Intellectual Capital as Part of the Quality Management System in an Auditing Firm
Keywords:
auditing, intellectual capital, assessment, quality management system, International Standard on Quality Management, model of the European Foundation of Quality Management.
Abstract
A new approach to quality assurance in audit requires creating a quality management system that would include eight components: procedure for risk assessment in a firm; management and leadership; respective ethical norms; acceptance and continuations of relations with clients and specific engagements; engagement completion; resources; information and communication; the process of monitoring and correction. Each component requires a separate assessment in the monitoring of the quality management system, both at firm and engagement level. The article demonstrates that the component “Resources” (human, technological, intellectual) of the quality management system in an auditing firm can be considered from the management viewpoint as intellectual capital, thus making applicable recognized management models. By summing up research results produced by domestic and foreign scientists it was demonstrated that the model of European Foundation for Quality Management (EFQM model) can be applied in assessing the components of the quality management system, “Resources” in particular. EFQM model was adapted and extended in an elaborated working document for internal or external monitoring of the quality management system in an auditing firm. The working document includes performing of the following procedures: inspection (review) of documents and observations; individual interviews of the engaged firm staff; analysis of obtained evidence. The implementation and documenting of monitoring procedures and informing the results to all the firm staff will help assure the quality of auditing services and increase the users’ trust in the audit.
Downloads
Download data is not yet available.
References
1. International Standard on Quality Management 1 (Previously International Standard on Quality Control 1). (2020). Quality Management for Firms that Perform Auditsor Reviewsof Financial Statements, or Other Assuranceor Related Services Engagements. www.ifac.org. Retrieved April 02, 2023 from https://www.ifac.org/system/files/publications/files/IAASB-Quality-Management-ISQM-1-Quality-Management-for-Firms.pdf
2. International Standard оn Quality Management (ISQM) 2, Engagement Quality Reviews. (2020). www.iaasb.org. Retrieved April 02, 2023 from https://www.iaasb.org/publications/international-standard-quality-management-isqm-2-engaging-quality-reviews
3. International Standard on Auditing 220 (Revised). Quality Management for an Audit of Financial Statements. (2020). www.ifac.org. Retrieved April 02, 2023 from https://www.ifac.org/_flysystem/azure-private/publications/files/IAASB-International-Standard-Auditing-220-Revised.pdf
4. Real Decreto 2/2021, de 12 de enero, por el que se apruebael Reglamento dedesarrollo de la Ley 22/2015, de 20 de julio, de Auditoríade Cuentas. (2021). Ministerio De Asuntos Económicos Y Transformación Digital. Boletín Oficial Del Estado, 26, 1, 11045– 11144. Retrieved April 05, 2023 from https://www.boe.es/eli/es/rd/2021/01/12/2 [in Spanish].
5. Сriterios de interpretación de la norma internacional de gestión de la calidad 1 para su aplicación en Еspaña. NIGC1-ES. Gestión de la calidad en las firmas de auditoría que realizan auditorías de estados financieros, publicada mediante Resoluciónde 20 de abrilde 2022. Instituto de Contabilidad y Auditoria de Cuentas (ICAC). Retrieved April 05, 2023 from https://www.icac.gob.es/node/2530 [in Spanish].
6. Informatsiine povidomlennia shchodo zastosuvannia v Ukraini novykh i perehlianutykh mizhnarodnykh standartiv audytu [Information message on use of new and revised international standards on auditing in Ukraine]. (2022). Audit public oversight body of Ukraine. Retrieved from https://www.apob.org.ua/?p=4625 [in Ukrainian].
7. Achundia, Sh. E. P., Malvares, M. C. R., &Ceballo, S. P. (2021). La gestión de la calidad y su incidencia en la auditoría financiera realizada por las firmas auditoras de Manabí. Revista Cubanade Finanzas y Precios, 5, 2, 25–35. Retrieved April 07, 2023 from https://www.mfp.gob.cu/revista/index.php/RCFP/article/view/04_V5N22021_SEPAyOTROS [in Spanish].
