Aug 2026· Journal of Accounting and Financial Management· pp. 1· 1 citation
Abstract
Audit failures, regulatory gaps, and the erosion of public trust in financial reporting have
raised global concerns about the effectiveness of audit oversight. This study investigates the
effect of audit regulatory frameworks on corporate reporting quality, using Nigeria as a
contextual anchor among emerging markets. It draws on global standards, theoretical models,
and empirical findings to explore the conceptual foundations, international perspectives,
practical challenges, and policy implications of audit regulation in enhancing auditor
independence, professional competence, and financial statement credibility. The findings
reveal that while regulatory frameworks have improved audit transparency and internal
governance in several economies, their effectiveness remains limited in regulatory authorities
with weak enforcement capacity. The study concludes that audit regulation must be globally
benchmarked yet locally responsive, emphasizing risk-based supervision, auditor competence,
and proactive oversight. It recommends empowering national regulatory institutions such as
the Financial Reporting Council of Nigeria (FRCN), adopting AI-enabled audit systems,
mandating firm rotation, and enforcing sanctions for non-compliance. These measures are
essential for strengthening audit reliability, improving disclosure quality, and rebuilding
stakeholder trust across diverse economic settings
Audit quality remains difficult for investors, audit committees, and other external stakeholders to define and evaluate because standardized, publicly available measures are limited. This article examines perceptions of audit quality through semi-structured interviews with three experienced participants in the financial reporting ecosystem: an audit committee member, a multinational corporation financial statement preparer, and a wealth management partner representing an investor perspective. The interviews indicate that audit quality is influenced not only by firm resources and regulatory oversight, but also by engagement-team continuity, partner expertise and judgment, audit committee diligence, and the ability to focus on areas of meaningful risk. Participants also identified concerns regarding personnel turnover, increasingly prescriptive audit procedures, the expectation gap, and the growing use of artificial intelligence in auditing. The article recommends expanding opportunities for junior auditors to address complex technical matters and reconsidering the nature of audit-quality disclosures. In particular, disclosures concerning how artificial intelligence is used, the audit tasks it performs, its effect on testing scope, and resulting efficiencies may provide stakeholders with more useful information for evaluating audit quality
Tripp Petzel, Albert L. Nagy· CPA Publisher· 0 citations
This study examines external audit as a corporate-law accountability institution within Jordan’s legal framework, analysing how legal mechanisms shape auditor independence and audit effectiveness in public shareholding companies. It focuses on four corporate-law dimensions: statutory audit duties and evidence-access rights, independence safeguards, audit committee engagement, and enforcement credibility. A doctrinal–empirical approach is adopted. The doctrinal analysis interprets how Jordanian company law and binding governance rules constitute the auditor as a shareholder-appointed control organ, prescribe duties that convert verification into legally consequential reporting, and impose incompatibility and conflict rules ensuring independence. The empirical component tests these legal mechanisms in practice through a survey of professionals involved in external auditing, corporate governance, and financial reporting in Jordan, analysed using partial least squares structural equation modeling (PLS-SEM). The results indicate that enforceable duties and access rights strengthen audit effectiveness, independence safeguards and active audit committee oversight enhance auditor autonomy, and enforcement credibility ensures deterrence and compliance. Collectively, these findings demonstrate that audit effectiveness in Jordan derives from an integrated corporate-law architecture linking mandate, independence, oversight, and enforcement—confirming external audit as a legal institution of corporate accountability rather than a purely professional procedure (Wu & Zhang, 2025).
