Role of Auditing in Organisational Effectiveness
Added on 2022-12-29
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Running head: PROPOSAL 0
BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
OCTOBER 5, 2019
STUDENT DETAILS:
BUSINESS RESEARCH METHOD RESEARCH PROPOSAL
OCTOBER 5, 2019
STUDENT DETAILS:
RESEARCH PROPOSAL 1
Abstract
As per the definition given by International Organization of Supreme Audit Institutions, the audit
is assessment of the system, function, as well as activity of the particular organisation. The
auditing is important tool to ascertain that the functions are made within the framework of
certain budgets, regulations, needs, as well as purposes. It is new meaning of auditing in a public
segment. The auditing is not just about cash audit only, but more than this. This chapter deals
with a role of internal audit to improve organizational performance. To assist manager in
enhancing organizational performance, the auditor must consider all performance objectives,
which create the organization effective. The audit helps the organisation to become more
effective as well as efficient by rendering various benefits. It permits the organisation to
recognise and seize occasions for enhancing the customer’s services quality. It is also helpful in
increasing positive cash flow. Furthermore, the auditor should ensure that all the facets of
business that may have the substantial impact on organizational efficiency. This chapter defines
what organizational effectiveness is. It also assess the role of auditing in the organisational
performance.
Abstract
As per the definition given by International Organization of Supreme Audit Institutions, the audit
is assessment of the system, function, as well as activity of the particular organisation. The
auditing is important tool to ascertain that the functions are made within the framework of
certain budgets, regulations, needs, as well as purposes. It is new meaning of auditing in a public
segment. The auditing is not just about cash audit only, but more than this. This chapter deals
with a role of internal audit to improve organizational performance. To assist manager in
enhancing organizational performance, the auditor must consider all performance objectives,
which create the organization effective. The audit helps the organisation to become more
effective as well as efficient by rendering various benefits. It permits the organisation to
recognise and seize occasions for enhancing the customer’s services quality. It is also helpful in
increasing positive cash flow. Furthermore, the auditor should ensure that all the facets of
business that may have the substantial impact on organizational efficiency. This chapter defines
what organizational effectiveness is. It also assess the role of auditing in the organisational
performance.
RESEARCH PROPOSAL 2
Contents
Abstract........................................................................................................................ 1
Introduction, aims, and objective.......................................................................................... 3
Research aim and objective............................................................................................. 4
Research question......................................................................................................... 4
Literature review............................................................................................................. 5
Conceptual framework of Auditing -.................................................................................. 5
Need of Auditing.......................................................................................................... 6
Functions of Auditor...................................................................................................... 7
Role of auditing in organisational effectiveness..................................................................13
Challenges faced by auditors and their solution...................................................................17
Solution of audit challenges -......................................................................................... 18
Methodology................................................................................................................ 19
Research approach...................................................................................................... 19
Research design......................................................................................................... 20
Research methods....................................................................................................... 22
Data collection........................................................................................................... 25
Ethical issues............................................................................................................. 28
Reliability and validity of the study.................................................................................28
Limitations............................................................................................................... 29
Data analysis and discussion............................................................................................. 30
Conclusion and recommendation........................................................................................ 31
References................................................................................................................... 32
Appendix..................................................................................................................... 37
Contents
Abstract........................................................................................................................ 1
Introduction, aims, and objective.......................................................................................... 3
Research aim and objective............................................................................................. 4
Research question......................................................................................................... 4
Literature review............................................................................................................. 5
Conceptual framework of Auditing -.................................................................................. 5
Need of Auditing.......................................................................................................... 6
Functions of Auditor...................................................................................................... 7
Role of auditing in organisational effectiveness..................................................................13
Challenges faced by auditors and their solution...................................................................17
Solution of audit challenges -......................................................................................... 18
Methodology................................................................................................................ 19
Research approach...................................................................................................... 19
Research design......................................................................................................... 20
Research methods....................................................................................................... 22
Data collection........................................................................................................... 25
Ethical issues............................................................................................................. 28
Reliability and validity of the study.................................................................................28
Limitations............................................................................................................... 29
Data analysis and discussion............................................................................................. 30
Conclusion and recommendation........................................................................................ 31
References................................................................................................................... 32
Appendix..................................................................................................................... 37
RESEARCH PROPOSAL 3
Introduction, aims, and objective
The research proposal discusses the topic ‘role of auditing in organisational effectiveness’. This
research proposal would be helpful for the readers. The reader will get understanding as well as
proper knowledge related to the research concern. The auditing has important role in the
organization by developing as well as firming responsibility, confidence along with faith in all
the matters relating to finance. A major advantage of audit is to identify fraud that is attained by
internal control for preventing as well as detecting accounting indiscretions. An auditing is very
significant to increase the effectiveness of organisation. The auditing helps the top-level
executive to render direction on numerous problems related to financial accuracy. The auditing is
also helpful for the head of department to identify the methods as well as tools for improving
control to the administrative compliance. Moreover, the workers in organization can perform the
audit internally. The consultant and statutory auditors can perform the audit externally as the
case may be. The organization employs the internal auditor for rendering the unremitting review
of efficiency of risk-management, governance procedure, and controls by providing independent,
unprejudiced evaluation of functions of an organization. Conversely, the external auditor
assesses company’s financial statements to know whether financial statements represent the
financial condition of organisation. The main reason of performing the external audits is that the
law requires it. Further, the internal audit is generally performed per annum unlike the internal
audit.