8. Camargo, A. (2021). La gestión de la calidad en una auditoría de estados financieros. www.auditool.org. Retrieved April 07, 2023 from https://www.auditool.org/blog/auditoria-externa/la-gestion-de-la-calidad-en-una-auditoria-de-estados-financieros [in Spanish].
9. Vaicekauskas, D., & Mackevičius, J. (2014). Developing a framework for audit quality management in audit firms. Zeszyty Teoretyczne Rachunkowości, 75 (131), 171–193. DOI: 10.5604/16414381.1098806
10. Shazly, M. A., AbdElAlim, K., Mortaky, A. N. & Sayed, M. N. (2022). The Impact of Corporate Governance and Audit Quality on the Investment Decision. Financial Markets, Institutions and Risks, 6 (3), 5–12. Retrieved from http://doi.org/10.21272/fmir.6(3).5-12.2022
11. Lomachenko, Т. I. (2013). Upravlinnia yakistiu audytu [Audit quality management]. Problemy materialnoi kultury. Ekonomichni nauky – Problems of material culture. Economic sciences. Retrieved from http://dspace.nbuv.gov.ua/bitstream/handle/123456789/92809/11-Lomachenko.pdf?sequence=1https://www.apob.org.ua/?p=4625 [in Ukrainian].
12. Bondar, V. P., & Bondar, Yu. V. (2015). Yakist v audyti ta deiaki aspekty upravlinnia yakistiu [Quality in audit and some aspects of quality management]. Problemy teorii ta metodolohii bukhhalterskoho obliku, kontroliu i analizu – Problems of theory and methodology of accounting, control and analysis, 1, 31, 36–66. Retrieved from http://nbuv.gov.ua/UJRN/ptmbo_2015_1_5 [in Ukrainian].
13. Vasyliuk, M. M., & Hryhoriv, O. O. (2015). Formuvannia parametriv yakosti v praktytsi suchasnoho audytu [Parameters of quality forming in modern audit practice]. Економічний часопис -XXI – Economic Annals-XXI, 3-4 (2), 63–66. Retrieved from http://lib.pnu.edu.ua:8080/bitstream/123456789/4016/1/22.pdf [in Ukrainian].
14. Vasyliuk, M. M. (2015). Systemnyi pidkhid yak efektyvnyi instrument udoskonalennia upravlinnia yakistiu audytorskykh posluh [A systematic approach as an effective tool for improving the quality management of audit services]. Bukhhalterskyi oblik, analiz ta audyt: problemy teorii, metodolohii, orhanizatsii – Accounting, analysis and auditing: problems of theory, methodology, organization, 1 (14), 20–26. Retrieved from http://lib.pnu.edu.ua:8080/handle/123456789/3996 [in Ukrainian].
12. Stewart T. A. (1997). The Intellectual Capital. The New Wealth of Organizations. New York, London: Doubleday / Currency. Retrieved from https://books.google.com.ua/books?id=CIwxhVIrT30C&source=gbs_book_other_versions
13. Kostyrko, R. O., Kostyrko, L. A., Lubenchenko, O. E., & Chernodubova, E. V. (2020). Intehrovana korporatyvna zvitnist [Integrated corporate reporting]. (3rd ed., rev.). Sievierodonetsk: Vyd-vo SNU im. V. Dalia. Retrieved from https://dspace.snu.edu.ua/server/api/core/bitstreams/6c485e5a-a676-4fcf-8838-a228e405be82/content [in Ukrainian].
14. Laguna, O. A. F., Gutiérrez, K. S. B., & Valdez, J. A. S. (2019). Validez y confiabilidad de una escala de medición del capital intelectual en PyMEs. Contaduría y Administración, 64 (65), 1–18. DOI:10.22201/fca.24488410e.2020.2398 [in Spanish].
15. Ibarra-Cisneros, M. A., & Hernández-Perlines, F. (2019). La influencia del capital intelectual en el desempeño de las pequeñas y medianas empresas manufactureras de México. Innovar: revista de ciencias administrativas y sociales, 29, 71, 79–96. Retrieved from https://dialnet.unirioja.es/servlet/articulo?codigo=6858328 [in Spanish].
16. Rojas, M. I.,.& Espejo, R. L. (2020). La Inversión en investigación científica como medida del capital intelectualen las instituciones de educación superior. Información tecnológica, 31, 1. Retrieved from https://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-07642020000100079#aff1 [in Spanish].
