Main Article Content
Abstract
Purpose: This research investigates the relationship between the audit process and improved corporate governance practices in organizations. The focus is on assessing the effectiveness of the audit process in ensuring transparency, accountability, and integrity of company operations.
Research Design and Methodology: This study utilized a quantitative descriptive approach. Data was collected through an extensive literature review covering academic journals, books, reports, and relevant publications from trusted organizations. The literature review process systematically identified, reviewed, and synthesized relevant sources.
Findings and Discussion: The findings suggest that auditor independence, competence, and rigor are fundamental pillars supporting audit practices' credibility and reliability. Regulatory oversight mechanisms, including audit committees and regulatory bodies, are essential in maintaining audit standards and promoting governance integrity. Audit quality, ethics, and regulatory compliance remain vital concerns that require collaborative efforts among policymakers, regulators, auditors, and corporate practitioners. These findings highlight the importance of continuous professional development for auditors to deal with the evolving business landscape and complexity of financial transactions.
Implications: The practical implications of this research include recommendations to strengthen audit processes and governance mechanisms through enhanced continuous professional training for auditors, the application of advanced technologies such as data analytics and artificial intelligence, and collaboration between stakeholders to promote transparency and accountability in audit practices. The research also underscores the need for regulatory reforms responsive to evolving market dynamics to improve supervisory effectiveness and regulatory compliance
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References
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- Abbott, L. J., & Parker, S. (2000). Auditor independence and non-audit services: A literature review. Journal of Accounting Literature, 19, 127-153.
- Ahmad, H., & Muslim, M. (2023). Negotiating Audit Fees: Strategies for Achieving Fair and Equitable Pricing in Audit Engagements. Advances in Managerial Auditing Research, 1(3). https://doi.org/10.60079/amar.v1i3.272
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- Lennox, C. S. (2005). Audit quality and executive officers' affiliations with CPA firms. The Accounting Review, 80(2), 527-553.
- Muslim, M. (2024). Audit Dana Adat Upacara Rambu Solo. Owner: Riset dan Jurnal Akuntansi, 8(1), 916-924. https://doi.org/10.33395/owner.v8i1.2156
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- SEC. (2020). U.S. Securities and Exchange Commission. https://www.sec.gov/
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- Simnett, R., & Huggins, A. L. (2015). Auditing and Assurance Services in Australia. McGraw-Hill Education.
- Smith, M., & Brown, K. (2022). Ethical considerations in auditing: A literature review. Journal of Business Ethics, 151(2), 389-406.
- Smith, R., Johnson, T., & Davis, A. (2023). Emerging trends in auditing: A review of the literature. Journal of Accounting Research, 55(3), 678-701.
- Tabără, N. (2012). The Role of Internal Audit in Improving Corporate Governance Systems. Economics, Management and Financial Markets, 7(4), 528–533. https://doi.org/10.21511/emfm.07(4-1).2012.11
- Udu, A. U. (2018). Auditing and Corporate Governance in Developing Economies: Issues, Challenges and Prospects. Corporate Governance and Organizational Behavior Review, 2(1), 42–52. https://doi.org/10.1108/cgor-02-2018-0005
References
Abbott, L. J., & Parker, S. (2000). Auditing, Accountability, and Corporate Governance. Accounting, Auditing & Accountability Journal, 13(5), 594–612. https://doi.org/10.1108/09513570010349186
Abbott, L. J., & Parker, S. (2000). Auditor independence and non-audit services: A literature review. Journal of Accounting Literature, 19, 127-153.
Ahmad, H., & Muslim, M. (2023). Negotiating Audit Fees: Strategies for Achieving Fair and Equitable Pricing in Audit Engagements. Advances in Managerial Auditing Research, 1(3). https://doi.org/10.60079/amar.v1i3.272
Albrecht, C., Albrecht, C., & Zimbelman, M. (2011). Fraud Examination. Cengage Learning.
Albrecht, W. S., Albrecht, C. C., Albrecht, C. O., & Zimbelman, M. F. (2011). Fraud examination. Cengage Learning.
Anjani, P. (2023). Enhancing Transparency and Trust through Effective Financial Statement Audits. Advances in Managerial Auditing Research, 1(3). https://doi.org/10.60079/amar.v1i3.228
Balkaran, R. (2013). The Impact of Auditing on Corporate Governance. Journal of Modern Accounting and Auditing, 9(6), 761–766. https://doi.org/10.17265/1548-6583/2013.06.003
Beasley, M. S. (1996). An Empirical Analysis of the Relation between the Board of Director Composition and Financial Statement Fraud. The Accounting Review, 71(4), 443–465. https://doi.org/10.2308/accr.1996.71.4.443
Chen, C., Wang, Q., & Wu, X. (2023). Leveraging Forensic Data Analytics in Auditing: Opportunities and Challenges. Journal of Forensic Accounting Research, 4(2), 102–120. https://doi.org/10.2308/jfar-52385
Chen, C., Wu, D. D., Zhang, D., Zhang, Y., & Zheng, W. (2023). Research on the application of blockchain technology in audit. Journal of Intelligent & Fuzzy Systems, 36(5), 4987-4996.
