The impact of risk-taking and auditor characteristics on value creation in pre-Covid 19 and post-Covid 19 pandemic: MRN

PurposeThis study aims to investigate the impact of risk-taking and auditor characteristics on value creation in companies listed on the Tehran Stock Exchange. In addition, it investigates the moderator role of auditor characteristics in the impact of risk-taking on value creation, especially in pre-Covid 19 and post-Covid 19 pandemic.Design/methodology/approachThe information about 199 company in 2014–2021 was examined. In the present study, in accordance with the related theoretical literature and the importance of auditor specialization, auditor tenure and auditor reputation, these factors were considered as the auditor characteristics.FindingsThe present findings based on the generalized least squares (GLS) method showed that risk-taking positively affects the value creation. The auditor characteristics (auditor specialization, auditor tenure and auditor reputation) have a significant positive effect on the value creation. Furthermore, the auditor characteristics enhance the impact of risk-taking on value creation. The results of generalized method of moments method and robust regression analysis are consistent with the GLS results. To take into account the Covid-19 conditions, the data were divided into pre-Covid-19 and post-Covid-19 years. The results showed that auditor characteristics moderate the impact of risk-taking on value creation in pre-Covid 19 and post-Covid 19.Originality/valueThe study highlights the role of auditor characteristics in the value creation, especially in the emerging market. Given that Covid-19 has seriously damaged global economic well-being and has put companies at a double risk, the present findings can be useful for managers, investors and the international community, and help company managers make risk-taking policies and select auditors with appropriate characteristics.

The Influence of Technological Factors on the Computer-Assisted Audit Tools and Techniques Usage during COVID-19

There is minimal level of use of Computer-Assisted Audit Tools and Techniques (CAATTs) in developing nations regardless of its importance to audit productivity and cost reduction, and this holds particularly true in the public sector entities' internal audit departments. Accordingly, this article aims to explore how technological factors, such as relative advantage, complexity, compatibility, observability, and trialability, contribute to the use of CAATTs in Jordan's public sector internal audit during the COVID-19 pandemic and the impact of the pandemic on the profession's outcome. The study also seeks to evaluate how the use of these tools affects the effectiveness of internal auditing, with the IT knowledge of the auditors serving as a moderating variable. This study used 91 usable responses from the internal audit managers of Jordanian public sector institutions. The study used the Diffusion of Innovation (DOI) theory to develop the proposed research model. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study result indicated that technological factors, with the exception of complexity, had a positive and significant effect on CAATTs use in the public sector internal audit departments. Based on the findings, using CAATTs has a positive and significant effect on internal audit effectiveness and IT knowledge has a positive moderating effect on the relationship between CAATTs usage and internal audit effectiveness. Owing to the public sector significance to the economy of Jordan, the findings have implications for the internal audit profession, regulators, and decision-makers in proposing new legislation and regulations when it comes to internal audit. Further, through the lens of the social implications, this study proposed that CAATTs usage in public sector institutions can positively improve their capability to reach the role of internal audit in protective public funds and limiting corrupt practices in the public sector. The paper contributes to theory by providing insight into the effect of factors on the use of CAATTs in the public sector of Jordan. This study, to the best of the author's knowledge, is the first study that has tackled the moderating role of auditors' IT knowledge on the CAATTs use–internal audit effectiveness relationship in the public sector context.

Single Audits Are Not What They Used to Be: Certified Public Accountant

Single Audits Pre-COVID-19 The Single Audit Act requires that audits be performed annually, except for certain entities that have been grandfathered in for biennial audits, on behalf of all federal agencies by independent accounting firms or by individual states' internal auditors. Most of these awards were granted in 2021;however, this program was not included in the 2021 OMB Supplement. [...]auditors had to determine which compliance requirements needed to be tested using Part 7 and Part 3 of the supplement. Typically, the audit threshold for a single or program-specific audit of federal awards is based on expenditures. Because for-profit entities are not required to adhere to the audit requirements in 2 CFR Part 200, the SBA has the flexibility to define audit requirements and thresholds specific to the SVOG program. [...]the SBA has defined the audit threshold for a for-profit entity that has received an SVOG award based on the GAAP principle of revenue recognition, specifically applied to recognition of an SVOG award.