17. Valero, M. M. (2020). Gestión del capital intelectual como factor clave en el diseño estratégico de un proyecto de desarrollo turístico. Revista de estudios sobre despoblación y desarrollo rural, 28, 43–73. Retrieved from https://dialnet.unirioja.es/servlet/articulo?codigo=7275031 [in Spanish].
18. Cobo-Jimenez, A. (2006). Modelo de capital intelectual de la Consejería de Educación de la Juntade Andalucía. Indicadores de capital humano y gestión del conocimiento. Tesis Doctoral. Málaga. Retrieved April 05, 2023 from https://riuma.uma.es/xmlui/bitstream/handle/10630/2575/16754621.pdf [in Spanish].
19. Khilukha, O. A., Kuzmin, O. Ye., & Lipych, L. H. (2014). Upravlinnіa intelektualnym kapitalom mashynobudivnykh pidpryіemstv: teoretychni ta prykladni polozhennіa [Management of intellectual capital of machine-building enterprises: theoretical and applied statements]. Lutsk: Vezha-Druk. Retrieved from https://evnuir.vnu.edu.ua/bitstream/123456789/7236/1/монографія%20%28Repaired%29.pdf [in Ukrainian].
20. Shestakovska, T. L., & Yarovoi, T. S. (2020). Upravlinnia intelektualnym kapitalom krainy: svitovyi dosvid ta vitchyzniani realii [Intellectual capital management of the country: world experience and domestic realities]. Vcheni zapiski universitetu “Krok” – Scientific notes of “Krok” University, 3 (59), 89–96. Retrieved from https://snku.krok.edu.ua/vcheni-zapiski-universitetu-krok/article/view/317 [in Ukrainian].
21. Kolesnyk, T. M. (2016). Osoblyvosti upravlinnia intelektualnym kapitalom orhanizatsii ta metody yoho otsinky [Features of intellectual capital management of the organization and methods of its assessment]. Zbirnyk naukovykh prats Cherkaskoho derzhavnoho tekhnolohichnoho universytetu. Seriia: Ekonomichni nauky – Proceedings of Scientific Works of Cherkasy State Technological University. Series Economic Sciences, 2, 43, 128–136. Retrieved from http://ven.chdtu.edu.ua/article/view/120045 [in Ukrainian].
22. Gudz, О. Ye., & Pryadka, A. S. (2021). Upravlinnia intelektualnym kapitalom [Intellectual capital management]. Ekonomika. Menedzhment. Biznes – Economics. Management. Business, 2 (36), 4–9. Retrieved from http://journals.dut.edu.ua/index.php/emb/article/view/2541 [in Ukrainian].
2. International Standard оn Quality Management (ISQM) 2, Engagement Quality Reviews. (2020). www.iaasb.org. Retrieved April 02, 2023 from https://www.iaasb.org/publications/international-standard-quality-management-isqm-2-engaging-quality-reviews
3. International Standard on Auditing 220 (Revised). Quality Management for an Audit of Financial Statements. (2020). www.ifac.org. Retrieved April 02, 2023 from https://www.ifac.org/_flysystem/azure-private/publications/files/IAASB-International-Standard-Auditing-220-Revised.pdf
4. Real Decreto 2/2021, de 12 de enero, por el que se apruebael Reglamento dedesarrollo de la Ley 22/2015, de 20 de julio, de Auditoríade Cuentas. (2021). Ministerio De Asuntos Económicos Y Transformación Digital. Boletín Oficial Del Estado, 26, 1, 11045– 11144. Retrieved April 05, 2023 from https://www.boe.es/eli/es/rd/2021/01/12/2 [in Spanish].
5. Сriterios de interpretación de la norma internacional de gestión de la calidad 1 para su aplicación en Еspaña. NIGC1-ES. Gestión de la calidad en las firmas de auditoría que realizan auditorías de estados financieros, publicada mediante Resoluciónde 20 de abrilde 2022. Instituto de Contabilidad y Auditoria de Cuentas (ICAC). Retrieved April 05, 2023 from https://www.icac.gob.es/node/2530 [in Spanish].
