Importance of Audit for Big Corporate House in Detection of Fraud - Case Study on Sainsbury's
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This report explores the importance of audit for big corporate houses in detecting fraud, using Sainsbury's as a case study. It discusses the concept of audit, factors determining the success of Sainsbury's audit committee, and the challenges faced by Sainsbury's in improving its financial performance. The report aims to understand the role of audit in detecting fraud and its impact on the overall performance of an organization.
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Sainsbury report
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ABSTRACT
The report below is offer adequate knowledge about the importance of investigation that
is required to process and analyse better information that provide long term success and
development. For this research rationale is to know more about relative prospect as with this
profitable outcome is attained that is relative to systematic collection of various data through
which profitable outcome is achieved by business with productive manner. In this both primary
as well as secondary source of method is used that assist to attain better knowledge in relative
manner.
2
The report below is offer adequate knowledge about the importance of investigation that
is required to process and analyse better information that provide long term success and
development. For this research rationale is to know more about relative prospect as with this
profitable outcome is attained that is relative to systematic collection of various data through
which profitable outcome is achieved by business with productive manner. In this both primary
as well as secondary source of method is used that assist to attain better knowledge in relative
manner.
2
CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................4
Overview of the study..................................................................................................................4
Rationale......................................................................................................................................5
Importance of study.....................................................................................................................5
Research Aim ..............................................................................................................................6
Research objective and questions................................................................................................6
Structure of report........................................................................................................................6
CHAPTER 2: LITERATURE REVIEW.........................................................................................8
The concept of audit within corporate firms................................................................................8
The factors determining success of Sainsbury's audit committee to enhance effectiveness of
financial statement. ................................................................................................................11
The challenges of audit which Sainsbury’s face while improving its financial performance...14
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................16
CHAPTER 4: RESULT AND DISCUSSION ..............................................................................23
Analysis of research results ......................................................................................................23
Interpretation and discussion of collected data .........................................................................23
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................38
Conclusion ................................................................................................................................38
Recommendation ......................................................................................................................40
REFERENCES..............................................................................................................................42
Appendix 1: ...................................................................................................................................45
Research Proposal .....................................................................................................................45
APPENDICES...............................................................................................................................54
3
CHAPTER 1: INTRODUCTION....................................................................................................4
Overview of the study..................................................................................................................4
Rationale......................................................................................................................................5
Importance of study.....................................................................................................................5
Research Aim ..............................................................................................................................6
Research objective and questions................................................................................................6
Structure of report........................................................................................................................6
CHAPTER 2: LITERATURE REVIEW.........................................................................................8
The concept of audit within corporate firms................................................................................8
The factors determining success of Sainsbury's audit committee to enhance effectiveness of
financial statement. ................................................................................................................11
The challenges of audit which Sainsbury’s face while improving its financial performance...14
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................16
CHAPTER 4: RESULT AND DISCUSSION ..............................................................................23
Analysis of research results ......................................................................................................23
Interpretation and discussion of collected data .........................................................................23
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................38
Conclusion ................................................................................................................................38
Recommendation ......................................................................................................................40
REFERENCES..............................................................................................................................42
Appendix 1: ...................................................................................................................................45
Research Proposal .....................................................................................................................45
APPENDICES...............................................................................................................................54
3
CHAPTER 1: INTRODUCTION
Overview of the study
Sainsbury's is a UK retailer which operates its business in several countries throughout
the world. It offered range of product categories such as grocery items, clothing, homeware and
outdoors etc (Tuck and McKenzie, 2014). As it operates at international level this make it very
essential for the Sainsbury to ensure that each and every activity whether its is financial and non-
financial activities must be executed within the organisation by considering all the legal as well
as ethical principles.
Audit is defined as the evaluation inspection of several book of accounting by an
authorised person named as auditor along with certain physical check of inventory in to ensure
that all the department of an organisation are following the documented system of recording the
transactions. This is mainly performed to ascertain the accuracy within the financial statement
provided by the organisation so that transparency and accuracy in financial documentation can
be assured (Brazel, 2018). Audit is considered to be a crucial activity for an organisation which
support in getting an insight in the procedure, policies, culture as well as management which
further help in verifying the each and every practice that are executed within the organisation in
right and ethical manner. This bring transparency within the financial performance of the
company and help in maintaining the trust among the shareholders. Addition to this it also helps
in determining and preventing the fraud, testing internal control, assuring the operational
efficiency, mitigating the risk and monitoring the practices performed within the organisation.
The audit process help a lot in determining if any kind of fraud practice are going within the
organisation in secret. In order to perform the audit practice effectively there is a audit committee
which is formed in each organisation in order to keep the process free from any kind of biasness
which can affect the outcome of such process (Comer, 2017). This committee is responsible for
identifying the several kind of risk that are prevailing within the organisation or expected to
occur due to likelihood of certain action.
Therefore, the auditing practices within an organisation is very crucial to determine the
accuracy of operation along with any fraudulent practice or financial risk that may occur in the
organisation. This support an organisation in staying free form any kind of issue that may affect
their performance or brand image in marketplace. IN order to further study about the role of
audit within an organisation this research is conducted which is based on Sainsbury.
4
Overview of the study
Sainsbury's is a UK retailer which operates its business in several countries throughout
the world. It offered range of product categories such as grocery items, clothing, homeware and
outdoors etc (Tuck and McKenzie, 2014). As it operates at international level this make it very
essential for the Sainsbury to ensure that each and every activity whether its is financial and non-
financial activities must be executed within the organisation by considering all the legal as well
as ethical principles.
Audit is defined as the evaluation inspection of several book of accounting by an
authorised person named as auditor along with certain physical check of inventory in to ensure
that all the department of an organisation are following the documented system of recording the
transactions. This is mainly performed to ascertain the accuracy within the financial statement
provided by the organisation so that transparency and accuracy in financial documentation can
be assured (Brazel, 2018). Audit is considered to be a crucial activity for an organisation which
support in getting an insight in the procedure, policies, culture as well as management which
further help in verifying the each and every practice that are executed within the organisation in
right and ethical manner. This bring transparency within the financial performance of the
company and help in maintaining the trust among the shareholders. Addition to this it also helps
in determining and preventing the fraud, testing internal control, assuring the operational
efficiency, mitigating the risk and monitoring the practices performed within the organisation.
The audit process help a lot in determining if any kind of fraud practice are going within the
organisation in secret. In order to perform the audit practice effectively there is a audit committee
which is formed in each organisation in order to keep the process free from any kind of biasness
which can affect the outcome of such process (Comer, 2017). This committee is responsible for
identifying the several kind of risk that are prevailing within the organisation or expected to
occur due to likelihood of certain action.
Therefore, the auditing practices within an organisation is very crucial to determine the
accuracy of operation along with any fraudulent practice or financial risk that may occur in the
organisation. This support an organisation in staying free form any kind of issue that may affect
their performance or brand image in marketplace. IN order to further study about the role of
audit within an organisation this research is conducted which is based on Sainsbury.
4
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Rationale
The main purpose behind conducting this study is to investigate about the necessity of
audit practice within an organisation and manner in which it is helpful in improving the
performance of an organisation with this function. This study helps the investigator in creating
awareness about the role of auditing within a larger organisation and also make them aware
about its contribution toward detecting fraud that may affect the performance of organisation or
its brand image in front of stakeholders. Despite of this, the researcher chosen this area of study
so that with the medium of information gather it can be presented the actions to be consider by
an organisation for performing using auditing as a tool for enhancing the profitability and overall
performance of organisation by keeping frauds away from business practices. Addition to this
study also conducted to enhance the understanding about the importance of audit within
organisational functioning and its influence over the performance of brand and creating its
positive brand image in front of stakeholders.
Importance of study
The current research is conducted to represent the role of auditing within an organisation
and in improving the overall performance. This study holds huge significant as it helps in making
several multinational organisations about the necessity of auditing. This is so because it helps in
an organisation to operates its functions efficiently and at the same time in ethical manner. As
auditing practice support in providing an idea about the credibility of financial statement which
represent the true picture of organisational performance in front of stakeholders. Additionally,
also support in improving the internal control of organisation (Davies, 2016). So, this study is
significant as it help an organisation in identifying the risk which may affect its performance by
providing relevant information regarding the fraudulent activities to top management so that
appropriate measures can be undertaken on timely manner.
Sainsbury is a multinational organisation which operates at several different geographical
location and for due to this it has to perform range of financial transactions where it become
quite difficult to have a insight over each and every transactions. Hence audit committee help a
lot in keeping insight over the operations performed in organisation to ensure that each and every
action are performed in ethical manner and there not remain any space for unethical or fraud
practices. This this study will support Sainsbury in determining the ways in which it must adopt
5
The main purpose behind conducting this study is to investigate about the necessity of
audit practice within an organisation and manner in which it is helpful in improving the
performance of an organisation with this function. This study helps the investigator in creating
awareness about the role of auditing within a larger organisation and also make them aware
about its contribution toward detecting fraud that may affect the performance of organisation or
its brand image in front of stakeholders. Despite of this, the researcher chosen this area of study
so that with the medium of information gather it can be presented the actions to be consider by
an organisation for performing using auditing as a tool for enhancing the profitability and overall
performance of organisation by keeping frauds away from business practices. Addition to this
study also conducted to enhance the understanding about the importance of audit within
organisational functioning and its influence over the performance of brand and creating its
positive brand image in front of stakeholders.
Importance of study
The current research is conducted to represent the role of auditing within an organisation
and in improving the overall performance. This study holds huge significant as it helps in making
several multinational organisations about the necessity of auditing. This is so because it helps in
an organisation to operates its functions efficiently and at the same time in ethical manner. As
auditing practice support in providing an idea about the credibility of financial statement which
represent the true picture of organisational performance in front of stakeholders. Additionally,
also support in improving the internal control of organisation (Davies, 2016). So, this study is
significant as it help an organisation in identifying the risk which may affect its performance by
providing relevant information regarding the fraudulent activities to top management so that
appropriate measures can be undertaken on timely manner.
Sainsbury is a multinational organisation which operates at several different geographical
location and for due to this it has to perform range of financial transactions where it become
quite difficult to have a insight over each and every transactions. Hence audit committee help a
lot in keeping insight over the operations performed in organisation to ensure that each and every
action are performed in ethical manner and there not remain any space for unethical or fraud
practices. This this study will support Sainsbury in determining the ways in which it must adopt
5
and manage with the auditing practices to maintain efficiency in operations by detecting fraud
and hence put emphases toward improving performance(Zhang and et. al., 2016).
Research Aim
“To understand the importance of audit for big corporate house in detection of fraud” –
Case Study on Sainsbury's
Research objective and questions
Research Objective
To study the concept of audit within corporate firms.
To identify the factors determining success of Sainsbury's audit committee to enhance
effectiveness of financial statement.
To investigate the challenges of audit which Sainsbury’s face while improving its
financial performance.
Research Question
What is the concept of audit within corporate firms?
What are the factors determining success of Sainsbury's audit committee to enhance
effectiveness of financial statement?
What are the challenges of audit which Sainsbury’s face while improving its financial
performance?
Structure of report
The structure of a study support in presenting the blue print of the set of activities that are
involved within a report along with the pattern of execution it follows. This support in presenting
giving an overview about the sections present within the report so that reader get an idea about
the sections involve within the report and what is discussed under each section that help in
developing better understanding. In context of current study for determining the importance of
audit for big corporate houses, the chapters structure is followed in order to represent the data in
more systematic manner. the chapters involve within this study are mentioned below:
CHAPTER 1: INTRODUCTION – In current report Introduction is the first chapter of
this investigation that present the overview and background of the research area to provide an
idea about what is the main concept or direction of study. additionally, it also represents the
reason behind conducting study along with the aim, objectives and research questions that set the
criteria for gathering information.
6
and hence put emphases toward improving performance(Zhang and et. al., 2016).
Research Aim
“To understand the importance of audit for big corporate house in detection of fraud” –
Case Study on Sainsbury's
Research objective and questions
Research Objective
To study the concept of audit within corporate firms.
To identify the factors determining success of Sainsbury's audit committee to enhance
effectiveness of financial statement.
To investigate the challenges of audit which Sainsbury’s face while improving its
financial performance.
Research Question
What is the concept of audit within corporate firms?
What are the factors determining success of Sainsbury's audit committee to enhance
effectiveness of financial statement?
What are the challenges of audit which Sainsbury’s face while improving its financial
performance?
Structure of report
The structure of a study support in presenting the blue print of the set of activities that are
involved within a report along with the pattern of execution it follows. This support in presenting
giving an overview about the sections present within the report so that reader get an idea about
the sections involve within the report and what is discussed under each section that help in
developing better understanding. In context of current study for determining the importance of
audit for big corporate houses, the chapters structure is followed in order to represent the data in
more systematic manner. the chapters involve within this study are mentioned below:
CHAPTER 1: INTRODUCTION – In current report Introduction is the first chapter of
this investigation that present the overview and background of the research area to provide an
idea about what is the main concept or direction of study. additionally, it also represents the
reason behind conducting study along with the aim, objectives and research questions that set the
criteria for gathering information.
6
CHAPTER 2: LITERATURE REVIEW – The second chapter of this investigation is
literature review in which the data from the existing available information is gathered from
several different sources that is previously investigated by another person. This support on
determining the nature of study area by gathering view point of several scholars and then
evaluate it critically to extract best information that cover all the major aspect and help in
creating further direction for primary study.
CHAPTER 3: RESEARCH METHODOLOGY – In this section of report the
investigator will present a detailed information regarding the set of tools, techniques, approaches
and methods that they will use in order to conduct this study in term of gathering, analysing and
interpreting the information to reach at final conclusion. This section is very crucial as it help the
investigator in providing a view regarding the reliability and validity of the investigation because
the method used provide an idea regarding the effectiveness of study.
CHAPTER 4: RESULT AND DISCUSSION – This section involves the process of
analysing the data gather with the help of primary and secondary investigation and interpreted in
order to present adequate findings and discuss them in relation with the research question. This
step is very crucial as it help in determining that whether the aim of study get achieved or not
and help in drawing the conclusion of study`.
CHAPTER 5: CONCLUSION AND RECOMMENDATION – This is the last chapter
of investigation which represent the actual conclusion that has been extracted out of the analysis
performed for the primary and secondary y data gathered. Addition to this it also involve certain
recommendations on the basis of finding over the issues which is being focused within an
investigation.
7
literature review in which the data from the existing available information is gathered from
several different sources that is previously investigated by another person. This support on
determining the nature of study area by gathering view point of several scholars and then
evaluate it critically to extract best information that cover all the major aspect and help in
creating further direction for primary study.
CHAPTER 3: RESEARCH METHODOLOGY – In this section of report the
investigator will present a detailed information regarding the set of tools, techniques, approaches
and methods that they will use in order to conduct this study in term of gathering, analysing and
interpreting the information to reach at final conclusion. This section is very crucial as it help the
investigator in providing a view regarding the reliability and validity of the investigation because
the method used provide an idea regarding the effectiveness of study.
CHAPTER 4: RESULT AND DISCUSSION – This section involves the process of
analysing the data gather with the help of primary and secondary investigation and interpreted in
order to present adequate findings and discuss them in relation with the research question. This
step is very crucial as it help in determining that whether the aim of study get achieved or not
and help in drawing the conclusion of study`.
CHAPTER 5: CONCLUSION AND RECOMMENDATION – This is the last chapter
of investigation which represent the actual conclusion that has been extracted out of the analysis
performed for the primary and secondary y data gathered. Addition to this it also involve certain
recommendations on the basis of finding over the issues which is being focused within an
investigation.
7
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CHAPTER 2: LITERATURE REVIEW
Literature review is defined as the process of reviewing number of secondary sources in
order to gather the information regarding a particular area of study from the perspective of
different view point of scholars (Flick, 2015). This support in developing an understanding
regarding the nature of study so that appropriate points can be explained which can be used to
proceed further. In other words it can be said that literature Review is the review of scholarly
sources that gives an overview of specific topic. It includes the process of systematic review of
different articles, journals, books and other sources related to the different themes of study area.
It administers foundation of knowledge on the topic.
The concept of audit within corporate firms
According to information presented by Bansal. G., 2017, audit is consider as an
independent as well as systematic examination of book of accounting, statutory records, voucher
and documentation of a company. The auditing is mainly performed within an organisation in
order to get an idea about how far the financial statement represent the fair view as well as true
picture of organisation’s performance. This support in ensuring that the book of accounting are
properly maintained as per the accounting standards and principles, so that fair picture of
company can be represented which maintain trustworthiness and transparency among its
stakeholders. Financial audit is consider to be most effective as it support in highlighting the area
of success or concern within the business and support the management team to determine the
greater pathway for achieving the success. The auditing is mainly performed by a authorised
person who is specialised in the area of auditing and usually known as auditor. In this process of
auditing the auditor mainly obtain the evidences and formulate he opinion as per his judgement
which is then communicated with the help of report presented by them (Halbouni, Obeid and
Garbou, 2016). The auditor mainly work for providing the third party assurance on every subject
matter and by presenting true picture of a company also support them in taking up better
decision. It support in several areas such as,
Risk of misstatement: Sometimes statements in book of accounting may be missed or
placed wrongly which may result intro wrong representation of information. But auditor
help in assessing this issue from the financial report. This mistake is mainly happen as the
company itself is not able to create a reliable financial report as it is not easy to allocate
the resources to understand which of its segment is more profitable. But the auditor help
8
Literature review is defined as the process of reviewing number of secondary sources in
order to gather the information regarding a particular area of study from the perspective of
different view point of scholars (Flick, 2015). This support in developing an understanding
regarding the nature of study so that appropriate points can be explained which can be used to
proceed further. In other words it can be said that literature Review is the review of scholarly
sources that gives an overview of specific topic. It includes the process of systematic review of
different articles, journals, books and other sources related to the different themes of study area.
It administers foundation of knowledge on the topic.
The concept of audit within corporate firms
According to information presented by Bansal. G., 2017, audit is consider as an
independent as well as systematic examination of book of accounting, statutory records, voucher
and documentation of a company. The auditing is mainly performed within an organisation in
order to get an idea about how far the financial statement represent the fair view as well as true
picture of organisation’s performance. This support in ensuring that the book of accounting are
properly maintained as per the accounting standards and principles, so that fair picture of
company can be represented which maintain trustworthiness and transparency among its
stakeholders. Financial audit is consider to be most effective as it support in highlighting the area
of success or concern within the business and support the management team to determine the
greater pathway for achieving the success. The auditing is mainly performed by a authorised
person who is specialised in the area of auditing and usually known as auditor. In this process of
auditing the auditor mainly obtain the evidences and formulate he opinion as per his judgement
which is then communicated with the help of report presented by them (Halbouni, Obeid and
Garbou, 2016). The auditor mainly work for providing the third party assurance on every subject
matter and by presenting true picture of a company also support them in taking up better
decision. It support in several areas such as,
Risk of misstatement: Sometimes statements in book of accounting may be missed or
placed wrongly which may result intro wrong representation of information. But auditor
help in assessing this issue from the financial report. This mistake is mainly happen as the
company itself is not able to create a reliable financial report as it is not easy to allocate
the resources to understand which of its segment is more profitable. But the auditor help
8
in performing this by ensuring that each asset nad liability must get valued in right
manner and present the actual image of company’s performance.
