M.Com. (Business Management) / The purpose of applicability of private sector, situation in South this study is to determine value-for-money-auditing in with specific reference to Africa. The methodology which has been followed, consists of a literature study of the theories and concepts of value-for-money-auditing as well as an empirical study to determine the perceptions of South African management with regard to value-for-money-auditing. The following substantial findings are identified as a result of the empirical study: Firstly, that South African management is well aware of the possibilities of value-for-money-auditing. A lack of knowledge is not the reason why this kind of audit is not performed in the private sector. Secondly, management does regard value-for-money audits as feasible, but they have neither the time nor the manpower to invest in a value-for-money-audit. Thirdly, this study has shown that the external auditor also does not have the mar:power· or the knowledge at his disposal to perform an effective value-for-money-audit. The independence of the external auditor is of no importance in management's decision on the most suitable per son to perform a value-for-money-audit. The limited application of value-for-money-auditing in the private sector may be attributed to the following: • Inadequate guidelines, exposure drafts and statements with regard to value-for-money-auditing • The inability of the external auditor to perform a value-for-money-audit as a result of the nature of his training; • The perception of private sector management that the external auditor is not the most suitable person to perform a value-for-money-audit. This presents a challenge to the external audit profession to alleviate the above-mentioned shortcomings through further research and studies to enhance value-for-money-auditing in the private sector.

M.Comm. / At the time of a fresh issue of shares or debentures to the public, the principle document that provides potential investors with information on which to base their investment decisions, is a prospectus. In terms of the Companies Act, an offer of shares may not be made to the public unless it is accompanied by a prospectus. The information to be disclosed in a prospectus must conform to the requirements of Schedule 3 of the Companies Act. A prospectus also has to comply with the JSE Listing Requirements. Schedule 3 was promulgated in 1975 and has not been amended since. The question arises whether the requirements of Schedule 3 are comparable with similar international regulations and meet the needs of a changing business environment in South Africa. In an attempt to overcome this problem, ED 105 - Report offinancial information to be included in a prospectus created the first accounting statement dealing with the financial information that should be included in a prospectus, as well as proposing a revised Schedule 3 to the Standing Advisory Committee on Company Law relating to non-financial information that should be disclosed in a prospectus. Firstly this thesis aimed to establish whether the prospectus is a protection instrument for potential investors. The prospectus must, therefore, provide potential investors with sufficient and reliable information to enable them to make sound investment decisions. The contents of Schedule 3 were analysed in comparison with the JSE Listing Requirements and ED 105 to determine whether progress has been made in the provision of quality information to potential investors through the prospectus. The current South African requirements for disclosure in the prospectus were also compared with the requirements of leading overseas bourses and the prospectuses of recently listed companies. ED 105 improved the accuracy, completeness and relevancy of the requirements contained in Schedule 3 and the JSE Listing Requirements. The comparison, however, highlighted additional items of disclosure that can further contribute to the prospectus being a protection instrument for potential investors. In view of the financial literacy levels of the South African population, it was also necessary to investigate the ability of potential investors, especially private investors, to understand, interpret and use the information provided in a prospectus. The second objective was, therefore, to determine whether the prospectus empowers potential investors. The prospectus will be an empowerment instrument if the information provided therein is of - such a nature that potential investors can understand and interpret the information for decision-making purposes. An investigation into the literacy profile of potential investors, into relevant education provided to potential investors and an assessment ofthe understandability of the contents of the prospectus was, therefore, performed. Financial information required in ED 105 is strongly linked to the latest Statements of GAAP. A number of the items are only lectured on CT A level and with the Harmonisation and Improvements Project it can be expected that only individuals with a recent CTA will be able to understand these requirements. ED 105 impaired the understandability of the prospectus by the average potential investor.

