The Role of Internal Audit Regarding the Corporate Governance and the Current Crisis

The study aimed to identify the role of accounting mechanisms for corporate governance in reducing creative accounting practices in telecommunications sector companies in Riyadh city. A descriptive analytical approach was followed to conduct the field study. Sample of the study consisted of members of the audit committee, internal auditors, accountants from the surveyed telecommunications’ sector companies, and the external auditors in the audit offices that specialized on auditing the examined sample of companies. Questionnaire was used as a data collection method. Results showed that activating the role of accounting mechanisms for corporate governance can greatly contribute in limiting creative accounting practices. As they are controlling mechanisms that capable of protecting companies, shareholders and stakeholders from any manipulation or misleading information in the financial statements. Further, internal audit plays a major role in limiting creative accounting practices by examining and evaluating the effectiveness of the internal control system. Furthermore, the independence and competence of the external auditor and his commitment to the rules of conduct and ethics of the profession contribute greatly in limiting creative accounting practices in the examined companies. The study recommended the necessity of holding specialized training courses for members of audit committees, internal auditors and external auditors on methods of detecting creative accounting practices to combat and reduce them.

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Financial crisis and corporate governance: The role of internal audit in the Greek context

Corporate Board role duties and composition ◽

10.22495/cbv15i2art5 ◽

2019 ◽

Vol 15 (2) ◽

pp. 45-55

Author(s):

Andreas Koutoupis ◽

Michail Pazarskis ◽

Grigorios Lazos ◽

Ioannis Ploumpis

Keyword(s):

Corporate Governance ◽

Financial Crisis ◽

Audit Committee ◽

Stock Exchange ◽

Internal Audit ◽

Listed Companies ◽

Athens Stock Exchange ◽

Total Turnover ◽

The Relationship

In this paper, our purpose is to examine the relationship between the role of Internal Audit (IA), Corporate Governance (CG) and the Audit Committee (AC) in the recent financial crisis in Greece and to investigate the contribution of IA to CG structures as well as its possible, the IA’s role during the financial crisis in Greece. Moreover, little research has been conducted based on the relationship between corporate governance and internal audit during the financial crisis in case of Greece. For this reason, we conducted a survey, using questionnaires, which were sent to the listed companies of the Athens Stock Market. Out of a total of 192 listed companies on the Athens Stock Exchange, the relevant questionnaires were sent to 100 companies. Those companies were selected firstly based on their total turnover and secondly due to the availability of information from company websites such as employees’ numbers and Internal Audit Department Structures. Our conclusion was that Internal Audit adds value to the organization and it can also help the senior management towards the accomplishment of the organizational goals.

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ANALISIS PERANAN INTERNAL AUDIT DALAM MEWUJUDKAN PELAKSANAAN GOOD CORPORATE GOVERNANCE PADA PT. BANK TABUNGAN NEGARA, TBK MANADO

GOING CONCERN : JURNAL RISET AKUNTANSI ◽

10.32400/gc.13.03.19936.2018 ◽

2018 ◽

Vol 13 (04) ◽

Author(s):

Ayu Anita Ekaristi Oroh ◽

Lintje Kalangi ◽

Anneke Wangkar

Keyword(s):

Corporate Governance ◽

Data Collection ◽

Internal Audit ◽

Corporate Management ◽

Good Corporate Governance ◽

Qualitative Descriptive ◽

Data Collection Technique ◽

Descriptive Method

PT. Bank Tabungan Negara, Tbk Manado is one of the branch offices of BUMN’s, which must implement Good Corporate Governance in accordance with GCG principles set by the Minister of BUMN PER-01 / MBU / 2011. Internal audit is one of the elements in GCG and has a role in overseeing the implementation of corporate management and overseeing any practices undertaken by the company. The implementation of GCG in the bank must follow the rules of BI and follow GCG guidelines by KNKG. Therefore, this study aims to determine the implementation of GCG at the bank and to determine the role of internal audit in realizing the implementation of GCG. This type of research is qualitative descriptive. The method of analysis used in this research is descriptive method with data collection technique such as interview, observation and documentation. The results of this study is Bank Tabungan Negara has implemented GCG according to applicable rules that is by implementing the principles of GCG. Furthermore, internal audit plays a role in realizing the implementation of GCG Bank BTN.Keywords : Analysis, The Role, Internal Audit, Good Corporate Governance, GCG