BRIEF OF CONTRACTOR-APPELLANT, DEMOCRACY WORLDWIDE

Dep'ts and Agencies (Jan. 05, 2021), https://www.whitehouse.gov/wp-content/uploads/2021/01 /M-21-11.pdf 226 Novel Coronavirus (COVID-19), USAID (Mar. 21, 2020), https:/ www.usaid.gov/coronavirus [http://web.archive.org /web/20200321032153] 217 U.S. Gov't Accountability Off., GAO-12-331G, Government Auditing Standards (2018) 218 OTHER AUTHORITIES Advice on the Use of Masks in the Community, During Home Care, and in Health Care Settings in the Context of COVID-19, WHO (Mar. 19, 2020), https://apps.who.int/iris/bitstream/handle/10665/331493 /WHO-2019-nCoV-IPC_Masks-2020.2-eng.pdf?sequence= 14&isAllowed=y 218 Amindeh Blaise Atabong, In Cameroon, Face Masks Are Compulsory-But Unaffordable for Many, Mail & Guardian (Apr. 18, 2020), https:// mg.co.za/article/2020-04-18-in-cameroon-face-masks-are -compulsory-but-unaffordable-for-many 217, 218 Cost of Living in Yaounde, Numbeo, https://www.numbeo.com/cost -of-living/in/Yaounde-Cameroon (last visited Mar. 5, 2021) 218 Fadela Chaib, Shortage of Personal Protective Equipment Endangering Health Workers Worldwide, WHO (Mar. 02, 2020), https://www .who.int/news/item/03-03-2020-shortage-of-personal-protective -equipment-endangering-health-workers-worldwide 217 How COVID-19 Spreads, CDC (last updated Oct. 28, 2020), https:// www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/how -COVID-spreads.html. 216 How Much Water Do You Use at Home?, U.S. Geological Surv. (last visited Mar. 5, 2021), https://water.usgs.gov/edu/activity -percapita.php 218 Scott S. Sheffler, A Reasoned Case for a "Grant Disputes Act," 47 Pub. L.J. 209 (2018) 207 STATEMENT OF RELATED CASES Pursuant to Rule 47.5 of the Federal Circuit Rules of Practice, Democracy Worldwide is unaware of another appeal in or from the same civil action or proceeding in the lower court or body that was previously before this Court or another appellate court. In November 2019, the Center of Excellence on Democracy, Human Rights, and Governance, which is part of the United States Agency for International Development (USAID), published a Notice of Funding Opportunity (NOFO), announcing that USAID had $8,000,000 for human rights programming awards to increase protection for human rights defenders in Central Africa. Democracy Worldwide proposed a program to support human rights defenders in Cameroon by strengthening the normative frameworks and institutional architecture that would help Cameroon respect its human rights obligations and by building the capacity of civil society actors to promote those rights, monitor compliance, and demand accountability.

Transformation Processes of Audit in Covid-19 Conditions

The article examines the features of the financial audit traditional forms transformation in the context of the COVID-19 pandemic. The peculiarities of conducting a financial audit in compliance with quarantine restrictions are considered. The advantages and prospects of implementing agile-audit in Ukraine are analyzed. The need to introduce the institute of electronic audit as one of the methods to reduce the impact of the COVID-19 pandemic on the economy of Ukraine has been identified. It is noted that one of the elements of combating the consequences of COVID-19 is the use of digital technologies in compliance with tax legislation, namely electronic audit of business entities. It is determined that the content of electronic audit is the use of a specialized tax file Standard Audit File for Tax, which will allow auditors to freely obtain information for tax audits. The current normative and legal regulation of the functioning of the institute of electronic audit in Ukraine is studied, as well as draft laws aimed at improving the normative regulation of electronic audit. A number of measures have been proposed to improve audit processes to prevent the consequences of the pandemic and the full implementation of electronic audit in the traditional system of verification and tax payers activities. It is concluded that the quarantine audit can no longer be performed by traditional methods and it is determined that them a inform of audit is remote audit, which, despite the restrictions, should be conducted in accordance with established international standards, considering pandemic restrictions. It is proposed to consolidate the concept of "electronic audit" at the legislative level to start the functioning of electronic audit in Ukraine;at the regulatory level to determine the structure of the Ukrainian version of the specialized tax audit file SAFTUA, to form a phased procedure for electronic audit;develop an accurate plan for the implementation of electronic audit institute;develop appropriate software for auditors. Among other things, it was deemed necessary to provide special training courses for auditors in order to acquaint the latter with the new audit procedure. It is concluded that conducting an agile audit can allow for an effective audit and become a key element of business success.