This research aims to study the effects of legal liability rules on auditing quality in order to devise and implement a guideline for the optimal liability rules that can be applied to the auditing profession within society, and thus encourage investment. In an emerging market like Kuwait state, there is a weakness in the legal system, which may cause users to place less reliance on financial reports and auditing services. This environment does not encourage investment. The position in Kuwait state will be studied as an example of how emerging economies can add to the understanding of the role of the auditor, for the purposes of improving audit quality and encouraging a greater amount of investment. Where this position can be understood, this study gives a strong impression of how the legal liability of external auditors can impact on the auditing quality and, importantly, the chances of obtaining investment. For this reason the study is applied in Kuwait state. This research differs from the other literature in several important ways. First, the study has been performed in an environment of weak governance. Second, it studies the effects of the civil legal liability system from two views at the same time, so the research is carried out in relation to two different sides: first, the demand side of the auditing services represented by the users of financial information; and second, the supply side of the auditing services represented by the auditors. This has been done through two questionnaires, one distributed for each side. The results of users' questionnaire revealed that the existence of civil legal liability will increase the demand for auditing service. Also, consideration is directed towards the main determinant of auditing quality, which is the legal liability system, more so than other factors. As well as, through increasing auditor liability, trust in financial information will be enhanced, subsequently prompting investment within society. Moreover, the users, besides their needs for auditing services, require auditors to provide collateral for their investment process in order to increase their investment level. On other side, the results of auditors' questionnaire detected that the auditors hold the view that the demand for auditing services by companies will not be affected by the existence or non-existence of the liability rules. However, auditors believe that the existence of legal liability rules will make financial statement users more trustful in financial information, thereby increasing the number of users of audited financial reports. Also, the auditors do not agree that their liability should be increased since this will make auditing services more costly through the need to collect more evidence, increase the time of auditing, increase the sample size, etc. The increase in liability will also limit their acceptance of risky clients, make them increase their efforts, and due care. Furthermore, the introduction of legal liability may cause them to reduce their supply of audit services. Finally, a statistical test is carried out to compare the answers of the two groups. It is found that there are differences in views concerning the effects of the existence of legal liability on the demand for auditing. As well as, there are differences regarding their preferences about the alternative civil legal rules. The results of this study will help legislators by comparing the effects of available legal rules on audit quality and investment level. Accordingly, legislators can select the appropriate legal structure for auditors’ liability that achieves benefits to the business environment.

The objective of this research report was to determine which internal controls are perceived, by internal auditors, to be contributing to the effectiveness of an internal control structure. The Committee for Sponsoring Organisations (COSO) integrated internal control framework was used as a basis for the questionnaire construction and respondents were asked to rate the perceived control effectiveness of each of the components of internal control. Descriptive statistics were used to analyse the basic meaning of the data. The questionnaire was completed by following a Uniform Resource Locator (URL) which was sent to two internal auditors in audit firms. Thirty one responses were obtained; all the respondents have experience in the evaluation and assessment of internal control systems. This research showed that control elements as outlined in COSOs integrated internal control framework, if implemented, could contribute to the effectiveness of the internal control system.

This dissertation has two objectives. The first is to provide a framework for understanding strategic interactions between an auditor and investors in a competitive rational expectations economy. The second is to provide a welfare analysis of auditor litigation in a costly legal environment. We present a model which captures the following aspects: (i) investors in a competitive capital market form rational expectations about their future litigation opportunities against auditors; (ii) auditors compete for potential clients, and they strategically consider the threat of litigation; (iii) the audited firm's production decision depends on audit quality; and (iv) trial is a costly process, and litigants have settlement opportunities. The market price of the firm and audit quality are endogenized. The welfare analysis provides a rationale why society maintains a legal system which provides an incentive for the investors to recover their ex post financial loss from the auditor through a costly legal process, even if they can price-protect themselves ex ante with or without such a mechanism. We interpret the court system as a decentralized disciplinary mechanism for the auditor moral hazard problem, which enables the potential auditee to use an auditor as a commitment device. We examine the economic consequences of legal policies which potentially influence the size of legal costs. When audit failure is clearly defined, an increase in the auditor's legal costs decreases social welfare. An increase in the investors' legal costs has a more complex impact on the actions of economic agents upon which the social costs and benefits of an audit crucially depend. We also study the economic impact of a change from an American to a British rule of allocating legal costs, which was recently proposed by the accounting profession in the U.S. In contrast to the practitioners' common belief, we demonstrate that the British rule might increase the frequency of lawsuit. Therefore, regulators must be very careful in evaluating the accountants' proposal of the British rule, and it should not replace the American rule unless a careful analysis indicates that the net benefit of audits under the British rule is larger than that under the American rule. / Business, Sauder School of / Graduate

No description available.

No description available.

