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In this study, we first investigate the impact of environmental, social and governance (ESG) practices on company's performance. Using samples of Chinese publicly listed (i.e. A-share companies only) from 2017 to 2021, we analyze the association between ESG practices and company's performance in terms of ROA and Tobin's Q. We argue that companies with better ESG practices tend to draw more attention from stakeholders, which in turn encourage management to improve the company ROA and Tobin's Q. Secondly, this study analyzed the effect of auditors as evidence by audit fees on the relationship between ESG practices and company performance. Our analyses show two main results. Our results show that ESG practices have a positive impact on company performance in our samples, which means that good ESG scores promote better company performance. Furthermore, the relationship between ESG practices and company performance is moderated by the audit fees of listed companies, which indicates that the higher the company audit fees, the higher the corresponding effect of ESG scores on company performance. The results imply that auditors consider ESG as part of their audit risk assessment, although the current assurance scope of the audit work does not include ESG practices. Hence, auditing does influence the nexus between ESG practices and company performance. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between internal audit and the working capital management (WCM) of Malaysian public-listed firms. Good WCM is vital as it drives profitability. Anecdotal evidence suggests that the inventory conversion period is the most challenging part of WCM for Malaysian firms. In 2017, around RM71 billion in cash was locked up in working capital and thus suggesting that Malaysian public-listed firms are struggling with WCM. Based on this issue, we are therefore motivated to examine the association between the role of internal audit and WCM in publicly listed firms in Malaysia. Specifically, we would like to examine whether internal audit cost relates to better firms' WCM. We proxy WCM by the cash conversion cycle (CCC) ratio. With a sample of 309 firm-year observations, we observed a negative and significant relationship between internal audit cost and CCC. The findings suggest that an increase in internal audit cost improves firms' operational efficiency and effectiveness, hence improving firms' CCC ratios. Furthermore, we find consistent results on the influence of the internal auditor on two of three components of CCC, namely the inventory conversion and the receivables collection periods. Finally, our additional analysis demonstrates that CCC and internal auditing are critical components of firms' performance. By adding the role of internal audit in WCM, this study contributes to a further understanding of the role of internal auditor in agency theory. This study contributes to senior management of publicly listed firms that the cost incurred internal auditing function is an investment that helps improve WCM efficiency. [ABSTRACT FROM AUTHOR]

We investigate the effects of internal audit investments on financially distressed firms in Malaysia. Specifically, we examine the impacts of internal audit investments on these firms' going concern opinion. We argue that higher internal audit investments expedite these firms' recoverability by improving their controls and operations. The assurance and consulting activities provided by internal auditors enable these firms to mitigate the material uncertainty of the going concern opinions issued by external auditors. To examine such relationship, we chose 137 firm-year observations of Malaysian financially distressed firms listed on Bursa Malaysia from 2016 to 2018. We ran a logistic regression analysis and found that internal audit investments are negatively and significantly associated with the going concern opinions reported by an external auditor. This result suggests that high internal audit investments reduce the likelihood for an external auditor to issue a going concern opinion. As stated in ISA 570, if recovery plans have no material uncertainty and are sufficient to mitigate the going concern problem (which is argued to be assisted by the internal audit function of the firm), then an external auditor can issue a clean audit report even for firms that are in financial distress. Evidence from this study contributes to our understanding of the importance of investments in internal audit functions and highlights that the assurance and consultation from internal auditors can ensure a careful monitoring of the strategies and operations of firms. [ABSTRACT FROM AUTHOR]

The competitive business landscape surrounding the tourism industry inevitably requires significant attention to be placed on maximising the customer base towards establishing a competitive advantage. In this vein, the use of customer accounting has emerged to be a source of crucial information about the customers, which they could assist the management in decision making, managing, and controlling the operation and in turn improve the organisational performance. Considering that, this study aims to articulate and examine the relationships between customer accounting, customer knowledge, and performance. Based on a survey administered to 112 hotel managers, the practice information was collected and analysed using partial least square (PLS). Findings show that among the four dimensions of Customer Accounting, Customer Profitability Analysis, Valuation of Customer as Assets, and Customer Equity Analysis relate significantly to Customer Knowledge, except for the Lifetime Customer Profitability Analysis. Subsequently, only Customer Profitability Analysis and Valuation of Customer as Assets significantly influenced performance. The finding suggests that the adoption of Customer Accounting consisting of combined data about customers may assist the hotels in making decisions to improve their performance. Given that, this study highlighted an accounting technique, that is, Customer Accounting which should be practised by the operators of Malaysian hotels to allow them to manage their customers better, and which is the determinant toward ensuring business success and sustainability. [ABSTRACT FROM AUTHOR]

The ISA 701 Standard, Communicating Key Audit Matters in the Independent Auditors' Report, requires external auditors to report issues that are considered to be major during audit work. This standard, which effective on 15 December 2016, is the latest standard with regards to the independent auditor's report. This study examines the features of key audit matters reported after the ISA 701 was issued and investigates how the key audit matters were reported, particularly among going concern problem companies that received unqualified auditor's reports and companies that received qualified auditor's reports. Using convenience sampling method, this study analyses 99 key audit matters from 46 random samples of listed companies in Bursa Malaysia from 2016 to 2018, overall findings show that the key audit matters were reported in generic with similar focus. However, further analyses indicate that significant differences in the disclosure of the key audit matters between the unqualified audit reports with material uncertainty of going concern issue and qualified audit reports. The findings of this exploratory study provides an overview for policymakers, auditors, users of financial statements and students in understanding the key features of the audit report after ISA 701 was issued particularly among going concern problem companies that received unqualified auditor's reports and companies that received qualified auditor's reports. [ABSTRACT FROM AUTHOR]