The thesis describes law relating to auditors and audit services in the Czech republic. It consists of five chapters. The first one defines the audit, goes through its history, development, and lists the main goals it should fulfill. The second chapter deals with ethics of the audit profession. The rules are mainly covered by the ethics code which sets the basic principles all auditors are obliged to respect and follow. Various circumstances threatening these principles and settings that auditors might find themselves in are detailed there. The third chapter deals with the historical development of law relevant to audit services from 1989 to present. There is also defined which accounting entities are supposed to have their financial statements checked by an auditor in this chapter. The fourth chapter covers the up-to-date subject of implementation of the directive 2006/43/EC of the European Parliament and of the Council by the act no. 93/2009, on Auditors. The structure of the chapter follows the aforementioned act and its subchapters correspond to the act's titles. The last chapter lists the professional regulations the auditors are obliged to comply. This includes especially the International standards on auditing issued by the International Auditing and Assurance Standards Board. The end of the chapter addresses the project for increasing comprehensibility of international standards on auditing and ensuring its uniform administration.

The aim of this master thesis is to evaluate the importance of audits of banks with respect to the Czech national economy within years 1993 - 2014. The primary purpose of this study is to determine the value of both external and internal audits as well as of internal control systems and of bank supervision in order to maintain a long-term stability of banks on the Czech financial market. In the light of knowledge gathered from the Czech banking crisis (late nineties of the 20th century) and from the latest widely-spread economic and financial crisis (2008), it has been proved that low-quality audits may consequently contagiously affect a great deal of financial institutions. As for the economies, a collapse of a larger number of banks in the short run may cause higher social costs (mainly due to government budget deficit when bailing out affected banks and to economic downturn). Analyses suggest that these crises have been a result of a confluence of many factors. In particular, a poor a management of banks and its interest in short-term profit-maximizing goals, trades with highly risky financial instruments (especially in the US and in the EU), likewise failures of both auditors and bank supervisors, account for some of the main factors. Moreover, it has been concluded that an institutional background (a weak law system in the Czech Republic) played an important role, too. The quality of audits was also influenced by an everlasting conflict of interest of statutory auditors who have been paid by the audited banks. This probably resulted in an unethical behavior of auditors. Furthermore, auditors were lacking the state-of-the-art knowledge in terms of rapidly developing financial instruments. As a matter of fact, auditors did not address all the risks the banks were facing to the stakeholders. This study indicates that both external and internal audits along with a bank supervision are important, nonetheless, not sufficient conditions assuring a long-term stability on financial markets.

Digitaliseringen anses vara en transformerande drivkraft i samhället med en betydande påverkan på revisionsbranschen. Revisionsarbetet utvecklas till att ske alltmer digitalt. Tidigare forskning belyser det faktum att revisorernas kompetensbehov har förändrats till följd av den teknologiska utvecklingen. Syftet med denna studie var att bilda en förståelse kring digitaliseringens påverkan på revisionsbranschen och därmed Revisorsinspektionens (RI) utbildningskrav för auktorisation av revisorer. En kvalitativ forskningsmetod har använts för att besvara studiens syfte och frågeställning. Semistrukturerade intervjuer har utförts med anställda från Revisorsinspektionen samt verksamma revisorer hos Big Four-byråerna. Den insamlade empirin har därefter analyserats utifrån studiens teoretiska referensram. Slutsatserna som dragits visar att digitaliseringen har en betydande påverkan på revisionsbranschen men endast en viss påverkan på Revisorsinspektionens utbildningskrav. De nya kraven från 2018 möjliggör en bredare utbildningsbakgrund hos revisorerna, vilket anses vara fördelaktigt enligt empirin ur ett digitaliseringsperspektiv.  