In the following parts, the objective of research and research aim is discussed and analysed. This
research proposal also discusses the literature review, data analysis, research methodology,
results along with recommendation. The section of methodology states the research design,
Introduction, aims, and objective
The research proposal discusses the topic ‘role of auditing in organisational effectiveness’. This
research proposal would be helpful for the readers. The reader will get understanding as well as
proper knowledge related to the research concern. The auditing has important role in the
organization by developing as well as firming responsibility, confidence along with faith in all
the matters relating to finance. A major advantage of audit is to identify fraud that is attained by
internal control for preventing as well as detecting accounting indiscretions. An auditing is very
significant to increase the effectiveness of organisation. The auditing helps the top-level
executive to render direction on numerous problems related to financial accuracy. The auditing is
also helpful for the head of department to identify the methods as well as tools for improving
control to the administrative compliance. Moreover, the workers in organization can perform the
audit internally. The consultant and statutory auditors can perform the audit externally as the
case may be. The organization employs the internal auditor for rendering the unremitting review
of efficiency of risk-management, governance procedure, and controls by providing independent,
unprejudiced evaluation of functions of an organization. Conversely, the external auditor
assesses company’s financial statements to know whether financial statements represent the
financial condition of organisation. The main reason of performing the external audits is that the
law requires it. Further, the internal audit is generally performed per annum unlike the internal
audit.
In the following parts, the objective of research and research aim is discussed and analysed. This
research proposal also discusses the literature review, data analysis, research methodology,
results along with recommendation. The section of methodology states the research design,
RESEARCH PROPOSAL 4
research approach, research methods, data collection, as well as ethical issues. It also discusses
reliability and validity of study, limitation, as well as data analysis.
Research aim and objective
It is important for the investigator to assess the particular research objectives. A specific motive
of the paper is to assess impact of audit on the organisational effectiveness.This section is helpful
to attain the objectives of research. There are some general objectives of research. They are
discussed as below:
To know conceptual framework of auditing
To explore the functions of auditors
To describe need of auditing
To explore impact of auditing in the effectiveness of organization
To discover the challenges faced by auditors
To discover solution of the audit challenges
Research question
The paper specifically targeted at a role of auditing in organisational effectiveness. The research
questions are discussed below-
1. What is auditing’s conceptual framework?
2. Why audit is necessary for an organisation?
3. What are the functions of auditors?
4. How the auditing is important in effectiveness of organisation?
research approach, research methods, data collection, as well as ethical issues. It also discusses
reliability and validity of study, limitation, as well as data analysis.
Research aim and objective
It is important for the investigator to assess the particular research objectives. A specific motive
of the paper is to assess impact of audit on the organisational effectiveness.This section is helpful
to attain the objectives of research. There are some general objectives of research. They are
discussed as below:
To know conceptual framework of auditing
To explore the functions of auditors
To describe need of auditing
To explore impact of auditing in the effectiveness of organization
To discover the challenges faced by auditors
To discover solution of the audit challenges
Research question
The paper specifically targeted at a role of auditing in organisational effectiveness. The research
