Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

2019 ◽  
Vol 14 (3) ◽  
pp. 251-273 ◽  
Author(s):  
Hamza Mohammad Alqudah ◽  
Noor Afza Amran ◽  
Haslinda Hassan
Keyword(s):  
Public Sector ◽  
Structural Equation ◽  
Task Complexity ◽  
Internal Audit ◽  
Top Management ◽  
Content Type ◽  
Factors Affecting ◽  
Internal Auditors ◽  
External Auditors ◽  
The Public

Purpose The purpose of this paper is to investigate the moderating effect of task complexity on external auditors’ cooperation (EAC), top management empowerment and internal auditors’ independence, which affect internal auditors’ effectiveness in the Jordanian public sector. Design/methodology/approach This paper utilised 117 usable questionnaires from financial managers and internal audit (IA) managers of the Jordanian public sector institutions. The collected data were analysed using partial least squares-structural equation modelling (PLS-SEM). Findings The results reveal that EAC, top management empowerment, and internal auditors’ independence are the factors which positively and significantly affect the internal auditors’ effectiveness, as supported by the resource-based theory, with incomplete support for the task complexity’s role as a moderator. Practical implications The findings are important for the decision-makers and regulators in introducing new legislation and regulation for the IA profession in the Jordanian public sector. Social implications It is shown that the factors affecting the internal auditors’ effectiveness can definitely enhance their ability to achieve the role of IA in protecting public funds and limiting financial and administrative corrupt practices, particularly in the public sector. Originality/value To the best knowledge of the authors, this study is one of the first studies that addresses task complexity as an interaction effect on the factors affecting internal auditors’ effectiveness in the public sector.

New perspective on the black box of internal auditing and organisational change

2016 ◽  
Vol 31 (8/9) ◽  
pp. 804-820 ◽  
Author(s):  
Aviv Kidron ◽  
Yuval Ofek ◽  
Herztel Cohen
Keyword(s):  
Public Sector ◽  
Quantitative Methods ◽  
Internal Audit ◽  
Organisational Change ◽  
Internal Auditing ◽  
Content Type ◽  
Internal Auditors ◽  
The Public ◽  
Innovative Model ◽  
Audit Information

Purpose The shift from the traditional audit towards performance audit implies that internal auditors in the public sector function as change agents who underpin the fundamental change process. This paper aims to propose a model that identifies the determinants of organisational change in the public sector that result from internal auditing and the way internal auditors facilitate it. Design/methodology/approach The conceptual discussion of this paper is based on a review of relevant literature, both practical and academic. Findings This paper develops an innovative model that describes the factors leading to auditees’ change readiness after undergoing internal audit processes. The independent variable is audit information quality and the dependent variable, organisational change. Auditees’ perceptions is the mediator variable, and accessibility to audit information is the moderator variable. Practical implications The proposed model suggests the advantages that can be gained by audit-related services, which in turn will add value to the organisation. The relationships between the variables inform practitioners on how to support effective audits as a means of increasing performance and influencing organisational change. Originality/value As the paper offers an innovative model, it may open up new research areas in internal auditing that can be studied by using both qualitative and quantitative methods.

scholarly journals Internal Audit Functions: An Empirical Study of Public and Private Sectors in Nigeria

2018 ◽  
Vol 2 (1) ◽  
pp. 26-37
Author(s):  
Abdulkadir Madawaki ◽  
Aidi Ahmi ◽  
Halimah @ Nasibah Ahmad
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Internal Audit ◽  
Audit Fees ◽  
Public And Private ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors ◽  
The Public ◽  
Private And Public

The study examines the similarities and differences between the private and public sectors internal audit functions in Nigeria. The features examined include the hierarchical position of the internal audit functions, outsourcing of internal audit activities, reporting relationship of the internal auditor, and the coordination between internal and external auditors. A survey of internal audit managers of both sectors was undertaken to establish their current practices. The results revealed that there are no much differences in the hierarchical positioning of the internal audit function in both sectors. A substantial difference was found in the reporting lines of internal auditors in both sectors. The results further showed that private sector outsources internal audit activities more than the public sector and a slight difference exists between the two sectors about the level of coordination between internal and external auditors. Finally, the result indicated that private sector experiences a reduction in external audit fees compares to its counterpart in the public sector.      