Vidare visar studien att det föreligger ett förändringsbehov av Revisorsinspektionens utbildningskrav. Respondenter från revisionsbranschen anser att teknisk grundutbildning är fördelaktigt för revisorer, då stor del av revisionsarbetet sker med digitala arbetsverktyg. I takt med att klienterna även digitaliseras dras slutsatsen att viss teknisk kunskap är nödvändig för att revisorerna skall erhålla en förståelse kring klienternas finansiella information och dess verksamhet. Således anses det från revisionsbranschens håll att teknisk grundkunskap bör implementeras i RI:s utbildningskrav för auktorisation av revisorer. Enligt analys av empiri och den teoretiska referensramen tyder resultatet på att förändringar i utbildningskraven hindras av institutionell tröghet hos Revisorsinspektionen. / Digitalization is a transforming force with a significant impact within the auditing industry. The auditing process is developing towards being increasingly digital. Previous research has highlighted that the auditor’s competence needs have changed because of digitalization. The purpose of this paper was to investigate the impact of digitalization within the auditing industry and thereby the Swedish Inspectorate of Auditors’ (SIA) educational requirements for authorization of auditors. A qualitative research method has been used to answer the purpose and research questions of this paper. Interviews have been conducted with employees from the SIA and auditors at the Big Four-firms. The empirical data were analyzed based on the theoretical framework. The conclusions show that digitalization has a significant impact on the auditing industry, but only a certain impact on the SIA’s educational requirements. The new requirements from 2018 enable a wider educational background for auditors, which is considered advantageous for the auditing industry. Furthermore, the study shows that there is a need for change in the SIA’s educational requirements. Respondents from the auditing industry believe that basic technical education is beneficial for auditors, as most of the auditing process is performed by using digital tools. It is concluded that some technical knowledge is necessary for the auditors to gain an understanding of the clients’ financial information and its operations. It is therefore considered that basic technical knowledge should be implemented in the SIA’s educational requirements. However, the result indicates that changes in these requirements are prevented by institutional inertia at the SIA.

Information security in the form of IT governance is part of corporate governance. Corporate governance requires that structures and processes are in place with appropriate checks and balances to enable directors to discharge their responsibilities. Accordingly, information security must be treated in the same way as all the other components of corporate governance. This includes making information security a core part of executive and board responsibilities. Critically, corporate governance requires proper checks and balances to be established in an organisation; consequently, these must be in place for all information security implementations. In order to achieve this, it is important to have the involvement of three key role players, namely information security professionals, ICT security auditors and regulatory officials (from now on these will be referred to collectively as the ‘role players’). These three role players must ensure that any information security controls implemented are properly checked and evaluated against the organisation’s strategic objectives and regulatory requirements. While maintaining their individual independence, the three role players must work together to achieve their individual goals with a view to, as a collective, contributing positively to the overall information security of an organisation. Working together requires that each role player must clearly understand its individual role, as well the role of the other players at different points in an information security programme. In a nutshell, the role players must be aligned such that their involvement will deliver maximum value to the organisation. This alignment must be based on a common framework which is understood and accepted by all three role players. This study proposes a South African Information Security Alignment (SAISA) framework to ensure the alignment of the role players in the implementation and evaluation of information security controls. The structure of the SAISA framework is based on that of the COBIT 4.1 (Control Objectives for Information and Related Technology). Hence, the SAISA framework comprises four domains, namely, Plan and Organise Information Security (PO-IS), Acquire and Implement Information Security (AI-IS), Deliver and Support Information Security (DS-IS) and Monitor and Evaluate Information Security (ME-IS). The SAISA framework brings together the three role players with a view to assisting them to understand their respective roles, as well as those of the other role players, as they implement and evaluate information security controls. The framework is intended to improve cooperation among the role players by ensuring that they view each other as partners in this process. Through the life cycle structure it adopts, the SAISA framework provides an effective and efficient tool for rolling out an information security programme in an organisation / Computer Science / M. Sc. (Computer Science)