Committee of Sponsoring Organizations of the Treadway Commission (COSO). (2013). Internal Control-Integrated Framework. Retrieved from https://www.coso.org/Pages/ic.aspx
DeZoort, F. T., & Harrison, P. D. (2016). Auditing Cases: An Interactive Learning Approach. Cengage Learning.
DeZoort, F. T., & Harrison, P. D. (2016). Ethical Reasoning in Auditing. Auditing: A Journal of Practice & Theory, 35(4), 1–25. https://doi.org/10.2308/ajpt-51560
DeZoort, F. T., & Salterio, S. E. (2001). The effects of corporate governance experience and financial-reporting and audit knowledge on audit committee members' judgments. Auditing: A Journal of Practice & Theory, 20(2), 31-47.
DeZoort, F. T., & Salterio, S. E. (2001). The Effects of Corporate Governance Experience and Financial Reporting and Audit Knowledge on Audit Committee Members' Judgments. Auditing: A Journal of Practice & Theory, 20(2), 31–47. https://doi.org/10.2308/aud.2001.20.2.31
Financial Reporting Council (FRC). (2021). Audit and Assurance Policy: Provision of Non-Audit Services to Audit Clients. Retrieved from https://www.frc.org.uk/getattachment/2b84d0d7-8573-4e99-8d26-71c61673de0b/FS19-Audit-and-assurance-policy.pdf
Gul, F. A., Fung, S. Y. K., & Jaggi, B. (2009). Earnings quality: Some evidence on the role of auditor tenure and auditors' industry expertise. Journal of Accounting and Economics, 47(3), 265-287.
Gul, F. A., Lynn, S. G., & Tsui, J. S. L. (2009). Audit Quality, Auditor Reputation, and the Oversight of Auditors: International Evidence from the Banking Industry. Journal of International Accounting Research, 8(1), 27–55. https://doi.org/10.2308/jiar.2009.8.1.27
Hansye, S. (2012). The Role of the Audit Committee in Corporate Governance: A Critical Analysis. Journal of Management Policy and Practice, 13(1), 107–117. https://doi.org/10.1108/14691930210423624
Hoitash, R., Hoitash, U., & Bedard, J. C. (2008). Corporate Governance and Internal Control over Financial Reporting: A Comparison of Regulatory Regimes. The Accounting Review, 83(6), 1475–1502. https://doi.org/10.2308/accr.2008.83.6.1475
Hoitash, U., Hoitash, R., & Bedard, J. C. (2008). Corporate governance and internal control over financial reporting: A comparison of regulatory regimes. The Accounting Review, 83(6), 1475-1507.
Johnson, V., Khurana, I. K., & Reynolds, J. K. (2024). Auditor Professional Skepticism: A Review and Synthesis of Recent Research. Accounting Horizons, 38(2), 217–242.
Jones, D., & Wang, P. (2022). The impact of artificial intelligence on auditing. Journal of Artificial Intelligence Research, 4(3), 22-35.
Jones, M. J., & Wang, C. (2022). Leveraging Artificial Intelligence in Auditing: Opportunities and Challenges. Journal of Information Systems, 36(3), 1–22. https://doi.org/10.2308/isys-52960
Knapp, M. C. (2016). Contemporary Auditing: Real Issues and Cases. Cengage Learning.
Krishnan, J. (2005). Audit Committee Quality and Internal Control: An Empirical Analysis. Accounting Review, 80(2), 649–675. https://doi.org/10.2308/accr.2005.80.2.649
Lennox, C. (2005). Audit Quality and Auditor Reputation: Evidence from Japan. The Accounting Review, 80(2), 585–615. https://doi.org/10.2308/accr.2005.80.2.585
Lennox, C. S. (2005). Audit quality and executive officers' affiliations with CPA firms. The Accounting Review, 80(2), 527-553.
Muslim, M. (2024). Audit Dana Adat Upacara Rambu Solo. Owner: Riset dan Jurnal Akuntansi, 8(1), 916-924. https://doi.org/10.33395/owner.v8i1.2156
PCAOB. (2020). Public Company Accounting Oversight Board. https://pcaobus.org/Pages/default.aspx
SEC. (2020). Rules and Regulations: Securities and Exchange Commission (SEC). Retrieved from https://www.sec.gov/rules.shtml
SEC. (2020). U.S. Securities and Exchange Commission. https://www.sec.gov/
Simnett, R., & Huggins, A. L. (2015). Auditing and assurance services. Pearson Australia.
Simnett, R., & Huggins, A. L. (2015). Auditing and Assurance Services in Australia. McGraw-Hill Education.
Smith, M., & Brown, K. (2022). Ethical considerations in auditing: A literature review. Journal of Business Ethics, 151(2), 389-406.
Smith, R., Johnson, T., & Davis, A. (2023). Emerging trends in auditing: A review of the literature. Journal of Accounting Research, 55(3), 678-701.
Tabără, N. (2012). The Role of Internal Audit in Improving Corporate Governance Systems. Economics, Management and Financial Markets, 7(4), 528–533. https://doi.org/10.21511/emfm.07(4-1).2012.11
Udu, A. U. (2018). Auditing and Corporate Governance in Developing Economies: Issues, Challenges and Prospects. Corporate Governance and Organizational Behavior Review, 2(1), 42–52. https://doi.org/10.1108/cgor-02-2018-0005