Corruption is a worldwide phenomenon that is described by scholars as cancer in society. Although, corruption is comprised of a comprehensive character there are several ways to counteract its consequences, one example would be through the enhancement of auditing. It is therefore interesting to look at what effect mandatory audits have on small and medium-sized enterprises in countries where that not exists. The research questions we have chosen to focus on are what perspective Zambian auditors have on how well suitable mandatory audits and international auditing standards are for Zambian SMEs? We will also explore which the auditors’ views regarding the importance of auditing and its role in combating corruption? The purpose of this thesis is to create an understanding regarding implementing and improving the usage of mandatory audits and international auditing standards within Zambian SMEs. This also includes enlightening the problems auditors face in their process to use these regulations within Zambian SMEs as tools to assist in the fight against the obstacles that corruption creates. This study has been done through qualitative research where the main empirical findings have been conducted through interviews with auditors in Zambia. These auditors have for instance, been asked questions about what rules that exist in their country, their view on the implementation of mandatory auditing and international auditing standards on SMEs, and if they have any personal experience of corruption in their line of work. The conclusion from this research showed that auditing could aid in the fight against corruption. These conclusions are based on the perceptions and opinions of the included auditors. An implementation of mandatory audits and international auditing standards within Zambian SMEs will detect and reduce corruption. Despite potential shortfall in knowledge while implementing adjusted ISA for SMEs, the benefits of implementation exceed the shortcomings. Auditing cannot only be used to detect corruption but also to deter it. Through mandatory audits and the risk of being caught pursuing corrupt acts will increase, deterring corruption. Consequently, auditing carries a great importance to combat corruption, and mandatory audits together with implementations of international auditing standards within SMEs will aid in a significant reduction of corruption in Zambia. / Korruption är ett världsutbrett fenomen som har beskrivits av forskare som cancer i samhället. Eftersom korruption har en omfattande karaktär så finns det många sätt att bekämpa den, till exempel genom att öka genomsynligheten och förbättringar av revision. Det är därför intressant att undersöka vilka effekter ett revisionskrav för SMEs skulle ha på ett land som inte har det idag. Forskningsfrågorna vi har valt att fokusera på är vilket perspektiv Zambiska revisorer har på hur väl lämpad en revisionsplikt och internationella revisionsstandarder är för Zambiska SMEs? Vilka är revisorernas åsikter beträffande vikten av revision och dess roll i kampen mot korruption? Syftet med denna uppsats är att skapa en förståelse angående implementering och förbättring av revisionskrav och internationella revisionsstandarder i Zambiska SMEs. I det här inkluderas också att upplysa om problematiken för revisorerna i deras process att använda dessa reglementen i Zambiska små och medelstora företag som ett verktyg för att hjälpa till i kampen mot de hinder som korruption skapar. Studien har genomförts genom en kvalitativ undersökning där större delen av empirin har samlats in genom intervjuer med revisorer i Zambia. Dessa revisorer har blivit tillfrågade angående vilka regler som existerar i landet, vilken åsikt de har på en implementering av revisionsplikt och internationella standarder för SMEs samt om dem har någon personlig erfarenhet av korruption från deras arbete. Slutsatsen från den här undersökningen är att revision kan hjälpa till att bekämpa korruption. En implementering av ett revisionskrav och internationella revisionsstandarder i Zambiska SMEs kommer att ertappa och reducera korruption. Trots potentiella kunskapsbrister under implementeringen av de justerade ISA för SMEs kommer fördelarna av implementeringen att överträffa nackdelarna. Revision kan också användas för att avskräcka från korrupta handlingar. Följaktligen är revision av stor vikt i kampen mot korruption och revisionskravet tillsammans med implementering av internationella revisionsstandarder för SMEs kommer signifikant att minska korruptionen i Zambia.

The increasing dependence upon Information Systems (IS) in the last few decades by businesses has resulted in many concerns regarding auditing. Traditional IS auditing has changed from auditing "around the computer" to a hands-on approach (auditing through and with the computer). Technology is changing rapidly and so is the profession of IS auditing. As IS auditing is dependent on Infonnation Technology (IT), it is essential that an IS auditor possesses IT and auditing knowledge to bridge the gap between the IT and auditing professions. The aim of the study is to: 1) define the roles and responsibilities expected from IS auditors, based on the different types of audit assignments and the steps involved in perfonning an IS audit assignment; 2) describe the basic IT and audit knowledge required from IS auditors based on the roles and responsibilities identified; 3) describe the soft skills required from IS auditors to successfully perfonn an IS audit assignment; 4) define the main types of IS audit tools and techniques used most often to assist IS auditors in executing IS audit roles and responsibilities; and 5) establish an IS auditor's profile based on the 4 characteristics defined above / Computing / M.Sc.

