scholarly journals Internal audit and financial performance of Yemeni commercial banks: Empirical evidence

2021 ◽  
Vol 16 (2) ◽  
pp. 137-147
Author(s):  
Saddam A. Hazaea ◽  
Mosab I. Tabash ◽  
Jinyu Zhu ◽  
Saleh F. A. Khatib ◽  
Najib H. S. Farhan
Keyword(s):  
Central Bank ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Commercial Banks ◽  
Positive Impact ◽  
Internal Audit ◽  
Internal Auditors ◽  
Overall Performance

This study seeks to verify the contribution of internal audit (IA), especially its role in improving financial performance in Yemeni commercial banks, with a specific focus on three factors, namely: the independence and objectives of IA, the quality of IA and the size of IA. This study reviews some existing literature on the contribution and role of IA in improving financial performance. It relies on available data from questionnaires. 90 questionnaires were distributed to nine commercial banks in Yemen (23 branches) working under the supervision of the Central Bank of Yemen; 81 questionnaires (90%) were regained and used in the process of analysis. To analyze the data, three analysis approaches were used, including description, correlation, and regression. The results showed that the IA has a significant impact on the overall performance of Yemeni commercial banks. Furthermore, the results showed that the auditors’ efficiencies, as well as their financial and accounting experiences, have a significant and positive impact on financial performance. It was revealed that the independence and objectivity of internal auditors are highly insignificant for financial performance. However, the size of IA and the frequency of the auditors’ meetings have a negative and significant effect on financial performance. This study provides some recommendations for improving the effectiveness of IA, which in turn will contribute to improving financial performance.

Internal Auditing in India and China: Some Empirical Evidence and Issues for Research

2018 ◽  
Vol 34 (4) ◽  
pp. 511-523 ◽  
Author(s):  
R. Narayanaswamy ◽  
K. Raghunandan ◽  
Dasaratha V. Rama
Keyword(s):  
Empirical Evidence ◽  
Emerging Economies ◽  
Internal Audit ◽  
The United States ◽  
Future Research ◽  
Internal Auditing ◽  
Internal Auditors ◽  
Internal Audit Function ◽  
India And China

Internal auditing is an important element in the corporate governance framework. Yet, research related to internal auditing, particularly in emerging economies like India and China, is sparse. We use data from responses provided by chief audit executives to provide empirical evidence about the extent of support for internal auditing and the determinants of such support in India and China, and compare the data with those from the United States. We find that such support is negatively related to pressure on internal auditors to suppress or alter their findings. We also provide descriptive evidence about the work and staffing of the internal audit function. We discuss the role of internal auditing in India and identify some possible avenues for future research.

scholarly journals Measuring Quality Determinants of Financial Statements

2021 ◽  
Vol 2 (12) ◽  
pp. 884-893
Author(s):  
Widya Andelina ◽  
Aprih Santoso
Keyword(s):  
Human Resource ◽  
Sampling Method ◽  
Negative Impact ◽  
Positive Impact ◽  
Internal Audit ◽  
Financial Statements ◽  
Accounting Systems ◽  
The Impact

The research aims to study the impact of the role of internal audit, the application of regional accounting systems, and human resource competencies on the quality of financial statements. A sample of 141 employees according to the purposive sampling method and by distributing questionnaires. It turned out that the questionnaire returned was only from 138 employees. Data analyzed through moderate regression analysis (MRA) from the SPSS program. The results of the study stated that the role of internal audit has a negative impact on the quality of financial statements, the application of regional accounting systems and human resource competencies have a positive impact on the quality of financial statements

scholarly journals MODEL PENGUKURAN KUALITAS AUDIT INTERNAL

2017 ◽  
Vol 17 (3) ◽  
pp. 299
Author(s):  
Ida Rosnidah
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Measurement Model ◽  
Primary Data ◽  
Private Companies ◽  
Internal Auditor ◽  
Internal Auditors ◽  
State Enterprises