Leveraging business intelligence systems to enhance management control and business process performance in the public sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Z. Elbashir ◽  
Steve G. Sutton ◽  
Vicky Arnold ◽  
Philip A. Collier
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Performance Measurement ◽  
Knowledge Creation ◽  
New Technologies ◽  
Top Management ◽  
Process Performance ◽  
Content Type ◽  
The Public ◽  
Public Sector Organizations

Purpose Recent research and policy reports indicate public sector organizations struggle to leverage information technology-based performance measurement systems and fail to effectively evaluate performance beyond financial metrics. This study aims to focus on organizational factors that influence the assimilation of business intelligence (BI) systems into integrated management control systems and the corollary impact on improving business process performance within public sector organizations. Design/methodology/approach The complete Australian client list was acquired from a leading BI vendor; and the authors surveyed all public sector organizations, receiving 226 individual responses representing 160 public sector organizations in Australia. Using latent construct measurement, structural equation modeling (SEM)-partial least squares is used to test the theoretical model. Findings When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities that are critical to assimilation in private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. When top management effectively manages knowledge importation from external entities to counteract deficiencies, public sector organizations effectively assimilate BI knowledge into performance measurement yielding strong process performance. Research limitations/implications When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities critical to assimilation in the private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. The research extends the theory behind organizational absorptive capacity by highlighting how knowledge importation can be used as an external source facilitating internal knowledge creation. This collaborative knowledge creation leads to affective assimilation of BI technologies and associated performance gains. Practical implications The results provide guidance to public sector organizations that struggle to measure and validate service outcomes under New Public Management regulations and mandates. Originality/value The results reveal that consistent with the philosophies behind New Public Management strategies, private sector measures for increasing organizational absorptive capacity can be applied in the public sector. However, knowledge importation appears to be a major catalyst in the public sector where the resources to retain skilled professionals with an ability to leverage contemporary technologies into service performance are often very limited. Top management team knowledge and skills are critical to effectively leveraging these internal and external knowledge creation mechanisms.

Fraud prevention initiatives in the Nigerian public sector

2018 ◽  
Vol 25 (2) ◽  
pp. 527-544 ◽  
Author(s):  
Rabiu Abdullahi ◽  
Noorhayati Mansor
Keyword(s):  
Public Sector ◽  
Structural Equation ◽  
Equation Modeling ◽  
Control Mechanisms ◽  
Fraud Triangle ◽  
Fraud Prevention ◽  
Content Type ◽  
The Public ◽  
The Government ◽  
Triangle Theory

Purpose Detecting and preventing fraud are challenging and risky tasks, especially in a fast developing economy such as Nigeria. The efforts become crucial in the government sectors, as they involve public’s trust and resources. The purpose of this study is to examine the relationships between the fraud incidence and the elements of fraud triangle theory (FTT) with the aim of combating current fraud outrages in the Nigerian public sector. Design/methodology/approach A survey was conducted and 302 questionnaires were distributed to the staff of the departments of accounting, internal auditing and investigation of ten selected ministries, departments and agencies of Kano State, Nigeria. Structural equation modeling (SEM) was used to analyze the data. Findings The study reveals a significant relationship between three elements of FTT and fraud incidences in the Nigerian public sectors (p-value < 0.001 for pressure and opportunity and p-value = 0.024 for rationalization). Practical implications The findings of the study are useful for forensic accountants and the Nigerian anti-graft bodies to enhance existing control mechanisms in fraud prevention initiatives. The research also contributes to bridge the gap in academic theory and empirical study related to FTT. Social implications Fraud scandals can cause public’s frustration, damage the reputation and integrity of the ruling government and result in negative image of the public sector. Originality/value Accordingly, the study suggests a salary scale reform (SSR) in the Nigerian public sector and improvement in fringe benefits to increase employees’ standard of living. The study concludes with recommendations to enhance fraud awareness and training programs to the government employees.

Financial Misappropriation in the Nigerian Public Sector: A Determination of the Role of the Internal Auditor

2017 ◽  
Vol 3 (2) ◽  
pp. 7-17
Author(s):  
J. K. Oyadonghan ◽  
S. Ogoun
Keyword(s):  
Public Sector ◽  
Research Effort ◽  
Internal Audit ◽  
The State ◽  
Least Square ◽  
Primary Data ◽  
Economic Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
The Public

The continued search for a solution to the problem of poor economic management due to financial misappropriation in the public sector, and the public’s outcry against internal auditors because of their perceived connivance necessitated the current study. Furthermore, the position canvassed by internal auditors with respect to their scope of responsibility further justified the need for this research effort. Accordingly, this study was undertaken to determine, whether or not, the internal auditor has a role to play in ensuring the proper utilization of the nation’s economic resources, bearing in mind the rules specifying the scope of the internal audit function in the public sector. Drawing from the research model of survey design, both a structured questionnaire and oral interview data collection platforms were deployed to collect primary data from audit, and another staff of selected ministries in the State and the least-square regression analysis was adopted in testing the hypotheses. From the analysis, and from personal interview, the researchers were able to find out that internal audit has a responsibility to detect and prevent financial misappropriation in the public sector. It was also found out that the internal auditors in the State Civil Service are not independent, which affects their freedom to report such acts of financial misappropriation to the legislative arm for proper action. Therefore, it is recommended that The State legislative arm should ensure that the independence of the internal auditor is guaranteed by a statute.