Die oogmerk van hierdie studie is om die waarde van 'n klein maatskappy-oudit te bepaal en om daarvolgens 'n geskikte hervormingstrategie vir sodanige audits te bepaal. 'n Literatuurstudie is uitgevoer met betrekking tot die ontwikkeling en aard van klein maatskappy-oudits, die toepaslikheid van Suid-Afrikaanse ouditstandaarde op klein maatskappy-oudits en die verwagtings van die gebruikers van 'n klein maatskappy se finansiele state. Die voormelde aspekte is daarna empiries getoets ten einde 'n algemeen aanvaarde hervormingstrategie vir klein maatskappy-oudits te formuleer. Uit die literatuurstudie is verskeie kenmerke van 'n klein maatskappy ge"identifiseer. Daarvolgens is argumente aangevoer wat die waarde van 'n klein maatskappy-oudit bevraagteken, soos dat belanghebbendes nie die geouditeerde finansiele state vir besluitnemingsdoeleindes aanwend nie, en dat die tradisionele behoefte aan ouditering nie by klein maatskappye bestaan nie, omdat die aandeelhouers en bestuur (direkteure) gewoonlik dieselfde persona is. Die empiriese navorsing onder die vernaamste gebruikers van klein maatskappye se finansiele state, naamlik sodanige maatskappye se aandeelhouers en/of direkteure, die Suid-Afrikaanse lnkomstediens, bankinstellings en praktiserende ouditeure, het aan die lig gebring dat daar nie eenstemmigheid ocr 'n objektiewe definisie van 'n klein maatskappy bestaan nie. Die oorheersende kenmerk van 'n klein maatskappy is dat die eienaarskap van so 'n maatskappy in die bestuur (direkteure) gesetel is. As 'n algemene norm kan 'n maatskappy egter as klein geklassifiseer word indien dit nie twee van die volgende maatstawwe oorskry nie: Omset R12 miljoen; totale bates R6 miljoen; vyftig werknemers. Die empiriese ondersoek het verder getoon dat die primere gebruikers van klein maatskappye se finansiele state 'n positiewe houding oor so 'n maatskappy-oudit huldig en dat geouditeerde finansiele state van klein maatskappye wei gebruik word tydens bedrywighede en/of vir besluitnemingsdoeleindes en dat Suid-Afrikaanse ouditstandaarde redelik gepas is in 'n klein maatskappy-ouditomgewing. Die huidige openbaarmaking- en dokumentasievereistes van toepassing op aile maatskappye, word egter as te omvangryk beskou. Die slotsom van die studie is dat 'n klein maatskappy-oudit wei 'n bestaansreg geniet omdat dit waarde toevoeg. Gevolglik behoort die konvensionele statutere audit behou te word; die algemeen aanvaarde rekeningkundige-vereistes behoort egter vir klein maatskappye afgeskaal word. / The purpose of this study was to determine the value of a small company audit and then to establish a suitable reform strategy for such audits. A literature study was performed of the development and nature of small company audits, the applicability of South African auditing standards to small company audits and the expectations of the users of the financial statements of a small company. These aspects were then empirically tested to formulate a generally accepted reform strategy for small company audits. The literature study distinguished various characteristics of a small company. Arguments were raised which questioned the value of small company audits, for instance that the interested parties did not use the audited financial statements for decision-making and that the traditional need of auditing does not exist with small companies as the shareholders and management (directors) usually are the same people. The empirical research among the main users of the financial statements of small companies, namely its shareholders and/or directors, the South African Revenue Services, financial institutions and practising auditors revealed that there is no acceptable objective definition of a small company. The dominant characteristic of a small company is that the ownership of such a company vests in management. A company can, as a general norm, be classified as small if it does not exceed two of the following three measures: Turnover R12 million; total assets R6 million; fifty employees. The empirical investigation also showed that the primary users of the financial statements of small companies have a positive attitude towards a small company audit, that the audited financial statements of small companies are used in the performance of their activities and/or decision-making and that South African auditing standards are reasonably applicable to a small company audit environment. The current disclosure and documentation requirements applicable to all companies are, however, regarded as too comprehensive. This study led to the conclusion that a small company audit is justified because it adds value. The conventional statutory audit should therefore be retained but the generally accepted accounting requirements should be scaled down for small companies. / Auditing / D. Compt. (Toegepaste Rekenmeesterskap)

The Statement of Auditing Standards 220 (Materiality and the audit, 1995) requires auditors to assess both the quantitative and qualitative aspects of materiality. However, the SAS has not specified the quantitative measurement of materiality. This research assesses the need in the UK for having a specific mathematical guideline in addition to the qualitative aspect of materiality. It evaluates the outcomes of legal cases in both the UK and the US, looks at the accounting statements issued by accounting bodies in other countries on materiality, and responses to the then exposure draft of the SAS 220. Questionnaires were sent in the UK to 1000 auditors (25.6% responded) and 1000 non auditors (26.4% responded), and telephone surveys followed with non respondents and selected individuals. The case studies contained in the questionnaires are materiality impact on losses on discontinuation of a production line, changes in accounting policies, contingent liabilities, and cash defaulcation. Results showed that there are inconsistencies in legal decisions on materiality. Countries having materiality guidelines adopted 10% net profit before tax as the norm. The 10% of net profit before tax is the favourite guideline for materiality from questionnaire respondents and telephone interviewees. Consistency in the results suggest the need for having a standard mathematical measurement of materiality in the UK.