Fraud prevention: By performing auditing of internal system it become possible ti
determine the fraud practices so that a corrective actions can be taken on timely manner
for reducing the fraud practices (Halbouni, Obeid and Garbou, 2016). By maintaining the
rigorous system for the internal control one can prevent as well as detect the various kind
of fraud as well as other accounting irregularities. If an organisation maintain the active
as well as diligent audit system within the company then with the popularity of it alone
company become able to prevent an employee or a vendor from attempting any kind of
fraud practices within the organisation.
Cost of capital: It is also consider as an important aspect of an organisation, as investment
is largely consist of risk where the more risk is of getting higher return over the capital
invested. So by maintaining a string audit system an organisation be able to reduce the
various tyep of risk within an enterprise by presenting true financial position which in
turn help in predicting the future return as per the current value and also alert about
upcoming issues so that correcting measures can be taken on timely manner (Fox and
Alldred, 2015).
On the other hand, according to Brazel, J.F., 2018, audit means the examination of something
thoroughly. So, auditing is defined as the process of independently inspecting the financial
information about an organisation whether is profit organisation or not for profit organisation,
despite of its status, legal form or size when such kind of evolution is conducted with a view to
express the opinion. Hence in order words it can be said that auditing of book of accounting is all
about the verification of accounts by a professional for ensuring that the accounting has been
conducted as per the appropriate regulatory requiring and to check about eh veracity of the
transactions performed by business. The audit within a corporate is consider to eb a continuous
process which consists of examination of several compliances, risk as well as accounting
practices. At the closure of financial year a company mainly prepare its financial statement
according to the book of accounting that is to be maintained and it shall be approved by the
board of director for giving the audit process (Goel, 2015). After that the auditor make its report
as per evaluation of these financial statements in order to disclose the accuracy of transaction
whether it represent the fair view of the financial information or not.
9
manner and present the actual image of company’s performance.
Fraud prevention: By performing auditing of internal system it become possible ti
determine the fraud practices so that a corrective actions can be taken on timely manner
for reducing the fraud practices (Halbouni, Obeid and Garbou, 2016). By maintaining the
rigorous system for the internal control one can prevent as well as detect the various kind
of fraud as well as other accounting irregularities. If an organisation maintain the active
as well as diligent audit system within the company then with the popularity of it alone
company become able to prevent an employee or a vendor from attempting any kind of
fraud practices within the organisation.
Cost of capital: It is also consider as an important aspect of an organisation, as investment
is largely consist of risk where the more risk is of getting higher return over the capital
invested. So by maintaining a string audit system an organisation be able to reduce the
various tyep of risk within an enterprise by presenting true financial position which in
turn help in predicting the future return as per the current value and also alert about
upcoming issues so that correcting measures can be taken on timely manner (Fox and
Alldred, 2015).
On the other hand, according to Brazel, J.F., 2018, audit means the examination of something
thoroughly. So, auditing is defined as the process of independently inspecting the financial
information about an organisation whether is profit organisation or not for profit organisation,
despite of its status, legal form or size when such kind of evolution is conducted with a view to
express the opinion. Hence in order words it can be said that auditing of book of accounting is all
about the verification of accounts by a professional for ensuring that the accounting has been
conducted as per the appropriate regulatory requiring and to check about eh veracity of the
transactions performed by business. The audit within a corporate is consider to eb a continuous
process which consists of examination of several compliances, risk as well as accounting
practices. At the closure of financial year a company mainly prepare its financial statement
according to the book of accounting that is to be maintained and it shall be approved by the
board of director for giving the audit process (Goel, 2015). After that the auditor make its report
as per evaluation of these financial statements in order to disclose the accuracy of transaction
whether it represent the fair view of the financial information or not.
9
Despite of this the Comer, M.J., 2017, audit is consider as the examination of several book of
accounting as well as financial statements by the auditor. This can be done internally by the head
of financial department or by some other worker selected by the higher management or it can be
doen externally by the independent auditor or the external organisation. The author further
extended that, auditing is a systematic process used by auditor for examine the financial
statement and information of the organisation. In this process, auditor examine or analyse that is
the organisation making profit or not. Along with this, it is an useful process in which auditor
examine the economic actions and conditions. Audit is completed to find out the accuracy of
financial information or statements provided by corporate firm (DeZoort and Harrison, 2018).
An auditing mainly includes the examination on the basis of testing the evidence supported by
the amounts as well s disclosure of an organisation’s financial outcome throughout the year. It
also includes evaluation of accounting principle followed by the company as well as significant
estimates done by the management. Addition to this the auditing also involve the understanding
about the internal control of organisation structure as it is also connected with the financial
statement. Overall it can be said that the audit is a useful tool for a company for the investors as
well as for internal management to for determining the ways of safeguarding the assets and
processes related with the financial reporting.
Apart from this, as per the view point of Dunleavy, P., 2018, it has been evaluated that audit
is vital and important for a corporate for as it facilities and ensures a more systematic and
effective examination of all the accounting records and other day to day transaction and
documentation. The importance of audit for a company can be derived from the fact that it leads
a check of fraud and other malicious practises along with ensuring a fair financial report and true
presentation of performance of organisation. Further, it is been also observed that the audit is
mainly lead out by an independent authorised person who is having a detailed and in-depth
knowledge about various accounting and auditing aspects known as the auditor. Apart from this,
an analysis about the main areas and importance served by audit is also evaluated which
comprises of more effective management of risk through keeping a better and regular check on
accounting reports so that chances of miss calculation or wrong presentation of information can
be eliminated (Deng and Macve, 2017). Further, prevention of fraud and presenting actual cost
of capital and other fair value of other important aspects is also ensured by auditing to have
better return on investment made.
10
accounting as well as financial statements by the auditor. This can be done internally by the head
of financial department or by some other worker selected by the higher management or it can be
doen externally by the independent auditor or the external organisation. The author further
extended that, auditing is a systematic process used by auditor for examine the financial
statement and information of the organisation. In this process, auditor examine or analyse that is
the organisation making profit or not. Along with this, it is an useful process in which auditor
examine the economic actions and conditions. Audit is completed to find out the accuracy of
financial information or statements provided by corporate firm (DeZoort and Harrison, 2018).
An auditing mainly includes the examination on the basis of testing the evidence supported by
the amounts as well s disclosure of an organisation’s financial outcome throughout the year. It
also includes evaluation of accounting principle followed by the company as well as significant
estimates done by the management. Addition to this the auditing also involve the understanding
about the internal control of organisation structure as it is also connected with the financial
statement. Overall it can be said that the audit is a useful tool for a company for the investors as
well as for internal management to for determining the ways of safeguarding the assets and
processes related with the financial reporting.
Apart from this, as per the view point of Dunleavy, P., 2018, it has been evaluated that audit
is vital and important for a corporate for as it facilities and ensures a more systematic and
effective examination of all the accounting records and other day to day transaction and
documentation. The importance of audit for a company can be derived from the fact that it leads
a check of fraud and other malicious practises along with ensuring a fair financial report and true
presentation of performance of organisation. Further, it is been also observed that the audit is
mainly lead out by an independent authorised person who is having a detailed and in-depth
knowledge about various accounting and auditing aspects known as the auditor. Apart from this,
an analysis about the main areas and importance served by audit is also evaluated which
comprises of more effective management of risk through keeping a better and regular check on
accounting reports so that chances of miss calculation or wrong presentation of information can
be eliminated (Deng and Macve, 2017). Further, prevention of fraud and presenting actual cost
of capital and other fair value of other important aspects is also ensured by auditing to have
better return on investment made.
10
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The factors determining success of Sainsbury's audit committee to enhance effectiveness of
financial statement.
Auditing is one of the most common factors or area of concern within an organisation that
operates at larger scale which remains beneficial for it. The auditing process is considered to be
important for an organisation which support in ensuring that its operations are being operates in
right direction. According to No, W.G., Lee, K., Huang, F. and Li, Q., 2019, auditing help in
improving the credit rating by presenting a clear picture of financial position of the company
which in turn allows the company to become more reliable as it presents the actual statement
about how the things are going within organisation in term of financial action. This in turn
further help investors in getting idea about whether they are being treated fairly and their
investment is getting in right direction. Other then this it also supports the organisation in getting
an idea about the actual organisational performance by thoroughly reviewing all the financial
statement. This is so because the auditing process support in brining the transparency within the
financial growth and progress of the company which provide stakeholder with the true image of
it that in turn help in enhancing the credibility and reliability over organisation. Therefore it
become very much essential that the auditing committee must be created in appropriate manner
that support in preforming each of the practice in right manner and allowing the Sainsbury in
improving the effectiveness of financial statements that further improve its brand image in front
of stakeholders (Grennan, 2019).
In continuation with this the Leka. L., tugman. L., 2019, as the corporate failure and
scandals are increasing across countries it all bring the political and regulatory attention over the
audit profession and also focusing toward exposing the corporate governance failures. This bring
more attention of organisation to consider factors that help them in achieving the success of
audit committee so that they would be able to achieve better financial performance and remain
free from any kind of legal compliances that affect their brand image. Hence there remain certain
factors that Sainsbury must consider in order to ensure its success of audit committee. These are
mentioned below:
Audit committee transparency: It is essential to increase the transparency of how the
audit committee must discharge its duties and ensure that there remain a more informed
assessment which in turn help in improving performance and effectiveness. Despite of
this many of the corporate governance code as well as regulation mainly includes the
11
financial statement.
Auditing is one of the most common factors or area of concern within an organisation that
operates at larger scale which remains beneficial for it. The auditing process is considered to be
important for an organisation which support in ensuring that its operations are being operates in
right direction. According to No, W.G., Lee, K., Huang, F. and Li, Q., 2019, auditing help in
improving the credit rating by presenting a clear picture of financial position of the company
which in turn allows the company to become more reliable as it presents the actual statement
about how the things are going within organisation in term of financial action. This in turn
further help investors in getting idea about whether they are being treated fairly and their
investment is getting in right direction. Other then this it also supports the organisation in getting
an idea about the actual organisational performance by thoroughly reviewing all the financial
statement. This is so because the auditing process support in brining the transparency within the
financial growth and progress of the company which provide stakeholder with the true image of
it that in turn help in enhancing the credibility and reliability over organisation. Therefore it
become very much essential that the auditing committee must be created in appropriate manner
that support in preforming each of the practice in right manner and allowing the Sainsbury in
improving the effectiveness of financial statements that further improve its brand image in front
of stakeholders (Grennan, 2019).
In continuation with this the Leka. L., tugman. L., 2019, as the corporate failure and
scandals are increasing across countries it all bring the political and regulatory attention over the
audit profession and also focusing toward exposing the corporate governance failures. This bring
more attention of organisation to consider factors that help them in achieving the success of
audit committee so that they would be able to achieve better financial performance and remain
free from any kind of legal compliances that affect their brand image. Hence there remain certain
factors that Sainsbury must consider in order to ensure its success of audit committee. These are
mentioned below:
Audit committee transparency: It is essential to increase the transparency of how the
audit committee must discharge its duties and ensure that there remain a more informed
assessment which in turn help in improving performance and effectiveness. Despite of
this many of the corporate governance code as well as regulation mainly includes the
11
requirement of audit committee disclosure. Hence, the Sainsbury must focuses toward
provoking that the audit committee make its disclosure continuously which in turn further
help in reflecting that the audit committee is focusing toward responding to the increasing
expectation of investors as well as other stakeholder and make them trust over audit
committee by regularly disclosing the information (Jacoby, 2018).
Effective communication: The necessity of effective communication flow to and from
the audit committee is crucial to consider and can’t be overstated. The auditing process
mainly make use of written, oral, formal, informal, meetings with management etc. These
all are the sources of communication where it remain significant to maintain the
communication effectively (Gaddis, S.M., 2018). By ensuring effective flow of
communication Sainsbury would be able to ensure the effectiveness of audit committee
by making a regular availability of information so that they can easily detect the error
within financial statements and be able to enhance the effectiveness of it.
Strength the finance function: The finance function remains responsible for creating
the auditable and reliable information about the external disclosure. The strength of
finance function is considered to be crucial in supporting the oversight role of audit
committee that can be severely inhibited through a weak finance function that lacks
capacity, effective CFO leadership and expertise. Hence, by strengthening the financial
function, the auditing process of Sainsbury can be improved (Kabir and Thai, 2017).
Therefore it can be said that by making the auditing process a part of a system, Sainsbury
would be able to improve its performance of financial statement. This is so because the effective
auditing process support in avoiding the risk of misstatement that can affect the final outcome of
financial statements at the end of year. As it perform a thorough check over all the financial
statement and help in removing the error by making correction throughout the auditing process.
Other than this, it also help in eliminating the fraud practices by detecting it through audit
analysis and preventing it by taking instant actions and also get benefited with appropriate cost
of capital where the company would be able to determine the actual cost they incurred over the
capital that kept aside within business for performing activities and return it provide on
investment. This is so because regular execution of auditing process will allow Sainsbury to have
a check over the range of transactions performed and recorded so that a clear spend and earn of
finance can be identify which further help in determining if any kind of fraud practice involve
12
provoking that the audit committee make its disclosure continuously which in turn further
help in reflecting that the audit committee is focusing toward responding to the increasing
expectation of investors as well as other stakeholder and make them trust over audit
committee by regularly disclosing the information (Jacoby, 2018).
Effective communication: The necessity of effective communication flow to and from
the audit committee is crucial to consider and can’t be overstated. The auditing process
mainly make use of written, oral, formal, informal, meetings with management etc. These
all are the sources of communication where it remain significant to maintain the
communication effectively (Gaddis, S.M., 2018). By ensuring effective flow of
communication Sainsbury would be able to ensure the effectiveness of audit committee
by making a regular availability of information so that they can easily detect the error
within financial statements and be able to enhance the effectiveness of it.
Strength the finance function: The finance function remains responsible for creating
the auditable and reliable information about the external disclosure. The strength of
finance function is considered to be crucial in supporting the oversight role of audit
committee that can be severely inhibited through a weak finance function that lacks
capacity, effective CFO leadership and expertise. Hence, by strengthening the financial
function, the auditing process of Sainsbury can be improved (Kabir and Thai, 2017).
Therefore it can be said that by making the auditing process a part of a system, Sainsbury
would be able to improve its performance of financial statement. This is so because the effective
auditing process support in avoiding the risk of misstatement that can affect the final outcome of
financial statements at the end of year. As it perform a thorough check over all the financial
statement and help in removing the error by making correction throughout the auditing process.
Other than this, it also help in eliminating the fraud practices by detecting it through audit
analysis and preventing it by taking instant actions and also get benefited with appropriate cost
of capital where the company would be able to determine the actual cost they incurred over the
capital that kept aside within business for performing activities and return it provide on
investment. This is so because regular execution of auditing process will allow Sainsbury to have
a check over the range of transactions performed and recorded so that a clear spend and earn of
finance can be identify which further help in determining if any kind of fraud practice involve
12
with misrepresentation of data. Hence, it can be said that the auditing process plays a significant
role in presenting a clear picture of financial performance of Sainsbury that further provide idea
about any kind of error or mis presentation of data is available. These all contribute toward
improving the overall performance of the Sainsbury by improving the effectiveness of its
financial statements which are consider as the mirror of an organisational performance by
finding error and wrong statement of information it become easier to detect the fraud (Kumar,
2019).
Apart from this, according to the view point of Franklin, A., 2020, the other factors that lead
impact on success of audit committee and also impact fairness of financial statement comprises
of Committee composition which is including the appropriate skills along with the level of
competencies and expertise in the members of audit committee which leads vital role in
enhancing effectives of the financial statement. Ensuring and leading out a right composition of
audit commit is most vital factor and important for Sainsbury as it ensures more competent and
diverse members in audit committee that ensure wider perceptive and leads to better jurisdiction
of audit committee to have enhanced financial reporting and a better accounting expertise. An
analysis can be made that diversity perceptive, experience and expertise among audit committee
is also vital for enhanced success through leading an oversight and more effective widening
mandates to enhance effectiveness of financial reporting (Lutsenko, 2018).
Thus, on the basis of above discussion, an analysis and evaluation can be made that
factors determining success of audit committee to enhance the effectiveness of financial
statement comprises of several aspects like the transparency level in audit committee to have
more clear and fair decision making along with effective communication to remove the chances
of chaos and confusion among members which improves the effectiveness of financial reports.
Apart from this, strengthen the finance function and ensuring a proper composition of audit
committee is also important is viable to enhance the effectiveness of the financial reporting
through providing more skilled, sound and competent members (Ramesh, 2020). The skilled and
knowledge audit committee members plays an improrrtnat role in leading enhanced and
diversified perceptive which support better check and control over financial aspects and
reporting in order to enhance its effectiveness level,
13
role in presenting a clear picture of financial performance of Sainsbury that further provide idea
about any kind of error or mis presentation of data is available. These all contribute toward
improving the overall performance of the Sainsbury by improving the effectiveness of its
financial statements which are consider as the mirror of an organisational performance by
finding error and wrong statement of information it become easier to detect the fraud (Kumar,
2019).
Apart from this, according to the view point of Franklin, A., 2020, the other factors that lead
impact on success of audit committee and also impact fairness of financial statement comprises
of Committee composition which is including the appropriate skills along with the level of
competencies and expertise in the members of audit committee which leads vital role in
enhancing effectives of the financial statement. Ensuring and leading out a right composition of
audit commit is most vital factor and important for Sainsbury as it ensures more competent and
diverse members in audit committee that ensure wider perceptive and leads to better jurisdiction
of audit committee to have enhanced financial reporting and a better accounting expertise. An
analysis can be made that diversity perceptive, experience and expertise among audit committee
is also vital for enhanced success through leading an oversight and more effective widening
mandates to enhance effectiveness of financial reporting (Lutsenko, 2018).
Thus, on the basis of above discussion, an analysis and evaluation can be made that
factors determining success of audit committee to enhance the effectiveness of financial
statement comprises of several aspects like the transparency level in audit committee to have
more clear and fair decision making along with effective communication to remove the chances
of chaos and confusion among members which improves the effectiveness of financial reports.
