The audit industry is under a digital transformation where various IT-tools are being frequently used by auditors at different experience levels. It is almost impossible to perform an audit with good results without using any IT-tools. Therefore, pressure is put on audit firms,both Big 4 and Non-Big 4 firms to stay ahead or at least up to date in terms of the digital development, implementation and usage of IT-tools to not fall behind its competitors. Educating the audit team members in the different information technology systems (IT) will be of great importance so that auditors can utilize new technology and enhance audit quality.This study contributes with practical knowledge by mapping out and describing in detail how and in which IT-tools auditors spend their time in during their commitments during a typical week. Secondly, the study provides insights on the current IT-knowledge among auditors, which is a factor that influences the use of IT-tools among auditors. Further, this also includes, getting an enhanced understanding of what type of IT-knowledge that is required today, for the audit team member at a specific level, ranging from associates to partners at Big 4 and Non-big 4 firms. Thirdly, the thesis will also discuss impacts of digitalisation and advanced technologies in auditing and give an update of to what degree advanced technologies has been implemented.This was possible to accomplish through an online questionnaire and interview sessions which implied that seven different types of software are used by auditors where Spreadsheet software is one of the most frequently used IT-tools. Auditors generally use software they are familiar with and a resistance towards new software exists. The study also highlights the discussion if the implementation and use of advanced technologies is as widespread as the auditing firms are picturing it. Additionally, there is still a general lack of IT-skills among auditors, and students seeing a future in the auditing profession would have to take responsibility over their own IT-knowledge increasement alongside with educators implementing more IT-courses for students studying Business administration.

Internal auditors have a substantial impact on organisations’ governance. Hence this research aims to uncover the practice of internal auditors in Sweden, especially their part in cybersecurity and the people factor. While previous research point to internal auditing being an oversight governance mechanism for organisations, the threat of a changing risk landscape due to increased digitalisation and business transactions occurring in cyberspace leaves more questions undiscovered. The research implements a qualitative approach. The data was collected by semi-structured interviews conducted with members from IIA working as internal auditors. The IPPF authoritative guidance was also used as complementary data. The data was later analysed through theories such as the Three Lines of Defense. The results demonstrated how internal auditors provide assurance heavily influence organisations’ cybersecurity. However, it is equally essential for auditors to consider the indirect impact they have on the organisation, especially regarding the people factor of cybersecurity and the amount of influence internal auditors have. These findings indicate the need to focus on researching the indirect influence internal auditors have through their soft skills. Professionals should also reflect on their influence in their organisation not to overshadow other important risks.