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / Business Administration / Master / Master of Business Administration

published_or_final_version / Business Administration / Master / Master of Business Administration

Drawing on the relevant psychology literature, three procedural variables that could influence the auditors' information processing when making going concern opinion decisions were identified. These procedural variables are the decision frame, the order in which evidence is evaluated and the initial belief held by the auditor. With respect to the decision frame, it was predicted that belief revision after processing contrary information (mitigating factors) is higher for auditors who frame their initial hypothesis in terms of viability (failure). This prediction hinges on the assumption that more weight is put on disconfirmatory information than on confirmatory information, holding "information content" constant. Second, denoting P(C) as the auditors' judgment just before processing contrary information (mitigating factors), it was hypothesized that contrary information (mitigating factors) has a bigger effect on belief revision as ex ante P(C) increases (decreases). Finally with respect to the order of evaluating evidence, it was posited that recency effects occur in belief revision and that these recency effects will be manifest in the auditors' opinion decision. These predictions were tested in a field experiment using 70 experienced auditors from four Big Eight firms. Results of the experiment provided support for the predictions relating to the initial belief and the order in which evidence was evaluated. However, the predictions relating to the decision frame were not supported. Furthermore, the study indicated that auditors exhibited considerable variability in their interpretation of substantial doubt (the standard of proof in SAS 59). Whereas some auditors interpreted this requirement as the preponderance of probability, others required a substantially higher level of probability as a threshold of proof for issuing unqualified opinions. Incidentally, it was discovered that this variability was partly accounted for by auditors' firm affiliation. Implications of these results for the audit review, the standard setting process and the nature of expertise in auditing are discussed.

Audit committees are an integral part of good corporate governance and their establishment strengthens the credibility of governments. As a foundation of good governance, audit committees are positioned to provide an objective assessment of whether or not public resources are responsibly and effectively managed. They also promote accountability and integrity, as well as improvement in the operations of governments and municipalities. The establishment of audit committees in the local sphere of government came with the advent of modernisation in terms of the budget and financial management, which was intended to strengthen accountability. The requirement for effective utilisation of resources by local government is critical for the support and empowerment of local communities and delivery of effective services. The audit committee framework for local government, which is provided by the Municipal Finance Management Act (56 of 2003), is underpinned by principles of good governance and accountability, which promote the effective functioning of audit committees. However, there are perceptions and arguments advanced in the literature regarding the effectiveness of audit committees as an accountability structure. This was brought about by the recurring reported incidences of the failure of businesses, which took place despite the existence of rules and laws regulating the function. As a result, trends of leading best practices were established, which enhanced audit committees' performance and were adopted as a proxy for the measurement of audit committees’ effectiveness. The focus of the study is on validating the perception by management that the audit committee of the Westonaria Local Municipality (WLM) is effective in the execution of its oversight role. A literature study on the functioning of audit committees have been undertaken, official municipal documents were analysed and a questionnaire has been developed and utilised as a means for gathering data, in order to prove the hypothesis to be either true or false. The areas investigated in this study demonstrate that the audit committee of WLM is generally effective in the execution of its oversight function. The findings of the study also identified certain areas in the audit function which require the attention of both management and the audit committee of the municipality. More specifically, the observations made in the study include the following: (i) that audit committee members are not provided with the agendas and reports in sufficient time for them to adequately prepare for meetings; (ii) that a productive relationship between the audit committee and the management of the local government has to be maintained; (iii) that there is a lack of informal meetings between the audit committee and the external and internal auditors; (iv) that no appropriate training of the audit committee on existing and potential audit risks in local government is in place; (v) that there is an absence of continuous learning programmes for the members of the audit committee; and (vi) that audit committee members do not evaluate themselves in terms of their level of knowledge regarding the functioning and activities of their audit committee. Attending to these aspects, as identified through this study, will further improve the audit committee’s activities in the WLM. These aspects are therefore not viewed in a negative light, but are rather regarded as a positive venture to be addressed by municipal management and the audit committee, in order to improve the functioning of the audit committee. These aspects should therefore be added to the many positives aspects that are identified concerning the WLM audit committee, as discussed in this study. / M Public Administration (Development and Management), North-West University, Potchefstroom Campus, 2014

The specific focus of this degree paper is an analysis of operational auditing and its possible effects on the delivery of services by the City of Atlanta to its citizens. Strict attention is paid to the staffing, budgeting, and timeliness of the operational auditing operation, and its effects on municipally run operations. The recent interest in operational auditing has stemmed from the desire of municipalities to adequately determine if their operations are being run as efficiently and effectively as possible. The City of Atlanta, while not facing any immediate major economic or operational problems must fact the reality of delivering more services to its citizens with a slowly expanding revenue base. With this, as well as other factors stated in this paper, operational auditing becomes a management tool that should be seriously considered as a menas of dealing with the operational problems that the City is presently facing and will face in the future.