Thesis (MAcc)--Stellenbosch University, 2011. / ENGLISH ABSTRACT: The quality of external audits has increasingly come under the spotlight over the last decade as a result of a number of audit failures. The use of scientifically based statistical sampling as a sampling technique is allowed, but not required by International Standards on Auditing. The science behind this sampling technique can add to the credibility and quality of the audit. Accordingly the main objective of this study was to explore certain key aspects of the use of statistical sampling as a sampling technique in the audits of financial statements done by South African Registered Auditors accredited by the Johannesburg Stock Exchange (JSE). A literature review of the most recent local and international studies related to the key aspects addressed in this study was done. An empirical study was then done by means of a questionnaire that was sent to the JSE-accredited auditing firms for completion. The questionnaire focused on what was allowed by the firms’ audit methodologies regarding the key aspects investigated in this study and not on the actual usage of statistical sampling in audits performed by the firms. The following main conclusions were drawn in respect of the four key aspects that were investigated: 1. In investigating the extent to which statistical sampling is used by auditing firms, it was found that the majority of them was allowed to use the principles of statistical sampling. Upon further investigation it was found that only 38% were explicitly allowed to use it in all three sampling steps (size determination, selection of items and evaluation of results). The evaluation step was identified as the most problematic statistical sampling phase. 2. Two reasons why auditors decided not use statistical sampling as a sampling technique were identified, namely the perceived inefficiency (costliness) of the statistical sampling process, and a lack of understanding, training and experience in the use thereof. 3. In investigating how professional judgement is exercised in the use of statistical sampling, it was found that the audit methodologies of the majority of the auditing firms prescribed the precision and confidence levels to be used, and further that the minority indicated that they were allowed to adjust these levels using their professional judgement. The partner in charge of the audit was identified to be typically responsible for final authorisation of the sampling approach to be followed. 4. It was found that approximately a third of the auditing firms did not use computer software for assistance in using statistical sampling. The majority of the auditing firms did however have a written guide on how to use statistical sampling in practice available as a resource to staff. The value of this study lies in its contribution to the existing body of knowledge in South Africa regarding the use of statistical sampling in auditing. Stakeholders in statistical sampling as an auditing technique that can benefit from this study include Registered Auditors in practice, academics, and, from regulatory, education and training perspectives, the Independent Regulatory Board for Auditors and the South African Institute of Chartered Accountants. / AFRIKAANSE OPSOMMING: Na aanleiding van 'n aantal oudit mislukkings in die afgelope dekade het die kwaliteit van eksterne oudits toenemend onder die soeklig gekom. Die gebruik van wetenskaplik gebaseerde statistiese steekproefneming word deur die International Standards on Auditing toegelaat, maar nie vereis nie, as 'n steekproefnemingstegniek. Die wetenskap agter hierdie steekproefnemingstegniek kan tot die geloofwaardigheid en die kwaliteit van die oudit bydra. Die hoofdoel van hierdie studie was gevolglik om sekere sleutel aspekte van die gebruik van statistiese steekproefneming as 'n steekproefnemingstegniek in die oudits van finansiële state soos gedoen deur Suid-Afrikaanse Geregistreerde Ouditeure geakkrediteer deur die Johannesburgse Effektebeurs (JSE), te verken. 'n Literatuurstudie van die mees onlangse plaaslike en internasionale studies wat verband hou met die sleutel aspekte wat in hierdie studie aangespreek word, is gedoen. 'n Empiriese studie is daarna gedoen met behulp van 'n vraelys wat vir die voltooiing aan die JSE-geakkrediteerde ouditeursfirmas gestuur is. Die vraelys het gefokus op wat toegelaat word deur die firmas se oudit metodologieë ten opsigte van die sleutel aspekte ondersoek in hierdie studie en nie op die werklike gebruik van statistiese steekproefneming in oudits wat deur die firmas uitgevoer word nie. Die volgende hoofgevolgtrekkings is gemaak ten opsigte van die vier sleutel aspekte wat ondersoek is: 1. In die ondersoek na die mate waarin statistiese steekproefneming gebruik word deur ouditeursfirmas, is gevind dat die meerderheid toegelaat was om die beginsels van statistiese steekproefneming te gebruik. By verdere ondersoek is gevind dat slegs 38% uitdruklik toegelaat word om dit te gebruik in al drie steekproefneming stappe (grootte-bepaling, keuse van items en evaluering van resultate). Die evalueringstap is geïdentifiseer as die mees problematiese statistiese steekproefnemings fase. 2. Twee redes waarom ouditeure besluit het om nie statistiese steekproefneming as 'n steekproefnemingstegniek te gebruik nie is geïdentifiseer, naamlik die vermeende ondoeltreffendheid (hoë koste) van die statistiese steekproefnemingsproses, en 'n gebrek aan begrip, opleiding en ondervinding in die gebruik daarvan. 3. Met die ondersoek van die wyse waarop professionele oordeel uitgeoefen word in die gebruik van statistiese steekproefneming, is gevind dat die presisiepeil en vertrouensvlakke wat gebruik word deur die meerderheid van die ouditeursfirmas se oudit metodologieë voorgeskryf word, en verder het die minderheid aangedui dat hulle hierdie vlakke mag aanpas deur hul professionele oordeel te gebruik. Die vennoot in beheer van die oudit is geïdentifiseer as tipies verantwoordelik vir die finale goedkeuring van die steekproefnemingsbenadering wat gevolg word . 4. Daar is gevind dat ongeveer 'n derde van die ouditeursfirmas nie gebruik maak van rekenaarsagteware vir bystand in die gebruik van statistiese steekproefneming nie. Die meerderheid van die ouditeursfirmas het egter 'n geskrewe gids oor hoe om statistiese steekproefneming in die praktyk te gebruik as 'n hulpmiddel aan personeel beskikbaar. Die waarde van hierdie studie lê in sy bydrae tot die bestaande liggaam van kennis in Suid-Afrika met betrekking tot die gebruik van statistiese steekproefneming in ouditkunde. Belanghebbers in statistiese steekproefneming as 'n oudittegniek wat kan baat vind by hierdie studie sluit in Geregistreerde Ouditeure in praktyk, akademici, en, vanuit regulerings-, opvoedings- en opleidingsperspektiewe, die Independent Regulatory Board for Auditors en die Suid-Afrikaanse Instituut van Geoktrooieerde Rekenmeesters.