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Titel: Revisorers granskning av uppskattade värden på tillgångar i redovisningen - En studie om hur den omarbetade ISA 540 påverkat granskningen Författare: Rebecca Hasselblom Granedal och Natalie Karlsson Nyckelord: Revision, uppskattade värden, ISA 540 Bakgrund: Vid granskning av uppskattade värden på tillgångar i redovisningen ska revisorer följa ISA 540. Standarden har tidigare blivit kritiserad på grund av att granskningen av uppskattade värden ansågs vara bristfällig och har med anledning av detta omarbetats. Den omarbetade ISA 540 tillämpas för räkenskapsår från och med 2020. Forskningsfråga: Hur har den omarbetade ISA 540 påverkat granskningen av uppskattade värden på tillgångar i redovisningen och vilken betydelse får det för kvaliteten i granskningen? Syfte: Syftet med den här studien är att analysera och skapa förståelse för hur den omarbetade ISA 540 har påverkat granskningen av uppskattade värden på tillgångar i redovisningen utifrån revisorers uppfattningar. Studien ämnar också bidra med förståelse för vilken betydelse omarbetningen får för kvaliteten i granskningen. Teoretisk referensram: Den teoretiska referensramen består av tidigare forskning och teorier om bland annat revisionens roll utifrån olika perspektiv, ISA 540 och de områden som den omarbetade ISA 540 fokuserar på. Utifrån den teoretiska referensramen har en analysmodell konstruerats. Metod: En kvalitativ studie med en huvudsakligen deduktiv ansats har genomförts. Data samlades in genom nio semistrukturerade intervjuer med revisorer som alla arbetar inom Big Seven. Val av respondenter grundas i att en viss storlek på byrå och dess klienter behövs för att kunna besvara forskningsfrågan. Slutsats: Studien visar att tidsåtgången och dokumentationen har ökat i och med ett mer strukturerat arbete efter omarbetningen av ISA 540. Vidare har riskbedömningen förändrats till att omfatta mer fokus på uppskattade värden på tillgångar med hög inneboende risk och den professionella skepticismen har förbättrats som en följd av en mer utmanande inställning vid granskning, vilket har betydelse för kvaliteten. Studien tyder därmed på en bättre kvalitet i granskningen vilket har betydelse för intressenter som tar del av finansiella rapporter. / Title: Auditors' review of estimated values of assets in the accounts - A study on how the revised ISA 540 has affected the review. Authors: Rebecca Hasselblom Granedal and Natalie Karlsson Keywords: Auditing, estimated values, ISA 540 Background: When reviewing estimated values of assets in the accounts, auditors must comply with ISA 540. The standard has been criticized because the review of estimated values was considered deficient and has been revised due to this. The revised ISA 540 applies for financial years from 2020. Research question: How has the revised ISA 540 affected the review of estimated values of assets in the accounts and what significance does this have for the quality of the review? Purpose: ​​The purpose of this study is to analyze and create an understanding of how the revised ISA 540 has affected the review of estimated values of assets in the accounts based on auditors' perceptions. The study also intends to contribute with an understanding of the significance of the revised standard for the quality of the review.  Theoretical framework: The theoretical framework consists of previous research and theories about, among other things, the role of the audit from different perspectives, ISA 540 and the areas that the revised ISA 540 focuses on. Based on the theoretical framework an analysis model has been constructed. Method: A qualitative study with a mainly deductive approach has been carried out. Data was collected through nine semi-structured interviews with auditors who all work within Big Seven. The choice of respondents is based on the fact that a certain size of agency and its clients are needed to be able to answer the research question.  Conclusion: This study shows that the time required and the documentation has increased due to more structured work since the revised ISA 540 was applied. Furthermore, the risk assessment has changed to include more focus on estimated values of assets with high inherent risk and the professional skepticism has improved as a result of a more challenging attitude when reviewing, which is important for quality. This study thus indicates a better quality in the review, which is important for stakeholders who take part in financial reports.

