FARview #14 - Sebastian Kuhn - on the relationship between internal control and audit quality
b'In episode 14 of FARview, PhD student Sebastian Kuhn (LMU Munich) talks about their FAR-project on the relationship between internal control quality and audit quality, and how financial analysts can contribute to audit quality. Kuhn sheds some more light on the two \\u2018work packages\\u2019 that are part of the project. The first package is \\u2018understanding the relevance of internal control quality for audit quality\\u2019. The second package is about \\u2018identifying financial analysts as an information channel that may allow auditors to assess internal control quality more accurately and efficiently\\u2019.\\n\\nParticularly, the second work package is innovative. The general notion is that financial analysts are highly interested in internal control quality, because that directly affects firm operations, which in turn influence future performance. This is an incentive for the analysts to gain as much information on internal control quality during the analyst meetings. Previous research shows that analysts possess superior information concerning the influence of external determinants (like macro-economic factors) on firm performance, and their internal control quality. In their FAR research project, Kuhn and his team members study how the analyst knowledge concerning \\u2018asking the right questions\\u2019 can help auditors in assessing fraud risks, for example by developing a \\u2018dictionary\\u2019. Listen to learn more!\\n\\nRoyalty Free Music from Bensound'