Integrating internal branding antecedents, customer and job satisfaction in the public sector

2019 ◽  
Vol 27 (5) ◽  
pp. 1480-1503 ◽  
Author(s):  
Riyad Eid ◽  
Amna Al Zaabi ◽  
Rashed Alzahmi ◽  
Yasmeen Elsantil
Keyword(s):  
Public Sector ◽  
Structural Equation ◽  
Equation Modeling ◽  
Internal Branding ◽  
Content Type ◽  
The Public ◽  
Body Of Knowledge ◽  
Government Sector ◽  
Public Sector Employees ◽  
Western Government

Purpose The implementation of marketing concepts to the public sector is still a relatively new topic for researchers and practitioners. Moreover, although branding has become more prominent in the public sector, its role with employees is under explored. Following a review of internal branding and marketing literature in the private sector, the purpose of this study is enrich and contribute to the internal branding concept and the literature by expanding its insightful knowledge beyond that of the Western school of thought to the UAE government sector. Design/methodology/approach The paper is based on a quantitative survey conducted among 304 public sector employees. These were measured on a five-point Likert scale. To test the model and the hypothesized relationships among the constructs of the model, structural equation modeling was used. Findings The strength of the relationship between the constructs indicates that features of the suggested internal branding model are crucial to achieving both employee and customer satisfaction in the public sector. Originality/value This study provides new theoretical grounds for studying internal branding in the public sector. It also supplies public sector organizations with a number of operative factors that may be essential if they are to provide enhanced satisfaction to public needs. It further contributes to the existing body of knowledge by expanding its knowledge beyond the Western school of thoughts as the study is about a non-Western government culture. Finally, it is probably the first to provide an integrative perspective of internal branding constructs in the public sector.

scholarly journals A structural equation modeling of supply chain strategies for artemisinin-based combination therapies in Uganda

2021 ◽  
Vol 5 ◽  
pp. 239920262110647
Author(s):  
Oluka Pross Nagitta ◽  
Marcia Mkansi ◽  
Sylvia Desire Nyesiga ◽  
George William Kajjumba
Keyword(s):  
Supply Chain ◽  
Structural Equation Modeling ◽  
Public Sector ◽  
Structural Equation ◽  
Public Hospitals ◽  
Equation Modeling ◽  
Top Management ◽  
Sample Population ◽  
Combination Therapies ◽  
The Public

Introduction: Malaria is a killer disease in the tropical environment; artemisinin-based combination therapies (ACTs) play a central role in treating malaria. Thus, the supply and presence of ACT drugs in hospitals are a key feature in the fight against malaria. Supply chain management literature has focused on the private sector, and less attention has been paid to the public sector, especially hospitals. Aim: This study uses an interdisciplinary lens in investigating how to boost the supply and distribution of ACTs to save lives in low-income countries, specifically in Uganda. Methodology: The study adopted a quantitative research design using a questionnaire as the data collection instrument. Of the 440-population size, 304 of the sample population participated in the study. The model was estimated using structural equation modeling (SEM) to establish the causal relationship among the variables. Results: From the SEM analysis, all the hypotheses were significant at p < 0.05. The availability of ACTs is strongly affected by strategic dimensions (0.612), followed by operation dimensions (0.257); strategic determinants significantly affect operational determinants by a magnitude of 0.599. The indirect influence of the strategic determinants via operational determinants on the availability of ACTs is not significant. Overall, the factors explained 63.9% of the observed variance in the availability of ACTs, and the ACT availability can be predicted as follows: ACT availability = 0.612 × strategic determinants + 0.256 × operation determinants. Top management commitment and organizational responsiveness are among the items that positively affect the availability of ACTs. Conclusion: Strategically, hospital management should invest in cheap technology and software to minimize the unavailability of medicines. Our research suggests that strategic and operational determinants should be integrated into the hospitals’ core business and implemented by the top management. The article contributes to theoretical and policy direction in the public sector medicine supply chain, specifically in public hospitals.