questions are discussed below-
1. What is auditing’s conceptual framework?
2. Why audit is necessary for an organisation?
3. What are the functions of auditors?
4. How the auditing is important in effectiveness of organisation?
RESEARCH PROPOSAL 5
5. What are the biggest challenges faced by auditors?
6. What are the solutions of audit challenges?
Literature review
Conceptual framework of Auditing -
The conceptual framework sets a base for the auditing standards. The conceptual framework
increases the constancy of auditing standards over the period. It is very helpful to provide the
directions for solving emerging logical issues. It can see that the auditor independence is very
significant issue in accounting practice presently. The significance of conceptual framework is
simply assumed by the accounting business. The well-organised conceptual framework has
significant part in increasing effectiveness of organisation. A sound conceptual framework
enables the auditor to solve practical issues in effective manner. The Independence of auditors
enhances the audit’s effectiveness by assuring that the auditor would make plan and conduct
audit accurately. The higher quality audit increases the reliability of procedure of financial
reporting by its user (Heras-Saizarbitoria and Boiral, 2015). In addition, the sound conceptual
framework provides the optimal apportionment of capital. Because of the significance of auditor
independence, auditors have involved in considerable rule making in this area without the
conceptual framework.
Furthermore, the auditing is a subject to the verification. It is just possible in a case while the
proper evidential matters of audit are collected. In addition, there are certain accountability
performance standards for the better measurement of auditors. Consequently, it is required that
engaged people should be agreed with adequate standards. The auditing community has set some
professional directions as the methods of general accepted standards. For adding value to the
5. What are the biggest challenges faced by auditors?
6. What are the solutions of audit challenges?
Literature review
Conceptual framework of Auditing -
The conceptual framework sets a base for the auditing standards. The conceptual framework
increases the constancy of auditing standards over the period. It is very helpful to provide the
directions for solving emerging logical issues. It can see that the auditor independence is very
significant issue in accounting practice presently. The significance of conceptual framework is
simply assumed by the accounting business. The well-organised conceptual framework has
significant part in increasing effectiveness of organisation. A sound conceptual framework
enables the auditor to solve practical issues in effective manner. The Independence of auditors
enhances the audit’s effectiveness by assuring that the auditor would make plan and conduct
audit accurately. The higher quality audit increases the reliability of procedure of financial
reporting by its user (Heras-Saizarbitoria and Boiral, 2015). In addition, the sound conceptual
framework provides the optimal apportionment of capital. Because of the significance of auditor
independence, auditors have involved in considerable rule making in this area without the
conceptual framework.
Furthermore, the auditing is a subject to the verification. It is just possible in a case while the
proper evidential matters of audit are collected. In addition, there are certain accountability
performance standards for the better measurement of auditors. Consequently, it is required that
engaged people should be agreed with adequate standards. The auditing community has set some
professional directions as the methods of general accepted standards. For adding value to the
RESEARCH PROPOSAL 6
financial information, it is required that the main objective of information should be clear. In
addition, the findings should be communicated in a proper way. The audit is required to be
conducted only when the benefit weighs more than cost.
Additionally, various practitioners have recognised the need of the conceptual framework for
auditing. According to them, the conceptual framework is essential to direct the development of
audit procedures and audit performances on the constant and well-organised basis. It is strongly
applicable in the case of internal audit. To assess the company’s financial statement, auditing
standards have been set as the Generally Accepted Accounting Principles. By following these
auditing standards, the auditor collects the proper evidence for explaining that how fair is
information in financial statement in relation to Generally Accepted Accounting Principles.
There are 3 kinds of audit. These are compliance audit, operational audit, and audit of financial
statement of company. The financial audit is also helpful to decide whether financial statement is
made according to the Generally Accepted Accounting Principles. Operational audit reviews
usefulness as well as competence of specific unit of the company. The compliance audit also
ensures that the organisation complies with law, rules, regulations, as well as policies.
Need of Auditing
The audit is objective assessment of the financial statements of an organization to ensure that the
record is fair representation of the transaction (Chiang, 2016). The audit is conducted internally
by the workers of organization, and externally by the outside firms. The key motive of audit is to
render independent evaluation of the financial statement of corporation. An audit is helpful to
increase credibility as well as value of financial statement made by administration (Abdullatif, et.
al, 2016). In this way, the user’s confidence will be increased in the financial statement of
organisation. Proper auditing can also reduce the investor risk. According to the opinion of
financial information, it is required that the main objective of information should be clear. In
addition, the findings should be communicated in a proper way. The audit is required to be
conducted only when the benefit weighs more than cost.
