scholarly journals The impact of internal audit in the activation of risk management under the governance of banks

2019 ◽  
Vol 5 (4) ◽  
pp. 7
Author(s):  
Afsar Ali Alimoradi ◽  
Chya Kareem Ahmad
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Secondary Data ◽  
Internal Auditing ◽  
Audit Risk ◽  
Internal Auditor ◽  
Risk Management Process ◽  
Statistical Program ◽  
Bank Governance ◽  
The Impact

The research aims to measure and evaluate the impact of internal audit on the efficiency of risk management under the principles of the bank governance in a sample of banks. Thus, internal audit is an important function of controlling financial and administrative performance. It has the impact of evaluating and measuring the efficiency of the use of available resources and strengthening the so-called governance as well as contributing to the assessment and management of risks, which enhances the opportunities of economic units and banks in the optimal use of resources.Internal Audit assists senior management and the board in the process of  theidentifying, assessing and responding to risks, by providing various assurance and advisory services during the implementation of the risk management process. In order to achieve the objectives of the study and test its hypotheses, the study was based on primary and secondary data and the questionnaire was designed and the researchers used the Statistical Program (SPSS) to analyze the data. It was concluded during the research that there is a clear impact of the internal audit profession on the risk management by improving its effectiveness and efficiency under the principles of bank governance shows through the internal audit has a prominent position in banks and because it is linked to the highest levels of management as an independent control and advisory tool. The researchers present a set  of recommendations, the most important of which is the need to provide adequate financial and human resources for internal auditing in banks. The study also recommended to strengthen the components of the independence of the internal auditor in order to be able to perform his duties to the fullest. Key words :  Internal Audit , Risk Management , Banking Governance, Internal Auditor.

Internal auditor characteristics, internal audit effectiveness, and moderating effect of senior management

2016 ◽  
Vol 32 (2) ◽  
pp. 160-176 ◽  
Author(s):  
Khaled Ali Endaya ◽  
Mustafa Mohd Hanefah
Keyword(s):  
Multiple Regression ◽  
Internal Audit ◽  
Moderating Effect ◽  
Senior Management ◽  
Management Support ◽  
Internal Auditing ◽  
Internal Auditor ◽  
Content Type ◽  
The Impact ◽  
Audit Effectiveness

Purpose The purpose of this paper is to investigate the direct relationship between internal auditor’s characteristics[1] and internal audit effectiveness[2], and the moderating effect of senior management[3] support. Design/methodology/approach Standard multiple regression and moderated multiple regression are applied, and the data were collected from 114 members of Libyan Association of Accountants and Auditors[4] by using personally administered questionnaire. Findings The findings reveal that internal auditor’s characteristics have a significant impact on internal audit effectiveness, and senior management support has a moderating effect. Practical implications The findings would encourage Libyan organizations to concentrate on the issue of internal audit effectiveness, and will strengthen the capacity of internal auditing in public organizations. Originality/value This paper contributes to the literature of both internal audit and management studies and represents the first effort to examine the impact of internal auditor’s characteristics on internal audit effectiveness with senior management support as a moderating variable.

scholarly journals Impact of internal auditing in supporting competitive advantage in Sudanese industrial establishments (Case study- Industrial DAL Company): تأثير المراجعة الداخلية في دعم الميزة التنافسية للمنشآت الصناعية بالسودان (دراسة ميدانية- شركة دال الصناعية)

2020 ◽  
Vol 4 (12) ◽  
Author(s):  
Abu baker Ahmed Yousif Mohammed Ali, Shihabeldeen Mohamed Ah
Keyword(s):  
Competitive Advantage ◽  
Internal Audit ◽  
Research Problem ◽  
Internal Auditing ◽  
Internal Auditor ◽  
Industrial Facilities ◽  
Internal Auditors ◽  
Recent Trends ◽  
The Right ◽  
The Impact

The study tackled the impact of internal auditing in supporting the competitive advantage in Sudanese industrial establishments. A field study on Dal Industrial Company. The research problem was how to activate، the impact of internal auditing in supporting the competitiveness of industrial establishments in Sudan. The research hypotheses were as follows: Initial Hypothesis: There is a statistically significant impact of internal auditing in supporting the competitive advantage. The second hypothesis: Emphasis services in the governance for internal audit in supporting the competitive advantage of industrial facilities. There is a statistically significant effect on the relationship between advisory services as internal auditing in supporting the competitive advantage of industrial establishments. The methodology of the study used descriptive and analysis approach. The researcher used the questionnaire to collect field data. The results were including the recent trends of the impact of internal audit to advise the internal auditor in support the competitive advantage of Company. Recent trends in internal auditing have ensured that information is accurate that helps management make the right decisions and support the competitive advantage. The recommendations، the need for internal audit management to advise and advise the internal auditor. Auditors who have sufficient knowledge of the standards of professional performance. The need to continue to train internal auditors through seminars and attend conferences to keep up with the latest developments of internal audit.