Subordination of judgment is a fundamental threat to auditor objectivity. Subordination of judgment occurs when auditors agree with their superiors either in spite of or without forming their own independent judgments. Many audit procedures rely on independent, critical thinking at every level of the audit team; however, a number of studies suggest that auditors tend to agree with superiors even when a superior's views clearly run contrary to generally accepted accounting principles. While there is general agreement among scholars that subordination of judgment is "bad," very little attention has been given to moral biases that might influence an auditor's tendency to subordination of judgment, or to potential remedies that could mitigate an auditor's tendency to subordinate judgment. Moral Foundations Theory suggests that individuals tend to make intuitive, normative evaluations of situations based upon a set of personal moral biases or preferences called "moral foundations." Two specific moral foundations could influence subordination of judgment in divergent ways. The moral foundation of loyalty-respect may make agreement with a superior's views seem more acceptable than would disagreement. Meanwhile, the moral foundation of fairness may make an auditor more sensitive to the observance of rules, resulting in less subordination of judgment when a superior's views run contrary to professional rules. Social Identity Theory suggests that in-group favoritism may exacerbate subordination of judgment in general; however, strengthening an auditor's professional identity salience (PIS) could strengthen an auditor's objectivity. PIS is the temporary, heightened awareness of an auditor's identity as a professional and their role as guardian of professional rules. As a result, PIS may interact with an auditor's innate sense of fairness, resulting in less subordination of judgment than when professional identity is less salient. Results supported the hypothesis that auditors tend to subordinate their judgment to that of a superior, but not that PIS mitigates the effect of subordination of judgment. Results also supported the hypotheses that the moral foundations of loyalty-respect and fairness influence the tendency of auditors to subordinate their judgment to that of a superior. Specifically, auditors with higher levels of loyalty-respect were more likely to agree with a superior who suggested an incorrect accounting treatment than auditors with lower levels of loyalty-respect. Whereas, auditors with higher levels of fairness were less likely to agree with a superior who suggested an incorrect treatment than were auditors with lower levels of fairness. Therefore, this dissertation provides evidence that moral foundations bias professional judgment and decision making in auditing and calls for further research into the influence of moral heuristics.

To complete work in a satisfactory manner, the auditor needs to maintain his or her qualifying role; it is required that the auditor is independent. The auditor shall review his or her independence before each assignment and resign if there are circumstances that could upset the trust in his or her independence. The study is based on the scepticism we have that a human being can ever be independent. The thesis aims to obtain valuable insight into the auditor’s independent position by studying the auditor’s approach on independence and the eventual threats they may experience. Furthermore, the purpose is to determine if an auditor can be independent. Through a qualitative method and abductive approach, the study has taken its starting point in the research to supplement the general knowledge with the practice from the auditor’s perspective. Within the institutional context, we have analyzed the empirical data based on three overarching themes; 1. The Swedish Auditing Act’s five threats against independence, 2. Independence in fact and independence in appearance, and 3. The auditor’s practical course of action. The study shows that there are divided opinions about whether an auditor can be independent and that there are patterns that indicate the existence of isomorphism. Likewise, the study shows that threats of friendship and self-examination should not necessarily be seen as a threat but rather as an advantage to conducting a qualitative audit. / För att en revisor ska genomföra ett tillfredsställande arbete och behålla sin kvalitetsstämplande roll krävs det att hen är oberoende. Revisorn ska med stöd av revisorslagens analysmodell pröva sitt oberoende innan varje uppdrag och avsäga sig uppdrag om det finns omständigheter som kan rubba förtroendet för hens opartiskhet eller självständighet. Problematiken i studien grundar sig i den skepticism vi har till att en människa någonsin kan vara oberoende. Syftet med uppsatsen är att få en användbar inblick i revisorns oberoendeposition genom att studera revisors synsätt på sin roll och de eventuella hotbilder mot oberoendet som de upplever. Vidare är syftet att reda ut om det överhuvudtaget är möjligt för en revisor att vara oberoende. Studien har genom en kvalitativ metod och abduktiv ansats tagit avstamp ur forskningen för att komplettera det rådande vetandet med praktiken ur revisorers perspektiv. Studien har inom en institutionell kontext analyserat empirin utifrån tre övergripande teman; 1. Revisorslagens analysmodell, 2. Faktiskt och synbart oberoende, och 3. Revisorns praktiska tillvägagångssätt. Studien visar att det finns delade meningar kring huruvida det är möjligt för en revisor att vara oberoende, samt att det föreligger mönster som tyder på existensen av isomorfism. Studien påvisar likaså att vänskaps- och självgranskningshot inte nödvändigtvis bör ses som ett hot, utan snarare som en fördel till att genomföra en kvalitativ revision.