Approved for public release; distribution is unlimited / This thesis examines the area of transportation bill auditing in the Federal Government. It reviews the history of transportation bill auditing, the mechanics of auditing freight transportation bills, and the various factors that impact on the causes and identification of overcharges. This thesis analyzes the current method of post-payment audits of all government transportation bills by GSA and reviews the ongoing initiatives by DOD to implement pre-payment auditing. It concludes that DOD is paying upwards of $48 million a year in freight overcharges alone and that pre-payment audits can significantly reduce this amount. / http://archive.org/details/auditinggovernme00karn / Lieutenant Commander, United States Navy

Bakgrund: Studenters uppfattning om sitt blivande yrke överensstämmer inte alltid med vad de upplever när de kommer ut i arbetslivet, det finns ett förväntnings-realitetsgap. När studenten övergår till nyanställd kan det uppstå en verklighetschock. För att få en praktisk koppling till den teoretiska utbildning som de akademiska lärosätena tillhandahåller, kan studenten genomgå en verksamhetsförlagd utbildning (VFU). I Sverige är det i dagsläget åtta lärosäten som erbjuder VFU som en del av ekonomutbildning med inriktning redovisning/revision. Syfte: Syftet med studien är att utforska hur VFU påverkar redovisnings- och revisionsstudenters uppfattningar om revisorsassistenters arbetsuppgifter, roller och ansvar. Genomförande: En förstudie genomfördes där tre revisorsassistenter intervjuades för att ge oss en tydlig bild om revisorsassistenters arbetsuppgifter, roller och ansvar. Dessa intervjuer låg sedan till grund för utformningen av en enkät som skickades ut till redovisnings- och revisionsstudenter på de lärosäten som erbjuder VFU inom ramen för utbildningen. Detta för att identifiera redovisnings- och revisionsstudenternas uppfattningar om revisorsassistentens arbetsuppgifter, roller och ansvar. Slutsats: Vår slutsats är att VFU inte tycks ha någon större påverkan på redovisnings- och revisionsstudenters uppfattningar om revisorsassistentens arbetsuppgifter, roller och ansvar. Ett svagt samband har kunnat identifieras mellan VFU och revisorsassistentens arbetsuppgift kontrollera siffror. Studien antyder att det finns en skillnad på uppfattningarna mellan lärosätena. Förslag till vidare forskning: En longitudinell studie där ett antal redovisnings- och revisionsstudenters uppfattningar studeras under hela verksamhetsförlagda utbildningen för att fånga kunskaperna före och efter VFU. / Background: Students' perception of their future profession does not always correspond with what they experience when they are new employees – there’s an expectation-reality gap. When the student becomes a new employee, they may experience a reality shock. To get some practical connection to the theoretical education that the academic universities provide, the student may undergo a work integrated learning (WIL). In Sweden there are eight institutions offering WIL as part of economic studies with specialization within accounting/auditing. Objective: The aim of this study is to explore how WIL affects the accounting and auditing students' perceptions of auditor assistants' duties, roles and responsibilities. Implementation: To start with, a pilot study was conducted in which three auditor assistants were interviewed in order to get a clear picture of auditor assistants' duties, roles and responsibilities. These interviews formed the basis for the design of a questionnaire sent out to the audit and accounting students at the universities that offer WIL within the framework of the economic studies. This was done to identify accounting and auditing students' perceptions of auditor assistants' duties, roles and responsibilities. Conclusion: Our conclusion is that WIL does not seem to have any major impact on the accounting and auditing students' perceptions of auditor assistants' duties, roles and responsibilities. A weak relationship has been identified between WIL and the assistant auditor task check digits. The study suggests, however, that there is a difference of perceptions between the different educational institutions. Suggestions for further research: A longitudinal study in which a number of accounting and auditing students' perceptions are studied throughout the work integrated learning course in an attempt of capturing their perception before and after WIL.