Internal auditor’s independence is sometimes in doubt. This makes sense because the internal auditor is an integrated part of the organization. As a part of the organization, the internal auditor has a role to audited financial statements, give some suggestions and recommendations that can be used as the basis for making some decisions in the future. The lower of internal auditor’s independence has an impact audit quality, that can make the role of internal auditor degrade. So, the quality of internal auditor still becomes an important issue until  now. The purpose of this study is to establish a measurement model of internal audit quality based on the influencing factors not only independence, but also competence, professionalism and motivation. This study uses primary data by distributing questionnaires spread to 60 internal auditors who work  in  inspectorate, private companies, state enterprises (BUMN) and local government enterprises (BUMD) in Cirebon District and Municipalities. Data analysis method used is single stage multivariate model among variables/pathway analysis. The results show that the competence, independence, professionalism and motivation affect the quality of internal audit either partially or simultaneously, and competence contributes the most to the quality of the internal audit. Thus, this research model can be used to measure the quality of internal audit.

scholarly journals The Effect of Applying the Organization Enterprise Resource Planning System (ERP) in the Quality of Internal Audit: A Case of Jordanian Commercial Banks

2018 ◽  
Vol 10 (5) ◽  
pp. 96
Author(s):  
Ziad Abdul Halim AL Theebeh ◽  
Tareq Hammad AL-Mubaydeen ◽  
Mahmoud Fawzi Ismael
Keyword(s):  
Enterprise Resource Planning ◽  
Commercial Banks ◽  
Internal Audit ◽  
Resource Planning ◽  
Planning System ◽  
Accounting System ◽  
Internal Auditors ◽  
Erp System ◽  
The Impact

This study aimed at examining the impact of the ERP system on the quality of internal auditing in the Jordanian commercial banks. For this purpose, the researchers designed a questionnaire that was distributed to specialists in the same field of this research. The questionnaire consisted of eight perspectives. The study’s sample included 21 Jordanian banks, while the study’s sample consisted of thirteen Jordanian commercial banks. The results discovered a statistical and significant impact on the application of the organization's resource planning system, especially in the field of finance, marketing, sales, management, human resources as well as the services’ system. Based on these results, the researchers raised up a set of recommendations, which are including the necessity of developing the capabilities of the internal auditors in the use of the organization's ERP system in general, and enhancing the accounting system to increase the confidence and the quality of the financial reports particularly. Additionally, it is necessary to explain for the internal auditors the risks, which are embedded in the system of information technology.

scholarly journals The Role of Resource Consumption Accounting (RCA) in Improving Cost Management in the Jordanian Commercial Banks

2018 ◽  
Vol 10 (10) ◽  
pp. 28
Author(s):  
Abdulkhaliq M. Al-Rawi ◽  
Hiba Abd al-Hafiz
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Cost Management ◽  
Resource Consumption ◽  
Accounting System ◽  
Positive Role ◽  
Reducing Costs ◽  
The Cost

This research aims to demonstrate the ability of the resource consumption accounting system to create an addition to cost management at the Jordanian commercial banks through the following dimensions: providing appropriate information, reducing costs, and improving the quality of the cost accounting outputs of Jordanian commercial banks. The researchers relied on several study methods, represented in descriptive methodology for the purpose of scientific organized analysis and interpretation, the use of the questionnaire adopted on the basis of the theoretical literature of the previous studies and the analytical approach to describe the phenomenon as it is in fact and then to analyze, interpret and link it with other phenomena, in addition to the statistical approach by using statistical methods in processing and analyzing data pertinent to the subject matter of this research. The conclusions of the research have shown that resource consumption accounting system plays a positive role in cost management by providing appropriate information, reducing costs and improving the quality of banking services in Jordanian commercial banks. The most important recommendations were to urge the decision makers in Jordanian commercial banks to use of the resource consumption accounting system because of its positive impact on cost management, and the raise of awareness of cost accountants in Jordanian commercial banks of the need to develop the cost systems currently used to meet cost management needs.