Apart from this, strengthen the finance function and ensuring a proper composition of audit
committee is also important is viable to enhance the effectiveness of the financial reporting
through providing more skilled, sound and competent members (Ramesh, 2020). The skilled and
knowledge audit committee members plays an improrrtnat role in leading enhanced and
diversified perceptive which support better check and control over financial aspects and
reporting in order to enhance its effectiveness level,
13
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The challenges of audit which Sainsbury’s face while improving its financial performance
According to the view point of Frishammar, J., Richtnér, A., Brattström, A., Magnusson,
M. and Björk, J., 2019, Audit is considered to be a crucial activity for an organisation which
support in getting an insight in the procedure, policies, culture as well as management which
further help in verifying the each and every practice that are executed within the organisation in
right and ethical manner. This bring transparency within the financial performance of the
company and help in maintaining the trust among the shareholders. Addition to this it also helps
in determining and preventing the fraud, testing internal control, assuring the operational
efficiency, mitigating the risk and monitoring the practices performed within the organisation.
The auditing is a process which is most widely used among the large organisation with an aim to
get an idea that everything is going in right manner or presenting the correct information in front
of shareholders to keep better and transparent relationship with them. There are mainly two kind
of auditing process that are involve within an organisational setting such as internal auditing and
external auditing. Internal audit is mainly used within big corporates as it is improvement-
oriented process which look after the historical view of organisational performance in term of
governance, risk and control system related with non-financial information. It helps in
identifying the area lacking behind so that issues can be identified and improvement can be
made. On others ide the external audit is one that focuses over the accuracy of business account
and financial condition of company so that actions can be taken for improvement. Both of them
plays a significant role in improving the overall performance of organisation (Muller, 2017). As
these help in in detecting the gap between the planned as well as actual performance so that area
where performance is lacking can be identified. Other than this it support in enhancing the
quality of work by regularly providing the feedback over the mistakes or factors that are
affecting the performance of the organisation along with the actions to be taken into
consideration. But the external auditing is much crucial practice to be adopted by big corporate
houses like Sainsbury as it supports in enhancing the financial performance of the company and
also the brand image in front of stakeholders.
But despite of all these factors there are certain challenges that Sainsbury is required to face
while preforming the auditing process in order to improve their financial performance. In
accordance with this the, Glover, S.M., Taylor, M.H. and Wu, Y.J., 2017, state details about
14
According to the view point of Frishammar, J., Richtnér, A., Brattström, A., Magnusson,
M. and Björk, J., 2019, Audit is considered to be a crucial activity for an organisation which
support in getting an insight in the procedure, policies, culture as well as management which
further help in verifying the each and every practice that are executed within the organisation in
right and ethical manner. This bring transparency within the financial performance of the
company and help in maintaining the trust among the shareholders. Addition to this it also helps
in determining and preventing the fraud, testing internal control, assuring the operational
efficiency, mitigating the risk and monitoring the practices performed within the organisation.
The auditing is a process which is most widely used among the large organisation with an aim to
get an idea that everything is going in right manner or presenting the correct information in front
of shareholders to keep better and transparent relationship with them. There are mainly two kind
of auditing process that are involve within an organisational setting such as internal auditing and
external auditing. Internal audit is mainly used within big corporates as it is improvement-
oriented process which look after the historical view of organisational performance in term of
governance, risk and control system related with non-financial information. It helps in
identifying the area lacking behind so that issues can be identified and improvement can be
made. On others ide the external audit is one that focuses over the accuracy of business account
and financial condition of company so that actions can be taken for improvement. Both of them
plays a significant role in improving the overall performance of organisation (Muller, 2017). As
these help in in detecting the gap between the planned as well as actual performance so that area
where performance is lacking can be identified. Other than this it support in enhancing the
quality of work by regularly providing the feedback over the mistakes or factors that are
affecting the performance of the organisation along with the actions to be taken into
consideration. But the external auditing is much crucial practice to be adopted by big corporate
houses like Sainsbury as it supports in enhancing the financial performance of the company and
also the brand image in front of stakeholders.
But despite of all these factors there are certain challenges that Sainsbury is required to face
while preforming the auditing process in order to improve their financial performance. In
accordance with this the, Glover, S.M., Taylor, M.H. and Wu, Y.J., 2017, state details about
14
some of the challenges that Sainsbury may face while implementing auditing process within its
financial performance. It is explained below:
Revenue recognition: - This is consider to be one of the most sensitive as well as
complicated area of auditing as sometimes the evidences which are consider to be
presented are end up with becoming too weak and vague as per the situation present.
Therefore the auditors of Sainsbury are required to perform the substantive test for
completeness. For this the auditor committee can make a documentation verifications
where the financial information are presented like salary invoice that help in verifying the
authenticity. This is so because the sometimes the evident collected by the audit team do
not remain sufficient which act as a challenges as it may affect the overall finding of
committee. Hence the audit committee team of Sainsbury must adopt effective analytical
procedure that generate sufficient evidence as per the various proofs and detailed testing
done to achieve the desired levels of confidence to support the assertions (Mzi, 2017).
Fraud: Within the auditing process the auditor and management remain responsible for
ensuring that each and every thing must performed in right manner with due
concentration to present most accurate results. In case any kind of fraud get ignored
through this process then it get arise due to management over ride the internal control.
This is the major challenge that may be faced by Sainsbury during the auditing process as
there are certain fraud practices which are performed in such a manner that remain harder
to capture and sometimes it remain due to lack of information available. This in turn
further affect the overall performance and accuracy of financial statements. For this the
auditor must focuses toward the appropriateness of journal entries which in turn minimise
the chances of collusion. Other than this if any of the inappropriate or unusual activity
found that it should be flagged. Any provision or accounting estimates is required to be
cross checked for determining the fraudulent intentions and biases (Patten and Newhart,
2017).
Impairment assessment: At the end of each reporting period the companies are required
to evaluate whether there remains any of the impairment regarding the non financial
assets. An asset is get impaired when an organisation not become able to recover its
carrying value either by selling it or using it. in this the company is also required to
mention about the recoverable amount of the asset which further estimates the expected
15
financial performance. It is explained below:
Revenue recognition: - This is consider to be one of the most sensitive as well as
complicated area of auditing as sometimes the evidences which are consider to be
presented are end up with becoming too weak and vague as per the situation present.
Therefore the auditors of Sainsbury are required to perform the substantive test for
completeness. For this the auditor committee can make a documentation verifications
where the financial information are presented like salary invoice that help in verifying the
authenticity. This is so because the sometimes the evident collected by the audit team do
not remain sufficient which act as a challenges as it may affect the overall finding of
committee. Hence the audit committee team of Sainsbury must adopt effective analytical
procedure that generate sufficient evidence as per the various proofs and detailed testing
done to achieve the desired levels of confidence to support the assertions (Mzi, 2017).
Fraud: Within the auditing process the auditor and management remain responsible for
ensuring that each and every thing must performed in right manner with due
concentration to present most accurate results. In case any kind of fraud get ignored
through this process then it get arise due to management over ride the internal control.
This is the major challenge that may be faced by Sainsbury during the auditing process as
there are certain fraud practices which are performed in such a manner that remain harder
to capture and sometimes it remain due to lack of information available. This in turn
further affect the overall performance and accuracy of financial statements. For this the
auditor must focuses toward the appropriateness of journal entries which in turn minimise
the chances of collusion. Other than this if any of the inappropriate or unusual activity
found that it should be flagged. Any provision or accounting estimates is required to be
cross checked for determining the fraudulent intentions and biases (Patten and Newhart,
2017).
Impairment assessment: At the end of each reporting period the companies are required
to evaluate whether there remains any of the impairment regarding the non financial
assets. An asset is get impaired when an organisation not become able to recover its
carrying value either by selling it or using it. in this the company is also required to
mention about the recoverable amount of the asset which further estimates the expected
15
future case flow. A defect or avoidance of mentio9ning it within financial statement
become a major challenge fro the auditor while performing auditing practices within
Sainsbury, this is so because it can affect the overall outcome of the findings of report
which in turn may also result in presenting incomplete information through auditing. This
is so because it is one of the most challenging task as it is harder to identify while
auditing process but plays a significant role in final outcome of financial statement as
well as auditing process (Schiermeier, 2015).
Apart from these above sated challenges many issues are also indentified by the
Alduraywish, Y., 2019, who provided information that providing an effective written
representation and clear presentation of facts and documentations of business position is also a
vital auditing challenge faced by an orgnisation. It has been observed that the written
presentation can be never taken as a sufficient and an appropriate form of audit evidence which
effects and hampers the effectiveness of financial reporting as in many specified areas written
representation is needed.
The current gap for this research is that proper and fair documentation of facts and
accounting standards is also difficult that lead sufficient impact on effectiveness of financial
reporting and judgement of auditor about the fairness and clarity of financial position that is also
big challenges of audit which Sainsbury’s face while improving its financial performance. Thus,
an analysis can be made that the appropriate recognition of audit revenue along with auditing
process to manage fraud and other misleading acts forms the biggest challenges while auditing to
maintain the effectiveness and fairness of financial reports (Wanke, Barros and Azad, 2017).
Further impairment assessment and effective presentation and documentation are also challenges
of audit which Sainsbury’s face while improving its financial performance.
CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is consider as a framework which contain number of tools and
methods that are used by the investigator while performing the study in order to perform the set
of activities involve within research in appropriate manner (Walliman, 2017). The research
methodologies is consider as that section of an investigation which perform systematic and
theoretical evaluation of various approaches that are applied to the area of investigation for
brining appropriate findings in order to solve the problem area which is discussed within the
investigation. In other words, methodology is a consolidation of various approaches, techniques,
16
become a major challenge fro the auditor while performing auditing practices within
Sainsbury, this is so because it can affect the overall outcome of the findings of report
which in turn may also result in presenting incomplete information through auditing. This
is so because it is one of the most challenging task as it is harder to identify while
auditing process but plays a significant role in final outcome of financial statement as
well as auditing process (Schiermeier, 2015).
Apart from these above sated challenges many issues are also indentified by the
Alduraywish, Y., 2019, who provided information that providing an effective written
representation and clear presentation of facts and documentations of business position is also a
vital auditing challenge faced by an orgnisation. It has been observed that the written
presentation can be never taken as a sufficient and an appropriate form of audit evidence which
effects and hampers the effectiveness of financial reporting as in many specified areas written
representation is needed.
The current gap for this research is that proper and fair documentation of facts and
accounting standards is also difficult that lead sufficient impact on effectiveness of financial
reporting and judgement of auditor about the fairness and clarity of financial position that is also
big challenges of audit which Sainsbury’s face while improving its financial performance. Thus,
an analysis can be made that the appropriate recognition of audit revenue along with auditing
process to manage fraud and other misleading acts forms the biggest challenges while auditing to
maintain the effectiveness and fairness of financial reports (Wanke, Barros and Azad, 2017).
Further impairment assessment and effective presentation and documentation are also challenges
of audit which Sainsbury’s face while improving its financial performance.
CHAPTER 3: RESEARCH METHODOLOGY
Research methodology is consider as a framework which contain number of tools and
methods that are used by the investigator while performing the study in order to perform the set
of activities involve within research in appropriate manner (Walliman, 2017). The research
methodologies is consider as that section of an investigation which perform systematic and
theoretical evaluation of various approaches that are applied to the area of investigation for
brining appropriate findings in order to solve the problem area which is discussed within the
investigation. In other words, methodology is a consolidation of various approaches, techniques,
16
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methods etc. that support a researcher in conducting investigation within systematic and efficient
manner.
This section of an investigation also allow a reader to check about the validity as well as
reliability of the study on the basis of methods or tools that are used by the researcher to perform
investigation (Scotland, 2012). This is so because the research methodology section present a
detail discussion about the methods used and manner in which it support in performing research
effectively. So the combination of these methods or tools represent their effectiveness within the
study also build up the trust of researcher about the authenticity of information which get
displayed through investigation. The tools and techniques used within this study by the
researcher are mentioned below:
Research philosophies: - It is defined as those beliefs which represent the nature of
knowledge and reality that is going to be investigated with the help of research. The philosophy
within a research is mainly chosen by the scholar as per the type of knowledge which the
researcher want to extract through this study. there are mainly two type of philosophies which
are generally consider within dissertations such as Positivism and interpretivism. These
philosophies are explained below: Positivism: - As per this philosophy the knowledge is belief to be independent regarding
the area of study which is going to be conducted (Walliman, 2017). This philosophy is
mainly involve setting up hypothesis or research questions that are being analysed to
gather understanding regarding world so that with the help collected information data can
be prove right or wrong.
Interpretivism: - This philosophy help in conducting the study over perception of human
about some phenomenon which further integrate the human interest along with the
phenomenon and then analyse it as per the aim and objectives of study. This support
investigator toward observing the human perception in order to collect the information
about area of investigation.
For performing this investigation the scholar make use of positivism philosophy as this study
involves collection of primary data. So adopting positivism the researcher can evaluate the
gathered information in quantified manner which in turn furthered ensures the accuracy as well
as reliability of the information which brings up best possible outcome in effective manner as
with this profitable ending is resulted in systematic manner (Koval, V. and et. al., 2019).
17
manner.
This section of an investigation also allow a reader to check about the validity as well as
reliability of the study on the basis of methods or tools that are used by the researcher to perform
investigation (Scotland, 2012). This is so because the research methodology section present a
detail discussion about the methods used and manner in which it support in performing research
effectively. So the combination of these methods or tools represent their effectiveness within the
study also build up the trust of researcher about the authenticity of information which get
displayed through investigation. The tools and techniques used within this study by the
researcher are mentioned below:
Research philosophies: - It is defined as those beliefs which represent the nature of
knowledge and reality that is going to be investigated with the help of research. The philosophy
within a research is mainly chosen by the scholar as per the type of knowledge which the
researcher want to extract through this study. there are mainly two type of philosophies which
are generally consider within dissertations such as Positivism and interpretivism. These
philosophies are explained below: Positivism: - As per this philosophy the knowledge is belief to be independent regarding
the area of study which is going to be conducted (Walliman, 2017). This philosophy is
mainly involve setting up hypothesis or research questions that are being analysed to
gather understanding regarding world so that with the help collected information data can
be prove right or wrong.
Interpretivism: - This philosophy help in conducting the study over perception of human
about some phenomenon which further integrate the human interest along with the
phenomenon and then analyse it as per the aim and objectives of study. This support
investigator toward observing the human perception in order to collect the information
about area of investigation.
For performing this investigation the scholar make use of positivism philosophy as this study
involves collection of primary data. So adopting positivism the researcher can evaluate the
gathered information in quantified manner which in turn furthered ensures the accuracy as well
as reliability of the information which brings up best possible outcome in effective manner as
with this profitable ending is resulted in systematic manner (Koval, V. and et. al., 2019).
17
Type of investigation: - This section explains about the type of method used within an
investigation in order to gather the data that can be analysed for uncovering all are facts and
information which are required to answer the research questions. The type of method chosen by a
researcher help a lot in gathering the real as well as accurate information according to the
requirement of current area of study (Scotland, 2012). A research is mainly performed using
qualitative or quantitative method of investigation that can be understood effectively using
following description, Qualitative investigation: - This method is about gathering of information in detailed
manner with the help of theoretical framework which help in gathering an understanding
regarding the emotions, behavior and experiences that are connected with the particular
phenomenon. This support the investigator in developing an understanding about the
various concepts, cultural phenomenon and social interaction so that appropriate outcome
can be extract out from the investigation. The qualitative research will help the
investigator exploring about the why and how regarding a particular thing or event and
support in describing about the event (Scotland, 2012).
Quantitative investigation: - This investigation type mainly used to gather the numerical
data about a particular phenomenon which further support in ranking the information,
measuring as well as categorizing the data in the form of numbers so that most accurate
information can be presented (Wiek and Lang, 2016). This further help the researcher in
identifying the pattern and relationship between the variable or data which is available for
making this more generalize. The quantitative study support in identifying the how often,
how much and to what extend about a particular concept or event for measuring out the
results.
Within current investigation the quantitative mean of investigation will be taken into
consideration as it supports the researcher in analyzing the quantified data which is gathered
from the respondents in more effective manner. This in turn help in providing more accurate data
about current area of study which in turn further help in assuring that the outcome remains more
valid and reliable in line with the aim and objective of study. Additionally, it also makes it easier
to prove the research questions to be valid or not.
Research approaches: - The research approach is a tool which help in evaluating the
gathered information in appropriate manner so that meaningful information can be bring fro
18
investigation in order to gather the data that can be analysed for uncovering all are facts and
information which are required to answer the research questions. The type of method chosen by a
researcher help a lot in gathering the real as well as accurate information according to the
requirement of current area of study (Scotland, 2012). A research is mainly performed using
qualitative or quantitative method of investigation that can be understood effectively using
following description, Qualitative investigation: - This method is about gathering of information in detailed
manner with the help of theoretical framework which help in gathering an understanding
regarding the emotions, behavior and experiences that are connected with the particular
phenomenon. This support the investigator in developing an understanding about the
various concepts, cultural phenomenon and social interaction so that appropriate outcome
can be extract out from the investigation. The qualitative research will help the
investigator exploring about the why and how regarding a particular thing or event and
support in describing about the event (Scotland, 2012).
Quantitative investigation: - This investigation type mainly used to gather the numerical
data about a particular phenomenon which further support in ranking the information,
measuring as well as categorizing the data in the form of numbers so that most accurate
information can be presented (Wiek and Lang, 2016). This further help the researcher in
identifying the pattern and relationship between the variable or data which is available for
making this more generalize. The quantitative study support in identifying the how often,
how much and to what extend about a particular concept or event for measuring out the
results.
Within current investigation the quantitative mean of investigation will be taken into
consideration as it supports the researcher in analyzing the quantified data which is gathered
from the respondents in more effective manner. This in turn help in providing more accurate data
about current area of study which in turn further help in assuring that the outcome remains more
valid and reliable in line with the aim and objective of study. Additionally, it also makes it easier
to prove the research questions to be valid or not.
Research approaches: - The research approach is a tool which help in evaluating the
gathered information in appropriate manner so that meaningful information can be bring fro
18
concluding the outcomes in line with research objectives. The research approaches are of two
type which totally depends over the investigation performed and these are inductive or deductive
approach which can be understood with following discussion.
Inductive approach: - Under this the gathered quantitative information is mainly review
for determine the pattern of information so that an appropriate theory can be developed
for better understanding of study (Walliman, 2017). The inductive approach is consider to
be more suitable for the qualitative study which focuses toward the generation of new
theory which is emerged with gathered data.
Deductive approach: - This approach belongs to study where the existing theory is
being analysed by creating hypothesis over it in order to provide relevant information for
prove them right or wrong. The deductive approach is more suitable for quantitative
study which help in evaluating the numerical; data and provide accurate information.
For conducting this investigation, the deductive approach is adopted as it support in
evaluating the quantified facts and figures that support in representing the most accurate
information (Zhang, J.H., 2018).