Are sustainable firms more profitable during COVID-19? Recent global evidence of firms in developed and emerging economies

PurposeThis paper investigates whether sustainability performance (SP) protects financial performance (FP) for firms in both developed and emerging economies during the COVID-19-induced economic downturn.Design/methodology/approachUsing a recent sample of firms in 34 countries between 2003 and 2021, the authors employ ordinary least squares regressions, moderations and the Heckman two-step method to test the hypotheses.FindingsFirms with strong SP have higher FP in developed and emerging economies in the upcoming year. During the COVID-19 crisis in 2020–2021, the impact of sustainability on FP is pronounced in developed but not in emerging economies. Furthermore, cross-listings expose firms in emerging economies to high-standard institutional mechanisms in developed economies. Thus, sustainable firms in emerging economies cross-listed on European stock exchanges are more profitable.Practical implicationsFor regulators and standard setters, the global-level comparative analysis helps them find solutions that may assist firms in improving SP globally (e.g. mandatory reporting) and enduring crises resiliently. For institutional investors, the study reveals the relatively different impact of sustainability risk for firms in developed and emerging economies. For practitioners and private sector firms, this study contributes to the dialogue on what makes firms more resilient in COVID-19. Although COVID-19 might be temporary, the lessons learned could protect firms from future crises.Originality/valueThe authors contribute to the contingency perspective between sustainability and financial performance by providing recent empirical evidence in a global setting during the COVID-19 pandemic. The authors demonstrate how different external institutional mechanisms (rule-based governance and relation-based governance) and cross-listing affect the SP-FP relationship during a crisis. The authors extend the knowledge in crisis management literature with a comparative study and fill the research gap on how SP affects FP for firms in emerging economies compared to developed economies.

Evidence on Internal Audit Quality from Transitioning to Remote Audits because of COVID-19

As in-person audits were banned by governments and by company policies due to the COVID-19 pandemic, internal auditors had to transition to remote audits to perform their work. Based on survey responses of internal auditors who have conducted both remote and in-person audits, we find that internal auditors perceive no difference in the efficiency and effectiveness of and stakeholders' reliance on results from remote and in-person audits when considering all responses. However, we also find that perceived efficiency and effectiveness increase the more experience internal auditors have with remote audits. Supplemental analyses show that support from the auditee, but not management or the audit committee, is a central determinant of perceived remote audit success. It is important for internal auditors to consider this later finding in the design of remote audits as it indicates the importance of building support with the auditee to have a successful remote auditing experience.

Anchoring on dynamic auditing capabilities to manage small and medium audit practices in a Covid-19-induced turbulent business environment

Purpose>The purpose of the study is to examine how small and medium audit practices (SMPs) in emerging economies build and anchor on dynamic auditing capability to operate in a turbulent business environment occasioned by the Covid-19 pandemic.Design/methodology/approach>The study adopts an exploratory qualitative methodology using qualitative data collected with the aid of an open-ended instrument. With the help of a qualitative data analysis software QSR NVivo9, data were analyzed following Gioia's methodology with a four-stage coding process that combines both a deductive and an inductive approach.Findings>The findings of the study show that to manage operations during the Covid-19 pandemic, SMPs developed and anchored on dynamic auditing capabilities. Specifically, the findings show that this required transformation of existing operational capabilities, shiftiness, flexibility and innovativeness of the SMPs as well as leveraging networking and adaptive sub-capabilities.Originality/value>The study produces a pioneer result of how to develop and anchor on the dynamic auditing capability by the SMP subsector of the audit industry to continue operations in a turbulent business environment the magnitude of the Covid-19 pandemic.

