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International Journal of Auditing and Accounting Studies

International Journal of Auditing and Accounting Studies

Frequency :Bi-Annual

ISSN :2582-3272

Peer Reviewed Journal

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Table of Content :-International Journal of Auditing and Accounting Studies, Vol:5, Issue:2, Year:2023

APPLICATION OF BENFORD’S LAW AND THE DETECTION OF ACCOUNTING DATA FRAUD IN NIGERIA

BY :   Etim Osim Etim, Emmanuel E. Daferighe, Augustine Brenden Inyang and Michael Esua Ekikor
International Journal of Auditing and Accounting Studies, Year:2023, Vol.5 (2), PP.119-163
Received:27 December 2022 | Revised:26 January 2023 | Accepted :15 February 2023 | Publication:10 July 2023
Doi No.:https://DOI:10.47509/IJAAS.2023.v05i02.01

This study employs empirical data to examine how Benford’s law can be used to identify accounting data fraud in Nigeria. There is a need for an extra tool in the identification of accounting data fraud due to the alarmingly high level of skill of those who commit accounting data fraud, which is problematic for businesses and others who rely on financial reporting. The goals of this study were to examine the applicability of Benford’s law to Nigerian accounting data, assess how well accounting data complied with Benford’s law, and assess the possible efficacy of Benford’s law in identifying accounting data fraud in the Nigerian context. Data were taken from Cadbury Nig. Plcannual’s reports for the previous 15 years. Benford’s digits test was used to analyse the data, and the Z-Statistics and Chi-Square (x2) statistics were used to evaluate the hypotheses. Findings showed that data from errant years failed the conformance test with a 2 value more than the threshold value of 15.51, indicating anomalies, at 36.814 instead of 15.51. The conformance test was passed by the years’ data with no inaccuracies thanks to two values falling within the permitted range of 15.51. This demonstrated the usefulness of Benford’s Law in identifying accounting data fraud. Therefore, it is advised that it be used in conjunction with other audit approaches to increase audit effectiveness.

Keywords: Benford’s Law, Data Fraud, Detection, Audit Effectiveness.


Etim Osim Etim, Emmanuel E. Daferighe, Augustine Brenden Inyang & Michael Esua Ekikor (2023). Application of Benford’s Law and the Detection of Accounting Data Fraud in Nigeria. International Journal of Auditing and Accounting Studies. 5(2), 119-163. https://DOI:10.47509/IJAAS.2023.v05i02.01

FACTORS INFLUENCING THE INDEPENDENCE OF PUBLIC-SECTOR AUDITOR: A LITERATURE REVIEW

BY :   Vu Anh Doan and Hung Xuan NGUYEN
International Journal of Auditing and Accounting Studies, Year:2023, Vol.5 (2), PP.165-181
Received:30 January 2023 | Revised:10 February 2023 | Accepted :20 February 2023 | Publication:10 July 2023
Doi No.:https://DOI:10.47509/IJAAS.2023.v05i02.02

The study of public sector auditing is a big, intricate, uncharted, and underappreciated topic. As a result, scholars urge greater research on public sector audit, particularly in light of developing nations. This article reviews scholarly research on the independence of public sector auditors and the variables influencing that independence. This review of the literature is based on articles pertaining to public sector audits that were published in major publications in the 20th century. First, we go over and explicitly define what independence is. Second, we structure our analysis around the three primary factors that affect the independence of public-sector auditors: (a) political manifestos; (b) auditor tenure; and (c) relationships with auditees. This study examines the impact of each threat on the independence of the public-sector auditors. We also come to the conclusion that the evidence and recent developments allow for further research on the independence of public sector auditors.

Keywords: Auditing, Public sector, Auditor, Independence, Supreme Audit Institution

Vu Anh Doan & Hung Xuan NGUYEN (2023). Factors Influencing the Independence of Public-Sector Auditor: A Literature Review. International Journal of Auditing and Accounting Studies. 5(2), 165-181. https://DOI:10.47509/IJAAS.2023.v05i02.02

CORPORATE CONTRIBUTION FOR SUSTAINABLE DEVELOPMENT: A CASE FROM A MANUFACTURING SECTOR ORGANISATION IN SRI LANKA

BY :   Rajapakse, R.M.T.C.B and Rajapakse, R.M.R.B.
International Journal of Auditing and Accounting Studies, Year:2023, Vol.5 (2), PP.183-214
Received:31 January 2023 | Revised:09 March 2023 | Accepted :15 March 2023 | Publication:10 July 2023
Doi No.:https://DOI:10.47509/IJAAS.2023.v05i02.03

With an understanding of the need for sustainable development, which emphasises balanced economic, environmental, and social growth, the Sustainable Development Goals (SDGs) were introduced by the UN in 2015, and all member nations formally agreed to achieve them by 2030. Consequently, public and private enterprises in UN member states throughout the world place a high priority on sustainable development initiatives in their business agendas. The purpose of this study is to investigate how Sri Lankan corporate entities contribute to sustainable development (SD) using Siam City Cement (Lanka) Limited, formally known as INSEE, as a case study. In this study, interpretivism served as the research philosophy. The case study technique was employed as the research methodology. Data was gathered through interviews, field trips, observation, and document reviews. The data analysis method employed was thematic analysis based on Triple Bottom Line (TBL).