Research strategy: - This is considered to be most effective part of an investigation which
represent information about the crucial component of study i.e. proposed tool or method which
researcher used in order to gather the information for answering the research questions. In other
words, this can be stated that research strategy supports a researcher in addressing the issue over
which the study is based and help in providing the right direction to the research (Tuohy and
et.al., 2013). There are number of strategies that can be mainly used by the investigator such as
interview, questionnaire, case study, survey etc. For this investigation, questionnaire will be
taken into consideration as it is less time-consuming process which provide an option to
respondents to answer the questions as per their convenient time. Addition to this it also
consumes less time in collecting information from larger number of respondents which ensures
researcher to get the concise as well as specific information which make it more easy to reach the
appropriate conclusion. The questionnaire is mentioned below:
Questions Strongly
agree
Agree Disagree Strongly
disagree
N/A
Q1 Do You think that organizing of auditing
process is crucial for smooth running of
19
type which totally depends over the investigation performed and these are inductive or deductive
approach which can be understood with following discussion.
Inductive approach: - Under this the gathered quantitative information is mainly review
for determine the pattern of information so that an appropriate theory can be developed
for better understanding of study (Walliman, 2017). The inductive approach is consider to
be more suitable for the qualitative study which focuses toward the generation of new
theory which is emerged with gathered data.
Deductive approach: - This approach belongs to study where the existing theory is
being analysed by creating hypothesis over it in order to provide relevant information for
prove them right or wrong. The deductive approach is more suitable for quantitative
study which help in evaluating the numerical; data and provide accurate information.
For conducting this investigation, the deductive approach is adopted as it support in
evaluating the quantified facts and figures that support in representing the most accurate
information (Zhang, J.H., 2018).
Research strategy: - This is considered to be most effective part of an investigation which
represent information about the crucial component of study i.e. proposed tool or method which
researcher used in order to gather the information for answering the research questions. In other
words, this can be stated that research strategy supports a researcher in addressing the issue over
which the study is based and help in providing the right direction to the research (Tuohy and
et.al., 2013). There are number of strategies that can be mainly used by the investigator such as
interview, questionnaire, case study, survey etc. For this investigation, questionnaire will be
taken into consideration as it is less time-consuming process which provide an option to
respondents to answer the questions as per their convenient time. Addition to this it also
consumes less time in collecting information from larger number of respondents which ensures
researcher to get the concise as well as specific information which make it more easy to reach the
appropriate conclusion. The questionnaire is mentioned below:
Questions Strongly
agree
Agree Disagree Strongly
disagree
N/A
Q1 Do You think that organizing of auditing
process is crucial for smooth running of
19
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business operations
Q2 Does conducting an auditing process
within an organisation support in improving
its credibility at marketplace?
Q3 As per your perception does Sainsbury is
required to involve within the auditing
process along with Board of directors in order
to enhance its credibility of report
Q4 Do you think that Fraud detection and
prevention become more easier for Sainsbury
if it maintains a rigid system of auditing
Q5 According to you, does the external
auditing process must be used by Sainsbury
for detecting its current performance
Q6 Do you think that internal auditing
process will remain helpful to Sainsbury in
improving its managerial control and HR
practices?
Q7 Does the execution of external audit will
be helpful for Sainsbury in determining its
actual financial position and performance?
Q8 Do you think that regular conduction of
auditing will bring influence over the
employees working within Sainsbury?
Q9 As per your perception does the
misrepresentation of statement would be
identified with the help of auditing process
performed by Sainsbury
Q10 Auditing support in identifying the
financial deficiency present within the
accounting statement by detecting mistakes
20
Q2 Does conducting an auditing process
within an organisation support in improving
its credibility at marketplace?
Q3 As per your perception does Sainsbury is
required to involve within the auditing
process along with Board of directors in order
to enhance its credibility of report
Q4 Do you think that Fraud detection and
prevention become more easier for Sainsbury
if it maintains a rigid system of auditing
Q5 According to you, does the external
auditing process must be used by Sainsbury
for detecting its current performance
Q6 Do you think that internal auditing
process will remain helpful to Sainsbury in
improving its managerial control and HR
practices?
Q7 Does the execution of external audit will
be helpful for Sainsbury in determining its
actual financial position and performance?
Q8 Do you think that regular conduction of
auditing will bring influence over the
employees working within Sainsbury?
Q9 As per your perception does the
misrepresentation of statement would be
identified with the help of auditing process
performed by Sainsbury
Q10 Auditing support in identifying the
financial deficiency present within the
accounting statement by detecting mistakes
20
and fraud
Q11 According to your perception does
adherence to standard is a most influential
factor that must be considered while
implementing audit?
Q12 Do you think that detection of fraud
would be the major challenges for Sainsbury
to detect through auditing process
Q13 Do you think that maintaining regular
auditing will support Sainsbury in keeping
maintaining positive relationship with
shareholders?
Q14 Does keeping information error free will
support Sainsbury in improving its financial
performance?
Q15 Does hiring external auditor will be
helpful for Sainsbury in improving its
financial performance?
Data collection Method: This is defined as the medium through which information will be
gathered by the investigator about a particular area of study that help in reaching up tyo an
appropriate outcome (Taherdoost, 2016). The data collection method are consider to be very
essential within an investigation as over this the validity and reliability of study us accessed by
the researcher. There are mainly two methods which are used for data collection such as primary
and secondary sources this can be understood using explanation presented below: Primary data collection method: - The primary data is one which is collected by the
scholar for the first time which is not yet been identified by any other person earlier.
Therefore it is also consider as original information which remain specific to the issue
over which the research is conducted. There are several methods that can be used to
gather the information such as interview, focused group, questionnaire, observation and
21
Q11 According to your perception does
adherence to standard is a most influential
factor that must be considered while
implementing audit?
Q12 Do you think that detection of fraud
would be the major challenges for Sainsbury
to detect through auditing process
Q13 Do you think that maintaining regular
auditing will support Sainsbury in keeping
maintaining positive relationship with
shareholders?
Q14 Does keeping information error free will
support Sainsbury in improving its financial
performance?
Q15 Does hiring external auditor will be
helpful for Sainsbury in improving its
financial performance?
Data collection Method: This is defined as the medium through which information will be
gathered by the investigator about a particular area of study that help in reaching up tyo an
appropriate outcome (Taherdoost, 2016). The data collection method are consider to be very
essential within an investigation as over this the validity and reliability of study us accessed by
the researcher. There are mainly two methods which are used for data collection such as primary
and secondary sources this can be understood using explanation presented below: Primary data collection method: - The primary data is one which is collected by the
scholar for the first time which is not yet been identified by any other person earlier.
Therefore it is also consider as original information which remain specific to the issue
over which the research is conducted. There are several methods that can be used to
gather the information such as interview, focused group, questionnaire, observation and
21
many more. The primary research is mainly conducted when there is not nay shortage of
time to the investigator (Taherdoost, 2016).
Secondary data collection method: - This type of data collection is mainly refer to one
which is previously investigated by some another person and now it is being used by the
investigator by in order to present different perspective about the current study area to
develop better understanding. The secondary data help the researcher in getting a better
understanding about the study area so that by developing understanding about the study
area the right direction can be provided to primary study as per eth finding of secondary
data. In this information is collected from some already published sources for getting
appropriate information regarding the research problem (Omland. and Thapa, 2017). This
involve sources like books, journals, articles, newspaper, magazine etc.
In order to conduct present study both the data collection sources will be taken into
consideration as secondary information will help evaluating the audit issue faced by Sainsbury
and reason behind it and primary information help in ensuring what future actions must be
undertaken to avoided such kind of issues, so that by consolidating the primary and secondary
information researcher would be able to present most appropriate outcome. For this the primary
information is to be collected with the help of questionnaire which allows to gather information
from larger number of people in less possible time period. On the other hand the secondary
information will be gathered from online sources like articles, blog, books and journals. This is
so because the online sources will support in getting most updated information.
Research sampling: - This is defined as that method which support in selecting the group of
people out of whole population in such a manner that data collected by them represent the whole.
The sampling is mainly performed with the help of either using probability sampling or using
non-probability sampling. Among them the probability sampling method is one where the reach
individual is provided with a chance to get selected and then few of them area selected on
random basis (Mzi, 2017). On the other handed the non-probability sampling method is one
where the respondents are selected as per the personal decision or choice of researcher. For
conducting eth current study the probability sampling method will be used as it help in avoiding
the bias behavior while selecting the people as a sampling size which in turn help in collecting
the most fair and reliable data. The sample size for current sturdy will be 50 employees of
Sainsbury.
22
time to the investigator (Taherdoost, 2016).
Secondary data collection method: - This type of data collection is mainly refer to one
which is previously investigated by some another person and now it is being used by the
investigator by in order to present different perspective about the current study area to
develop better understanding. The secondary data help the researcher in getting a better
understanding about the study area so that by developing understanding about the study
area the right direction can be provided to primary study as per eth finding of secondary
data. In this information is collected from some already published sources for getting
appropriate information regarding the research problem (Omland. and Thapa, 2017). This
involve sources like books, journals, articles, newspaper, magazine etc.
In order to conduct present study both the data collection sources will be taken into
consideration as secondary information will help evaluating the audit issue faced by Sainsbury
and reason behind it and primary information help in ensuring what future actions must be
undertaken to avoided such kind of issues, so that by consolidating the primary and secondary
information researcher would be able to present most appropriate outcome. For this the primary
information is to be collected with the help of questionnaire which allows to gather information
from larger number of people in less possible time period. On the other hand the secondary
information will be gathered from online sources like articles, blog, books and journals. This is
so because the online sources will support in getting most updated information.
Research sampling: - This is defined as that method which support in selecting the group of
people out of whole population in such a manner that data collected by them represent the whole.
The sampling is mainly performed with the help of either using probability sampling or using
non-probability sampling. Among them the probability sampling method is one where the reach
individual is provided with a chance to get selected and then few of them area selected on
random basis (Mzi, 2017). On the other handed the non-probability sampling method is one
where the respondents are selected as per the personal decision or choice of researcher. For
conducting eth current study the probability sampling method will be used as it help in avoiding
the bias behavior while selecting the people as a sampling size which in turn help in collecting
the most fair and reliable data. The sample size for current sturdy will be 50 employees of
Sainsbury.
22
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Research ethics: - For conducting the primary research effectively an investigator is
required to consider ethics in study so that the process of investigation as well as its outcome
remain appropriate free from any kind of ethical issues. There are certain principles which are
required to follow for performing the investigation in ethical manner such as Informed consent,
anonymity and confidentiality (Mackey and Gass, 2015). So in order to take this research
ethically the respondents are provided with the basic detail about the investigation and aim
behind it so that respondent can take up their decision for being a part of study in order to preset
informed consent. Additionally for the data protection the basic and personal information of the
respondents will be kept confidential and secure so they do not get harmed through the execution
of investigation. Hence the information will be kept private i.e. not each individual will get
access to the information and only the investigator has access to it. Other than this fro gathering
the secondary information it will be make sure by the scholar that data must be gathered from
authenticated and reliable sources only in order to present more valid information can be
provided. Other than this, it will also be assured that the information will be updated in the whole
investigation and not any kind of modification will be done to gathered data for making it more
attractive.
Research reliability and validity: - The reliability of an investigation is mainly depends
over the examination of data collection tool i.e. questionnaire for this study as a test instrument.
It means that the question presents within the study provide with the most accurate data about the
research problem and support in validating the arguments that are made in the from of research
questions (Kumar, 2019). Hence, it help in getting the most accurate information over which one
can trust and use to conduct further research. On the other hand the study validity is mainly
defined as the accuracy within the answer which is provided by the respondent through
questionnaire. This is so because the questions involve with the questionnaire are usually close
ended which ensure that the answer must be based on the view point of respondents and hence
consider to be valid from the investigation point of view (Axmedjanov, K., 2020).
CHAPTER 4: RESULT AND DISCUSSION
Analysis of research results
For better analysis of collected data with the help of above stated questionnaire use of a
frequency table is made as it facilitates most clear and systematic analysis of collected raw data.
23
required to consider ethics in study so that the process of investigation as well as its outcome
remain appropriate free from any kind of ethical issues. There are certain principles which are
required to follow for performing the investigation in ethical manner such as Informed consent,
anonymity and confidentiality (Mackey and Gass, 2015). So in order to take this research
ethically the respondents are provided with the basic detail about the investigation and aim
behind it so that respondent can take up their decision for being a part of study in order to preset
informed consent. Additionally for the data protection the basic and personal information of the
respondents will be kept confidential and secure so they do not get harmed through the execution
of investigation. Hence the information will be kept private i.e. not each individual will get
access to the information and only the investigator has access to it. Other than this fro gathering
the secondary information it will be make sure by the scholar that data must be gathered from
authenticated and reliable sources only in order to present more valid information can be
provided. Other than this, it will also be assured that the information will be updated in the whole
investigation and not any kind of modification will be done to gathered data for making it more
attractive.
Research reliability and validity: - The reliability of an investigation is mainly depends
over the examination of data collection tool i.e. questionnaire for this study as a test instrument.
It means that the question presents within the study provide with the most accurate data about the
research problem and support in validating the arguments that are made in the from of research
questions (Kumar, 2019). Hence, it help in getting the most accurate information over which one
can trust and use to conduct further research. On the other hand the study validity is mainly
defined as the accuracy within the answer which is provided by the respondent through
questionnaire. This is so because the questions involve with the questionnaire are usually close
ended which ensure that the answer must be based on the view point of respondents and hence
consider to be valid from the investigation point of view (Axmedjanov, K., 2020).
CHAPTER 4: RESULT AND DISCUSSION
Analysis of research results
For better analysis of collected data with the help of above stated questionnaire use of a
frequency table is made as it facilitates most clear and systematic analysis of collected raw data.
23
The analysis of the data collected from selected 50 employees of Sainsbury is provided below
with the help of a frequency table.
Interpretation and discussion of collected data
Use of pie charts and frequency table are being made for better and attractive presentation
of collected data which also support a more effective interpretation of research results with the
help of collected data.
Theme 1: Organizing of auditing process is crucial for smooth running of business
operations
Q1 Do You think that organizing of auditing process is crucial for
smooth running of business operations
Frequency
Strongly agree 20
Agree 25
Disagree 3
Strongly disagree 1
N/A 1
Interpretation
The above pie chart is reflecting that 20 participants from a total of 50 seemed to be
strongly agreed on the fact that organizing of auditing process is crucial for smooth running of
business operations where as 25 individuals were agreed. Apart from this, it has been also
24
with the help of a frequency table.
Interpretation and discussion of collected data
Use of pie charts and frequency table are being made for better and attractive presentation
of collected data which also support a more effective interpretation of research results with the
help of collected data.
Theme 1: Organizing of auditing process is crucial for smooth running of business
operations
Q1 Do You think that organizing of auditing process is crucial for
smooth running of business operations
Frequency
Strongly agree 20
Agree 25
Disagree 3
Strongly disagree 1
N/A 1
Interpretation
The above pie chart is reflecting that 20 participants from a total of 50 seemed to be
strongly agreed on the fact that organizing of auditing process is crucial for smooth running of
business operations where as 25 individuals were agreed. Apart from this, it has been also
24
observed that 3 participants were disagreed regarding the fact that organizing of auditing process
is crucial for smooth running of business operations where as 1 was strongly disagree along with
1 more left out participants who focused for neither agreed nor disagreed.
Theme 2: conducting an auditing process support in improving credibility
Q2 Does conducting an auditing process within an organisation
support in improving its credibility at marketplace?
Frequency
Strongly agree 15
Agree 25
Disagree 5
Strongly disagree 3
N/A 2
Interpretation
It has been interpreted through the findings of current study that 15 participants were
strongly agreed that conducting an auditing process within an organisation support in improving
its credibility at marketplace where as 25 seemed to agree along with 5 other participants which
tend to have an thinking of disagreement on above written fact. Beside this, 3 more participants
were also there who opted for strongly disagreed on the fact of conducting an auditing process
within an organisation support in improving its credibility at marketplace where as 2 were
selected neither agreed nor disagreed option.
Theme 3: Involving auditing process with Board of directors enhance credibility of report
25
is crucial for smooth running of business operations where as 1 was strongly disagree along with
1 more left out participants who focused for neither agreed nor disagreed.
Theme 2: conducting an auditing process support in improving credibility
Q2 Does conducting an auditing process within an organisation
support in improving its credibility at marketplace?
Frequency
Strongly agree 15
Agree 25
Disagree 5
Strongly disagree 3
N/A 2
Interpretation
It has been interpreted through the findings of current study that 15 participants were
strongly agreed that conducting an auditing process within an organisation support in improving
its credibility at marketplace where as 25 seemed to agree along with 5 other participants which
tend to have an thinking of disagreement on above written fact. Beside this, 3 more participants
were also there who opted for strongly disagreed on the fact of conducting an auditing process
within an organisation support in improving its credibility at marketplace where as 2 were
selected neither agreed nor disagreed option.
Theme 3: Involving auditing process with Board of directors enhance credibility of report
25
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Q3 As per your perception does Sainsbury is required to involve
within the auditing process along with Board of directors in order to
enhance its credibility of report?
Frequency
Strongly agree 10
Agree 30
Disagree 1
Strongly disagree 3
N/A 6
Interpretation
An analysis of collected data can be made with the help of above diagram that 10
participants were having a perception of being strongly agreed on the fact that Sainsbury is
required to involve within the auditing process along with Board of directors in order to enhance
its credibility of report where as 30 were agreed on this statement. Further, 1 participant also
reflected disagreement on above written fact along with 3 who seemed to be strongly disagreed
on the fact that Sainsbury is required to involve within the auditing process along with Board of
directors in order to enhance its credibility of report while the other 6 opted for neither agreed
nor disagreed.
Theme 4: Fraud detection and prevention become more easier by maintaining a rigid
system of auditing
Q4 Do you think that Fraud detection and prevention become more Frequency
26
within the auditing process along with Board of directors in order to
enhance its credibility of report?
Frequency
Strongly agree 10
Agree 30
Disagree 1
Strongly disagree 3
N/A 6
Interpretation
An analysis of collected data can be made with the help of above diagram that 10
participants were having a perception of being strongly agreed on the fact that Sainsbury is
required to involve within the auditing process along with Board of directors in order to enhance
its credibility of report where as 30 were agreed on this statement. Further, 1 participant also
reflected disagreement on above written fact along with 3 who seemed to be strongly disagreed
on the fact that Sainsbury is required to involve within the auditing process along with Board of
directors in order to enhance its credibility of report while the other 6 opted for neither agreed
nor disagreed.
Theme 4: Fraud detection and prevention become more easier by maintaining a rigid
system of auditing
Q4 Do you think that Fraud detection and prevention become more Frequency
26
easier for Sainsbury if it maintains a rigid system of auditing?
Strongly agree 12
Agree 20
Disagree 8
Strongly disagree 4
N/A 6
Interpretation
The above pie chart is showing that Fraud detection and prevention become more easier
for Sainsbury of it maintains a rigid system of auditing as 12 participants seemed to be strongly
agreed with this statement where as 20 opted for agreed. Apart from this, only 8 participants
were seemed to be disagreed with the fact that Fraud detection and prevention become more
easier for Sainsbury of it maintains a rigid system of auditing while 4 were strongly disagreed
along with 6 other respondents who seemed to be neither agreed nor disagreed on above stated
statement.
