Table of Contents

Barriers to Implementation of Auditing in an organization: Case study of Kuwait State Audit Bureau - Part 7


4.2 Data Analysis

The impression from the regression analysis as indicated in Table 1.5 is that the strength of relationship between the extent of auditing practices and level of auditing system performance was qualitatively measured. Thus, the findings reveal that the degree of the relationship between the two variables is quite strong at R. value of 0.973 of the regression model. Thus, R-value illustrates that the amount of variation in independent variable (auditing practices) positively affects the dependent variable (auditing system performance).

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Furthermore, respondents' view is that effectiveness in the auditing practices accounts for 94.7 percent of the total variation in the increase in auditing system performance and this was verified by the R. Square value of 0.947. The check on the validity of the percentage value in variation; Adjusted R. Square was used to re-determine the influence of auditing practices on level of auditing system performance. As it can be seen, the Adjusted R-square for the model is equal to 0.946, which is less than 1. This suggests that there was actually no sign of exaggeration in the value stated in the model. Therefore, R Square value of 0.947 indicates that effectiveness of auditing practices strongly influences the level of auditing system performance positively.

ANOVA in the Table 1.4 indicates the F ratio for the regression models. The intention of using the ANOVA is to statistically assess the level of degree basing on the general regression models. The determination of this is based on the principle that the larger the F ratio, the more variance in the dependent variable is explained by the independent variable. Since the F ratio is 5.289E3, it indicates that the model is lowly significant at the 0.000 level. Thus, the general regression results are indicated in the ANOVA. The regression model is statistically significant (F ratio=5.289E3 probability level 0.000). The probability level 0.000 means that the chances are almost zero that the results of regression model are due to random events instead of a true relationship.

Referring to these findings to the research hypothesis on the qualitative practices correlate with the existing determinants across the relevant dimensions (as explored by the mean scores from each of the studied dimensions) to the overall quantity of practices is not equal to the amount of auditing system performance  and this does not equal to correlation of effective practices only (P) measure across all the relevant dimensions (as explored by averaged mean score in the independent dimensions) is justified.

4.3 Discussion and findings

Field Theme Sub Theme
Auditing Resources Resources · Limitation of resources

· Resource allocation in-appropriation

· Economic evaluation outcome disappointments

· Inefficiency in auditing experts and  established standards

Information · Inadequate specified instructions related to data collection

· Increased data collection costs

· Matters of confidentiality in outcome reporting

·  Poor validation of data

· Inadequate system feedback monitoring procedures

Human Factors Auditors · Inadequate work skills and relevant experience

· Inadequate centers providing audit support

· Outcome reporting difficulties

· Inadequate awareness of the benefits of auditing

Behavioral Aspects · Reduced motivation towards auditing

· Excess in auditing workload and constraints in time

· Inadequate quality improvements to work commitment

· Fears and resistance to change

· Lack of awareness towards regulations and operational guidelines

· Lack of utilization for audit outcomes and staff demoralization

· Unsatisfactory participation of organizational staff and clients

· Involvement on an asymmetric level from varied professional groupings

· Variations in the preferences of service delivery

Team work factors · Lack of affiliation in between professions

· Inadequate support on an organizational level for the building of the audit team

· Variations in cultures  in between professions

· Inadequate commitment in relation to agreements

· Weaknesses in partnerships between departments that are specialized

Technical Challenges Quality Assessment Approaches · Hindrances in selection of criteria and quality based assessment

· Inadequate quality based policies

· Inadequate systematic and quality based critical analysis

Effectiveness uncertainties · Variations in applied technologies

· Investment auditing uncertainties

· Inadequate information related to effectiveness of methodologies

· Cost benefit outcome disappointments

Aspects of research · Factors that are confounding

· Inadequate skills relating to qualitative research methodologies

· Inadequate infrastructure based in research of localized auditing

Organizational aspects Realistic implementation in terms of placement · Lack of precision regarding objectives

