The Role of IFRS and Auditing in Corporate Governance (original) (raw)
AUDIT REPORTING AND CORPORATE GOVERNANCE: LINKS AND IMPLICATIONS
Financial scandals of the last decade have had a negative effect upon the trust and perception of investors regarding auditor responsibility and their part in fraud and error detection. As a result of legal conditions and regulations, audit firms in some jurisdictions have recently started to compile transparency reports, which contain information regarding corporate governance compliance of audit firms. This study aims to investigate if corporate governance has a significant effect on audit reporting and audit quality. Thus, our starting point is the definition of corporate governance, with an emphasis on the transparency principle for efficient corporate governance. We aim to analyse how this principle influences the quality level of the audit report, through a qualitative study. Keeping in mind that corporate governance in audit firms is considered to have a noteworthy effect on audit quality, we expect to find that regulatory bodies expect more transparency from these firms, therefore increasing competitiveness among audit firms concerning audit quality.
The Role of the Internal Audit Function in Corporate Governance 07-05-2022
2022
Long-term business viability requires reliability and efficiency; the company must have a good reputation and performance in order to compete internationally. Due to successive financial scandals with colossal economic impact worldwide, the governments and international organisations have mobilised, strengthened existing controls, and implemented standards on economic ethics and legal restrictions to mitigate the problem; however, still seen financial scandals, mostly connected to irregularities in the accounts, unethical behaviors, and misrepresentation. Therefore, this research aims to assess the role of internal auditors' function in an organization, highlight their contribution to developing corporate governance standards to mitigate these gaps and try to answer the question related to why corporations do not follow the standards. This study also emphasises existing corporate measures and the value of internal audits as a control strategy. This paper attempts to examine the interaction between internal audit and the audit committee as ways to achieve the organisation's objectives and the relationship between internal and external audits.
GLOBAL ACCOUNTING REGULATION: IMPACT OF IFAC ON FINANCIAL REPORTING QUALITY
This paper provides an analysis of various dimensions of accounting and corporate governance that have led to the currently troubling state of affairs in the financial reporting environment. Good Corporate Governance (GCG) is a mandatory requirement in today's corporate world by every stakeholder groups. Failure of giant corporate groups in the last two-three decades strengthens the demand further. And surprisingly, in some of such failures, accounting as a discipline is held liable. The way accounting is practiced or the interpretations that may give different prescriptions in similar situations are some dark areas that may open some scope for the corrupted accountants. The paper covers the concept of corporate governance, its legal framework, its current status and how accounting may be practiced to protect corporates from corruption by establishing governance. The paper analyzes how IFAC is succeeding as an international standard setter with an established place in the global financial infrastructure and it reveals a growing reliance on governance by experts together with a growth in influence of the large, multinational accounting firms. Until corporate boards are truly independent of corporate management and are knowledgeable enough to act as effective shareholder advocates, changes in accounting will be of limited impact.
Modernization of the General Reporting Framework for Accomplishing Corporate Governance Requirements
Review of International Comparative Management
Corporate governance appears internationally as a concept that defines a leadership style of organizations, entities and even states, imposed by the wave of failures recorded in the work of large corporations. The unfavourable business affairs of large investors have affected the population as well as the investment environment as a whole. Large and recognized entities have suffered losses on the economic and financial area and especially in the image area, culminating in the necessity of imposing a new management style, but also a deeper and more serious control over all the functional links of those entities. Economic entities, as well as private organizations, are pursuing ways to operate efficiently, to invest in creating new jobs, to place themselves in good positions in capital markets, markets that give them the opportunity to enter in competition with other similar organizations. These goals can also be achieved when corporate governance is used as a management monitoring tool that can influence the behaviour of the organization as a whole. Under these conditions, corporate governance is the incentive to create a coherent investment environment and for the economic and social development of society.
Corporate governance, internal audit function and accountability in statutory corporations
Cogent Business & Management
The purpose of this study was to establish the contribution of corporate governance and internal audit function on accountability in statutory corporations. This study is cross sectional and correlational. Data were collected through a questionnaire survey of 66 corporations. Data were analysed using Statistical Package for Social Sciences. Correlation results indicate a positive association between corporate governance and accountability as well as internal audit function and accountability while regression results indicate that only internal audit function is a significant predictor of accountability. The regression model shows that both internal audit function and corporate governance predict 36.2% of the variance in accountability of statutory corporations. This study is relevant to policy makers in terms of ensuring strong policies are in place to manage risks and to make sure that there are effective internal controls for better accountability in these enterprises. Whereas both corporate governance and internal audit function had been viewed Zainabu Tumwebaze
Within the globalized economy, internal auditing is established as an essential means for the exact management of any business economic resources. Simultaneously, corporate governance has received wide attention in recent years both in practice and in academic research (De Zoort and Salterio, 2001) because of the major accounting scandals and large-scale corporate failures. In this concept, the main purpose of the present paper is to examine in a theoretical level the contribution of internal auditing to corporate governance. Furthermore this paper aims to examine the interaction between various corporate governance factors, such as the board of directors, the audit committee and the external auditor, and the internal audit process. Via an extended literature review, the study's originality is the provision of an integrated conceptual framework regarding internal audit and business corporate governance. The results of this literature review indicate that internal auditing plays a vital role in effective corporate governance.