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PERANAN AUDITOR INTERNAL DALAM UPAYA PENDETEKSIAN DAN PENCEGAHAN FRAUD TERHADAP PELAKSANAAN GOOD CORPORATE GOVERNANCE

JURNAL INFORMASI, PERPAJAKAN, AKUNTANSI, DAN KEUANGAN PUBLIK ◽

10.25105/jipak.v10i2.4555 ◽

2019 ◽

Vol 10 (2) ◽

pp. 129

Author(s):

Devi Anggriani ◽

Juniati Gunawan

Keyword(s):

Corporate Governance ◽

Research Methodology ◽

Internal Audit ◽

Internal Auditing ◽

Is Research ◽

Good Corporate Governance ◽

The World ◽

World Class ◽

The Creation

Internal auditing serves help management in detection and prevention his that happens at an organization in the implementation of the good corporate governance. Principies of good corporate governance is an indicator the achievement of the balance interests, so the clash interests that occurs could focus and controlled and not result in losses to each party. According to previous studies, fraud led to the collapse of the world class companies. This is because inactive of mechanism good corporate governance. The -role of the auditors internal in an effort to detection and prevention his has a strong enough. And the role of the auditors internal also has a very important in good corporate governance. Methods used in this research is research methodology explanatory research with quantitative survei aims to understand the influence of the role of the auditors internal (components expertise, the scope of the work, the approach) that was undertaken auditor internal in order to detection and prevention his with the implementation of the good corporate governance on a 50 respondents is the company open a listing on the Bursa Efek Indonesia through the distribution of the questionnaire. The result has been concluded, the expertise, the scope of the work, the approach that was undertaken internal audit influential indirectly on the ,corporate governance through the intervening the detect and prevent offraud. For the company public, should be channeled to detect cheating through prevention, prevent is the root cause problems cheating that the creation of principles of good corporate governance in the company.

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ANALISIS FAKTOR AUDIT INTERNAL DAN PENGARUHNYA TERHADAP PELAKSANAAN GOOD CORPORATE GOVERNANCE

EKUITAS (Jurnal Ekonomi dan Keuangan) ◽

10.24034/j25485024.y2008.v12.i3.2084 ◽

2017 ◽

Vol 12 (3) ◽

pp. 359

Author(s):

Gusnardi Gusnardi

Keyword(s):

Corporate Governance ◽

Data Analysis ◽

Path Analysis ◽

Hypothesis Testing ◽

Research Method ◽

Internal Audit ◽

The State ◽

Primary Data ◽

Good Corporate Governance

To implement the good corporate governance as it was expected, especially in the BUMN Tbk. in Indonesia, it is important to optimize the role of internal audit. The purpose of this research is to explore the influence of internal audit partly and simultaneously on the good corporate governance at the state-owned companies (BUMN Tbk) in Indonesia. The data used in this research were primary data collected by questionnaires. The data analysis for hypothesis testing was the path analysis. This research done with research method of census by 13 at the state-owned companies (BUMN Tbk.) in Indonesia. The data used in this research were primary data collected by questionnaires. Result of this research indicates that audit factors partly and simultaneously has influenced significantly to exercise on the good corporate governance at the state-owned companies (BUMN Tbk.) in Indonesia.

