The Role of Internal Audit in Corporate Governance and Contribution to Determine Audit Fees for External Audits

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

Procedia - Social and Behavioral Sciences ◽

10.1016/j.sbspro.2014.01.1031 ◽

2014 ◽

Vol 116 ◽

pp. 4819-4823 ◽

Cited By ~ 1

Author(s):

Dragos Laurentiu Zaharia ◽

Andreea Lazar ◽

Doina Maria Tilea

Keyword(s):

Corporate Governance ◽

Internal Audit ◽

Current Crisis

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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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Board of directors’ effectiveness and monitoring costs

Managerial Auditing Journal ◽

10.1108/maj-01-2019-2153 ◽

2019 ◽

Vol 35 (4) ◽

pp. 477-497

Author(s):

Waddah Kamal Hassan Omer ◽

Adel Ali Al-Qadasi

Keyword(s):

Corporate Governance ◽

Boards Of Directors ◽

Internal Audit ◽

Audit Fees ◽

Least Square ◽

Content Type ◽

Executive Remuneration ◽

Sensitivity Tests ◽

Monitoring Costs ◽

The Impact

Purpose Responding to the call for research into the behavior of family companies to provide better understanding of corporate governance, this paper aims to examine the impact of boards’ effectiveness on the investment in monitoring costs (i.e. audit fees, internal audit function budget and executive remuneration) and how this relationship is moderated by family control. Design/methodology/approach A sample of 2,176 firm-year observations of Malaysian listed companies is used. The ordinary least square regression is used to examine the associations. Additional sensitivity tests are performed. Findings The study finds that there is no relationship between boards’ effectiveness and the demand for monitoring costs for the full sample. However, the findings of sub-samples (family and non-family companies) indicate that a family company with an effective board is less likely to invest more in monitoring, suggesting that the complementary association between the board’s effectiveness and investment in monitoring is a more dominant relationship than the substitution relationship in non-family companies. These findings show that the boards of directors of Malaysian family companies perform a deficient monitoring role, where the presence of family controlling shareholders in management may reduce their independence and efficiency in performing their monitoring role. The findings remain robust after performing additional sensitivity tests. Originality/value This paper contributes to the literature on corporate governance in a unique setting (family companies), where conflict of interest is created between controlling insiders and minority shareholders (Type II agency problem). It provides insight for Malaysian policymakers in assessing the issue of expropriation in family companies and enhancing the policy related to its boards.

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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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