Auditing Corporate Governance Statements in Greece – the role of internal auditors

2018 ◽  
Vol 18 (5) ◽  
pp. 1007-1020 ◽  
Author(s):  
Andreas Koutoupis ◽  
Michail Pazarskis ◽  
George Drogalas
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Internal Control ◽  
Internal Audit ◽  
Content Type ◽  
Internal Auditors ◽  
Governance Practices ◽  
Laws And Regulations

PurposeThe purpose of this paper is to examine the role of internal audit with respect to Auditing Corporate Governance Statements based on a practical approach. Moreover, it examines the application of internal control best practices in the Athens publicly listed firms based on a series of related statements.Design/methodology/approachThe authors conducted all large and medium capitalization publicly listed companies via a research questionnaire which forms a basis of a descriptive research analysis. The methodology is based on the best worldwide acceptable practices as represented by the Committee of Sponsoring Organizations internal control – integrated framework, as well as the relevant laws and regulations and best practices with respect to Corporate Governance Statements.FindingsThe research concludes that internal auditors limit their role in verifying compliance with the relevant laws and regulations rather than adopt a consulting role toward the improvement of the content and quality of Corporate Governance Statements information. Also, it contributes to the corporate governance research by verifying that the effectiveness of internal controls contributes to sound corporate governance practices.Practical implicationsInternal auditors depending on the organization they serve may adopt different roles regarding Corporate Governance Statements preparation, review and audit such as consultative which may add value to the quality of Corporate Governance Statements.Originality/valueIt is the first research regarding quality characteristics of the Corporate Governance Statements and the role of internal audit in Greece, and it provides the basis for further research among European Union countries.

scholarly journals INTERNAL AUDIT: THE APPLICATION OF RISK MANAGEMENT AND ELECTRONIC CHANNELS INTERNET BANKING THROUGH THE AUDIT MANAGEMENT SYSTEM IN THE QUALITY OF FINTECH GOVERNANCE IN BANKING INDUSTRY

2018 ◽  
Vol 17 (2) ◽  
Author(s):  
Ika Barokah Suryaningsih ◽  
Yuani Putrihandani ◽  
Kristian Suhartadi Widi Nugraha
Keyword(s):  
Risk Management ◽  
Management System ◽  
Banking Industry ◽  
Internal Audit ◽  
Internet Banking ◽  
Internal Auditors ◽  
Audit Management ◽  
Electronic Channel

This article aims to prove the role of internal auditors in providing added value in improving the quality of governance in the banking sector. The role of information technology in the banking industry sector is very dominant in service operations. This condition requires banks to apply their prudential principles by guaranteeing the implementation of risk management and electronic channel internet banking through audit management control systems. This study used an explanatory research approach with census data collection methods. The object of this study was the internal auditors of a branch office of one of the national private banks in Jember. The data of this study were the results of the response of 41 internal auditors of various branches and sub-branches in Jember Regency and supported by a literature review of the annual report of banks’ internal audit performance with a path analysis data processing tool. The results of the study showed that the application of risk management and electronic channel internet banking had an effect on the audit management system and the quality of financial technology governance.

scholarly journals The Impact of Internal Audit Committees’ Practices on Enhancing the Independence of Internal Auditors in Jordanian Commercial Banks

2018 ◽  
Vol 13 (5) ◽  
pp. 156
Author(s):  
Khalil Abu Saleem
Keyword(s):  
Commercial Banks ◽  
Internal Audit ◽  
Audit Committees ◽  
Internal Auditing ◽  
Economic Sectors ◽  
Internal Auditors ◽  
External Auditors ◽  
Descriptive Approach ◽  
The Impact

Purpose: This study aim to explain the impact of the audit committees' practices on enhancing the independence of internal auditors in Jordanian commercial banks from the perspective of external auditors.Design / methodology / approach: The statistical descriptive approach was used, the data were collected through a questionnaire designed by the researcher, which targeted the external auditors of (90) individuals. The study included four axes, three of which were allocated to measure the internal audit committees' responsibilities, functions and powers, while the fourth axis was devoted to measuring the independence of the internal auditing bodies.Results: The study found that there is a statistically significant relationship to the internal audit committees' practices in enhancing the independence of the internal auditing bodies; also the role of the audit committees has been the main impact in enhancing this independence.Recommendations: the study recommends enacting and modifying laws to enhance the independence of the audit committees to supervise all matters related to internal auditors.Originality / Value: According to the researcher, this study is one of the first studies that dealt with the practices of the audit committees combined, therefore it is useful for researchers that motivating them to conduct further research on the practices of audit committees in other economic sectors.