Financial Reporting Quality in a Crisis Period

The Covid Pandemic has this far been a devastating event for the world economy, but it wasn't the only crisis of the 2020 financial period. Despite the health emergency, military conflict has not halted since the dawn of the coronavirus plague. In the current paper the authors try to analyze the combined impact of the COVID pandemic and war for a sample of 352 Turkish and Azeri equities during the 2019 and 2020 financial periods. Their findings suggest that the Nagorno-Karabakh war enforced timeliness for Azeri and Turkish issuers while overall the relevance of financial statements has dropped during the crisis period of 2020. IFRS compliance became a significant moderating factor during the crisis period. Overall, the year 2020 has been a turning point for accounting practice.

BAĞIMSIZ DENETÇÍ RAPORLARINDA COVID-19'un KÍLÍT DENETÍM KONUSU OLARAK BÍLDÍRÍLMESÍ: BÍST'te BÍR ÍNCELEME

Uluslararası Denetim ve Güvence Standartları Kurulu (IAASB) tarafından, hedef kullanıcıların finansal tabloların denetiminde önemli olan konuları daha iyi ve kolay anlayabilmeleri için ek bilgilere sahip olması gerektiği belirtilmiş ve bu nedenle Kilit Denetim Konularının (KDK) Bağımsız Denetim Raporlarında (BDR) bildirilmesi gündeme alınmıştır. Bu doğrultuda, Kamu Gözetimi Muhasebe ve Denetim Standartları Kurumu (KGK) tarafından 09.03.2017 tarihli ve 30002 sayılı Resmi Gazete'de yayımlanan "Bağımsız Denetim Standardı (BDS) 701 Kilit Denetim Konularının Bağımsız Denetçi Raporunda Bildirilmesi" standardının borsada işlem gören işletmeler tarafından 01.01.2017 tarihinde ve sonrasında başlayacak faaliyet dönemlerinin denetiminde uygulanması zorunlu hale getirilmiştir (KGK, 2017). Bu standart ile amaçlanan, denetim raporlarının şeffaflığını, güven düzeyini, hesap verebilirliğini ve iletişim kalitesini artırmaktır. Covid-19'un 11 Mart 2020'de Dünya Sağlık Örgütü (DSÖ) tarafından pandemi ilan edilmesiyle birlikte ekonomik sistemi derinden etkileyen sınırlama, yasaklar ve kapanma uygulamaları yürürlüğe konmuştur. Ekonomik sistemin temeli olan işletmeler ise bu uygulamalardan farklı derecelerde etkilenen grupların başında gelmektedir. Çalışmada öncelikle Covid-19'un KDK olarak belirlenip belirlenemeyeceği konusu ele alınmış sonrasında ise pandemiden en çok etkilenen sektörlerin başında sayılan Toptan ve Perakende Ticaret, Lokantalar ve Oteller sektöründe faaliyet gösteren işletmelerin pandemi öncesi son yıl olan 2019 ve pandemi sonrası ilk yıl olan 2020 yıllarına ait BDR'lerindeki KDK'ları içerik analizi yöntemi ile incelenmiştir. Elde edilen bulgular doğrutusunda sektörde faaliyette bulunan işletmelerin BDR'lerinde yer alan KDK'ların Covid-19 pandemisinden etkilenmediği, pandemiden önceki yıl olan 2019 yılına göre açıklanan KDK sayısında işletmeler açısından önemli farklılıklar bulunmadığı, 2019 ve 2020 yıllarında en çok açıklanan KDK'ların ise "Maddi Duran Varlıklarda ve Yatırım Amaçlı Gayrimenkullerde Yeniden Değerleme", "TFRS 16 Kiralamalar Standardının Uygulanması", "Ticari Alacakların Geri Kazanılabilirliği", "Hasılatın Muhasebeleştirilmesi" ve "Şerefiye Değer Düşüklüğü" olduğu görülmüştür.Alternate :The International Auditing and Assurance Standards Board (IAASB) stated that the target users should have additional information in order to better and easily understand the important issues in the auditing reports of the financial statements and therefore communicaiton of Key Audit Matters (KAM) in the Independent Audit Reports (IAR) was taken into consideration. For this purpose, "Independent Auditing Standard (IAS) 701 Notification of Key Audit Matters in the Independent Auditor's Report" standard was published in the Official Gazette dated 09.03.2017 and numbered 30002 by the Public Oversight, Accounting and Auditing Standards Authority. It has become mandatory to apply this standard by the publicly-traded companies in the audit of the accounting periods that will start on or after 01.01.2017 (KGK, 2017). The aim of this standard is to increase the transparency, level of trust, accountability and communication quality of audit reports. With the declaration of Covid-19 as a pandemic by the World Health Organization (WHO) on March 11, 2020, restrictions, bans and closure practices have been put into effect. Businesses, which are the basis of the economic system, are at the forefront of the groups affected by these practices. In the research, firstly, the issue of whether Covid-19 can be determined as KDK will be discussed, and then the KAMs in the IARs of the enterprises in the Wholesale and Retail Trade, Restaurants and Hotels sector which are considered to be one of the sectors most affected by the pandemic will be examined by content analysis method for 2019, the last year before the pandemic, and 2020, the first year after the pandemic

