of comparisons. Next, the comparison matrices are translated into weights, and the reliability assessment and early-warning model of online auditing is constructed using the GM (1,1) model. A case illustration is given to analyze the application of this method.

Findings

Research results show that the reliability of the evaluation method designed in this paper is rigorous and effective. The reliability assessment and early-warning method of online auditing based on RC/AHP/GM (1,1) can assess and give an effective early warning of reliability changes in an online auditing system, which can meet the needs of current online auditing projects.

Practical implications

The results of this study have good potential for widespread future implementation of online auditing projects.

Originality/value

An effective reliability assessment and early-warning method of online auditing is proposed from the perspective of IT audit risk control in this study.

Details

Grey Systems: Theory and Application, vol. 11 no. 3
Type: Research Article
ISSN: 2043-9377

Keywords

Book part
Publication date: 8 March 2018

Alexander Kogan, Ephraim F. Sudit and Miklos A. Vasarhelyi

The progressive computerization of business processes and widespread availability of computer networking make it possible to dramatically increase the frequency of periodic audits

Abstract

The progressive computerization of business processes and widespread availability of computer networking make it possible to dramatically increase the frequency of periodic audits by redesigning the auditing architecture around Continuous Online Auditing (COA). Continuous auditing is viewed here as a type of auditing that produces audit results simultaneously with, or a short period of time after, the occurrence of relevant events. It is arguable that continuous auditing can be implemented only as an online system, i.e., a system that is permanently connected through computer networking to both auditees and auditors. This article proposes a research agenda for the emerging field of COA. First, the history, institutional background, feasibility of and some experiences in COA are briefly reviewed. Thereafter, a number of research issues relating to the architecture of COA, factors affecting the use of COA, and the major consequences of COA are presented. Finally, a selected number of research issues are highlighted as priorities for future research in COA.

Article
Publication date: 5 September 2008

El‐Hussein E. El‐Masry and Jacqueline L. Reck

The purpose of this paper is to examine investors' perceptions of the usefulness of continuous online auditing (COA) prior to and after the Sarbanes‐Oxley (SOX) Act and assesses…

2157

Abstract

Purpose

The purpose of this paper is to examine investors' perceptions of the usefulness of continuous online auditing (COA) prior to and after the Sarbanes‐Oxley (SOX) Act and assesses the current value relevance of continuous auditing. The paper examines two research questions: first, whether continuous online audits significantly impact investors' perceptions of firm risk and, consequently, the value of a firm and second, whether continuous online audits have a greater impact on investor assessment of a firm's risk subsequent to SOX.

Design/methodology/approach

A 2 × 2×2 × 2 between participants laboratory experiment was conducted. Technology risk was manipulated at (e‐commerce risks versus no e‐commerce risks), traditional financial risk was manipulated at (high financial leverage versus low financial leverage), COA was manipulated at (traditional annual audit versus continuous online audits), and pre‐ and post‐SOX was tested (2002 sample versus 2005 sample). The primary dependent variables used were investors' assessment of firm risk and investors' assessment of earnings per share estimates. Additionally, investors' confidence in their investing decision was captured.

Findings

Results indicate a demand for COA as reflected in investors' reduced firm risk estimates, and increased confidence in estimates. Comparative results from the 2005 sample and the 2002 sample indicate that the value relevance of COA has increased after the introduction of SOX in July 2002. We attribute this shift to investors' perception that COA is a factor that helps mitigate firm risk and relatedly boosts investor confidence in their investing decisions.

Research limitations/implications

Only a single proxy for traditional business risk (financial leverage) is examined. Future studies need to examine the ability of continuous online audits to mitigate other types of traditional business risks.

Originality/value

The study establishes the current economic feasibility of continuous online audits. Additionally, the most insightful finding of the study is that the value relevance of COA has increased after the introduction of SOX. This shift is due to investors' perceptions of COA as a factor that mitigates firm risk and helps boost confidence in their investing decisions. Implications for the profession, the classroom and public policy are discussed.

Details

Managerial Auditing Journal, vol. 23 no. 8
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 9 February 2022

Ingrid Jeacle and Chris Carter

This paper aims to consider the impact of Michael Power’s (1997) Audit Society thesis for understanding the rise of audit logics in the virtual world.

Abstract

Purpose

This paper aims to consider the impact of Michael Power’s (1997) Audit Society thesis for understanding the rise of audit logics in the virtual world.

Design/methodology/approach

The paper reviews some of the key concepts in Audit Society and discusses them with reference to the role of the user review.

Findings

The paper argues that user reviews are an illustrative example of Audit Society in the online world, with notions of independence, measurability and expertise being deployed to create a sense of comfort and trust.