Information och data är något som är värdefullt i de flesta organisationer. Idag finns det möjlighet att samla in och analysera stora mängder data, något som brukar benämnas Big data. Ifall materialet hanteras på ett korrekt sätt kan det leda till ett förbättrat beslutsfattande samt ökade insikter om kunden och marknaden. Bearbetning av Big data har möjliggjorts under de senaste åren genom ny teknik, men det är förknippat med höga kostnader vilket har medfört att små- och medelstora företag inte har tillräckligt med resurser för att implementera Big data- tekniker. Detta är något som i stor utsträckning även kan appliceras på revisionsbyråer. I studiens problemdiskussion diskuteras att trots de fördelar som Big data-tekniker och digitalisering innebär för revisionsbranschen, har utvecklingen varit långsam. Genom det utformades ett syfte, att undersöka hur digitaliseringen och Big data-tekniker påverkat den svenska revisionsbranschen.  Syftet med denna studie är att undersöka, analysera och beskriva hur implementeringen av Big data har och kommer att påverka revisorns arbetsprocess. Syftet är också att undersöka vilka fördelar och nackdelar som implementeringen har medfört för revisionsbyråer och det skedde genom en empirisk undersökning.  Den empiriska undersökningen är en fallstudie som består av sju stycken intervjuer med representanter från olika revisionsbyråer i Västra Sverige. Genom att använda sig av intervjuer har respondenterna haft möjlighet att berätta om sina egna erfarenheter utan störningsmoment. Det är en kvalitativ metod som har tillämpats och studien har utgångspunkt ur en deduktiv ansats. Det eftersom utgångspunkten kommer ifrån tidigare forskning samt teori som redan existerar om digitalisering, Big data och revisionsbranschen.  Resultatet av studien visar att de olika respondenterna gav liknande svar, dels kring hur deras revisionsprocess är utformad, men även om den digitala utvecklingen och Big data. Det är tre stycken byråer som idag använder sig utav Big data i begränsad omfattning och en av respondenterna hade ingen kunskap om konceptet alls. Samtliga respondenter anser att digitaliseringen inom revisionsbranschen kommer att bli ännu viktigare och spela en större roll i framtiden. Automatisering och standardisering är processer som respondenterna tror kommer att bli mer omfattande i framtiden inom revisionen.  I studiens slutsats framkommer det att digitaliseringen inom revisionsbranschen har utvecklats något långsamt jämfört med andra delar i samhället, men att det skett en stor utveckling under de senaste åren. De slutsatser som presenteras och som utgår ifrån studiens frågeställningar är att arbetsprocessen för revisorerna inte har påverkats av Big data än, då det fortfarande är ett relativt okänt begrepp. Framtidens revision kommer dock inte se ut som idag, utan att det kommer ske stora förändringar inom branschen kommande år. Arbetsprocesser kommer att bli mer effektiva samt att revisionen kommer att ha en högre kvalitet. / Information and data are something that is of value in most organizations. Today, there is theopportunity to collect and analyze large amounts of data, which usually goes by the term Bigdata. If the essential material is handled correctly, it may result in improved decision makingand increased insights about clients and the market. The use and processing of Big data hasbeen made possible in the recent years through new technology, but it is associated with highcosts which has resulted in that small and medium-sized companies don’t have the resourcesto implement Big data technologies. This means that larger and more established companieshave an advantage. Big data can also be widely applied to auditing firms. The study's problemdiscussion proves that despite the many benefits that Big data technologies and the digitizationcreate for the auditing industry, the development is slagging behind other industries. Therefore,the purpose of the study was designed to see how digitalization and Big Data technologies hasaffected the Swedish auditing industry.The purpose of this study is to investigate, analyze and describe how the implementation ofBig data has and future affect the auditors’ work process. The purpose is also to investigatewhich advantages and disadvantages the implementation has brought auditing firms and thatwill be examined through an empirical study.The empirical study is a case study that consists of seven interviews with representatives fromvarious auditing firms in Western Sweden. By using interviews, the respondents have theopportunity to describe their own experiences. The study is based on the qualitative method.The study has a deductive approach as the starting point comes from previous research andtheory that already exists about digitization, Big data and the auditing industry.The results of the study shows that the respondents gave somewhat similar answers to thequestions, mostly about their auditing process and how it's designed today. But also about theirdigital development and Big data. Three of the interviewed firms use Big data today, but onlyto a limited extent and one of the respondents had no idea what the concept Big datarepresented. However, all respondents believe that digitalization in the auditing industry willbecome even more important and play a greater role in the near future. Automation andstandardization are processes that the respondents believe will be more extensive in the futurewithin the auditing firms.The study's conclusion shows that digitalization in the auditing industry has been somewhatslow compared with other industries, but that there has been a great development in recentyears. The conclusions that are presented and which are based on the study's questions are thatthe work process for the auditors has not been affected by Big data yet, as it’s still a relativelyunknown concept. However, auditing in the future will not look like it does today, there will besome major changes in the industry in the upcoming years. The work processes will be moreefficient than today and the audit will be of a higher quality.

Auditors must assess their clients' ability to function as a going concern for at least the year following the financial statement date. The audit profession has been severely criticized for failure to 'blow the whistle' in numerous highly visible bankruptcies that occurred shortly after unmodified audit opinions were issued. Financial distress indicators examined in this study are one mechanism for making such assessments. This study measures and compares the predictive accuracy of an easily implemented two-variable bankruptcy model originally developed using recursive partitioning on an equally proportioned data set of 202 firms. In this study, we test the predictive accuracy of this model, as well as previously developed logit and neural network models, using a realistically proportioned set of 14,212 firms' financial data covering the period 1981-1990. The previously developed recursive partitioning model had an overall accuracy for all firms ranging from 95 to 97% which outperformed both the logit model at 93 to 94% and the neural network model at 86 to 91%. The recursive partitioning model predicted the bankrupt firms with 33-58% accuracy. A sensitivity analysis of recursive partitioning cutting points indicated that a newly specified model could achieve an all firm and a bankrupt firm predictive accuracy of approximately 85%. Auditors will be interested in the Type I and Type II error tradeoffs revealed in a detailed sensitivity table for this easily implemented model.