· Lack of stability of organizational members

· Variations in localized priorities and situation

· Inability of generalization of outcomes and methodology

· Lack of participation in an intersectional approach

Organizational structures · Lack of presence of a generalized plan

· Hurdles in a bureaucratic sense

· Inadequate support on a managerial level

· Inadequate commitment on an organizational level

Table 1:5: Organizational barriers affecting organizational audit effectiveness

In relation to the organizational obstacles that are faced by the auditing organization, this is because the availed resources are the most crucial aspects for the success of the auditing process. Industry research studies have shown that inadequacy of resources and expert information as well as lack of data specification in the collection process as well as instructions related to the information was crucial in being identified as potential barriers. Furthermore, human factors were also identified as barriers to the implementation of strategic management in the auditing process with examples of such aspects comprising of factors related to auditors, behavior aspects as well as issues related to teamwork.

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On the other hand technical obstacles for instance implementation of assessment on a quality level would comprise of methodologies in established environment based standards as well as the uncertainties concerning the organizational audit procedures as reported in industry studies. Organizational aspects for instance implementation of audit in realistic environments as well as commitment to the organization in addition to inadequacy of support concerning managerial issues as identified in vital aspects. Furthermore, the findings also revealed that the auditing organization as the effective impact in the auditing process showed aspects of management such as human resource attributes such as the degrees of motivation and educational based programs in the vital classifications in assurance of the effectiveness of organizational audit schemes.

Several studies were identified as crucial in the undertaking of effective auditing procedures with the involvement of patience and resource adequacy provision. In addition appropriation of management of information at all degrees and assignments for instance of positive practices, practical organizational information systems, accuracy in availability, reliance and validation of data concerning professional performance and increased accuracy of organizational recording systems in the associated auditing procedures.

Positive organizational auditing teams with alternative appropriation of topics as well as attribute appropriation of the auditing procedures in addition to standards based on evidence and guiding principles were also identified as potential barrier sources with a call for improvement in these areas as well as being crucial in the facilitation of these aspects. Furthermore, the standardization and guiding principles possess major roles in vital procedures for instance organizational auditing as well as established standards based on evidence with positive explicitly and practice guiding principles. This provides a possibility for facilitation of organizational operations in the attainment of positive organizational auditing

It can be observed that these findings reveal the need for evaluation in strategic procedures and their relevance as the process of evaluation is vital as a formulation process as it provides attention on the efficiency and effectiveness of planning that is comprehensive in the attainment of the required outcomes. As such, management can also undertake assessment of the appropriation of present strategies and in the current dynamic global approach with its innovations in areas such as socio economic aspects and technology. Strategic evaluation is the final process in the implementation of strategic management to an organization with the importance being identified in the capacity of the co-ordination of the assignment undertaken by management, grouped associations as well as organizational departments among others with the use of controlled performance. Furthermore, strategic evaluation is important dues to its varied aspects for  instance development of inputs for strategic plans that are new, the need for feedback as well as appraisal and rewarding, strategic management development procedures, judgment of validation of strategic alternatives among others. As such the procedure of strategic evaluation comprise of the following steps with the first being addressing performance benchmark issue as in the process of addressing these concerns strategists will be faced with questions for instance the benchmarks that need to be set, the methods in which they are set as well the methods of expression of these benchmarks. As such for the determination of benchmark performance in the main tasking indicators of performance are well identified with expression of specialized needs that can be determined for the application of evaluation.

4.4 Discussion of the findings in terms of the context of Kuwait

In the context of the Kuwait State Audit Bureau the organizational barriers presented to its auditing operation reveals that the organization can apply both qualitative and qualitative measures for comprehension of the assessment procedures as well as related performance. The qualitative criteria comprise of aspects such as the net profit, return on investment, per share earnings, production costs, employee turnover rate among others. Within the qualitative aspects, the Kuwait State Audit Bureau has undertaken subjection of factor evaluation of aspects for instance skills and competency, the potential taking of risks and flexibility among others. On the other hand, the barriers presented will enable the Kuwait State Audit Bureau to embark on measurement of its performance, as standardized performance is a benchmark of actualized performance for comparison.