The Development of Internal Auditing as a Profession in the U.S. During the Twentieth Century

2017 ◽  
Vol 44 (2) ◽  
pp. 47-67 ◽  
Author(s):  
Susan Parker ◽  
Lynn A. Johnson
Keyword(s):  
Professional Identity ◽  
Internal Control ◽  
Self Regulation ◽  
Internal Audit ◽  
Professional Community ◽  
Internal Auditing ◽  
Internal Auditor ◽  
Business World ◽  
Internal Auditors ◽  
The Impact

ABSTRACT This paper traces the development of internal auditing from the standpoint of its professional identity. The question of how internal auditors have historically seen themselves bears on how they function as integral parts of internal control systems, and may help researchers formulate future empirical studies of internal auditing. Over the years, the self-perception of the internal audit profession's function has varied greatly. Internal auditing has lived, to some extent, in the shadow of the public accounting profession, while struggling to achieve public recognition, status in the business world, and a defined role separate from that of an internal monitor, subsidiary to the external auditor. While there have been many changes in terms of the formation of a professional community, belief in the importance of the work, and the growth of a system of self-regulation, the demands of various constituents and the desires of internal auditors for professional status have led to a persistent struggle to define the appropriate functions and organizational placement of internal audit. This struggle continues up to the present time. Several things stand in the way of a complete professional identity for internal auditing. Internal auditing cannot lay claim to a clearly defined role that is uniquely its own. The internal audit function (IAF) does not own a skill set or knowledge base that is not shared by the external auditors. The impact on the ability to distinguish the internal auditor from the external consultant is detrimental to the profession. Neither has the internal auditor been able to attain complete autonomy. While the IAF now reports to the Board of Directors or its audit committee more frequently than in the past, its continuing strong connection with management hinders its ability to be truly self-determining. On the other hand, the contributions that internal auditors make to their organizations are very real, and the lack of an externally mandated role allows them to be utility players. For management, the availability of a utility player who can provide internal consulting or assistance that saves overall compliance costs is valuable, as is the ability for boards to rely on an IAF with a deep knowledge of the organization.

Impact of Independent Internal Audit on External Audit Risks through Risk Management Governance: A Field Study of External Auditors at Audit Offices and Companies in the Republic of Yemen

2021 ◽  
Vol 27 (3) ◽  
Author(s):  
أ.د. سلطان علي أحمد السريحي ◽  
أ. صفاء محمد مجاهد الشيباني
Keyword(s):  
Risk Management ◽  
Positive Impact ◽  
Internal Audit ◽  
Risk Assessments ◽  
External Audit ◽  
Audit Risk ◽  
External Auditors ◽  
Study Results ◽  
The Republic ◽  
The Impact

This study aimed to investigate the impact of independent internal audit on the external audit risk assessments through risk management governance of a sample of external auditors (203) at the audit offices and companies in the Republic of Yemen. To achieve this objective, 203 questionnaires were distributed to external auditors at the audit offices and companies, but only (167) were valid for analysis. The study results revealed that there was a positive impact of independent internal audit and governance of risk management on the assessments of external audit risks. Further, there was a positive impact on the governance of risk management which also increased its indirect positive impact on assessing risks of external audit. It was also found that the most important dimensions related to the external audit risk assessments, from the respondents’ perspective, were detection risk, control risk, and inherent risk. The study recommended that the external auditor should use the method of comparing the enterprise information with the information that is similar to the economic sector in which it operates. The internal auditors should also be free of bias in their work, whereby risk management governance should be taken into account when developing the strategy of the enterprise.

scholarly journals The Impact of Executive Management on Internal Auditing Quality Under the Agency's Problem: Evidence From Egypt

2019 ◽  
Vol 9 (4) ◽  
pp. 41
Author(s):  
Osama Wagdi ◽  
Amira Hasaneen ◽  
Madyha Metwally
Keyword(s):  
Leadership Style ◽  
Internal Audit ◽  
Quality Level ◽  
Internal Auditing ◽  
Executive Management ◽  
Financial Reports ◽  
Internal Auditor ◽  
Creative Accounting ◽  
The Board Of Directors ◽  
The Impact

