Artificial Intelligence Applications in Quality Management Systems of Philippine Higher Education Institutions

To ensure quality assurance, Higher Education Institutions (HEIs) implement a Quality Management System (QMS) anchored on international benchmarks like ISO 9001:2015 Standards. With the COVID-19 pandemic, quality audits have become more challenging. Also, to address the lapses due to human error and lack of technical knowledge in clause identification during audit processes, an artificial intelligence (AI)-enabled QMS is presented. This study successfully demonstrated how AI-enabled QMS can match audit findings in accreditation compliance reports and internal quality audit reports with the clauses of ISO 9001:2015. Audit findings corpus data gathered are within the span of the last five years, which serve as the dataset to be employed. After data pre-processing, a long short-term memory (LSTM) deep neural network was created and trained using MATLAB. The AI model achieved a combined classification accuracy (CA) of 82.15% and predicted 70% of the examined audit findings in actual implementation. Further analyses illustrate how AI can be maximized in generating useful and precise and useful audit reports for HEIs to develop and implement globally competitive educational policies, programs, and standards. © 2023, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

Research on Quality Improvement Factors of Special Audit for COVID-19 Based on DEMATEL-ISM

In the midst of the COVID-19 pandemic, the standardized management of relief funds and supplies requires audit departments to conduct the special audit and issue audit reports to the public. However, in the context of emergencies, the special audit for COVID-19 is affected by a variety of complex factors, and it is necessary to further identify the factors that affect the quality of the special audit for COVID-19 and clarify the internal logical relationship. Taking the special audit for COVID-19 as the research object, the influencing factors of the special audit quality were identified and extracted through text coding, and the DEMATEL-ISM method of complex factor analysis was used to explain the attributes of factors, sort out the relationship of factors, and divide the hierarchical structure Combined with the results, the improvement direction of the special audit quality for epidemic prevention and control is discussed. © 2022 ACM.

The company in operation with audit reports the going business hypothesis based on audit reports

The going concern hypothesis assumes the financial sustainability of the company in the future, being important the professional judgment of the auditor who affirms the reasonableness of the financial information in all its material aspects and promotes credibility in the global market. The audit report of 51 companies for the 2010-2020, period was analyzed, a logit regression and the Mann Whitney U test were applied with financial indicators. It is observed that ROA has a positive impact on the going concern assumption. The financial indicators analyzed are not that different before and during COVID. © GKA Ediciones, authors.

Impact of auditor characteristics and Covid-19 Pandemic on KAMs reporting

Purpose - This paper aims to investigate how auditors characteristics affect key audit matters (KAMs) in the new audit report. It also provides an understanding of the effect of the COVID-19 pandemic on different audit reporting decisions and audit quality in specific industries. Design/methodology/approach - The paper uses a survey based on actual audit case studies extracted from the management letters of clients in an audit firm with international affiliation to test the proposed hypotheses. Kruslud Wallis and Mann Whitney tests are conducted to analyze variance in responses among different groups of auditors regarding their selection of audit report sections required for each audit matter. The Wilcoxon signed rank test analyses difference in the auditors' responses pre- and post-COVLD-19 implications. Findings - Most of the developed hypotheses were only partially accepted where industry specialization, professional qualifications of the auditors and the effects of COVID-19 had some effects on the ability of auditors to recognize and disclose KAMs. Auditor position is the most factor that significantly influenced the recognition of KAMs in the new audit report resulting in higher audit quality. This was specially the case with auditors specializing in manufacturing and financial institutions. Originality/value - The current research illustrates that during the pandemic, auditors were more effective in recognizing KAMs compared to other audit matters, thus enhancing users' confidence in both the audit and the financial reporting processes. The results are useful to regulators and auditors as they provide a better understanding of the factors that may impact communicating KAMs in the new audit report under COVID-19.