scholarly journals The Role of Governance Interaction with Customer Service in Improving Banking Financial Performance

2020 ◽  
Vol 15 (2) ◽  
pp. 67
Author(s):  
Orooba Rashid Ali Badran
Keyword(s):  
Corporate Governance ◽  
Customer Satisfaction ◽  
Financial Performance ◽  
Customer Service ◽  
Commercial Banks ◽  
Theory And Practice ◽  
Exploratory Research ◽  
Design And Synthesis

Customer satisfaction is one of the most important factors in business, when it comes to commercial banks, customer satisfaction level differentiates one bank from another, thus measuring customer satisfaction is exceedingly important. Profitable business cannot exist without satisfied customers, especially in service-oriented industries. Customer satisfaction is an important step to gain customer loyalty. The banking corporate governance is known to improve bank financial performance and value, by reducing the level of expropriation of the company’s assets done by the management, while the satisfaction of the external customers leads to retain customers and add new customers. Banking governance regulates the mechanisms and practices of the banking service engines and oriented them towards effective customer’s satisfaction investigation.  This lead to wards improved banking financial performance, more of previous studies lack to concepts and tools that are used to transform the ideas and theories of improving the quality of banking performance into actual productive practices. From this point, the study attempts to bridge this gap by disclosure the interactive role of banking governance in effectively linking theory and practice in improving the quality of banking financial performance. The paper problem was summarized with the question: to what extent can be interaction of customer services with corporate governance in improving the banking overall financial performance of the Iraqi commercial banks? The study pursues in the design and synthesis and analysis methods, deductive and inductive approach. The study use the analysis and synthesis supported by theoretical evidence in its theoretical part, and used the analysis and conclusion supported by statistical techniques in its practical part, the study was conducted at the sample of commercial banks at Basra Governorate, the study followed the method of exploratory research, using two tools to collected data, the first tool, checklist to assess the overall performance of the banks in question, the size of the respondent sample was 40 individuals and the second tool is a questionnaire with sample size (60 cases), in the light of the analysis the results, conclusions and recommendations were determined.

Strategic Role of Zakat in Multidimensional Quality of Life in Sijunjung, Indonesia

2018 ◽  
Vol 15 (1) ◽  
pp. 55-72
Author(s):  
Herlin Hamimi ◽  
Abdul Ghafar Ismail ◽  
Muhammad Hasbi Zaenal
Keyword(s):  
Quality Of Life ◽  
Positive Impact ◽  
Wealth Distribution ◽  
Absolute Poverty ◽  
Before And After ◽  
The Status ◽  
Being There ◽  
The Impact

Zakat is one of the five pillars of Islam which has a function of faith, social and economic functions. Muslims who can pay zakat are required to give at least 2.5 per cent of their wealth. The problem of poverty prevalent in disadvantaged regions because of the difficulty of access to information and communication led to a gap that is so high in wealth and resources. The instrument of zakat provides a paradigm in the achievement of equitable wealth distribution and healthy circulation. Zakat potentially offers a better life and improves the quality of human being. There is a human quality improvement not only in economic terms but also in spiritual terms such as improving religiousity. This study aims to examine the role of zakat to alleviate humanitarian issues in disadvantaged regions such as Sijunjung, one of zakat beneficiaries and impoverished areas in Indonesia. The researcher attempted a Cibest method to capture the impact of zakat beneficiaries before and after becoming a member of Zakat Community Development (ZCD) Program in material and spiritual value. The overall analysis shows that zakat has a positive impact on disadvantaged regions development and enhance the quality of life of the community. There is an improvement in the average of mustahik household incomes after becoming a member of ZCD Program. Cibest model demonstrates that material, spiritual, and absolute poverty index decreased by 10, 5, and 6 per cent. Meanwhile, the welfare index is increased by 21 per cent. These findings have significant implications for developing the quality of life in disadvantaged regions in Sijunjung. Therefore, zakat is one of the instruments to change the status of disadvantaged areas to be equivalent to other areas.

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