Implications of COVID-19 Crisis on Risk Management, Audit and Controls Activities

In the context of the COVID-19 pandemic, entities and internal auditors have to face the new challenges posed by changing ways of working. Internal auditors need to give importance to the analysis of exposure to business risk and the implications for financial reporting. The purpose of the financial reporting system is to produce reporting that is complete, accurate, and transparent. COVID-19 has reinforced the need for efficient remote working, even for control activities. Some of impacted areas refers to: Risk assessment impact, Effective alocation of resources, Key service organizations reliance, Remote access, Execution of controls and monitoring. In the same time as economic activities, the public sector faced also major changes in audit and internal control activities. The need to reduce social interaction during COVID-19 pandemic is changing the way audit and internal control works, with a much greater emphasis on teleworking, working remotely and with more technology dependence. This situation generates a number of advantages but also disadvantages, which are presented in the content of the article. Teleworking increases cyber security risks and may also require additional infrastructure from auditors, but can reduce costs.

Keys to Successful Remote Audits of Not-for-Profit Organizations: Certified Public Accountant

The coronavirus (COVID-19) pandemic made remote audits a necessity rather than a luxury. CPA firms have adapted to the new environment, but challenges still remain with any client, perhaps especially not-for-profit organizations. The authors explain the common challenges and considerations facing auditors working remotely and provide advice on how to be successful in the current environment.

A First Look at the Addenda to the 2021 OMB Compliance Supplement: Certified Public Accountant

Helpful Guidance for Auditors and Not-for-Profit Organizations The guidance and requirements that auditors must follow to perform single audits, including program specific audits, are included in the U.S. Office of Management and Budgets (OMB) annual Compliance Supplement. The Compliance Supplement has helpful information to assist recipients of federal grants with the regulations and requirements of the federal program. Loans obtained under the Paycheck Protection Program (PPP) and refunds resulting from the Employee Retention Tax Credit (ERTC) are not subject to a single audit.

Accounting articles on developing countries in ranked English language journals: a meta-review

Purpose>The paper conducts a metadata analysis of articles on developing countries in highly ranked “international” accounting journals, the topics covered, research methods employed, their authorship and impact, across countries and continents.Design/methodology/approach>A database of the publications of accounting journals ranked A*, A and B in the Australian Business Dean Council (ABDC) journal rankings from 2009 to 2018 was constructed. A structured literature review, partly using NVivo and Leximancer, analysed the 1,317 articles on developing countries. A parallel online repository contains the research data.Findings>Articles on accounting in developing countries increased by 36% over the ten years but remained a small proportion of all published articles (i.e. 1,317 of 13,805 representing 9.5%). They have concentrated on quantitative market-based studies of financial reporting and auditing, especially in larger and relatively richer developing countries in Asia and Africa, with developed capital markets. Broader topics deemed important in recent reviews of the area, for instance, on achieving Sustainable Development Goals (SDGs) and on smaller, poorer countries, which have been neglected, albeit less so in qualitative studies. The research identifies important jurisdictional differences. Many authors held positions in British Commonwealth universities. The most cited articles overall, all quantitative, were in highly ranked North American journals, whereas most qualitative studies came from journals located in richer British Commonwealth countries.Research limitations/implications>The study only covers English language journals. Journals in other languages and lesser ranked journals, especially those based in developing countries, may be important sources too.Practical implications>More research on a broader range of accounting issues, especially in smaller and poorer developing countries, is needed. Although quantitative work is valuable, more recognition of the value of qualitative studies is needed, especially given the disappointing results of market-based policies prescribed by foreign institutions and their shift to advocating good governance reforms and achieving SDGs.Originality/value>To the best of the authors’ knowledge, this is the most exhaustive analysis of recent accounting research on developing countries. It traces which journals have published such research, when, on which countries, on what topics and by whom. This is of interest to journal editors, course designers and researchers in the area. The authors hope that making the raw data and detailed analyses available online, consistent with protocols adopted in science disciplines, will encourage accounting researchers to do likewise to enable further testing of results and claims and build knowledge cumulatively.