The study provides a framework for determinants of an impact of Executive Management on internal auditing quality according to eight dimensions (1) leadership style of executive management, (2) Organizational Culture, (3) operation cost of internal auditing, (4) providing information and disclosure for internal auditor (5) cooperation and facilitation from executive management (6) the attitude of executive management of earnings management, (7) the attitude of executive management for creative accounting and (8) professional ethics of executive management. The population of the study is Egyptian manufacturing firms listing at EGX and their employees. Accordingly, the number of received questionnaires was 392 from 28 firms in the first half of 2019 but the financial reports for 2018. The study found the impact of executive management on internal auditing quality, and it is significant at 0.01 level. According to adjusted R-squared; executive management interprets (97.1%) of an internal auditing quality level. Finally; the current framework of corporate governance need to take into organizational characteristics, as well as the ethical and behavioural variables, with than further controls on the Board of Directors, as well as ensuring the independence of internal audit to maximize the quality of internal audit.

Core and Legitimate Roles of Internal Audit Function and Enterprise Risk Management: Propositions for Future Research

2019 ◽  
Vol 10 (9) ◽  
pp. 891-901
Author(s):  
Suaad Jassem ◽  
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Corporate Scandals ◽  
The Core ◽  
Enterprise Risk ◽  
Core Components ◽  
The Impact

In the aftermath of global corporate scandals at the start of the new millennium government policy makers and international regulatory organizations launched several initiatives to anticipate and mitigate the impact of enterprise risk that can seriously damage economies of nations and bankrupt globally recognized companies. The typical roles of internal auditors have failed to prevent frauds and financial crimes from taking root in organizations. As a result, paradigms such as Enterprise Risk Management took centre-stage and became vital considerations and organizations such as the Institute of Internal Auditors along with other global platforms such as the Committee of Sponsoring Organizations of the Treadway Commission to address the issue of enterprise risk. However, despite all these measures new corporate scandals have emerged, inviting scope for further investigation on matters such as how defined internal audit functions relate to Enterprise Risk Management. This paper proposes a conceptual link between the core and legitimate roles of internal auditor function and enterprise risk management. The roles of internal auditor function are based on the Institute of Internal Auditors Position Paper (2009) and the core components of Enterprise Risk Management are identified based on the Committee of Sponsoring Organizations (2017) Enterprise Risk Management Integrated Framework. This study further proposes a set of propositions suggesting the possible association of the core and legitimate roles of internal auditors on the five core components of Enterprise Risk Management. The output of this study is expected to lay the foundation for further empirical studies to develop a finer-grained understanding of how internal auditor function roles relate to Enterprise Risk Management implementation.

THE ROLE OF INTERNAL AUDIT IN GOVERNANCE, RISK MANAGEMENT, AND CONTROLS FOR FRAUD PREVENTION AT PPATK

2017 ◽  
Vol 2 (1) ◽  
pp. 15
Author(s):  
Bambang Hadi Purnomo
Keyword(s):  
Risk Management ◽  
Money Laundering ◽  
Internal Control ◽  
Service Providers ◽  
Focal Point ◽  
Internal Audit ◽  
Internal Auditor ◽  
Financial Transaction ◽  
Risk Management Process ◽  
Governance Risk

ABSTRACTLaw Number 8 of 2010 concerning the Prevention and Eradication of Money Laundering has mandated the Indonesian Financial Transaction Reports and Analysis Centre (INTRAC / PPATK) to be the focal point of every effort made to combat money laundering in Indonesia. As a focal point, PPATK receives financial transaction reports from reporting parties, which include Financial Service Providers and Goods and Services Providers, where the data provided are considered to be highly confidential. This indicates that PPATK has become a strategic institution, and thereby it should be assured that its governance, risk management, and internal control are well maintained. Government Internal Supervision Apparatus (APIP) has become more strategic and keeps its pace according to the latest needs. APIP is expected to be the agent of change that could create added-values into the products or services made by the government agency. The activity of internal audit from APIP should contribute to increase the effectiveness and efficiency of governance, risk management, and control processes. In term of risk management, internal auditor should be able to evaluate the effectiveness and his contribution towards the improvement of the risk management process. Internal auditor should monitor the process through sustainable management, separated evaluation, or both. Internal auditor should be able to evaluate the potential occurrence of fraud and how the auditee manages the fraud risk. Meanwhile, in relation to internal control, the activity of internal auditor should evaluate the adequacy and effectiveness of internal control in handling the risks of the auditee’s governance, operational, and information system.