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An exploration of the role of records management in corporate governance in South Africa

SA Journal of Information Management ◽

10.4102/sajim.v15i2.575 ◽

2013 ◽

Vol 15 (2) ◽

Cited By ~ 4

Author(s):

Mpho Ngoepe ◽

Patrick Ngulube

Keyword(s):

South Africa ◽

Corporate Governance ◽

Audit Committee ◽

Corporate Citizenship ◽

Internal Audit ◽

Audit Committees ◽

Records Management ◽

Good Corporate Governance ◽

Auditor General

Background: Corporate governance maybe approached through several functions such as auditing, an internal audit committee, information management, compliance, corporate citizenship and risk management. However, most organisations, including governmental bodies, regularly exclude records management from the criteria for a good corporate-governance infrastructure. Proper records management could be the backbone of establishing good corporate governance.Objectives: Utilising the King report III on corporate governance as a framework, this quantitative study explores the role of records management in corporate governance in governmental bodies of South Africa.Method: Report data were collected through questionnaires directed to records managers and auditors in governmental bodies, as well as interviews with purposively selected auditors from the Auditor-General of South Africa. Data were analysed using various analytical tools and through written descriptions, numerical summarisations and tables.Results: The study revealed that records management is not regarded as an essential component for corporate governance. Records management is only discussed as a footnote; as a result it is a forgotten function with no consequences in government administration in South Africa. The study further revealed that most governmental bodies have established internal audit units and audit committees. However, records-management professionals were excluded from such committees.Conclusion: The study concludes by arguing that if records management is removed as a footnote of the public-sector operations and placed in the centre of operational concern, it will undoubtedly make a meaningful contribution to good corporate governance.

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The Role of Internal Audit in Governance of Zakat Institution in Malaysia

Turkish Journal of Computer and Mathematics Education (TURCOMAT) ◽

10.17762/turcomat.v12i3.1255 ◽

2021 ◽

Vol 12 (3) ◽

pp. 2568-2571

Author(s):

Suhaimi Ishak Et.al

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Best Practice ◽

Good Governance ◽

Internal Audit ◽

The State ◽

Federal Constitution ◽

State Administration ◽

A Company

This study outlines the role of internal audit in the governance of zakat institutions in Malaysia. Aspects of internal audit are detailed in this study as well as risk management. Internal audit is closely linked to risk management where both of these aspects are an important element of an organisation's governance. In addition, legislative matters such as the Federal Constitution and the State Administration of Islamic Religious Enactments were also discussed in this research. Researchers are also talking about the Malaysian Code on Corporate Governance (MCCG), which can be used as a guide and best practice for Islamic religious states and zakat institutions in Malaysia. Although the Islamic religious councils of the states and the zakat institutions are not a company but with the trust as administrators and managers of large zakat funds, the need for good governance is essential.

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The Role of Internal Audit in Good Corporate Governance Implementation at Politeknik Negeri Batam

JURNAL AKUNTANSI EKONOMI dan MANAJEMEN BISNIS ◽

10.30871/jaemb.v9i1.2988 ◽

2021 ◽

Vol 9 (1) ◽

pp. 1-6

Author(s):

Gita Anadia Maulina ◽

Dwi Kartikasari

Keyword(s):

Higher Education ◽

Corporate Governance ◽

Free Trade ◽

Qualitative Method ◽

Internal Audit ◽

Free Trade Area ◽

National Committee ◽

Trade Area ◽

Good Corporate Governance

Politeknik Negeri Batam is the only vocational government-owned higher education in the free trade area of Batam, Bintan, and Karimun, in the province of Riau Islands, which must implement Good Corporate Governance in accordance with the established principles and guidelines set by National Committee on Governance Policy (KNKG). Internal audit is one of the elements in Good Corporate Governance and has a role in overseeing management implementation and any practice carried out by the institution. Therefore, this study aims to describe the implementation of Good Corporate Governance in Politeknik Negeri Batam and to know the role of internal audit in realizing the Good Corporate Governance. The analytical method used in this research is descriptive qualitative method with data collected from observation, interviews and documentation. The results of this study is Politeknik Negeri Batam has implemented Good Corporate Governance according to applicable rules. Furthermore, internal audits play an important role in realizing the Good Corporate Governance of Politeknik Negeri Batam.