6. Informatsiine povidomlennia shchodo zastosuvannia v Ukraini novykh i perehlianutykh mizhnarodnykh standartiv audytu [Information message on use of new and revised international standards on auditing in Ukraine]. (2022). Audit public oversight body of Ukraine. Retrieved from https://www.apob.org.ua/?p=4625 [in Ukrainian].
7. Achundia, Sh. E. P., Malvares, M. C. R., &Ceballo, S. P. (2021). La gestión de la calidad y su incidencia en la auditoría financiera realizada por las firmas auditoras de Manabí. Revista Cubanade Finanzas y Precios, 5, 2, 25–35. Retrieved April 07, 2023 from https://www.mfp.gob.cu/revista/index.php/RCFP/article/view/04_V5N22021_SEPAyOTROS [in Spanish].
8. Camargo, A. (2021). La gestión de la calidad en una auditoría de estados financieros. www.auditool.org. Retrieved April 07, 2023 from https://www.auditool.org/blog/auditoria-externa/la-gestion-de-la-calidad-en-una-auditoria-de-estados-financieros [in Spanish].
9. Vaicekauskas, D., & Mackevičius, J. (2014). Developing a framework for audit quality management in audit firms. Zeszyty Teoretyczne Rachunkowości, 75 (131), 171–193. DOI: 10.5604/16414381.1098806
10. Shazly, M. A., AbdElAlim, K., Mortaky, A. N. & Sayed, M. N. (2022). The Impact of Corporate Governance and Audit Quality on the Investment Decision. Financial Markets, Institutions and Risks, 6 (3), 5–12. Retrieved from http://doi.org/10.21272/fmir.6(3).5-12.2022
11. Lomachenko, Т. I. (2013). Upravlinnia yakistiu audytu [Audit quality management]. Problemy materialnoi kultury. Ekonomichni nauky – Problems of material culture. Economic sciences. Retrieved from http://dspace.nbuv.gov.ua/bitstream/handle/123456789/92809/11-Lomachenko.pdf?sequence=1https://www.apob.org.ua/?p=4625 [in Ukrainian].
12. Bondar, V. P., & Bondar, Yu. V. (2015). Yakist v audyti ta deiaki aspekty upravlinnia yakistiu [Quality in audit and some aspects of quality management]. Problemy teorii ta metodolohii bukhhalterskoho obliku, kontroliu i analizu – Problems of theory and methodology of accounting, control and analysis, 1, 31, 36–66. Retrieved from http://nbuv.gov.ua/UJRN/ptmbo_2015_1_5 [in Ukrainian].
13. Vasyliuk, M. M., & Hryhoriv, O. O. (2015). Formuvannia parametriv yakosti v praktytsi suchasnoho audytu [Parameters of quality forming in modern audit practice]. Економічний часопис -XXI – Economic Annals-XXI, 3-4 (2), 63–66. Retrieved from http://lib.pnu.edu.ua:8080/bitstream/123456789/4016/1/22.pdf [in Ukrainian].
14. Vasyliuk, M. M. (2015). Systemnyi pidkhid yak efektyvnyi instrument udoskonalennia upravlinnia yakistiu audytorskykh posluh [A systematic approach as an effective tool for improving the quality management of audit services]. Bukhhalterskyi oblik, analiz ta audyt: problemy teorii, metodolohii, orhanizatsii – Accounting, analysis and auditing: problems of theory, methodology, organization, 1 (14), 20–26. Retrieved from http://lib.pnu.edu.ua:8080/handle/123456789/3996 [in Ukrainian].
12. Stewart T. A. (1997). The Intellectual Capital. The New Wealth of Organizations. New York, London: Doubleday / Currency. Retrieved from https://books.google.com.ua/books?id=CIwxhVIrT30C&source=gbs_book_other_versions
13. Kostyrko, R. O., Kostyrko, L. A., Lubenchenko, O. E., & Chernodubova, E. V. (2020). Intehrovana korporatyvna zvitnist [Integrated corporate reporting]. (3rd ed., rev.). Sievierodonetsk: Vyd-vo SNU im. V. Dalia. Retrieved from https://dspace.snu.edu.ua/server/api/core/bitstreams/6c485e5a-a676-4fcf-8838-a228e405be82/content [in Ukrainian].