scholarly journals Analysis of Bio-Risk Management System Implementation in Indonesian Higher Education Laboratory

2021 ◽  
Vol 18 (10) ◽  
pp. 5076
Author(s):  
Anom Bowolaksono ◽  
Fatma Lestari ◽  
Saraswati Andani Satyawardhani ◽  
Abdul Kadir ◽  
Cynthia Febrina Maharani ◽  
...  
Keyword(s):  
Higher Education ◽  
Risk Management ◽  
Management System ◽  
Gap Analysis ◽  
Secondary Data ◽  
Education Institution ◽  
Management Systems ◽  
Primary Data ◽  
Risk Management System ◽  
The Impact

Developing countries face various challenges in implementing bio-risk management systems in the laboratory. In addition, educational settings are considered as workplaces with biohazard risks. Every activity in a laboratory facility carries many potential hazards that can impact human health and the environment and may cause laboratory incidents, including Laboratory Acquired Infections (LAIs). In an effort to minimize the impact and occurrence of these incidents, it is necessary to evaluate the implementation of a bio-risk management system in every activity that involves handling biological agents. This study was conducted in an Indonesian higher-education institution, herein coded as University Y. This is a descriptive, semi-quantitative study aimed at analysing and evaluating the implementation of the bio-risk management systems used in laboratories by analysing the achievements obtained by each laboratory. The study used primary data that were collected using a checklist which referred to ISO 35001: 2019 on Laboratory Bio-risk Management. The checklist consisted of 202 items forming seven main elements. In addition, secondary data obtained from literature and document review were also used. The results show that out of 11 laboratories examined, only 2 laboratories met 50% of the requirements, which were Laboratory A and B, achieving good performance. Regarding the clauses of standards, a gap analysis identified leadership, performance evaluation, and support as elements with the lowest achievement. Therefore, corrective action should be developed by enhancing the commitment from management as well as improving documentation, policy, education and training.

scholarly journals Peran Internal Audit dalam Implementasi Enterprise Risk Management berupa Pelaporan Kerusakan Prosedur Risiko.

2020 ◽  
Vol 14 (2) ◽  
Author(s):  
Indarti Indarti
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Audit Committees ◽  
Corporate Risk Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Enterprise Risk ◽  
Management Procedures ◽  
Corporate Risk

Implementation of Enterprise Risk Management (ERM) by Internal Audit in an orga-nization or company becomes important because Internal Audit is expected to help the organization achieve its objectives by approaching systematic and discipline to evaluate and improve the effectiveness of risk management, control, and governance process. As for which affects it is the involvement of internal auditors, the relation-ship of the audit committee with the internal auditor, and ERM.This study aims to analyze the involvement of Internal Audit in Enterprise Risk mana-gement implementation. Internal auditors should assist both management and audit committees in risk management responsibilities and supervisory roles by examining, evaluating, reporting and recommending improvements to the adequacy and effec-tiveness of risk management processes. An interesting issue is whether internal auditors involved in corporate risk management have a link to the willingness of internal auditors to report to the audit committee.The population in this study are the internal auditors and audit committees who working in companies manufacturing and financial services. The reason for determining the company is because the researcher wants to know how internal audit is involved in ERM implementation on that entity. The sample used in this research is internal auditor at private company and at Banking in this case internal auditor at local bank.The analytical method used is multiple regression analysis with SPSS version 23 pro-gram. The analysis technique used in this research is descriptive statistical analysis, classical assumption test, F-statistic hypothesis test to test influence together with 5% confidence level and use t-statistics to test partial regression coefficients. This re-search was conducted to analyze how much influence the role of Internal Audit in applying Enterprise Risk Management in the implementation of Audit.The result of this research is that the high level of internal auditor involvement in Enterprise Risk management implementation has no significant and significant im-pact on reporting of damage to risk management procedures. This indicates that the role of internal auditors in corporate risk management does not affect the reporting of damage to corporate risk management procedures. While the characteristics of strong relationships between internal auditors and audit committees positively and significantly influence the reporting of risk procedures, this indicates that internal audits that have strong internal audit-audit committee relationships strongly support internal auditors who have high involvement to report damage Greater risk procedures.

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