Salah Kayed, Ayman Bader, Amer Morshed et al.· Corporate Law & Governan...· 0 citations
Financial reporting accountability is a fundamental pillar of good governance and public trust. This study examines the effects of internal control systems and audit opinions on the financial reporting accountability of local government agencies in Depok City, Indonesia. Using a cross-sectional survey with a quantitative approach, data were collected through questionnaires, interviews, and documentation. The novelty of this study lies in simultaneously examining the influence of internal control systems and audit opinions on financial reporting accountability at the local government level, providing empirical evidence from an Indonesian municipal context. The findings indicate that effective internal control systems significantly enhance financial reporting accountability, although weaknesses in the financial competencies of personnel remain a challenge. In contrast, audit opinions do not significantly affect accountability because they primarily assess the fairness of financial statements rather than the transparency and accountability of government performance. These findings suggest that strengthening internal control mechanisms alone is insufficient without improving human resource capacity and organizational governance. The study concludes that financial reporting accountability is more strongly driven by effective internal controls than by external audit opinions. The findings provide practical implications for policymakers to strengthen governance through capacity building, integrity-based organizational culture, transparent performance evaluation, and greater public participation in financial oversight
N. Novitasari, Hafiduddin Hafiduddin, Annisa Alifa Ramadhani et al.· International Journal of Con...· 0 citations
Internal auditing is pivotal in promoting accountability, transparency, and effective governance in State-Owned Enterprises (SOEs). Historically, SOEs in Zimbabwe have faced systemic institutional challenges, including the mismanagement of public funds, financial irregularities, and operational underperformance. This study examines the expectations of Boards of Directors regarding internal auditing in Zimbabwean SOEs, focusing on the extent to which boards rely on internal auditors for risk management, regulatory compliance, and operational oversight. Employing a qualitative multiple-case study research design, semi-structured interviews were conducted with fifteen board members and audit committee chairs across five selected public enterprises in the energy, transport, and utilities sectors. Thematic analysis reveals that while boards expect internal auditors to provide objective, strategic assessments to safeguard public assets, their effectiveness is heavily constrained by structural competence gaps, restricted resource allocations, and compromised reporting independence. The study recommends the strict enforcement of dual-reporting frameworks under the Public Entities Corporate Governance Act [Chap 10:31], the institutional ring-fencing of audit budgets, and a operational shift toward forward-looking, risk-based auditing to align internal audit outputs with strategic board expectations.
Keywords: Internal audit, State-Owned Enterprises, Board expectations, corporate governance.
Jenfan Muswere, H. Mukono, Fainos Chinjova et al.· International journal of res...· 0 citations
Financial reporting quality is fundamental to transparency, accountability and effective governance in the public sector. In Kenya, state corporations play a crucial role in national development and public resource management yet persistent audit queries, weak internal controls and recurring financial misstatements continue to erode public confidence in their financial disclosures. This study examines the influence of audit committee (AC) characteristics, specifically independence, financial expertise and size, on the quality of financial reporting in Kenyan state corporations. Guided by agency and stewardship theories, and using a target population of 187 State Corporations, the study adopts a descriptive and correlational design. Data from audited financial statements and governance reports of audited financial reports of State Corporation was analyzed using descriptive and inferential analysis. Logistic regression model was used to test the effect of Audit Committee characteristics on the quality of financial reports in State Corporations. The findings reveal a positive significant effect of both committee independence and size on quality of financial reporting. In contrast, financial expertise had a negative significant effect on quality of financial reporting. The study contributes to public sector governance and policy by offering empirical insights and practical recommendations aimed at strengthening audit committee effectiveness, improving financial transparency and restoring public trust in the accountability of Kenya’s state corporations.
Emmah Watiri Kimani, Caroline Muthoni Njeru· European Modern Studies Jour...· 0 citations
Accounting and auditing have evolved into two mutually reinforcing disciplines that underpin
corporate reporting, accountability, and stakeholder confidence. Accounting provides the
systematic process of identifying, measuring, recording, classifying, summarizing and
communicating financial information, whereas auditing and assurance services enhance the
credibility and reliability of that information through independent verification. In recent years, the
scope of assurance services has expanded beyond traditional financial statement audits to include
sustainability reporting, environmental, social and governance (ESG) disclosures, integrated
reporting, cybersecurity, artificial intelligence (AI) governance, and other forms of non-financial
reporting. This expansion reflects increasing stakeholder demand for credible, transparent, and
decision-useful information within an increasingly digital and complex business environment. The
study employed the survey design. The sample size was 237 out of a population of 840 based on
purposive sampling technique. assessing the effects of financial statement auditing, internal
control assurance, audit quality, and assurance services on accounting information. The findings
revealed that all four dimensions have significant positive effects on the quality, credibility,
reliability, and decision usefulness of accounting information. The results further confirm that
accounting and auditing are complementary disciplines, with auditing and assurance services
enhancing the integrity and trustworthiness of accounting information through independent
verification and validation. The study concludes that effective auditing and assurance services are
indispensable for improving financial reporting quality, strengthening corporate governance,
promoting accountability, and enhancing stakeholder confidence. As the business environment
becomes increasingly complex and technology-driven, organizations must continue to integrate
robust auditing and assurance practices into their accounting systems to ensure transparent,
reliable, and decision-useful financial information
Inyada, Sunday Joseph· JOURNAL OF BUSINESS AND AFRI...· 0 citations