Hållbarhet är ett viktigt koncept i dagens samhälle där TBL teorin blivit allt mer använd av företag. TBL teorin är uppdelad i tre perspektiv, people, planet och profit. Digitaliseringen av revisionsbranschen har på senare tid genomgått stora förändringar. Informations och kommunikationsteknologier (IKT) är ett område inom digitalisering som används flitigt inom revision. Frågan om IKT påverkar revisorns hållbara arbete utifrån TBL teorin har vi inte funnit någon forskning om. För att undersöka syftet med studien har en kvantitativ ansats applicerats och data har samlats in via en webbaserad enkätundersökning vilket revisorer och revisorsassistenter på olika revisionsbyråer deltagit i. Enkätens frågor formulerades utifrån den beroende variabeln revisorns hållbara arbete och den oberoende variabeln IKT. Enkäten undersökte även fyra kontrollvariabler. Resultatet från studien visar på att IKT har en positiv påverkan på revisorns hållbara arbete. Inga kontrollvariabler påverkar sambandet mellan IKT och revisorns hållbara arbete. Dessutom anser revisorer att people, planet och profit är viktiga begrepp och arbetar mycket med samtliga. Profit anses dock vara viktigast och planet anses vara minst viktig. Tidsramen för att slutföra studien och revisorernas högsäsong har begränsat enkätens svarsfrekvens. Detta är något som framtida forskning bör ha i åtanke för att kunna undersöka ämnet ytterligare. / Sustainability is an important concept within today’s society whereas the TBL theory has become increasingly useful by companies. The TBL theory is divided into three perspectives which are people, planet and profit. Lately digitalization of the accounting profession has been through some big changes. Information and communication technologies (ICT) is a field within digitalization that is used diligently within audit. The question if ICT effects the auditors sustainable work using the TBL theory is something that we have not found any research about. To examine the purpose of the study a quantitative approach has been applicated and data has been collected using an online survey that auditors and auditor assistants on different firms has been a part of. The surveys questions were formulated from the dependent variable, the audits sustainable work and the independent variable, ICT. The survey also examined four control variables. The result from the study showed that ICT has a positive effect on the auditors´ sustainable work. Where no control variables effected the correlation between ICT and the auditors´ sustainable work. The auditors also consider people, planet and profit to be important concepts and works a lot with all of them. Profit, however, is considered the most important and planet is considered the least important. The time frame to finish the study and the peak season for auditors has limited the surveys response rate. This is something that future research should consider to be able to investigate the subject further.

Personalomsättning är ett vanligt förekommande problem inom revisionsbranschen. För att förutsäga personalomsättning kan avsikt att byta arbete undersökas. Styrkan i en individs avsikt att byta arbete är en indikation på hur sannolikt det är att individen faktiskt kommer att sluta. Den teori som tillämpats i uppsatsen är Herzbergs tvåfaktorsteori, med fokus på motivationsfaktorerna. Motivationsfaktorerna ansvar, prestationer, bekräftelse, arbetet i sig och utvecklingsmöjligheter är de som skapar tillfredsställelse med arbetet om de finns, men som inte medför missnöje med arbetet om de inte finns. Syfte: Uppsatsen syftar till att bidra med ytterligare kunskap på området kring motivation och en individs avsikt att byta arbete. Detta genom att genomföra en studie med fokus på att undersöka sambanden mellan Herzbergs motivationsfaktorer och förtroendevalda kommunrevisorers avsikt att byta arbete. Uppsatsen syftar även till att undersöka om dessa samband samt avsikten att byta arbete skiljer sig åt med avseende på bakgrundsvariablerna kön, ålder och utbildning. Metod: En kvantitativ metod med ett ändamålsenligt urval har tillämpats för uppsatsen. För datainsamling distribuerades en enkät via Google Formulär till förtroendevalda kommunrevisorer i Region A. För analys av data har korrelationsanalys samt hypotesprövning av Pearsons korrelationskoefficient genomförts, detta för att undersöka samband mellan avsikt att byta arbete och Herzbergs motivationsfaktorer. Därutöver har en multipel