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DEVELOPMENT AND THE CURRENT PROFILE OF INTERNAL AUDITING – THE RESULTS OF THE TWO EMPIRICAL STUDIES IN SLOVENIAN ORGANISATIONS

Tourism and hospitality management ◽

10.20867/thm.12.2.5 ◽

2006 ◽

Vol 12 (2) ◽

pp. 55-69

Author(s):

Marjan Odar ◽

Bojana Korošec ◽

Robert Horvat

Keyword(s):

Corporate Governance ◽

Financial Services ◽

Work Experience ◽

Empirical Studies ◽

Internal Audit ◽

Developed Countries ◽

Internal Auditing ◽

Current Profile ◽

Internal Auditors

Results of (the first) two empirical studies with the aim to reveal the state-of-the-art and development of internal audit in Slovenia are presented in the article. Internal auditing, one of the cornerstones in modern corporate governance, has a relatively short tradition in this new EU member country. Nevertheless, beside the first and mandatory established internal audit units, which were initiated by the corresponding industry’s laws in financial services in the early 90s, there is already evidence of a significant and growing number of non-mandatory, voluntary established internal auditing units in other industries. And a variety of internal audit practices regarding establishment, reporting lines, size and scope of work performed by internal audit units, and professional qualifications of internal auditors characterizes the current profile of internal auditing in Slovenian organisations. It can be concluded that internal auditing in Slovenia is following the trends of practice in developed countries, although, in some cases internal auditors are facing problems, mainly due to their lack of work experience, to (un)professionality of corporate governing bodies, and to top management’s lack of awareness or even misunderstanding of the role of internal auditing in corporate governance.

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The moderating effect of internal audit on the relationship between corporate governance mechanisms and corporate performance among Saudi Arabia listed companies

Contaduría y Administración ◽

10.22201/fca.24488410e.2020.2316 ◽

2019 ◽

Vol 64 (4) ◽

pp. 143 ◽

Cited By ~ 1

Author(s):

Ebrahim Mohammed Al Matari ◽

Mahfoudh Hussein Mgammal

Keyword(s):

Corporate Governance ◽

Saudi Arabia ◽

Audit Committee ◽

Corporate Performance ◽

Internal Audit ◽

Moderating Effects ◽

Corporate Governance Mechanisms ◽

The Relationship ◽

Moderating Role

This study primarily aimed to assess the internal audit function’s ability to detect and self-report fraud. The paper investigated the moderating role of internal audit on the relationship between corporate governance mechanisms and corporate performance (ROA) and the direct effect of corporate governance characteristics and internal audit characteristics on corporate governance of firms listed in the stock market of Saudi Arabia. one hundred and eighty-eight observations obtained from forty-seven Saudi financial firms were used in this study for the years 2014-2017. The study used the FGLS regression to test the variables relationships and to test the moderating effects of internal auditor on the corporate governance characteristics and corporate performance. The obtained empirical results supported a significant positive relationship between non-executive board, audit committee size, audit committee independence and internal audit profession, and corporate performance. Negative significant findings were also observed between the board size, internal audit size and internal audit education, and corporate performance. As for the moderating effects, the results supported a significant moderating role of internal audit size on the size of the board and its relationship with corporate performance. This study extends past studies dedicated to testing the agency theory and resource dependence theory as underpinning theories in examining the relationship between corporate governance and corporate performance. The study is expected to contribute to conceptual and theoretical studies by highlighting issues concerning corporate governance practice in Saudi listed firms. The study focused on the internal audit committee characteristics, corporate governance characteristics and the corporate governance best practices that practitioners can utilized when it comes to the role of internal audit committee.

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