Bakgrund Internrevisionen i svenska banker är något som ständigt har utvecklats i takt med de förändringar bankerna har genomgått under åren. Funktionen har gått från att vara relativt oprioriterad till att idag vara en viktig hörnsten i svensk bankverksamhet. Denna studie kommer därför undersöka hur internrevision skapar värde i svenska banker. Syfte Syftet med studien är att undersöka hur internrevision skapar värde i svenska banker. Metod Studien är kvalitativ och utförs genom en induktiv ansats med deduktiva inslag. Teorier berörande värdeskapande, agentteorin, risk management, intressentteorin med flera lyfts upp i den teoretiska referensramen. Empiriska data har samlats in genom semistrukturerade intervjuer och därefter sker en tematisk analys av detta. Resultat Studiens resultat visar att värdet som upplevs av internrevision i svenska banker är flerdimensionellt. Internrevision skapar värde genom att säkerställa en hög kvalité vad gäller implementering av regelverk och styrning. Funktionen skapar också värde genom att förebygga brister som kan leda till stora sanktioner och förluster i den operativa verksamheten, genom att skapa ett förtroende hos kunder samt genom att skapa en trygghet hos olika intressentgrupper kring att banken sköts på rätt sätt. / Introduction The internal audit in Swedish banks is something that has constantly evolved in line with the changes that the banks in Sweden has gone through during the recent years. The function has gone from being relatively non prioritised to being an important keystone in the Swedish banking sector. This study is therefore going to investigate how internal audit creates value in Swedish banks. Purpose The purpose of the study is to investigate how internal audit creates value in Swedish banks. Method The study is qualitiative and is performed through an inducitve approach with some deductive elements. Value-creation, agency theory, risk management, stakeholder’s theory and more are highlighted in the theoretical frame. The empirical data has been collected through semi-structured interiews and then we applicate a topical analysis. Results The results of the study show that the perceived value of internal audit in Swedish banks is multidimensional. Internal audit creates value by ensuring high quality in terms of implementation of laws and governance. The function also creates value by preventing faults that could lead to big sanctions and losses in the operational business, by creating customer confidence and by creating a security for different stakeholders with the fact that the bank is properly managed.

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Insider trading and earnings management (EM) have traditionally been associated with fraud and corporate scandals. Corporations involved in fraudulent financial reporting or earnings manipulations were assumed to have used insider trading patterns to manipulate earnings, thereby concealing information from investors. The purpose of this quantitative, non-experimental study was to examine the association between insider trading patterns and EM citations among a randomly selected sample of publicly traded companies. The research question pertained to the association between the number of EM citations and whether a firm exhibited patterns of insider trading among publicly traded firms. The theoretical framework was based on accounting, auditing and financial theories. Archival data were collected in the form of financial statements from annual reports of 77 companies submitted to the Securities and Exchange Commission. A multiple linear regression was used to answer the research question to determine whether there was an association between insider trading patterns and EM. Results of descriptive statistics and regression analysis revealed that, after controlling for the firm size, a significant association existed between the number of EM citations and patterns of insider trading in the sample of publicly traded firms. A positive relationship, wherein firms with patterns of insider trading had more EM citations as indicated from the regression results. These findings may encourage investors, regulators, auditors, the public, and other interested parties to work with researchers to foster confidence in financial markets and the accounting profession, and to redeem the mistakes made by companies in the past.

Business leaders remain exposed to financial and accounting fraud as well as loss of profitability, despite the dictates of the SOX Act of 2002. The most challenging aspect of corporate management is the unexpected nature of an emerging, existing, or an inherent financial risk. Guided by the evolution of fraud theory, this exploratory case study's purpose was to identify and explore the financial management strategies that corporate financial managers need to adequately protect investors. Twenty participants from a population group of corporate auditors of Fortune 1000 corporations within 70 miles of Columbus, Ohio provided input for this study. Data from the interviews were analyzed through coding, reviewing, categorizing, and combining common statements. The research findings included themes of knowledge and types of risks; the impact of financial fraud and risks on investment; the impact of accounting, auditing, and financial reporting standards; as well as financial management training to minimize audit expectations. These themes formed the focus of exploring the financial management strategies that corporate financial managers need to adequately protect investors and investments. In addition to the antifraud measures, financial managers may detect and control inherent risks in emerging opportunities for positive social change that includes enhanced knowledge in diversification of investments, an increase in economic resources, economic growth, and greater employment in the United States.