regressionsanalys genomförts för att undersöka motivationsfaktorernas påverkan på en individs avsikt att byta arbete. Resultat: Uppsatsens resultat visar signifikanta samband mellan förtroendevalda kommunrevisorers avsikt att byta arbete och motivationsfaktorerna ansvar, bekräftelse och arbetet i sig för samtliga respondenter. Sambandet är för alla dessa variabler negativt. För kvinnor, individer med gymnasieutbildning samt individer med minst treårig högskole-/universitetsutbildning föreligger inget signifikant samband för någon av motivationsfaktorerna. För män kan ett signifikant negativt samband ses för motivationsfaktorerna ansvar, prestationer, bekräftelse, utvecklingsmöjligheter och arbetet i sig. För individer med eftergymnasial utbildning finns ett signifikant negativt samband mellan avsikt att byta arbete och motivationsfaktorerna ansvar, bekräftelse och utvecklingsmöjligheter. Trots signifikanta samband kan det endast påvisas att motivationsfaktorn ansvar påverkar en individs avsikt att byta arbete, till följd av ett signifikant resultat i den multipla regressionsanalysen. Avsikten att byta arbete skiljer sig inte signifikant mellan individer med olika utbildningsnivå eller mellan olika kön. Slutsats: Uppsatsens resultat bidrar med ytterligare kunskap på ett område som redan är välstuderat genom att en ytterligare yrkeskategori och ett geografiskt område studerats. Resultaten kan användas som indikatorer för kommuner i Region A för att bättre kunna förstå, hantera och förebygga personalomsättning bland förtroendevalda kommunrevisorer. / Staff turnover is a common problem in the auditing industry. In order to predict staff turnover, turnover intention can be examined. The strength of the turnover intention is an indication of how likely it is that the individual will actually quit. The theory applied in the essay is Herzberg's two-factor theory, with a focus on the motivational factors. The motivational factors, responsibility, recognition, achievements, work itself, and growth, are those that create satisfaction with the work if they exist, but which do not lead to dissatisfaction with the work if they do not exist.  Purpose:  The thesis aims to examine the relationships between turnover intention and Herzberg's motivational factors. The thesis also aims to examine whether these relationships, and turnover intention, differs regarding the background variables gender, age and education.  Method:  A quantitative method with purposive sampling has been applied to the essay. For data collection, a survey was distributed via Google Formulär to elected municipal auditors in Region A. For analysis of data, a correlation analysis and hypothesis testing of Pearson's correlation coefficient has been performed, in order to examine the relationship between turnover intention and Herzberg's motivational factors. In addition, a multiple regression analysis has been performed to examine the influence of the motivational factors on turnover intention.  Results:  The results of the essay show that significant relationships can be seen between turnover intention and the motivational factors responsibility, confirmation and the work itself for all respondents. The relationship is negative for all these three variables. For women, individuals with upper secondary education and individuals with at least three years of college/university education, there is no significant relationship for any of the motivational factors. For men, a significant negative relationship can be seen for the motivational factors responsibility, performance, confirmation, growth, and the work itself. For individuals with post-secondary education, there is a significant negative relationship between turnover intention and the motivational factors responsibility, confirmation, and growth. Despite significant correlations, it can only be shown that the motivational factor responsibility affects turnover intention, as a result of a significant result in the multiple regression analysis. The turnover intention does not significantly differ regarding educational level or gender. Conclusion:  The results of the thesis contribute with additional knowledge in an area that has already been well studied, by studying an additional category of professions and another geographic area. The results can be used as indicators for municipalities in Region A, in order to better understand, manage and prevent turnover among elected municipal auditors.