Theme 5: The external auditing process must be used by Sainsbury for detecting its current
performance
Q5 According to you, does the external auditing process must be
used by Sainsbury for detecting its current performance?
Frequency
Strongly agree 5
Agree 25
27
Strongly agree 12
Agree 20
Disagree 8
Strongly disagree 4
N/A 6
Interpretation
The above pie chart is showing that Fraud detection and prevention become more easier
for Sainsbury of it maintains a rigid system of auditing as 12 participants seemed to be strongly
agreed with this statement where as 20 opted for agreed. Apart from this, only 8 participants
were seemed to be disagreed with the fact that Fraud detection and prevention become more
easier for Sainsbury of it maintains a rigid system of auditing while 4 were strongly disagreed
along with 6 other respondents who seemed to be neither agreed nor disagreed on above stated
statement.
Theme 5: The external auditing process must be used by Sainsbury for detecting its current
performance
Q5 According to you, does the external auditing process must be
used by Sainsbury for detecting its current performance?
Frequency
Strongly agree 5
Agree 25
27
Disagree 5
Strongly disagree 7
N/A 8
Interpretation
An interpretation has been out with current research study that use of external auditing
process must be made by Sainsbury for detecting its current performance as 5 participants were
strongly agreed on this fact along with 25 other respondents who tend to be agreed on this
statement while only 5 individuals were disagreed with above written fact. Apart from this, 7
respondents to be taken as strongly agreed along with 8 other who opted for neither agreed nor
disagreed on the fact that external auditing process must be used by Sainsbury for detecting its
current performance.
Theme 6: Internal auditing process is helpful in improving managerial control and HR
practices
Q6 Do you think that internal auditing process will remain helpful
to Sainsbury in improving its managerial control and HR practices?
Frequency
Strongly agree 3
Agree 22
Disagree 20
Strongly disagree 3
N/A 2
28
Strongly disagree 7
N/A 8
Interpretation
An interpretation has been out with current research study that use of external auditing
process must be made by Sainsbury for detecting its current performance as 5 participants were
strongly agreed on this fact along with 25 other respondents who tend to be agreed on this
statement while only 5 individuals were disagreed with above written fact. Apart from this, 7
respondents to be taken as strongly agreed along with 8 other who opted for neither agreed nor
disagreed on the fact that external auditing process must be used by Sainsbury for detecting its
current performance.
Theme 6: Internal auditing process is helpful in improving managerial control and HR
practices
Q6 Do you think that internal auditing process will remain helpful
to Sainsbury in improving its managerial control and HR practices?
Frequency
Strongly agree 3
Agree 22
Disagree 20
Strongly disagree 3
N/A 2
28
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Interpretation
Internal auditing process is helpful in improving managerial control and HR practices of
Sainsbury as this is strongly supported by 3 participants where as other 22 were also seemed
agreed on this fact. But, on the other side 20 participants seemed to be disagreed along with 3
more who are strongly disagreed on the fact that Internal auditing process is helpful in improving
managerial control and HR practices while the other 2 left out respondents seemed to be neither
agreed nor disagreed.
Theme 7: Execution of external audit helps in determining actual financial position and
performance
Q7 Does the execution of external audit will be helpful for
Sainsbury in determining its actual financial position and
performance?
Frequency
Strongly agree 20
Agree 18
Disagree 4
Strongly disagree 2
N/A 6
29
Internal auditing process is helpful in improving managerial control and HR practices of
Sainsbury as this is strongly supported by 3 participants where as other 22 were also seemed
agreed on this fact. But, on the other side 20 participants seemed to be disagreed along with 3
more who are strongly disagreed on the fact that Internal auditing process is helpful in improving
managerial control and HR practices while the other 2 left out respondents seemed to be neither
agreed nor disagreed.
Theme 7: Execution of external audit helps in determining actual financial position and
performance
Q7 Does the execution of external audit will be helpful for
Sainsbury in determining its actual financial position and
performance?
Frequency
Strongly agree 20
Agree 18
Disagree 4
Strongly disagree 2
N/A 6
29
Interpretation
On the basis of above stated diagram an interpretation can be drawn that 20 participants
were seemed to be strongly agreed with the statement that execution of external audit will be
helpful for Sainsbury in determining its actual financial position and performance where as 18
opted for agreed option along with 4 other who were having a thinking of disagreed on the above
written statement. Further, 2 other respondents were also there who were strongly disagreed on
the concept that execution of external audit will be helpful for Sainsbury in determining its actual
financial position and performance where as 6 opted for neither agreed nor disagreed.
Theme 8: Regular conduction of auditing will bring influence over the employees working
Q8 Do you think that regular conduction of auditing will bring
influence over the employees working within Sainsbury?
Frequency
Strongly agree 15
Agree 20
Disagree 10
Strongly disagree 1
N/A 4
30
On the basis of above stated diagram an interpretation can be drawn that 20 participants
were seemed to be strongly agreed with the statement that execution of external audit will be
helpful for Sainsbury in determining its actual financial position and performance where as 18
opted for agreed option along with 4 other who were having a thinking of disagreed on the above
written statement. Further, 2 other respondents were also there who were strongly disagreed on
the concept that execution of external audit will be helpful for Sainsbury in determining its actual
financial position and performance where as 6 opted for neither agreed nor disagreed.
Theme 8: Regular conduction of auditing will bring influence over the employees working
Q8 Do you think that regular conduction of auditing will bring
influence over the employees working within Sainsbury?
Frequency
Strongly agree 15
Agree 20
Disagree 10
Strongly disagree 1
N/A 4
30
Interpretation
A finding had been made out from current investigation that regular conduction of
auditing will bring influence over the employees working within Sainsbury as 15 participants
from a total of 50 were strongly agreed with this fact where as 20 were having an opinion of
agreed. Apart from this, only 10 participants were there who seemed against the fact that regular
conduction of auditing will bring influence over the employees working within Sainsbury who
opted for disagreed option where as 1 in favour of strongly disagreed along with 4 other
individuals who seemed to select neither agreed nor disagreed option.
Theme 9: Misrepresentation of statement would be identified with the help of auditing
process
Q9 As per your perception does the misrepresentation of statement
would be identified with the help of auditing process performed by
Sainsbury?
Frequency
Strongly agree 20
Agree 15
Disagree 5
Strongly disagree 2
N/A 8
31
A finding had been made out from current investigation that regular conduction of
auditing will bring influence over the employees working within Sainsbury as 15 participants
from a total of 50 were strongly agreed with this fact where as 20 were having an opinion of
agreed. Apart from this, only 10 participants were there who seemed against the fact that regular
conduction of auditing will bring influence over the employees working within Sainsbury who
opted for disagreed option where as 1 in favour of strongly disagreed along with 4 other
individuals who seemed to select neither agreed nor disagreed option.
Theme 9: Misrepresentation of statement would be identified with the help of auditing
process
Q9 As per your perception does the misrepresentation of statement
would be identified with the help of auditing process performed by
Sainsbury?
Frequency
Strongly agree 20
Agree 15
Disagree 5
Strongly disagree 2
N/A 8
31
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Interpretation
The one of the main result of current study comprises of the fact that misrepresentation of
statement would be identified with the help of auditing process performed by Sainsbury as 20
participants were strongly agreed with this statement where as 15 were agreed. Further, only 5
respondents opted for disagreed option along with 2 other who selected strongly disagreed option
along with 8 other respondents who seemed to have neither agreed nor disagreed view point on
the statement that misrepresentation of statement would be identified with the help of auditing
process performed by Sainsbury.
Theme 10: Auditing support in identifying the financial deficiency
Q10 Auditing support in identifying the financial deficiency present
within the accounting statement by detecting mistakes and fraud?
Frequency
Strongly agree 10
Agree 30
Disagree 4
Strongly disagree 2
N/A 4
32
The one of the main result of current study comprises of the fact that misrepresentation of
statement would be identified with the help of auditing process performed by Sainsbury as 20
participants were strongly agreed with this statement where as 15 were agreed. Further, only 5
respondents opted for disagreed option along with 2 other who selected strongly disagreed option
along with 8 other respondents who seemed to have neither agreed nor disagreed view point on
the statement that misrepresentation of statement would be identified with the help of auditing
process performed by Sainsbury.
Theme 10: Auditing support in identifying the financial deficiency
Q10 Auditing support in identifying the financial deficiency present
within the accounting statement by detecting mistakes and fraud?
Frequency
Strongly agree 10
Agree 30
Disagree 4
Strongly disagree 2
N/A 4
32
Interpretation
As per the view point of 10 respondents it has been evaluated that Auditing support in
identifying the financial deficiency present within the accounting statement by detecting
mistakes and fraud as they were strongly agreed on this statement where as 30 other were opted
for agreed. Beside this, 4 more participants seemed to have a feeling of disagreed on above
written statement where as 2 were strongly disagreed that Auditing support in identifying the
financial deficiency present within the accounting statement by detecting mistakes and fraud
where as 4 seemed to be neither agreed nor disagreed.
Theme 11: Adherence to standard is a most influential factor while implementing audit
Q11 According to your perception does adherence to standard is a
most influential factor that must be considered while implementing
audit?
Frequency
Strongly agree 8
Agree 28
Disagree 4
Strongly disagree 3
N/A 7
33
As per the view point of 10 respondents it has been evaluated that Auditing support in
identifying the financial deficiency present within the accounting statement by detecting
mistakes and fraud as they were strongly agreed on this statement where as 30 other were opted
for agreed. Beside this, 4 more participants seemed to have a feeling of disagreed on above
written statement where as 2 were strongly disagreed that Auditing support in identifying the
financial deficiency present within the accounting statement by detecting mistakes and fraud
where as 4 seemed to be neither agreed nor disagreed.
Theme 11: Adherence to standard is a most influential factor while implementing audit
Q11 According to your perception does adherence to standard is a
most influential factor that must be considered while implementing
audit?
Frequency
Strongly agree 8
Agree 28
Disagree 4
Strongly disagree 3
N/A 7
33
Interpretation
The above stated pie chart is depicting that the 8 respondents from a total of 50 were
having a thinking of strongly agreed on the fact that adherence to standard is a most influential
factor that must be considered while implementing audit where as 28 were agreed on this
phenomenon. Further, only 4 participants supported for disagreed option in the fact that
adherence to standard is a most influential factor that must be considered while implementing
audit where as 3 were strongly agreed along with 7 other left out individuals who were having an
implication of neither agreed nor disagreed (Krarti, M., 2020).
Theme 12: Detection of fraud would be the major challenges to detect through auditing
process
Q12 Do you think that detection of fraud would be the major
challenges for Sainsbury to detect through auditing process?
Frequency
Strongly agree 5
Agree 25
Disagree 12
Strongly disagree 5
N/A 3
34
The above stated pie chart is depicting that the 8 respondents from a total of 50 were
having a thinking of strongly agreed on the fact that adherence to standard is a most influential
factor that must be considered while implementing audit where as 28 were agreed on this
phenomenon. Further, only 4 participants supported for disagreed option in the fact that
adherence to standard is a most influential factor that must be considered while implementing
audit where as 3 were strongly agreed along with 7 other left out individuals who were having an
implication of neither agreed nor disagreed (Krarti, M., 2020).
Theme 12: Detection of fraud would be the major challenges to detect through auditing
process
Q12 Do you think that detection of fraud would be the major
challenges for Sainsbury to detect through auditing process?
Frequency
Strongly agree 5
Agree 25
Disagree 12
Strongly disagree 5
N/A 3
34
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Interpretation
An analysis about the phenomenon that detection of fraud would be the major challenges
for Sainsbury to detect through auditing process is provided by above pie chart as it is clearly
stating that 5 participants were strongly agreed where as 25 individuals seemed to be agreed
along with 12 respondents who opted to have a view point of disagreement on above written.
Beside this, an interpretation could also be lead out by above diagram that 5 respondents were
strongly disagreed on the fact that detection of fraud would be the major challenges for
Sainsbury to detect through auditing process where as 3 respondents were having a thinking of
neither agreed nor disagreed on above written presented fact.
Theme 13: Maintaining regular auditing helps in keeping positive relationship with
shareholders
Q13 Do you think that maintaining regular auditing will support
Sainsbury in keeping maintaining positive relationship with
shareholders?
Frequency
Strongly agree 20
Agree 15
Disagree 5
Strongly disagree 2
N/A 8
35
An analysis about the phenomenon that detection of fraud would be the major challenges
for Sainsbury to detect through auditing process is provided by above pie chart as it is clearly
stating that 5 participants were strongly agreed where as 25 individuals seemed to be agreed
along with 12 respondents who opted to have a view point of disagreement on above written.
Beside this, an interpretation could also be lead out by above diagram that 5 respondents were
strongly disagreed on the fact that detection of fraud would be the major challenges for
Sainsbury to detect through auditing process where as 3 respondents were having a thinking of
neither agreed nor disagreed on above written presented fact.
Theme 13: Maintaining regular auditing helps in keeping positive relationship with
shareholders
Q13 Do you think that maintaining regular auditing will support
Sainsbury in keeping maintaining positive relationship with
shareholders?
Frequency
Strongly agree 20
Agree 15
Disagree 5
Strongly disagree 2
N/A 8
35
Interpretation
The above stated pie chart is representing that from the total of 50 participants selected
for current investigation, 20 respondents were having an opinion of being strongly agreed with
the fact that maintaining regular auditing will support Sainsbury in keeping maintaining positive
relationship with shareholders where as 15 seemed. Further, it has been also analysed that the 5
other respondents tend to be having a thinking of being disagreed on the statement that
maintaining regular auditing will support Sainsbury in keeping maintaining positive relationship
with shareholders where as 2 opted for strongly disagreed along with the 8 other individuals who
seemed to be in favour of neither agreed nor disagreed option.
Theme 14: Keeping information error free will support improvement in financial
performance
Q14 Does keeping information error free will support Sainsbury in
improving its financial performance?
Frequency
Strongly agree 10
Agree 35
Disagree 3
Strongly disagree 1
N/A 1
36
The above stated pie chart is representing that from the total of 50 participants selected
for current investigation, 20 respondents were having an opinion of being strongly agreed with
the fact that maintaining regular auditing will support Sainsbury in keeping maintaining positive
relationship with shareholders where as 15 seemed. Further, it has been also analysed that the 5
other respondents tend to be having a thinking of being disagreed on the statement that
maintaining regular auditing will support Sainsbury in keeping maintaining positive relationship
with shareholders where as 2 opted for strongly disagreed along with the 8 other individuals who
seemed to be in favour of neither agreed nor disagreed option.
Theme 14: Keeping information error free will support improvement in financial
performance
Q14 Does keeping information error free will support Sainsbury in
improving its financial performance?
Frequency
Strongly agree 10
Agree 35
Disagree 3
Strongly disagree 1
N/A 1
36
Interpretation
An implication can be lead out on the basis of above pie chart that 10 participants seemed
to be strongly agreed with the fact that keeping information error free will support Sainsbury in
improving its financial performance where as 25 agreed with this statement along with 3 other
participants where as having a thinking of disagreement with the fact that keeping information
error free will support Sainsbury in improving its financial performance. Apart from this, it has
been observed that only 1 participant was there who seemed to strongly disagreed with the
statement that keeping information error free will support Sainsbury in improving its financial
performance where as 1 more individuals was also there who opted for neither agreed nor
disagreed.
Theme 15: Hiring external auditor will be helpful for improving financial performance
Q15 Does hiring external auditor will be helpful for Sainsbury in
improving its financial performance?
Frequency
Strongly agree 20
Agree 22
Disagree 4
Strongly disagree 1
N/A 3
37
An implication can be lead out on the basis of above pie chart that 10 participants seemed
to be strongly agreed with the fact that keeping information error free will support Sainsbury in
improving its financial performance where as 25 agreed with this statement along with 3 other
participants where as having a thinking of disagreement with the fact that keeping information
error free will support Sainsbury in improving its financial performance. Apart from this, it has
been observed that only 1 participant was there who seemed to strongly disagreed with the
statement that keeping information error free will support Sainsbury in improving its financial
performance where as 1 more individuals was also there who opted for neither agreed nor
disagreed.
Theme 15: Hiring external auditor will be helpful for improving financial performance
Q15 Does hiring external auditor will be helpful for Sainsbury in
improving its financial performance?
Frequency
Strongly agree 20
Agree 22
Disagree 4
Strongly disagree 1
N/A 3
37
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Interpretation
One of the main finding of current investigation comprises of the fact that hiring external
auditor will be helpful for Sainsbury in improving its financial performance as from a total of 50
participants 20 were strongly agreed on this fact where as other 22 were also agreed and in
support of this statement. Further, a discussion could also be made about the findings and results
of current investigation that 4 participants are were also there who opted for disagreed on the
statement that hiring external auditor will be helpful for Sainsbury in improving its financial
performance where as 1 was strongly agreed along with 3 more participants who tend to have a
thinking of neither agreed nor disagreed on the above prospect of that external auditor help to
improvise financial performance of Sainsbury's (Lee, T.A. ed., 2020).
CHAPTER 5: CONCLUSION AND RECOMMENDATION
Conclusion
On the basis of current research project an analysis can be made out that the concept of
audit is vital and important for every firm and business orgnisation as it facilitates a systematic
examination of all financial records and other operations of a company. Thus, audit is essential
for all organisation as reduces the chance of frauds and other misappropriation with a company.
Beside this, auditing process is also vital to ensures that proper books of accounts are maintained
on regular basis along with meeting the all set accounting standards and financial principles.
Apart from this, a summarisation can be made out that the implication and adoption of effective
auditing process also leads to enhanced transparency and better trustworthiness in shareholders
38
One of the main finding of current investigation comprises of the fact that hiring external
auditor will be helpful for Sainsbury in improving its financial performance as from a total of 50
participants 20 were strongly agreed on this fact where as other 22 were also agreed and in
support of this statement. Further, a discussion could also be made about the findings and results
of current investigation that 4 participants are were also there who opted for disagreed on the
statement that hiring external auditor will be helpful for Sainsbury in improving its financial
performance where as 1 was strongly agreed along with 3 more participants who tend to have a
thinking of neither agreed nor disagreed on the above prospect of that external auditor help to
improvise financial performance of Sainsbury's (Lee, T.A. ed., 2020).
CHAPTER 5: CONCLUSION AND RECOMMENDATION
Conclusion
On the basis of current research project an analysis can be made out that the concept of
audit is vital and important for every firm and business orgnisation as it facilitates a systematic
examination of all financial records and other operations of a company. Thus, audit is essential
for all organisation as reduces the chance of frauds and other misappropriation with a company.
Beside this, auditing process is also vital to ensures that proper books of accounts are maintained
on regular basis along with meeting the all set accounting standards and financial principles.