Originality/value

The paper enhances our understanding of the impact of Audit Society on everyday lives with particular reference to the lives of the digital citizen.

Details

Qualitative Research in Accounting & Management, vol. 19 no. 2
Type: Research Article
ISSN: 1176-6093

Keywords

Content available
Book part
Publication date: 8 March 2018

Abstract

Details

Continuous Auditing
Type: Book
ISBN: 978-1-78743-413-4

Book part
Publication date: 8 March 2018

Zabihollah Rezaee, Ahmad Sharbatoghlie, Rick Elam and Peter L. McMickle

The digital economy has significantly altered the way business is conducted and financial information is communicated. A rapidly growing number of organizations are conducting…

Abstract

Summary

The digital economy has significantly altered the way business is conducted and financial information is communicated. A rapidly growing number of organizations are conducting business and publishing business and financial reports online and in real-time. Real-time financial reporting is likely to necessitate continuous auditing to provide continuous assurance about the quality and credibility of the information presented. The audit process has, by necessity, evolved from a conventional manual audit to computer-based auditing and is now confronted with creating continuous electronic audits. Rapidly emerging information technology and demands for more timely communication of information to business stakeholders requires auditors to invent new ways to continuously monitor, gather, and analyze audit evidence. Continuous auditing is defined here as “a comprehensive electronic audit process that enables auditors to provide some degree of assurance on continuous information simultaneously with, or shortly after, the disclosure of the information.” This paper is based on a review of related literature, innovative continuous auditing applications, and the experiences of the authors. An approach for building continuous audit capacity is presented and audit data warehouses and data marts are described. Ever improving technology suggests that the real-time exchange of sensitive financial data will place constant pressure on auditors to update audit techniques. Most of the new techniques that will be required will involve creation of new software and audit models. Future research should focus on how continuous auditing could be constantly improved in various auditing domains including assurance, attestation, and audit services.

Details

Continuous Auditing
Type: Book
ISBN: 978-1-78743-413-4

Article
Publication date: 23 February 2010

Chi‐Chun Chou and C. Janie Chang

The increasing provision of timely financial information through web‐based technology is expected to improve the quality of communication between a company and its stakeholders…

1883

Abstract

Purpose

The increasing provision of timely financial information through web‐based technology is expected to improve the quality of communication between a company and its stakeholders. However, the information asymmetry problem still exists since almost all “web‐releases” usually remain unaudited. The purpose of this paper is to propose conceptual and technical frameworks of continuous auditing to provide a solution for this problem. This solution could also move the traditional auditing forward to the new e‐auditing generation.

Design/methodology/approach

This paper develops a conceptual framework to present why continuous auditing would dominate other auditing approaches in examining web‐based financial information. Using a 3 × 2 × 2 × 1 design, this study compares the economic efficiency of three auditing approaches under the joint‐combination of various disclosure types, materiality perceptions and information environments. A technical framework, the external continuous auditing machine, is derived from the conceptual framework to specify the generic procedures to perform the online control testing and the continuous substantive testing over web‐releases.

Findings

Continuous auditing issues are scrutinized both theoretically and technically. Two main conclusions arise. First, the behavior model simulates various information disclosing and auditing environment and argues that the continuous auditing would be the most appropriate approach for web‐releasing assurance. Although the hypothesis derived from that model still needs further empirical supports, the anticipated sustaining is quite reasonable under the emergent web‐release practice.

Originality/value

Given the new era of online, real‐time business reporting, constructing a theoretical model and applying it to develop a technical model for implementing continuous audits for web‐releases provide significant contributions to the accounting/auditing professionals as well as researchers.

Details

Review of Accounting and Finance, vol. 9 no. 1
Type: Research Article
ISSN: 1475-7702

Keywords

Article
Publication date: 12 August 2014

Victoria Chiu, Qi Liu and Miklos A. Vasarhelyi

The advances and continuous development of technology have been identified as significant influences on the accounting profession (AICPA, 1998). In the last twenty years, both…

Abstract

The advances and continuous development of technology have been identified as significant influences on the accounting profession (AICPA, 1998). In the last twenty years, both academia and the accounting profession have been giving much attention to the demand and opportunity for audits to be performed automatically, continuously and in nearly real time. This paper presents a comprehensive review of continuous auditing research by providing an overview of the emergence and growth of the continuous auditing literature and classifying the extant continuous auditing research on the basis of four research characteristics indicated by a newly developed research taxonomy.

Details

Journal of Accounting Literature, vol. 33 no. 1-2
Type: Research Article
ISSN: 0737-4607

Keywords

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