Syftet med denna studie är att undersöka hur revisionsbyråer har anpassat sig i förändradeomständigheter orsakade av påtvingat distansarbete och att ge en inblick i hur de upprätthåller legitimitet i revisionsarbetet. En kvalitativ studie har genomförts medsemistrukturerade intervjuer med revisorer samt en dokumentstudie med interna dokument som vi har fått från respondenterna. Dokumenten innehåller beskrivningar av revisorers omställning inom teknologi och kommunikation. Resultaten visar att revisorer och revisionsbyråer har kunnat fullgöra deras arbetsuppgifter även om de har saknat fysiskinteraktion med medarbetare och klienter. Revisorers och revisionsbyråers förmåga att upprätthålla legitimitet har i flera situationer däremot försvårats vad gäller befintliga förväntningar. De har trots detta ställt om tillräckligt bra för att kunna upprätthålla deras legitimitet. / The purpose of this study is to examine how audit firms have adjusted in changed circumstances caused by forced telework and to provide an insight into how they maintain legitimacy in the audit work. A qualitative study has been conducted with semi-structured interviews with auditors as well as a document study with internal documents that we have received from the participants. The documents contain descriptions of the auditors adjustment in technology and communication. The results show that auditors and audit firms have been able to fulfill their duties, even though they have lacked physical interaction with colleagues and clients. Auditors and audit firms ability to maintain legitimacy has in several situations deteriorated regarding existing expectations. They have nevertheless adjusted well enough to be able to maintain their legitimacy. This essay is written in Swedish

I dagens samhälle finns det ett stort antal olika redovisningsstandarder och regelverk som företag måste förhålla sig till. Revisorerna granskar redovisningen för att se till att den upprätthåller den kvalitet som krävs för att den ska ge en rättvisande bild av företaget. Revisorerna ökar trovärdigheten på företags redovisning genom att granska årsredovisningar och den löpande förvaltningen. Det är Revisorsinspektionen (RI) som har som uppgift att granska de svenska revisorerna och ingripa mot revisorer som agerar oredligt. För att möjliggöra fortsatt utveckling av revisionsyrket måste de grundläggande orsakerna till revisionsmisslyckanden identifieras och revisionskvaliteten måste oavbrutet prövas. Syftet med studien är att analysera och granska samtliga disciplinärenden från RI som resulterat i en disciplinär åtgärd för en revisor. Studien ämnar vidare att identifiera de främsta orsakerna till revisionsmisslyckanden, samt att urskilja hur felaktigheterna skiljer sig åt mellan professionsfelaktigheter och processfelaktigheter. Undersökningen genomförs med hjälp av en induktiv innehållsanalys av samtliga disciplinärenden utfärdade av RI under tidsperioden 2016-2022. Studien analyserade totalt 234 olika ärenden med sammanlagt 959 antal felaktigheter. Studien kategoriserar datamaterialet och delar upp revisionsmisslyckanden i två olika huvudgrupper: processfelaktigheter och proffessionsfelaktigheter. Studien identifierade sex olika kategorier tillhörande revisionsprocessen och två kategorier hänförda till revisionsprofessionen. Av de totala felaktigheterna studien identifierade klassificerades 87 procent som processfelaktigheter. Undersökningen påvisar att den vanligaste orsaken till revisionsmisslyckanden är olika typer av granskningsfelaktigheter / Today’s society posits a great number of different accounting standards and regulations that companies need to adhere to. Financial statements are under scrutiny by auditors to ensure that it maintains sufficient quality that it accurately depicts the enterprise. Having auditors overseeing the company's accounts increases the company’s credibility. In Sweden auditors are overlooked by the Swedish Inspectorate of Auditors (SIA), whose purpose is to maintain audit quality, mainly by supervising and examining Swedish auditors. To ensure that audit as a profession continues to develop, audit failures need to be identified, and the auditors who make errors have to undertake disciplinary actions. The purpose of this study is to analyze and examine all disciplinary cases that have been reported from the SIA that have resulted in a disciplinary action. Furthermore, the study aims to identify the most common causes for audit failure, as well as discern how errors differ between professional misconduct and procedural errors. The survey was conducted with an inductive approach, examining all disciplinary cases issued by the SIA during the period 2016-2022. In total, 234 different cases were examined, with a sum of 959 different errors. The data was categorized into two main categories: procedural errors and professional misconduct. The study presents six different categories adhering to audit procedure, and two categories adhering to the audit profession. Out of all the errors identified by the study, 87 percent were classified as procedural errors. The most frequently identified error made by Swedish auditors were different types of examining errors.