Additionally, various practitioners have recognised the need of the conceptual framework for
auditing. According to them, the conceptual framework is essential to direct the development of
audit procedures and audit performances on the constant and well-organised basis. It is strongly
applicable in the case of internal audit. To assess the company’s financial statement, auditing
standards have been set as the Generally Accepted Accounting Principles. By following these
auditing standards, the auditor collects the proper evidence for explaining that how fair is
information in financial statement in relation to Generally Accepted Accounting Principles.
There are 3 kinds of audit. These are compliance audit, operational audit, and audit of financial
statement of company. The financial audit is also helpful to decide whether financial statement is
made according to the Generally Accepted Accounting Principles. Operational audit reviews
usefulness as well as competence of specific unit of the company. The compliance audit also
ensures that the organisation complies with law, rules, regulations, as well as policies.
Need of Auditing
The audit is objective assessment of the financial statements of an organization to ensure that the
record is fair representation of the transaction (Chiang, 2016). The audit is conducted internally
by the workers of organization, and externally by the outside firms. The key motive of audit is to
render independent evaluation of the financial statement of corporation. An audit is helpful to
increase credibility as well as value of financial statement made by administration (Abdullatif, et.
al, 2016). In this way, the user’s confidence will be increased in the financial statement of
organisation. Proper auditing can also reduce the investor risk. According to the opinion of
RESEARCH PROPOSAL 7
Halbouni, 2015, the audit helps the business to discover the problem. It also ensures the
effectiveness and competence.
Additionally, the audit has significant part in fraud prevention. The repeated evaluation of
functions of company and maintaining difficult system of the internal control can prevent as well
as detect fraud as well as different accounting irregularities. The effective audit system is
significant for the organisation (Ahmed Haji and Anifowose, 2016). The business procedures
require numerous kinds of internal control to ease administration and review, prevent as well as
detect unbalanced transaction, evaluate continuing performance, maintain proper business record
and to encourage operational efficiency. The auditor of company reviews the internal control
designing. A proper auditing is essential because it proposes the improvement, and documents
the material indiscretions to enable further examination in a case when it is warranted as per the
situation.
Functions of Auditor
The auditors have important role to play in increasing effectiveness of organisation. They are
evaluated as per professionalism, honesty, as well as effectiveness. The auditors perform various
functions to improve the operations of organisation. They create objective evaluation of the
functions. They share idea for the effective practices to increase the effectiveness of
organisation. The auditors also render counsel to improve the controls, procedures,
performances, as well as risk management. Alzeban (2015) stated that the auditors also suggest
the manners to reduce cost and increase revenues or profits. Additionally, the auditors provide
competent consultation, direction, as well as simplification of the services. The auditors are
disciplined in performing the functions. They have important role in subscribing the professional
code of conduct along with ethics. The auditors are devoted for developing as well as increasing
Halbouni, 2015, the audit helps the business to discover the problem. It also ensures the
effectiveness and competence.
Additionally, the audit has significant part in fraud prevention. The repeated evaluation of
functions of company and maintaining difficult system of the internal control can prevent as well
as detect fraud as well as different accounting irregularities. The effective audit system is
significant for the organisation (Ahmed Haji and Anifowose, 2016). The business procedures
require numerous kinds of internal control to ease administration and review, prevent as well as
detect unbalanced transaction, evaluate continuing performance, maintain proper business record
and to encourage operational efficiency. The auditor of company reviews the internal control
designing. A proper auditing is essential because it proposes the improvement, and documents
the material indiscretions to enable further examination in a case when it is warranted as per the
situation.
Functions of Auditor
The auditors have important role to play in increasing effectiveness of organisation. They are
evaluated as per professionalism, honesty, as well as effectiveness. The auditors perform various
functions to improve the operations of organisation. They create objective evaluation of the
functions. They share idea for the effective practices to increase the effectiveness of
organisation. The auditors also render counsel to improve the controls, procedures,
performances, as well as risk management. Alzeban (2015) stated that the auditors also suggest
the manners to reduce cost and increase revenues or profits. Additionally, the auditors provide
competent consultation, direction, as well as simplification of the services. The auditors are
disciplined in performing the functions. They have important role in subscribing the professional
code of conduct along with ethics. The auditors are devoted for developing as well as increasing
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