Apart from this, a summarisation can be made out that the implication and adoption of effective
auditing process also leads to enhanced transparency and better trustworthiness in shareholders
38
and customers through leading a better image and enhancing goodwill of a firm. Beside this, risk
of misstatement and fraud is also reduced by auditing to present a fair and correct financial
position of a company.
Further, a conclusion about the factors which are determining success of audit committee
to enhance effectiveness of financial statement could also be made with current investigation
which consists of improved credit rating of a firm along with facilitating more reliable and
clearer financial position. Beside this, it has been also find out that the number of accounting
frauds, scandals and corporate failure are increasing thus, leading attention towards audit
committee has become more vital and important to meet the legal compliances along with
ensuring success and better brand positioning of a firm. The main factors which contributes for
success and better formulation of auditing consists of having an effective level of transparency in
audit committee along with leading effective communication to ensure a better coordination and
balance within audit committee. Apart from this strengthen of finance function also leads to
better success of audit committee through providing auditable and reliable information about the
external disclosure which lead a crucial role in supporting the oversight role of audit committee
with in a firm. Apart from this, fairness of financial statement, expertise in the members of audit
committee along with more competent and diverse members in audit committee are also vital for
enhanced success of an audit committee through more effective widening mandates to enhance
effectiveness of financial reporting and other operations.
Beside this, a conclusion can also draw from current study that many challenges of audit
are also faced while improving the financial performance of a firm which consists of getting an
insight in the procedure, policies, culture as well as management of a company along with
bringing transparency within the financial performance that is a difficult and complex task.
Further, the main challenges of audit committee and auditing process also consists of revenue
recognition as it is considered to be as one of the most sensitive and complicated area thus, a
more substantive test and effective documentation verification is required for verifying the
authenticity level of effectiveness of financial statement and information related with revenue
recognition. Apart from this, frauds and scandals are also taken as main challenge for auditing as
it is related with ensuring that each and everything must performed in right manner. Further,
sometimes frauds are performed in such a manner that remain harder for an audit to capture and
sometimes it remain due to lack of information available thus, creates the biggest risk and
39
of misstatement and fraud is also reduced by auditing to present a fair and correct financial
position of a company.
Further, a conclusion about the factors which are determining success of audit committee
to enhance effectiveness of financial statement could also be made with current investigation
which consists of improved credit rating of a firm along with facilitating more reliable and
clearer financial position. Beside this, it has been also find out that the number of accounting
frauds, scandals and corporate failure are increasing thus, leading attention towards audit
committee has become more vital and important to meet the legal compliances along with
ensuring success and better brand positioning of a firm. The main factors which contributes for
success and better formulation of auditing consists of having an effective level of transparency in
audit committee along with leading effective communication to ensure a better coordination and
balance within audit committee. Apart from this strengthen of finance function also leads to
better success of audit committee through providing auditable and reliable information about the
external disclosure which lead a crucial role in supporting the oversight role of audit committee
with in a firm. Apart from this, fairness of financial statement, expertise in the members of audit
committee along with more competent and diverse members in audit committee are also vital for
enhanced success of an audit committee through more effective widening mandates to enhance
effectiveness of financial reporting and other operations.
Beside this, a conclusion can also draw from current study that many challenges of audit
are also faced while improving the financial performance of a firm which consists of getting an
insight in the procedure, policies, culture as well as management of a company along with
bringing transparency within the financial performance that is a difficult and complex task.
Further, the main challenges of audit committee and auditing process also consists of revenue
recognition as it is considered to be as one of the most sensitive and complicated area thus, a
more substantive test and effective documentation verification is required for verifying the
authenticity level of effectiveness of financial statement and information related with revenue
recognition. Apart from this, frauds and scandals are also taken as main challenge for auditing as
it is related with ensuring that each and everything must performed in right manner. Further,
sometimes frauds are performed in such a manner that remain harder for an audit to capture and
sometimes it remain due to lack of information available thus, creates the biggest risk and
39
challenge for an auditor. It has been summarised that impairment assessment is also vital
challenge that is encountered during auditing process which is mainly associated and related with
verification of non financial assets. Thus, appropriate recognition of audit revenue along with
effective presentation and documentation of actual facts and correct information is also
challenges accomplished by auditors.
Further, a summarisation can also be made through findings of current investigation that
organizing of auditing process is crucial for smooth running of business operations as it
facilitates better check and control over financial aspects and other operation of a company.
Further, it has been also observed that conducting an auditing process within an organisation
support in improving its credibility at marketplace thus orgnisation are required to involve within
the auditing process along with Board of directors in order to enhance its credibility of report.
Apart from this, an implication can also be made on the basis of current investigation that Fraud
detection and prevention become more easier through maintaining a rigid system of auditing
along with use of an external auditing process for effectively detecting its current performance.
Beside this, the internal auditing process is also remain helpful in improving other managerial
control and effective HR practices within a company where as the execution of external audit
helps in determining the actual financial position and true performance of a company. Further,
regular conduction of auditing will bring positive influence over the employees working through
keeping a check on there performance along with enhanced perception that the misrepresentation
of statement would be identified with the help of auditing process. Thus, a conclusion can be
made that auditing support in identifying the financial deficiency present within the accounting
statement by detecting mistakes and fraud along with ensuring that proper adherence to standard
is a most also need to be considered while implementing audit to have more clears and proper
presentation of financial performance and statement of a company. At last, a summarisation can
be made that maintaining regular auditing will support a firm in keeping positive relationship
with shareholders by the way of presenting true performance of firm along with keeping
information error free for improving its financial performance and overall trust of shareholders.
Recommendation
Following recommendation can be made for Sainsbury in order to overcome the challenges
of audit along with improving its overall financial performance through reducing chances of
accounting frauds and other scandal:
40
challenge that is encountered during auditing process which is mainly associated and related with
verification of non financial assets. Thus, appropriate recognition of audit revenue along with
effective presentation and documentation of actual facts and correct information is also
challenges accomplished by auditors.
Further, a summarisation can also be made through findings of current investigation that
organizing of auditing process is crucial for smooth running of business operations as it
facilitates better check and control over financial aspects and other operation of a company.
Further, it has been also observed that conducting an auditing process within an organisation
support in improving its credibility at marketplace thus orgnisation are required to involve within
the auditing process along with Board of directors in order to enhance its credibility of report.
Apart from this, an implication can also be made on the basis of current investigation that Fraud
detection and prevention become more easier through maintaining a rigid system of auditing
along with use of an external auditing process for effectively detecting its current performance.
Beside this, the internal auditing process is also remain helpful in improving other managerial
control and effective HR practices within a company where as the execution of external audit
helps in determining the actual financial position and true performance of a company. Further,
regular conduction of auditing will bring positive influence over the employees working through
keeping a check on there performance along with enhanced perception that the misrepresentation
of statement would be identified with the help of auditing process. Thus, a conclusion can be
made that auditing support in identifying the financial deficiency present within the accounting
statement by detecting mistakes and fraud along with ensuring that proper adherence to standard
is a most also need to be considered while implementing audit to have more clears and proper
presentation of financial performance and statement of a company. At last, a summarisation can
be made that maintaining regular auditing will support a firm in keeping positive relationship
with shareholders by the way of presenting true performance of firm along with keeping
information error free for improving its financial performance and overall trust of shareholders.
Recommendation
Following recommendation can be made for Sainsbury in order to overcome the challenges
of audit along with improving its overall financial performance through reducing chances of
accounting frauds and other scandal:
40
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Formulation of an independent external audit committee is highly recommended for
Sainsbury as it ensures higher level of check and control over operations and working of
employees without having any kind of influence from internal parties and employees.
Beside this, an external independent audit committee also ensures a better detection of
accenting errors made by internal employees or manner through leading a fair checking
and control over all business operations to reduce chances of any kind of fraud or
misappropriation of facts therefore leads to enhanced success of auditing process.
Ensuring diversity in audit committee and boards of directors is also recommended for
Sainsbury as it lead to enhanced perceptive and more knowledge and expert team
members who have a better perspective and view point about a diverse range of areas and
filed. Further, implication of diversity in audit committee would lead to enhancement in
the overall skill and competencies of audit committee through ensuring more viable
check and control along with meeting all possible accounting and financial standards to
overcome the challenges of audit along with improving its overall financial performance
through reducing chances of accounting frauds and other scandal.
Apart from this, implication of effective communication is also suggested for Sainsbury
as it ensures and leads to enhanced transparency and clarity in business operation along
with ensuring a more trust worthy and viable flow of information within an organisation.
Further, effective communication also leads out for a more positive connection with the
shareholders and investor to have a better financial position of Sainsbury. Apart from
this, effective communication also brings connection and reduction in chaos and conflicts
to reduce the chances of misappropriation and misconception within the Sainsbury that is
helpful to overcome the challenges of audit along with improving its overall financial
performance through reducing chances of accounting frauds and other scandal by the way
of effective communication and transparent flow of information.
41
Sainsbury as it ensures higher level of check and control over operations and working of
employees without having any kind of influence from internal parties and employees.
Beside this, an external independent audit committee also ensures a better detection of
accenting errors made by internal employees or manner through leading a fair checking
and control over all business operations to reduce chances of any kind of fraud or
misappropriation of facts therefore leads to enhanced success of auditing process.
Ensuring diversity in audit committee and boards of directors is also recommended for
Sainsbury as it lead to enhanced perceptive and more knowledge and expert team
members who have a better perspective and view point about a diverse range of areas and
filed. Further, implication of diversity in audit committee would lead to enhancement in
the overall skill and competencies of audit committee through ensuring more viable
check and control along with meeting all possible accounting and financial standards to
overcome the challenges of audit along with improving its overall financial performance
through reducing chances of accounting frauds and other scandal.
Apart from this, implication of effective communication is also suggested for Sainsbury
as it ensures and leads to enhanced transparency and clarity in business operation along
with ensuring a more trust worthy and viable flow of information within an organisation.
Further, effective communication also leads out for a more positive connection with the
shareholders and investor to have a better financial position of Sainsbury. Apart from
this, effective communication also brings connection and reduction in chaos and conflicts
to reduce the chances of misappropriation and misconception within the Sainsbury that is
helpful to overcome the challenges of audit along with improving its overall financial
performance through reducing chances of accounting frauds and other scandal by the way
of effective communication and transparent flow of information.
41
REFERENCES
Books & Journal
Alduraywish, Y., 2019, July. Auditing Standards, Increased Accounting Disclosure, and
Information Asymmetry: Evidence from the UK. In Academy of Management
Proceedings (Vol. 2019, No. 1, p. 13213). Briarcliff Manor, NY 10510: Academy of
Management.
Axmedjanov, K., 2020. KB Akhmadjanov The ways of improvement of audit inspection in
commercial banks. Архив научных исследований, 1(4).
Brazel, J.F., 2018. Do auditors and audit committees lower fraud risk by constraining
inconsistencies between financial and nonfinancial measures?. Current Issues in
Auditing, 12(2), pp.P7-P15.
Comer, M.J., 2017. Corporate fraud. Routledge.
Davies, A., 2016. Best practice in corporate governance: Building reputation and sustainable
success. Routledge.
Deng, S. and Macve, R.H., 2017. Perspectives from Mainland China, Hong Kong and the UK on
the Potential Future Roles of China's Auditing Firms in the Global Profession. Hong
Kong and the UK on the Potential Future Roles of China's Auditing Firms in the Global
Profession.(October 5, 2017).
DeZoort, F.T. and Harrison, P.D., 2018. Understanding auditors’ sense of responsibility for
detecting fraud within organizations. Journal of Business Ethics, 149(4), pp.857-874.
Dunleavy, P., 2018. Auditing the UK’s changing democracy. In The UK's Changing Democracy:
The 2018 Democratic Audit (pp. 15-42). LSE Press.
Engert, S. and Baumgartner, R. J., 2016. Corporate sustainability strategy–bridging the gap
between formulation and implementation. Journal of cleaner production. 113. pp.822-
834.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Fox, N. J. and Alldred, P., 2015. New materialist social inquiry: Designs, methods and the
research-assemblage. International Journal of Social Research Methodology. 18(4).
pp.399-414.
Franklin, A., 2020. Auditing creativity? The UK Art School in the age of neoliberalism.
Frishammar, J., Richtnér, A., Brattström, A., Magnusson, M. and Björk, J., 2019. Opportunities
and challenges in the new innovation landscape: Implications for innovation auditing
and innovation management. European Management Journal, 37(2), pp.151-164.
Gaddis, S.M., 2018. An introduction to audit studies in the social sciences. In Audit studies:
Behind the scenes with theory, method, and nuance (pp. 3-44). Springer, Cham.
Gioia, D. A., Corley, K. G. and Hamilton, A. L., 2013. Seeking qualitative rigor in inductive
research: Notes on the Gioia methodology. Organizational research methods. 16(1).
pp.15-31.
Glover, S.M., Taylor, M.H. and Wu, Y.J., 2017. Current practices and challenges in auditing fair
value measurements and complex estimates: Implications for auditing standards and the
academy. Auditing: A Journal of Practice & Theory, 36(1), pp.63-84.
Gnan, L., Montemerlo, D. and Huse, M., 2015. Governance systems in family SMEs: The
substitution effects between family councils and corporate governance
mechanisms. Journal of Small Business Management. 53(2). pp.355-381.
42
Books & Journal
Alduraywish, Y., 2019, July. Auditing Standards, Increased Accounting Disclosure, and
Information Asymmetry: Evidence from the UK. In Academy of Management
Proceedings (Vol. 2019, No. 1, p. 13213). Briarcliff Manor, NY 10510: Academy of
Management.
Axmedjanov, K., 2020. KB Akhmadjanov The ways of improvement of audit inspection in
commercial banks. Архив научных исследований, 1(4).
Brazel, J.F., 2018. Do auditors and audit committees lower fraud risk by constraining
inconsistencies between financial and nonfinancial measures?. Current Issues in
Auditing, 12(2), pp.P7-P15.
Comer, M.J., 2017. Corporate fraud. Routledge.
Davies, A., 2016. Best practice in corporate governance: Building reputation and sustainable
success. Routledge.
Deng, S. and Macve, R.H., 2017. Perspectives from Mainland China, Hong Kong and the UK on
the Potential Future Roles of China's Auditing Firms in the Global Profession. Hong
Kong and the UK on the Potential Future Roles of China's Auditing Firms in the Global
Profession.(October 5, 2017).
DeZoort, F.T. and Harrison, P.D., 2018. Understanding auditors’ sense of responsibility for
detecting fraud within organizations. Journal of Business Ethics, 149(4), pp.857-874.
Dunleavy, P., 2018. Auditing the UK’s changing democracy. In The UK's Changing Democracy:
The 2018 Democratic Audit (pp. 15-42). LSE Press.
Engert, S. and Baumgartner, R. J., 2016. Corporate sustainability strategy–bridging the gap
between formulation and implementation. Journal of cleaner production. 113. pp.822-
834.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Fox, N. J. and Alldred, P., 2015. New materialist social inquiry: Designs, methods and the
research-assemblage. International Journal of Social Research Methodology. 18(4).
pp.399-414.
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Organizational heterogeneity in business models and governance. Strategic
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43
Marketing & Management Research ISSN.
Green, J. L., Camilli, G. and Elmore, P. B. eds., 2012. Handbook of complementary methods in
education research. Routledge.
Grennan, J., 2019. A corporate culture channel: How increased shareholder governance reduces
firm value. Available at SSRN 2345384.
Halbouni, S.S., Obeid, N. and Garbou, A., 2016. Corporate governance and information
technology in fraud prevention and detection. Managerial Auditing Journal.
Jacoby, S. M., 2018. The embedded corporation: Corporate governance and employment
relations in Japan and the United States. Princeton University Press.
Johansson, E. and Carey, P., 2016. Detecting fraud: The role of the anonymous reporting
channel. Journal of business ethics, 139(2), pp.391-409.
Kabir, R. and Thai, H. M., 2017. Does corporate governance shape the relationship between
corporate social responsibility and financial performance?. Pacific Accounting Review.
Kamil, M. L. and et. al., 2016. Handbook of reading research, Volume III. Routledge.
King, K. A. and Mackey, A., 2016. Research methodology in second language studies: Trends,
concerns, and new directions. The Modern Language Journal. 100(S1). pp.209-227.
Koval, V. and et. al., 2019. Audit in the state economic security system. Management Theory
and Studies for Rural Business and Infrastructure Development, 41(3), pp.419-430.
Krall, J. R. and Peng, R. D., 2015. The Volkswagen scandal: Deception, driving and
deaths. Significance. 12(6). pp.12-15.
Krarti, M., 2020. Energy audit of building systems: an engineering approach. CRC press.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Lee, T.A. ed., 2020. The evolution of audit thought and practice (Vol. 18). Routledge.
Lone, E. J., Ali, A. and Khan, I., 2016. Corporate governance and corporate social responsibility
disclosure: evidence from Pakistan. Corporate Governance: The International Journal of
Business in Society.
Lutsenko, S. I., 2018. Corporate governance: inside. Strategic decisions and risk management.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
McCahery, J. A., Sautner, Z. and Starks, L. T., 2016. Behind the scenes: The corporate
governance preferences of institutional investors. The Journal of Finance. 71(6).
pp.2905-2932.
Muller, R., 2017. Project governance. Routledge.
Mzi, Y., 2017. Teaching Research Methodology in EFL Classrooms: Bridging the Gap between
Design and Delivery.
Naciti, V., 2019. Corporate governance and board of directors: The effect of a board composition
on firm sustainability performance. Journal of Cleaner Production. 237. p.117727.
No, W.G., Lee, K., Huang, F. and Li, Q., 2019. Multidimensional audit data selection (MADS):
A framework for using data analytics in the audit data selection process. Accounting
Horizons, 33(3), pp.127-140.
Ocasio, W. and Radoynovska, N., 2016. Strategy and commitments to institutional logics:
Organizational heterogeneity in business models and governance. Strategic
Organization. 14(4). pp.287-309.
43
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Wanke, P., Barros, C. and Azad, M.A.K., 2017. Measuring efficiency drivers and productive
slacks in UK auditing firms. Benchmarking: An International Journal.
Wiek, A. and Lang, D. J., 2016. Transformational sustainability research methodology.
In Sustainability science (pp. 31-41). Springer, Dordrecht.
Zhang, B. and et. al., 2016. The issue arena of a corporate social responsibility crisis–The
Volkswagen case in Twitter. Studies in Media and Communication, 4(2), pp.32-43.
44
in ICT4D: A critical realism perspective. In International Conference on Social
Implications of Computers in Developing Countries (pp. 182-193). Springer, Cham.
Patten, M. L. and Newhart, M., 2017. Understanding research methods: An overview of the
essentials. Routledge.
Psacharopoulos, G. ed., 2014. Economics of education: Research and studies. Elsevier.
Puranam, P. and Vanneste, B., 2016. Corporate strategy: Tools for analysis and decision-
making. Cambridge University Press.