The study shows that the operations of INSEE create a number of environmental and social problems as it operates in the cement manufacturing industry. However, the company was able to address these problems by reducing its CO2 emissions, air pollution, and use of non-renewable energy; balancing biodiversity in affected areas; and implementing many community development projects for the benefit of society while effectively contributing to economic sustainability through contributing to GDP, paying taxes, and creating job opportunities, while effectively aiming to accomplish the SDGs by 2030. The study comes to the final conclusion that INSEE plays an industry role model in formulating and implementing its strategies towards the achievement of the SDGs by 2030.

Keywords: Sustainable Development, Sustainable Development Goals, Triple Bottom Line, Stakeholder Theory

Rajapakse, R.M.T.C.B. & Rajapakse, R.M.R.B. (2023). Corporate Contribution for Sustainable Developemnt: A Case from a Manufacturing Sector Organisation in Sri Lanka. International Journal of Auditing and Accounting Studies. 5(2), 183-214. https://DOI:10.47509/IJAAS.2023.v05i02.03

COST REDUCTION STRATEGIES AND FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

BY :   NWANYANWU, Kingdom Uchenna, JONAH, Ngbomowa Moses and COURT, Eunice Ralph
International Journal of Auditing and Accounting Studies, Year:2023, Vol.5 (2), PP.215-228
Received:31 March 2023 | Revised:12 April 2023 | Accepted :25 April 2023 | Publication:10 July 2023
Doi No.:https://DOI:10.47509/IJAAS.2023.v05i02.04

The purpose of this study is to assess the association between cost-cutting measures and the financial performance of Nigerian consumer product companies that are publicly traded. Data for the study was gathered from the annual reports of six consumer products companies listed on the Nigerian Stock Exchange over a five-year period (2017–2021). While net profit was employed as the measure of financial performance, the study used change in material cost, change in labour cost, and change in overhead cost as cost reduction measures. Descriptive statistics, multiple regression, and correlation coefficients were used to obtain the results. The empirical results showed a substantial positive link between cost-cutting measures and financial performance. The study comes to the conclusion that financial performance is impacted by cost reduction strategies. It was advised that value-engineering research be used to cut costs as much as possible.
???????Keywords: Cost Reduction Strategies, Value Engineering, Work Study, Net Profit


NWANYANWU, Kingdom Uchenna, JONAH, Ngbomowa Moses & COURT, Eunice Ralph (2023). Cost Reduction Strategies and Financial Performance of Listed Consumer Goods Companies in Nigeria. International Journal of Auditing and Accounting Studies. 5(2), 215-228. https://DOI:10.47509/IJAAS.2023.v05i02.04

THREATS OF PERSONAL TIES TO AUDITOR INDEPENDENCE IN SAUDI ARABIA: AN EMPIRICAL INVESTIGATION

BY :   Raghad Mesfer Alghamdi and Khalid Al-Adeem
International Journal of Auditing and Accounting Studies, Year:2023, Vol.5 (2), PP.229-248
Received:10 June 2023 | Revised:28 June 2023 | Accepted :03 July 2023 | Publication:10 July 2023
Doi No.:https://DOI:10.47509/IJAAS.2023.v05i02.05

As “social animals,” auditors rely on the data and the social influences of their clients (Kleinman & Palmon, 2001, 10), putting their independence at risk. While conducting an audit, an auditor is not working alone. The auditor must communicate with the client management while performing the audits, which may negatively impact the auditor’s independence in a number of ways. Only the auditor can determine whether the audit was conducted objectively or if its independence has been compromised. The survey respondents agree that, in their experience, 15 of the 20 personal ties-related factors that were included in the study had an impact on the independence of Saudi Arabia’s auditors. Despite the fact that respondents agreed that auditors can keep their personal feelings distinct from their professional judgement, they were confused about whether or not ties with client management had a detrimental impact on objectivity and independence. Auditors have the option to refuse to let personal relationships compromise their objectivity. They may reply in real-time to the seduction of their client management.

Keywords: Independence; Personal Ties; Auditing; Threats.

Raghad Mesfer Alghamdi & Khalid Al-Adeem (2023). Threats of Personal Ties to Auditor Independence in Saudi Arabia: An empirical Investigation. International Journal of Auditing and Accounting Studies. 5(2), 229-248. https://DOI:10.47509/IJAAS.2023.v05i02.05

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