Implications of the Audit Oversight Board: External Auditors’ Perspective

2015 ◽  
Vol 2 (3) ◽  
pp. 1-4
Author(s):  
Mazlina Mustapha ◽  
Foong Sook Hwa
Keyword(s):  
Internal Audit ◽  
Financial Statements ◽  
Internal Auditors ◽  
Face To Face ◽  
External Auditors ◽  
The Public ◽  
Training Costs ◽  
Audit Firms ◽  
And Training

The purpose of Audit Oversight Board (AOB) is to oversee the external auditors who audit the listed companies. Its establishment is expected to improve the quality of the audited financial statements and to increase the confidence of the public on the quality of the services provided by the auditors. This study explores how the establishment of audit oversight board affects the auditors in Malaysia. As the study is exploratory in nature with limited studies being carried out on AOB, face-to-face interviews were conducted with the external auditors. The findings show that the establishment of AOB affects the job of external auditors, especially on the documentation and training costs, which vary across audit firms of different sizes. There are opinions that the increased pressure on the external auditors is not solely due to the establishment of AOB, but it is also due to the revised accounting standards and other regulations. The study also finds that the external auditors’ reliance on the internal auditors is not affected by the establishment of AOB. In addition, regardless of whether the internal audit department is in-house or outsourced, it will not affect the reliance of external auditors on the internal auditors work.

scholarly journals Examining CAATTs Implementation by Internal Auditors in the Public Sector

2017 ◽  
Vol 1 (2) ◽  
pp. 50-56
Author(s):  
Aidi Ahmi ◽  
Siti Zabedah Saidin ◽  
Akilah Abdullah
Keyword(s):  
Public Sector ◽  
Internal Audit ◽  
State Level ◽  
Maintenance Cost ◽  
Computer Assisted ◽  
Successful Implementation ◽  
Internal Auditors ◽  
The Public ◽  
Efficiency And Effectiveness ◽  
The Government

Computer Assisted Audit Tools and Techniques (CAATTs) are not new for auditors, and it needs to be adopted to gain the audit efficiency and effectiveness especially in a current era of technology. This paper examined the implementation of CAATTs by internal auditors in the public sector. Accordingly, this research reports the results from 12 interviews made with internal audit departments in public sector in both federal and state level in Malaysia. This research found that the implementation of CAATTs by internal auditors in public sector is still low due to lack of expertise, high implementation and maintenance cost, limited access of auditee’s data, and most of them prefer to conduct the audit manually. Furthermore, it is not mandatory for them to use CAATTs. The evidence is a contrast with the encouragement made by the government to improve the IT usage in public sector. The results implied that training for future auditors in CAATTs to ensure the successful implementation is crucial. For CAATTs to be a success, the head of internal audit also must have the awareness about the importance of CAATTs as well as enforcement of its implementation.

Characteristics of the internal audit and external audit hours: evidence from S. Korea

2016 ◽  
Vol 31 (6/7) ◽  
pp. 629-654 ◽  
Author(s):  
Ho-Young Lee ◽  
Hyun-Young Park
Keyword(s):  
Internal Audit ◽  
Financial Statement ◽  
External Audit ◽  
Content Type ◽  
Internal Auditors ◽  
External Auditors ◽  
Audit Efficiency ◽  
Financial Statement Audit ◽  
Legal Expertise ◽  
Practical Implications

Purpose Using 5,055 sample firm-years in Korea between 2009 and 2013, this paper aims to examine the association between the characteristics of the internal audit and the number of external audit hours as a proxy for audit efficiency. Design/methodology/approach This study is motivated by the International Standard on Auditing No. 610: “Using the work of internal auditors”. This auditing standard guides external auditors in using the work of internal auditors to obtain audit evidence and consult internal auditors for direct assistance. The authors expect that external audit efficiency will increase when the work of competent internal auditors is used. Findings The authors find that the number of internal auditors relative to the number of employees is associated with the number of external audit hours. This result suggests that the greater the availability of internal auditors, the greater their contribution will be to the financial statement audit and the more efficient the audit. The authors find evidence that external auditors use the work of internal auditors with accounting and legal expertise to improve audit efficiency. They also find some evidence that the work of internal auditors with greater availability is more effective during initial external audit engagements. Originality/value This study adds to the extant literature on the contributions of internal auditors to external audits by using archival data and by measuring audit effort using a large database of audit hours. In addition, our findings have practical implications for firms and external auditors who are evaluating the role and value of using the work of internal auditors. The authors also believe that the findings will be of interest to regulators or auditing standards boards.

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