In addition, the report and communication systems provide assistance in measurement of the performance with appropriation of means availed for measurement of performance for the Kuwait State Audit Bureau as well as ensuring that these standards are correctly placed in a satisfactory manner that will provide easy in the evaluation of strategy. The varied aspects such as the contribution of management to effective auditing within the Kuwait State Audit Bureau present difficulties in measurement with similarity in performance along divisionary lines that is normally faced with difficulties in measurement in comparison to performance that is individual; As such the Kuwait State Audit Bureau needs to formulate variable objectives against a backdrop of performance that is measured and can be undertaken. Furthermore, this would also require correct timing with failure to do so resulting into lack of attainment. As such for performance management and efficient auditing procedures at the Kuwait State Audit Bureau there is need for documentation such as balance sheets, profit and loss accounts to be in preparation on a yearly basis.

Furthermore, the barriers presented pertaining to auditing at the Kuwait State Audit Bureau shows the need for analysis of variance in the measurement of actual performance as well as associated computing with standardized performance with variations that require analysis. Strategists within the organization need to mention the tolerance measure and limitations in which the variance in the form of actualized and standardized performance can be acceptable. On the other hand, a positive deviation is an indication of improved performance though there is a tendency for unusual exceeding of the target at all times in which case negative deviation remains a matter of concern as it is an indication of shortfall within performance. As such, strategists within the organization are required to discover deviation causes while taking action that is corrective to overcome it in which case the undertaking of corrective action with performance deviation after identification is vital for the planning of any action that is corrective. Consistency performance that is reduced in comparison with desirable performance allows strategists within the organization to undertake detailed analysis of the aspects that are responsible for the nature of performance. With discovery of the potential for the organization that bears no matching attributes with performance needs at which point the standards should be reduced.

On the other hand, on macroeconomic scale there is rareness of the action that is corrective while being existent in a measure that is drastic with reformulation of the strategy with the need being to go back to the procedures of strategic management related to auditing. This is in addition to plan reframing in accordance with new allocation of resources according to the basis of the trend in which case the consequence are the means of returning to the initial point of strategic management in auditing procedures.

At this point, we are presented with the challenges in form of barriers that occur in the evaluation of auditing procedures such obstacles in reporting in terms of strategy, timing, structure or culture within the Kuwait State Audit Bureau as well as in the techniques of evaluation. As such, we can examine the attributes of the macroeconomic evaluation system that is undertaken at the Kuwait State Audit Bureau with the evaluation procedure being required to be strategic while meeting the basic needs for effectiveness. In the first place, any activities related to the strategic evaluation of the Kuwait State Audit Bureau auditing procedures are required to be economical. This is because an increase in informational awareness is as harmful as a reduction in informational awareness with a call for meaning in the specified relation to the goals of the organization. It is also require that there be a provision for management with applicable information regarding assignments for which control and influence exists.

Furthermore, activities related to the strategic evaluation of the Kuwait State Audit Bureau's auditing procedures on a macroeconomic scale in relation to the barriers presented in the auditing procedures also requires a provision of information that is timely in circumstances and in certain areas where management required information on a daily basis. For instance, this can be observed in situations of affirmation of diversification in the acquisition of another firm where evaluative information can be required with frequency. On the other hand, research and development departments within the Kuwait State Audit Bureau on a daily or weekly basis can be faced with information that is dysfunctional. In such a case the approximation of information in a timely manner with an overall desire of strategic basis in evaluation of auditing procedures on macroeconomic level with accuracy of information with no examination of current aspects. As such, frequency in measurement with rapidness in reporting can cause frustration of control instead of improved control with a timed dimension being required to coincide with the duration of measured events.

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Furthermore, there is a need for provisioned design of truthful presentation of activities and events as they happen for instance in situations of economic downturn there may be a drop of productivity and production ratios even though in hard work exists as a reality management for and its members within the organization. As such strategic evaluation need a fair portrayal of the nature of the situation with information derived from strategic evaluation procedures requiring evaluation of procedures with facilitation of actions and required direction on an individual basis within the organization for those that are required to undertake action upon a basis. It has been observed that there is a tendency for management to ignore auditing evaluation procedure reports, which are a provision for purposes of information while in some cases management does not receive any form of report, which calls for a need of action orientation instead of information orientation.

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