Ramesh, V., 2020. Auditing the auditors: A comparative study about India, UK, and the USA.
Materials Today: Proceedings.
Rengganis, R.M.Y.D., Sari, M.M.R., Budiasih, I.G.A.N., Wirajaya, I.G.A. and Suprasto, H.B.,
2019. The fraud diamond: element in detecting financial statement of
fraud. International research journal of management, IT and social sciences, 6(3), pp.1-
10.
Schiermeier, Q., 2015. The science behind the Volkswagen emissions scandal. Nature News.
Schmidt, C. and Fahlenbrach, R., 2017. Do exogenous changes in passive institutional ownership
affect corporate governance and firm value?. Journal of Financial Economics. 124(2).
pp.285-306.
Scotland, J., 2012. Exploring the philosophical underpinnings of research: Relating ontology and
epistemology to the methodology and methods of the scientific, interpretive, and critical
research paradigms. English language teaching. 5(9). pp.9-16.
Singh, D. and Delios, A., 2017. Corporate governance, board networks and growth in domestic
and international markets: Evidence from India. Journal of World Business. 52(5).
pp.615-627.
Stanwick, P. and Stanwick, S., 2017. Volkswagen emissions scandal: The perils of installing
illegal software. International Review of Management and Business Research. 6(1)
p.18.
Taherdoost, H., 2016. Sampling methods in research methodology; how to choose a sampling
technique for research. How to Choose a Sampling Technique for Research (April 10,
2016).
Tricker, B., 2015. Corporate governance: Principles, policies, and practices. Oxford University
Press, USA.
Tuck, E. and McKenzie, M., 2014. Place in research: Theory, methodology, and methods.
Routledge.
Tuohy, D. and et.al., 2013. An overview of interpretive phenomenology as a research
methodology. Nurse researcher. 20(6).
Walliman, N., 2017. Research methods: The basics. Routledge.
Wang, Z. and Sarkis, J., 2017. Corporate social responsibility governance, outcomes, and
financial performance. Journal of Cleaner Production. 162. pp.1607-1616.
Wanke, P., Barros, C. and Azad, M.A.K., 2017. Measuring efficiency drivers and productive
slacks in UK auditing firms. Benchmarking: An International Journal.
Wiek, A. and Lang, D. J., 2016. Transformational sustainability research methodology.
In Sustainability science (pp. 31-41). Springer, Dordrecht.
Zhang, B. and et. al., 2016. The issue arena of a corporate social responsibility crisis–The
Volkswagen case in Twitter. Studies in Media and Communication, 4(2), pp.32-43.
44
Zhang, J.H., 2018. Accounting comparability, audit effort, and audit outcomes. Contemporary
Accounting Research, 35(1), pp.245-276.
ONLINE
Leka. L., tugman. L., 2019. 5 Key Factors to Enhance Audit Committee Effectiveness. [Online]
Available through: < https://www.ifac.org/knowledge-gateway/supporting-
international-standards/discussion/5-key-factors-enhance-audit-committee-
effectiveness>.
Bansal. G., 2017. Importance of Audit in an Organisation. [Online] Available through:
<https://www.linkedin.com/pulse/importance-audit-organisation-gaurav-
bansal#:~:text=Objective%20of%20audit%20is%20to%20pursue%20and%20attain
%20its%20various%20corporate%20objectives.&text=Fraud%20Prevention%20can
%20be%20obtained,fraud%20and%20other%20accounting%20irregularities.>
Appendix 1:
Research Proposal
TOPIC
“Audit Committee Detecting Fraud “-Case Study on Sainsbury's
1) INTRODUCTION
Audit is crucial for an organisation as it provide an insight within the culture, procedure,
policies and management that support in verifying that each and every practices performed
within the organisation are executing in right manner. It support in detecting and preventing
fraud, operational efficiency, risk mitigation controls, testing internal control and monitoring
policies. This audit support a lot in deter the frauds that are involve in internal practices, under
this audit committee is responsible for assessing the overall activities performed within an
organisation (Halbouni, Obeid and Garbou, 2016). It is also essential for the committee to
determine several type of risks that organisation is currently facing and their likelihood of
occurrence.
For conducting the study of importance of audit on big corporate house in detection of
fraud, Sainsbury is taken into consideration, which is a UK retailer and offer its services in
several different countries. Due to its existence in international market, it become crucial to
ensure that all the financial and non-financial activities performing within the organisation are
conducting as per ethical and legal principles formulated for the retail market. By performing
regular internal audit of its operations it become possible for Sainsbury in maintaining the
transparency among its stakeholders in term of business.
45
Accounting Research, 35(1), pp.245-276.
ONLINE
Leka. L., tugman. L., 2019. 5 Key Factors to Enhance Audit Committee Effectiveness. [Online]
Available through: < https://www.ifac.org/knowledge-gateway/supporting-
international-standards/discussion/5-key-factors-enhance-audit-committee-
effectiveness>.
Bansal. G., 2017. Importance of Audit in an Organisation. [Online] Available through:
<https://www.linkedin.com/pulse/importance-audit-organisation-gaurav-
bansal#:~:text=Objective%20of%20audit%20is%20to%20pursue%20and%20attain
%20its%20various%20corporate%20objectives.&text=Fraud%20Prevention%20can
%20be%20obtained,fraud%20and%20other%20accounting%20irregularities.>
Appendix 1:
Research Proposal
TOPIC
“Audit Committee Detecting Fraud “-Case Study on Sainsbury's
1) INTRODUCTION
Audit is crucial for an organisation as it provide an insight within the culture, procedure,
policies and management that support in verifying that each and every practices performed
within the organisation are executing in right manner. It support in detecting and preventing
fraud, operational efficiency, risk mitigation controls, testing internal control and monitoring
policies. This audit support a lot in deter the frauds that are involve in internal practices, under
this audit committee is responsible for assessing the overall activities performed within an
organisation (Halbouni, Obeid and Garbou, 2016). It is also essential for the committee to
determine several type of risks that organisation is currently facing and their likelihood of
occurrence.
For conducting the study of importance of audit on big corporate house in detection of
fraud, Sainsbury is taken into consideration, which is a UK retailer and offer its services in
several different countries. Due to its existence in international market, it become crucial to
ensure that all the financial and non-financial activities performing within the organisation are
conducting as per ethical and legal principles formulated for the retail market. By performing
regular internal audit of its operations it become possible for Sainsbury in maintaining the
transparency among its stakeholders in term of business.
45
1.1 Rationale
The main aim of conducting this study is to determine the importance of auditing within
an organisation and manner in which it is helpful for businesses in order to create an awarenesses
regarding auditing for big corporate houses (Johansson and Carey, 2016). Additionally, it also
help in presenting the information regarding the ways to be adopted by an organisation in order
to get over a competing position in term of their profitability and turnover by keeping the frauds
away from their operations. This will also support in enhancing the understanding of investigator
regarding the role that an audit plays within the functioning of an organisation and manner in
which it influence over the overall performance of a brand in term of its brand reputation among
targeted audience.
1.2 Research context
This research is based on importance of audit within an organisation and its role within
improving the performance. By performing this assessment an organisation would be able to
determine the risks that may affect its performance and on the same page it also help in
providing information to top management regarding the fraud that is continuing within an
organisation so that corrective actions can be taken in timely manner. For this study Sainsbury is
taken into consideration as it operates at inte4rnational level and have to perform a range of
transaction that make it difficult to regularly have insight over each and every transaction
(DeZoort and Harrison, 2018). Therefore the audit committee is crucial as it perform audit
annually in order to determine any fraud practices that may be happening in organisation.
Therefore, by performing audit it become easier to determine the default that made by company
or by some internal practices that may affect its brand image in the marketplace and also the
performance as well. Through this corrective actions can be undertaken by top management so
that errors can be detect and overcome without having loss.
1.3 Research Aim
“To understand the importance of audit for big corporate house in detection of fraud” –
Case Study on Sainsbury's
1.4 Research objective and questions
Research Objective
To study the concept of audit within corporate firms.
46
The main aim of conducting this study is to determine the importance of auditing within
an organisation and manner in which it is helpful for businesses in order to create an awarenesses
regarding auditing for big corporate houses (Johansson and Carey, 2016). Additionally, it also
help in presenting the information regarding the ways to be adopted by an organisation in order
to get over a competing position in term of their profitability and turnover by keeping the frauds
away from their operations. This will also support in enhancing the understanding of investigator
regarding the role that an audit plays within the functioning of an organisation and manner in
which it influence over the overall performance of a brand in term of its brand reputation among
targeted audience.
1.2 Research context
This research is based on importance of audit within an organisation and its role within
improving the performance. By performing this assessment an organisation would be able to
determine the risks that may affect its performance and on the same page it also help in
providing information to top management regarding the fraud that is continuing within an
organisation so that corrective actions can be taken in timely manner. For this study Sainsbury is
taken into consideration as it operates at inte4rnational level and have to perform a range of
transaction that make it difficult to regularly have insight over each and every transaction
(DeZoort and Harrison, 2018). Therefore the audit committee is crucial as it perform audit
annually in order to determine any fraud practices that may be happening in organisation.
Therefore, by performing audit it become easier to determine the default that made by company
or by some internal practices that may affect its brand image in the marketplace and also the
performance as well. Through this corrective actions can be undertaken by top management so
that errors can be detect and overcome without having loss.
1.3 Research Aim
“To understand the importance of audit for big corporate house in detection of fraud” –
Case Study on Sainsbury's
1.4 Research objective and questions
Research Objective
To study the concept of audit within corporate firms.
46
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To identify the factors determining success of Sainsbury's audit committee to enhance
effectiveness of financial statement.
To investigate the challenges of audit which Sainsbury's face while improving its
financial performance.
Research Question
What is the concept of audit within corporate firms ?
What are the factors determining success of Sainsbury's audit committee to enhance
effectiveness of financial statement ?
What are the challenges of audit which Sainsbury's face while improving its financial
performance ?
2) LITERATURE REVIEW
2.1. The Overall Debates that relate to the problem
As per the view point of Rich Gordon, 2019, for an organisation operating at larger scale
required to have an audit for their financial transactions made and statements that are created.
They require audit committee as it is effective toward anti-fraud mechanism which provide
critical defensive tool in war against the frauds. The audit committee members not only just
review the financial statement yet they focuses toward adopting some of the proactive approach
in order to catch the theft or detecting the misappropriations within an organisation. This is
helpful as it provide an insight in financial reporting process, system of internal control, audit
process and compliances of laws and regulations.
2.2. Specific Debate relating to topic in Literature
As per the view point of Comer, 2017, auditors act as a watchdog for financial practices
performed by an organisation as they focuses toward examining the financial documents and
review the operating procedures to determine if their any error and fraud present. It is important
for big corporate houses like Sainsbury as it help in maintaining the operational efficiency,
safeguarding the asset and maintaining the financial reliability. As it provide Sainsbury an
assurance that organisation's risk management, internal control processes and governance are
operating effectively.
According to the view point of Rengganis and et. al., 2019, Auditors are responsible for
determining the discrepancies among the operational processes and those processes that are
designed to do so. When such discrepancies found within the organisation then they provide
47
effectiveness of financial statement.
To investigate the challenges of audit which Sainsbury's face while improving its
financial performance.
Research Question
What is the concept of audit within corporate firms ?
What are the factors determining success of Sainsbury's audit committee to enhance
effectiveness of financial statement ?
What are the challenges of audit which Sainsbury's face while improving its financial
performance ?
2) LITERATURE REVIEW
2.1. The Overall Debates that relate to the problem
As per the view point of Rich Gordon, 2019, for an organisation operating at larger scale
required to have an audit for their financial transactions made and statements that are created.
They require audit committee as it is effective toward anti-fraud mechanism which provide
critical defensive tool in war against the frauds. The audit committee members not only just
review the financial statement yet they focuses toward adopting some of the proactive approach
in order to catch the theft or detecting the misappropriations within an organisation. This is
helpful as it provide an insight in financial reporting process, system of internal control, audit
process and compliances of laws and regulations.
2.2. Specific Debate relating to topic in Literature
As per the view point of Comer, 2017, auditors act as a watchdog for financial practices
performed by an organisation as they focuses toward examining the financial documents and
review the operating procedures to determine if their any error and fraud present. It is important
for big corporate houses like Sainsbury as it help in maintaining the operational efficiency,
safeguarding the asset and maintaining the financial reliability. As it provide Sainsbury an
assurance that organisation's risk management, internal control processes and governance are
operating effectively.
According to the view point of Rengganis and et. al., 2019, Auditors are responsible for
determining the discrepancies among the operational processes and those processes that are
designed to do so. When such discrepancies found within the organisation then they provide
47
advise to its senior management regarding the process or action they can adopt to improve it.
Hence, it can be said that by regularly implementing this Sainsbury would be able to get several
benefits such as collecting information in order to determine the risk of material that get
misstatement because of fraud, identifying the risk after taking in account regarding the
evaluation of entity program and its control etc.
2.3. Thematic Literature Review relating to Specific Debate
Concept of audit within corporate firms.
According to the Brazel, 2018 audit is the inspection or examination of different books of
accounts by an auditor. It can be completed internally by workers or heads of a specific
department and externally by an external organisation or an independent auditor. In context of
corporate firms, audit means to inspecting something thoroughly. It is an independent
examination of the financial data of any enterprise; where non-profit oriented or profit oriented,
regardless of its status, legal form or size when such inspection is conducted with an opinion to
express a view thereof. In simple word, an audit is an independent and systematic examination
of documents, vouchers, statutory records, accounts and books of a corporate firm to find out
how far the financial statements and non-financial disclosure that present a fair and true view of
the concern.
On the other hand, auditing is a systematic process used by auditor for examine the
financial statement and information of the organisation. In this process, auditor examine or
analyse that is the organisation making profit or not. Along with this, it is an useful process in
which auditor examine the economic actions and conditions. Audit is completed to find out the
accuracy of financial information or statements provided by corporate firm.
Factors determining success of Sainsbury's audit committee to enhance effectiveness of
financial statement.
As per the view presented by Tugman and Leka (2019), there are number of factors or
ways that helps Sainsbury's in enhancement of its financial statement in effective manner. These
are audit committee transparency, effective communication, committee composition i.e.
appropriate skills, expertise and competencies, how it gets its work done, strength of the finance
functions etc. These are consider more effective ways that would be help an organisation in
improvement of its financial statement. For example: flow of effective communication is
48
Hence, it can be said that by regularly implementing this Sainsbury would be able to get several
benefits such as collecting information in order to determine the risk of material that get
misstatement because of fraud, identifying the risk after taking in account regarding the
evaluation of entity program and its control etc.
2.3. Thematic Literature Review relating to Specific Debate
Concept of audit within corporate firms.
According to the Brazel, 2018 audit is the inspection or examination of different books of
accounts by an auditor. It can be completed internally by workers or heads of a specific
department and externally by an external organisation or an independent auditor. In context of
corporate firms, audit means to inspecting something thoroughly. It is an independent
examination of the financial data of any enterprise; where non-profit oriented or profit oriented,
regardless of its status, legal form or size when such inspection is conducted with an opinion to
express a view thereof. In simple word, an audit is an independent and systematic examination
of documents, vouchers, statutory records, accounts and books of a corporate firm to find out
how far the financial statements and non-financial disclosure that present a fair and true view of
the concern.
On the other hand, auditing is a systematic process used by auditor for examine the
financial statement and information of the organisation. In this process, auditor examine or
analyse that is the organisation making profit or not. Along with this, it is an useful process in
which auditor examine the economic actions and conditions. Audit is completed to find out the
accuracy of financial information or statements provided by corporate firm.
Factors determining success of Sainsbury's audit committee to enhance effectiveness of
financial statement.
As per the view presented by Tugman and Leka (2019), there are number of factors or
ways that helps Sainsbury's in enhancement of its financial statement in effective manner. These
are audit committee transparency, effective communication, committee composition i.e.
appropriate skills, expertise and competencies, how it gets its work done, strength of the finance
functions etc. These are consider more effective ways that would be help an organisation in
improvement of its financial statement. For example: flow of effective communication is
48
important for an organisation to communicate each information about their financial statement or
information to the employees. As it will support company to improve effectiveness of their
financial statement and gain better outcomes.
49
information to the employees. As it will support company to improve effectiveness of their
financial statement and gain better outcomes.
49
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The challenges of audit which Sainsbury's face while improving its financial performance
As per the information presented by Brazel, 2018, Audit committee plays a significant
role within an organisation by detecting the errors or misappropriate involve within the financial
practices of business. But while performing this there are number of issues that Sainsbury may
face which includes, revenue recognition as it one of the most complicated area of audit as it
involve an analytical procedure that support in generating the sufficient evidence to prove about
the profit and its source. Another challenge is to detect fraud as management held responsible if
the blatant fraud is ignored as it mainly rise due to weak internal control so they try to keep it
secret.
3. RESEARCH METHODOLOGY
Research methodology refers to the specific techniques or procedures that is used by
researcher for identifying, selecting, processing and analysing data about a topic. In addition, it is
an useful process of data collection that will be essential for investigator in gathering of reliable
and valid information (Flick, 2015). In this section, number of techniques will be included which
are publication research, surveys, interview and other methods. Main purpose of research
methodology is to assist the investigator in collection of qualitative or quantitative information.
3.1 Research Philosophy
There are mainly two types of philosophy: positivism and interpretivisim. Within a study,
positivism philosophy is more suitable that will be going to applied by investigator. Main reason
for using positivism philosophy as it support investigator to gather quantitative information
regarding the significance of audit for large corporate house in detection of fraud. Interpretative
another form of philosophy that will be not useful according to the current investigation because
it require maximum sources and time. Therefore as comparison to interpretivisim philosophy,
positivism type is more useful and applicable for this report (Gioia, Corley and Hamilton, 2013).
3.2 Research approach & Strategy
Research approach is based on data collection and data analysis. For collecting data,
qualitative and quantitative are consider two approaches, while for analysing information
inductive and deductive are two main approaches. Within a research quantitative and deductive
approach of research will be applied. As these approaches support investigation in collecting and
analysing of numerical data regarding the importance of audit for large organisation in detection
of fraud (Green, Camilli and Elmore, 2012). Qualitative and inductive approach will be not
50
As per the information presented by Brazel, 2018, Audit committee plays a significant
role within an organisation by detecting the errors or misappropriate involve within the financial
practices of business. But while performing this there are number of issues that Sainsbury may
face which includes, revenue recognition as it one of the most complicated area of audit as it
involve an analytical procedure that support in generating the sufficient evidence to prove about
the profit and its source. Another challenge is to detect fraud as management held responsible if
the blatant fraud is ignored as it mainly rise due to weak internal control so they try to keep it
secret.
3. RESEARCH METHODOLOGY
Research methodology refers to the specific techniques or procedures that is used by
researcher for identifying, selecting, processing and analysing data about a topic. In addition, it is
an useful process of data collection that will be essential for investigator in gathering of reliable
and valid information (Flick, 2015). In this section, number of techniques will be included which
are publication research, surveys, interview and other methods. Main purpose of research
methodology is to assist the investigator in collection of qualitative or quantitative information.