Overcoming Department of Defense Site-visit Limitations During the Pandemic

Generally Accepted Auditing Standards (GAAS) and Generally Accepted Government Auditing Standards (GAGAS) establish measures of the sufficiency and appropriateness (quantity and quality) of audit evidence to reduce audit risk to an acceptably low level. [...]these standards rarely dictate or limit how audit evidence is obtained. Typical Reasons for a Site Visit Site visit objectives vary, but most are conducted to perform transaction cycle walkthroughs;inspect facilities and observe physical controls (e.g., system security) or other control activities;attend physical inventory counts;and test property. Existence testing through video or photography parallels the reliability of an on-site presence when specific controls can ensure accuracy, such as time-stamp photographs, digital camera date displays, or framing an artifact (e.g., that day's newspaper) sent by the auditors for use in the test.

AGA Reports Explore Critical Issues for the Years Ahead

[...]AGA is an influencer in the development of accounting and auditing standards and a concept originator for improving the work of government. [...]opportunities for fraud grew as well. The 2021 research examined current government-to-constituent (G2C) payments at the federal and state levels and found the use of digital payment methods, such as prepaid debit cards and direct deposits, increased over the past eight years, although some constituents continue to receive paper checks. Disruptions caused by COVID-19 abruptly thrust IGs into a virtual work environment along with the rest of the government and most of the world. Because IG offices had already taken steps to enhance remote work capabilities before the crisis, the transition to mostly telework was seamless, albeit unexpected and rushed.

Implementing CECL During the Pandemic: Unexpected Consequences Revealed: Certified Public Accountant

The much-anticipated and -deliberated changes to the accounting for financial instruments ushered in by ASU-2016-13, Financial Instruments-Credit Losses, happened to take effect during an unprecedented economic crisis brought about by the COVID-19 pandemic. This coincidence provides insight into management's decision making in a crisis and a test of whether the guidance meets the needs and expectations of users. The authors' analysis of selected CECL disclosures from last year concludes that management's judgment often influences and even overrides the results generated by CECL modeling;although conservatism may have been warranted under extraordinary circumstances, users might justifiably wonder whether such judgment is consistent with the goals of the standard.

How the Next Generation of CPAs Can Restore the Public Trust: Certified Public Accountant

According to the Association of Certified Fraud Examiners (ACFE) 2020 Report to The Nations-2020 Global Study on Occupational Fraud and Abuse, 43% of occupational frauds were detected by a tip, owners/executives committed 20% of the frauds with a median loss of $600,000, and 42% of fraudsters were living above their means. To support my initial reaction to the changing dynamic of fraud, technology, and audit quality, I interviewed a thought leader, an academic, and a technologist to gain a better perspective on what can be done across the entire spectrum of the accounting profession to improve the efficacy of the audit. Solon Angel, Founder & Chief Impact Officer, former Chief Strategy Officer of MindBridge Ai;Brian Fox, CPA, President & Founder of Confirmation (exited, acquired by Thomson Reuters);and Kecia Williams Smith, PhD, CPA, Assistant Professor and Director, Master of Accountancy (MACC) Program at North Carolina Agricultural and Technical State University. [...]the mission of the PCAOB is to protect the capital markets and to ensure the issuance of fair and informative audit reports.