14. Laguna, O. A. F., Gutiérrez, K. S. B., & Valdez, J. A. S. (2019). Validez y confiabilidad de una escala de medición del capital intelectual en PyMEs. Contaduría y Administración, 64 (65), 1–18. DOI:10.22201/fca.24488410e.2020.2398 [in Spanish].
15. Ibarra-Cisneros, M. A., & Hernández-Perlines, F. (2019). La influencia del capital intelectual en el desempeño de las pequeñas y medianas empresas manufactureras de México. Innovar: revista de ciencias administrativas y sociales, 29, 71, 79–96. Retrieved from https://dialnet.unirioja.es/servlet/articulo?codigo=6858328 [in Spanish].
16. Rojas, M. I.,.& Espejo, R. L. (2020). La Inversión en investigación científica como medida del capital intelectualen las instituciones de educación superior. Información tecnológica, 31, 1. Retrieved from https://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-07642020000100079#aff1 [in Spanish].
17. Valero, M. M. (2020). Gestión del capital intelectual como factor clave en el diseño estratégico de un proyecto de desarrollo turístico. Revista de estudios sobre despoblación y desarrollo rural, 28, 43–73. Retrieved from https://dialnet.unirioja.es/servlet/articulo?codigo=7275031 [in Spanish].
18. Cobo-Jimenez, A. (2006). Modelo de capital intelectual de la Consejería de Educación de la Juntade Andalucía. Indicadores de capital humano y gestión del conocimiento. Tesis Doctoral. Málaga. Retrieved April 05, 2023 from https://riuma.uma.es/xmlui/bitstream/handle/10630/2575/16754621.pdf [in Spanish].
19. Khilukha, O. A., Kuzmin, O. Ye., & Lipych, L. H. (2014). Upravlinnіa intelektualnym kapitalom mashynobudivnykh pidpryіemstv: teoretychni ta prykladni polozhennіa [Management of intellectual capital of machine-building enterprises: theoretical and applied statements]. Lutsk: Vezha-Druk. Retrieved from https://evnuir.vnu.edu.ua/bitstream/123456789/7236/1/монографія%20%28Repaired%29.pdf [in Ukrainian].
20. Shestakovska, T. L., & Yarovoi, T. S. (2020). Upravlinnia intelektualnym kapitalom krainy: svitovyi dosvid ta vitchyzniani realii [Intellectual capital management of the country: world experience and domestic realities]. Vcheni zapiski universitetu “Krok” – Scientific notes of “Krok” University, 3 (59), 89–96. Retrieved from https://snku.krok.edu.ua/vcheni-zapiski-universitetu-krok/article/view/317 [in Ukrainian].
21. Kolesnyk, T. M. (2016). Osoblyvosti upravlinnia intelektualnym kapitalom orhanizatsii ta metody yoho otsinky [Features of intellectual capital management of the organization and methods of its assessment]. Zbirnyk naukovykh prats Cherkaskoho derzhavnoho tekhnolohichnoho universytetu. Seriia: Ekonomichni nauky – Proceedings of Scientific Works of Cherkasy State Technological University. Series Economic Sciences, 2, 43, 128–136. Retrieved from http://ven.chdtu.edu.ua/article/view/120045 [in Ukrainian].
22. Gudz, О. Ye., & Pryadka, A. S. (2021). Upravlinnia intelektualnym kapitalom [Intellectual capital management]. Ekonomika. Menedzhment. Biznes – Economics. Management. Business, 2 (36), 4–9. Retrieved from http://journals.dut.edu.ua/index.php/emb/article/view/2541 [in Ukrainian].
Abstract views: 92 PDF Downloads: 83
Published
2023-12-30
How to Cite
LUBENCHENKOО. (2023). Intellectual Capital as Part of the Quality Management System in an Auditing Firm. Scientific Bulletin of the National Academy of Statistics, Accounting and Audit, (3-4), 32-45. https://doi.org/10.31767/nasoa.3-4-2023.03
Issue
Section
Articles