3.1 Research Philosophy
There are mainly two types of philosophy: positivism and interpretivisim. Within a study,
positivism philosophy is more suitable that will be going to applied by investigator. Main reason
for using positivism philosophy as it support investigator to gather quantitative information
regarding the significance of audit for large corporate house in detection of fraud. Interpretative
another form of philosophy that will be not useful according to the current investigation because
it require maximum sources and time. Therefore as comparison to interpretivisim philosophy,
positivism type is more useful and applicable for this report (Gioia, Corley and Hamilton, 2013).
3.2 Research approach & Strategy
Research approach is based on data collection and data analysis. For collecting data,
qualitative and quantitative are consider two approaches, while for analysing information
inductive and deductive are two main approaches. Within a research quantitative and deductive
approach of research will be applied. As these approaches support investigation in collecting and
analysing of numerical data regarding the importance of audit for large organisation in detection
of fraud (Green, Camilli and Elmore, 2012). Qualitative and inductive approach will be not
50
useful according to the current investigation because these approaches require maximum time as
well as cost.
There are number of research strategies which are interview, case study, survey,
observation etc. These are main strategies but according to the current study survey will be going
to applied. In this method, questionnaire is used because it support investigator in gathering of
quantitative and valid information about a topic.
3.3 Research Design
Entire activity of study is depend on the research design. Main purpose of research design
as it support researcher in identification of impact. There are three sort of research design i.e.
experimental, exploratory and descriptive. These are consider main types of research design that
would be beneficial in determination of research impact. Within a research, descriptive design
will be applied because it helps researcher in driving of valid and effective conclusion (Kumar,
2019).
3.4 Sampling & Participation
Sampling introduces as a process of selecting a sample size from larger population. There
are two techniques of sampling which are probabilistic and non-probabilistic. For selecting
sample size for current study, probabilistic type of sampling is more appropriate. As it support an
investigator in selection of large sample size. 50 employees of Sainsbury's will be recruited or
selected on random basis by using probabilistic sampling. Main reason for using this type of
sampling as it save time and cost of the researcher. Employees are main participants of this
study. Main purpose for selecting employees as a participant is they have accurate knowledge
about the business and its operations (Mackenzie and et. al., 2012).
3.5 Data collection methods
There are two specific methods of data collection which are primary and secondary. In
order to accumulate primary information about the importance of audit for big corporate house in
detection of fraud, questionnaire will be applied. Main purpose for using this instrument as it
support investigator in gathering of accurate data from the employees of Sainsbury's. This
method not require more time and resources of researcher and also provide valid outputs. On the
other hand, for gathering secondary data about a topic, there is need of some sources i.e.
magazines, books, articles, journals, companies financial report etc. These are consider main
sources that will support researcher to collect secondary data about a current study. Within a
51
well as cost.
There are number of research strategies which are interview, case study, survey,
observation etc. These are main strategies but according to the current study survey will be going
to applied. In this method, questionnaire is used because it support investigator in gathering of
quantitative and valid information about a topic.
3.3 Research Design
Entire activity of study is depend on the research design. Main purpose of research design
as it support researcher in identification of impact. There are three sort of research design i.e.
experimental, exploratory and descriptive. These are consider main types of research design that
would be beneficial in determination of research impact. Within a research, descriptive design
will be applied because it helps researcher in driving of valid and effective conclusion (Kumar,
2019).
3.4 Sampling & Participation
Sampling introduces as a process of selecting a sample size from larger population. There
are two techniques of sampling which are probabilistic and non-probabilistic. For selecting
sample size for current study, probabilistic type of sampling is more appropriate. As it support an
investigator in selection of large sample size. 50 employees of Sainsbury's will be recruited or
selected on random basis by using probabilistic sampling. Main reason for using this type of
sampling as it save time and cost of the researcher. Employees are main participants of this
study. Main purpose for selecting employees as a participant is they have accurate knowledge
about the business and its operations (Mackenzie and et. al., 2012).
3.5 Data collection methods
There are two specific methods of data collection which are primary and secondary. In
order to accumulate primary information about the importance of audit for big corporate house in
detection of fraud, questionnaire will be applied. Main purpose for using this instrument as it
support investigator in gathering of accurate data from the employees of Sainsbury's. This
method not require more time and resources of researcher and also provide valid outputs. On the
other hand, for gathering secondary data about a topic, there is need of some sources i.e.
magazines, books, articles, journals, companies financial report etc. These are consider main
sources that will support researcher to collect secondary data about a current study. Within a
51
study, both primary and secondary sources of data collection will be used for gathering detailed
and reliable information (Mackey and Gass, 2015).
3.6 Data analysis methods
Data analysis has two methods such as quantitative research and qualitative research.
Each method has their own tools and techniques. Observations and interviews are consider types
of qualitative study, while survey and experiments are quantitative research. Current report is
based on quantitative research and for analysing quantitative data, content analysis will be going
to applied by the investigator. Under this method of data analysis, number of themes will be
made with purpose to completing each activities of research in systematic manner. Along with
this, for analysing quantitative data, there is requirement of some steps i.e. making a frequency
table, making a pie chart and than writing an interpretation. These steps support researcher in
analysation of quantitative information easily (McCusker and Gunaydin, 2015).
3.7 Ethics and limitations
Ethics within an investigation plays an important role by completing each activities of
study in ethical manner. There are some principles of research ethics that should be follow by
researcher such as minimising the risk of harm, obtaining informed consent, avoiding deceptive
practices, giving the right to withdraw, protecting confidentiality and anonymity etc. These are
main principles that must be follow by investigator for doing this investigation in systematic and
ethical manner.
There are several limitations that will be faced by researcher such as lack of time,
insufficient time period, lack of resources, etc. These are consider major limitations that have
direct impact on researcher while performing this investigation. In order to overcome these
limitations, researcher should use Gantt chart, follow ethical considerations etc. AS these will be
helpful for investigator in completion of report effectively.
CONCLUSION
From the above mentioned information it can be summarised that audit committee plays a
significant role within improving the financial performance of an organisation. This is so because
it provide an insight within the operations or actions that are performed by an organisation along
with their financial transactions. It further support in getting an idea regarding the area of
business where an error exists or the consequences it have over the performance of organisation
52
and reliable information (Mackey and Gass, 2015).
3.6 Data analysis methods
Data analysis has two methods such as quantitative research and qualitative research.
Each method has their own tools and techniques. Observations and interviews are consider types
of qualitative study, while survey and experiments are quantitative research. Current report is
based on quantitative research and for analysing quantitative data, content analysis will be going
to applied by the investigator. Under this method of data analysis, number of themes will be
made with purpose to completing each activities of research in systematic manner. Along with
this, for analysing quantitative data, there is requirement of some steps i.e. making a frequency
table, making a pie chart and than writing an interpretation. These steps support researcher in
analysation of quantitative information easily (McCusker and Gunaydin, 2015).
3.7 Ethics and limitations
Ethics within an investigation plays an important role by completing each activities of
study in ethical manner. There are some principles of research ethics that should be follow by
researcher such as minimising the risk of harm, obtaining informed consent, avoiding deceptive
practices, giving the right to withdraw, protecting confidentiality and anonymity etc. These are
main principles that must be follow by investigator for doing this investigation in systematic and
ethical manner.
There are several limitations that will be faced by researcher such as lack of time,
insufficient time period, lack of resources, etc. These are consider major limitations that have
direct impact on researcher while performing this investigation. In order to overcome these
limitations, researcher should use Gantt chart, follow ethical considerations etc. AS these will be
helpful for investigator in completion of report effectively.
CONCLUSION
From the above mentioned information it can be summarised that audit committee plays a
significant role within improving the financial performance of an organisation. This is so because
it provide an insight within the operations or actions that are performed by an organisation along
with their financial transactions. It further support in getting an idea regarding the area of
business where an error exists or the consequences it have over the performance of organisation
52
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and also providing direction to improve those errors for reducing the possibility of occurring
error or fraud within the organisation functional unit.
REFERENCES
Books and Journals
Brazel, J.F., 2018. Do auditors and audit committees lower fraud risk by constraining
inconsistencies between financial and nonfinancial measures?. Current Issues in
Auditing, 12(2), pp.P7-P15.
Comer, M.J., 2017. Corporate fraud. Routledge.
DeZoort, F.T. and Harrison, P.D., 2018. Understanding auditors’ sense of responsibility for
detecting fraud within organizations. Journal of Business Ethics, 149(4), pp.857-874.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Gioia, D. A., Corley, K. G. and Hamilton, A. L., 2013. Seeking qualitative rigor in inductive
research: Notes on the Gioia methodology. Organizational research methods. 16(1).
pp.15-31.
Green, J. L., Camilli, G. and Elmore, P. B. eds., 2012. Handbook of complementary methods in
education research. Routledge.
Halbouni, S.S., Obeid, N. and Garbou, A., 2016. Corporate governance and information
technology in fraud prevention and detection. Managerial Auditing Journal.
Johansson, E. and Carey, P., 2016. Detecting fraud: The role of the anonymous reporting
channel. Journal of business ethics, 139(2), pp.391-409.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Mackenzie, J., Tan, P. L., Hoverman, S. and Baldwin, C., 2012. The value and limitations of
participatory action research methodology. Journal of hydrology. 474. pp.11-21.
Mackey, A. and Gass, S. M., 2015. Second language research: Methodology and design.
Routledge.
McCusker, K. and Gunaydin, S., 2015. Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion. 30(7). pp.537-542.
Rengganis, R.M.Y.D., Sari, M.M.R., Budiasih, I.G.A.N., Wirajaya, I.G.A. and Suprasto, H.B.,
2019. The fraud diamond: element in detecting financial statement of
fraud. International research journal of management, IT and social sciences, 6(3), pp.1-
10.
Online
Tugman L., Leka. L., 2019.
Key Factors to Enhance Audit Committee Effectiveness. [Online]. Available through:
<https://www.ifac.org/knowledge-gateway/supporting-international-standards/
discussion/5-key-factors-enhance-audit>.
Gordon. R., 2019. The Importance of Audit Committees in Fraud Prevention. [Online] Available
through:<https://www.lindquistcpa.com/blog/the-importance-of-audit-committees-in-
fraud-prevention/>./
53
error or fraud within the organisation functional unit.
REFERENCES
Books and Journals
Brazel, J.F., 2018. Do auditors and audit committees lower fraud risk by constraining
inconsistencies between financial and nonfinancial measures?. Current Issues in
Auditing, 12(2), pp.P7-P15.
Comer, M.J., 2017. Corporate fraud. Routledge.
DeZoort, F.T. and Harrison, P.D., 2018. Understanding auditors’ sense of responsibility for
detecting fraud within organizations. Journal of Business Ethics, 149(4), pp.857-874.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Gioia, D. A., Corley, K. G. and Hamilton, A. L., 2013. Seeking qualitative rigor in inductive
research: Notes on the Gioia methodology. Organizational research methods. 16(1).
pp.15-31.
Green, J. L., Camilli, G. and Elmore, P. B. eds., 2012. Handbook of complementary methods in
education research. Routledge.
Halbouni, S.S., Obeid, N. and Garbou, A., 2016. Corporate governance and information
technology in fraud prevention and detection. Managerial Auditing Journal.
Johansson, E. and Carey, P., 2016. Detecting fraud: The role of the anonymous reporting
channel. Journal of business ethics, 139(2), pp.391-409.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Mackenzie, J., Tan, P. L., Hoverman, S. and Baldwin, C., 2012. The value and limitations of
participatory action research methodology. Journal of hydrology. 474. pp.11-21.
Mackey, A. and Gass, S. M., 2015. Second language research: Methodology and design.
Routledge.
McCusker, K. and Gunaydin, S., 2015. Research using qualitative, quantitative or mixed
methods and choice based on the research. Perfusion. 30(7). pp.537-542.
Rengganis, R.M.Y.D., Sari, M.M.R., Budiasih, I.G.A.N., Wirajaya, I.G.A. and Suprasto, H.B.,
2019. The fraud diamond: element in detecting financial statement of
fraud. International research journal of management, IT and social sciences, 6(3), pp.1-
10.
Online
Tugman L., Leka. L., 2019.
Key Factors to Enhance Audit Committee Effectiveness. [Online]. Available through:
<https://www.ifac.org/knowledge-gateway/supporting-international-standards/
discussion/5-key-factors-enhance-audit>.
Gordon. R., 2019. The Importance of Audit Committees in Fraud Prevention. [Online] Available
through:<https://www.lindquistcpa.com/blog/the-importance-of-audit-committees-in-
fraud-prevention/>./
53
APPENDICES
QUESTIONNAIRE
Questions Collected data
Q1 Do You think that organizing of auditing process is crucial for
smooth running of business operations
Frequency
Strongly agree 20
Agree 25
Disagree 3
Strongly disagree 1
N/A 1
Q2 Does conducting an auditing process within an organisation
support in improving its credibility at marketplace?
Frequency
Strongly agree 15
Agree 25
Disagree 5
Strongly disagree 3
N/A 2
Q3 As per your perception does Sainsbury is required to involve
within the auditing process along with Board of directors in order to
enhance its credibility of report?
Frequency
Strongly agree 10
Agree 30
Disagree 1
Strongly disagree 3
N/A 6
Q4 Do you think that Fraud detection and prevention become more
easier for Sainsbury if it maintains a rigid system of auditing?
Frequency
Strongly agree 12
Agree 20
54
QUESTIONNAIRE
Questions Collected data
Q1 Do You think that organizing of auditing process is crucial for
smooth running of business operations
Frequency
Strongly agree 20
Agree 25
Disagree 3
Strongly disagree 1
N/A 1
Q2 Does conducting an auditing process within an organisation
support in improving its credibility at marketplace?
Frequency
Strongly agree 15
Agree 25
Disagree 5
Strongly disagree 3
N/A 2
Q3 As per your perception does Sainsbury is required to involve
within the auditing process along with Board of directors in order to
enhance its credibility of report?
Frequency
Strongly agree 10
Agree 30
Disagree 1
Strongly disagree 3
N/A 6
Q4 Do you think that Fraud detection and prevention become more
easier for Sainsbury if it maintains a rigid system of auditing?
Frequency
Strongly agree 12
Agree 20
54
Disagree 8
Strongly disagree 4
N/A 6
Q5 According to you, does the external auditing process must be
used by Sainsbury for detecting its current performance?
Frequency
Strongly agree 5
Agree 25
Disagree 5
Strongly disagree 7
N/A 8
Q6 Do you think that internal auditing process will remain helpful
to Sainsbury in improving its managerial control and HR practices?
Frequency
Strongly agree 3
Agree 22
Disagree 20
Strongly disagree 3
N/A 2
Q7 Does the execution of external audit will be helpful for
Sainsbury in determining its actual financial position and
performance?
Frequency
Strongly agree 20
Agree 18
Disagree 4
Strongly disagree 2
N/A 6
Q8 Do you think that regular conduction of auditing will bring
influence over the employees working within Sainsbury?
Frequency
Strongly agree 15
Agree 20
Disagree 10
Strongly disagree 1
55
Strongly disagree 4
N/A 6
Q5 According to you, does the external auditing process must be
used by Sainsbury for detecting its current performance?
Frequency
Strongly agree 5
Agree 25
Disagree 5
Strongly disagree 7
N/A 8
Q6 Do you think that internal auditing process will remain helpful
to Sainsbury in improving its managerial control and HR practices?
Frequency
Strongly agree 3
Agree 22
Disagree 20
Strongly disagree 3
N/A 2
Q7 Does the execution of external audit will be helpful for
Sainsbury in determining its actual financial position and
performance?
Frequency
Strongly agree 20
Agree 18
Disagree 4
Strongly disagree 2
N/A 6
Q8 Do you think that regular conduction of auditing will bring
influence over the employees working within Sainsbury?
Frequency
Strongly agree 15
Agree 20
Disagree 10
Strongly disagree 1
55
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N/A 4
Q9 As per your perception does the misrepresentation of statement
would be identified with the help of auditing process performed by
Sainsbury?
Frequency
Strongly agree 20
Agree 15
Disagree 5
Strongly disagree 2
N/A 8
Q10 Auditing support in identifying the financial deficiency present
within the accounting statement by detecting mistakes and fraud?
Frequency
Strongly agree 10
Agree 30
Disagree 4
Strongly disagree 2
N/A 4
Q11 According to your perception does adherence to standard is a
most influential factor that must be considered while implementing
audit?
Frequency
Strongly agree 8
Agree 28
Disagree 4
Strongly disagree 3
N/A 7
Q12 Do you think that detection of fraud would be the major
challenges for Sainsbury to detect through auditing process?
Frequency
Strongly agree 5
Agree 25
Disagree 12
Strongly disagree 5
56
Q9 As per your perception does the misrepresentation of statement
would be identified with the help of auditing process performed by
Sainsbury?
Frequency
Strongly agree 20
Agree 15
Disagree 5
Strongly disagree 2
N/A 8
Q10 Auditing support in identifying the financial deficiency present
within the accounting statement by detecting mistakes and fraud?
Frequency
Strongly agree 10
Agree 30
Disagree 4
Strongly disagree 2
N/A 4
Q11 According to your perception does adherence to standard is a
most influential factor that must be considered while implementing
audit?
Frequency
Strongly agree 8
Agree 28
Disagree 4
Strongly disagree 3
N/A 7
Q12 Do you think that detection of fraud would be the major
challenges for Sainsbury to detect through auditing process?
Frequency
Strongly agree 5
Agree 25
Disagree 12
Strongly disagree 5
56
N/A 3
Q13 Do you think that maintaining regular auditing will support
Sainsbury in keeping maintaining positive relationship with
shareholders?
Frequency
Strongly agree 20
Agree 15
Disagree 5
Strongly disagree 2
N/A 8
Q14 Does keeping information error free will support Sainsbury in
improving its financial performance?
Frequency
Strongly agree 10
Agree 35
Disagree 3
Strongly disagree 1
N/A 1
Q15 Does hiring external auditor will be helpful for Sainsbury in
improving its financial performance?
Frequency
Strongly agree 20
Agree 22
Disagree 4
Strongly disagree 1
N/A 3
57
Q13 Do you think that maintaining regular auditing will support
Sainsbury in keeping maintaining positive relationship with
shareholders?
Frequency
Strongly agree 20
Agree 15
Disagree 5
Strongly disagree 2
N/A 8
Q14 Does keeping information error free will support Sainsbury in
improving its financial performance?
Frequency
Strongly agree 10
Agree 35
Disagree 3
Strongly disagree 1
N/A 1
Q15 Does hiring external auditor will be helpful for Sainsbury in
improving its financial performance?
Frequency
Strongly agree 20
Agree 22
Disagree 4
Strongly disagree 1
N/A 3
57
1 out of 57
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