Accounting and Auditing as Mechanism of Corporate Governance: Review of Literature
SSRN Electronic Journal, 2014
The corporate governance and its relationship with corporate board and audit committee have been under scrutiny in this review of literature. As research studies in this area are abundant, after a thorough investigation of a number of studies, twelve studies were selected for the analysis, which were published in or after 2003. However, from these studies only the issues related to corporate board and audit committee were picked. The discussions are focused on the implications of the findings of these studies. While identifying the relationship between corporate governance, corporate board, and audit committee, a number of future study opportunities have been pointed out as well.
Corporate governance is very important in our business world today, especially after the frequent non-stop worldwide financial crises. Strong corporate governance is now considered a basic condition to accept and register an organization in most of the Stock Exchange Markets all over the world. The audit committee plays a major role in corporate governance regarding the organization's direction, control, and accountability. As a representative of the board of directors and main part of the corporate governance mechanism, the audit committee is involved in the organization's both internal and external audits, internal control, accounting and financial reporting, regulatory compliance, and risk management. This paper focuses on the audit committee's powers, functions, responsibilities, and relationships within the framework of corporate governance.
Journal of International Studies, 2020
This paper discusses the results of empirical research that investigates the effect of corporate governance (CG) and the level of compliance with mandatory disclosure of the International Financial Reporting Standards (IFRS) on the quality of accounting information produced by Indonesian companies. The research covers five years after full implementation of IFRS, namely from 2013 to 2017. The quality of information is proxy by using value relevance of accounting information which is measured by the Ohlson Price Model. The level of compliance of the IFRS disclosures is measured using the disclosure index (DIND) and CG is proxy by board independence (BIND), board size (BSIZE), audit committee independence (ACIND), audit committee size (ACSIZE), and management ownership (MAN). This study find that DIND and BSIZE have a positive effect on the value relevance of accounting information, both EPS and BVS, while BIND, ACIND, and MAN negatively affect the value relevance of EPS but have a positive effect on the value relevance of BVS. ACSIZE has a positive effect on the value relevance of EPS but also a negative effect on the value relevance of BVS. These results further justify the inconsistency of the results of previous studies that link IFRS adoption and the quality of accounting information by including compliance level variables to test the quality (relevant value) of accounting information produced by Indonesian companies.
An empirical study of the roles of audit committee in promoting good corporate governance
2012
The global financial crisis and recent cases of corporate frauds have brought into sharp focus the consequence of the precarious role to be played by the audit committees in ensuring good corporate governance particularly due to defenselessness of the economy to any chaos in the financial system. This paper is inclined to explore the roles of audit committee in promoting good corporate governance an empirical study of literature review. Most of the organisation's failed due to lack of risk exposure relating to the organisation's governance in relation to; compliance with laws, regulations, & contracts operation and information system effective and efficiency of operation, reliability and integrity of financial and operation information and safeguarding the assets. The audit committee is established with the aim of enhancing confidence in the integrity of an organisation's processes and procedures relating to internal control and corporate reporting including financial reporting. Audit Committee provides an 'independent' guarantee to the board through its oversight and monitoring role. Among many responsibilities the boards entrust the Audit Committee with the transparency and accuracy of financial reporting and disclosures, effectiveness of external and internal audit functions, robustness of the systems of internal audit and internal controls, effectiveness of anti-fraud, ethics and compliance systems, review of the functioning of the whistleblower mechanism. Audit Committee also plays a significant role in the oversight of the company's risk management policies and programs. Audit Committee has thus become one of the main pillars of the corporate governance system in every organisation. The methodology used is based on the review of information collected from secondary sources i.e. published books, reports, research works, journals and newspapers. Some information is also collected through electronic sources, and the paper also intended to give some possible remedies in steering organisation's through today's complex business environment, expansion the field of vision, and clearly defining who's will be tracking the company's risk sensor, and taking a step forward to enhance its own financial performance.