Internal Audit Quality and Trading Volume

ABSTRACT This study replicates Bhattacharjee, Maletta, and Moreno (2007), who find that audit preparers are susceptible to contrast effects in a multi-client environment. We demonstrate that auditors in the role of reviewers are also susceptible to contrast effects from a prior client. Audit reviewers' assessments of internal audit quality of a current client were significantly affected by the quality of the internal audit group of a client they previously reviewed. Specifically, when auditors first reviewed a client with a weak internal audit group they assessed the subsequent moderate internal audit group as being of higher quality than when they first reviewed a prior client with a strong internal audit group or did not review a prior client. Reviewers' documentation of evidence was also influenced by comparative information from the prior client. These results corroborate the key findings of Bhattacharjee et al. (2007) and confirm audit reviewers' susceptibility to contrast effects.

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The influence of tone at the top management level and internal audit quality on the effectiveness of risk management practices in the financial services sector

Cogent Business & Management ◽

10.1080/23311975.2019.1704609 ◽

2019 ◽

Vol 6 (1) ◽

pp. 1704609

Author(s):

Frank Kabuye ◽

Nicholas Bugambiro ◽

Irene Akugizibwe ◽

Sharon Nuwasiima ◽

Sharon Naigaga

Keyword(s):

Risk Management ◽

Financial Services ◽

Management Practices ◽

Audit Quality ◽

Internal Audit ◽

Top Management ◽

Management Level ◽

Services Sector ◽

Financial Services Sector ◽

Tone At The Top

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The impact of audit committee characteristics on internal audit professionalization: empirical evidence from Greece

Accounting Research Journal ◽

10.1108/arj-05-2020-0091 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Christina Vadasi ◽

Michalis Bekiaris ◽

Andreas G. Koutoupis

Keyword(s):

Empirical Evidence ◽

Audit Committee ◽

Audit Quality ◽

Research Question ◽

Internal Audit ◽

Audit Committees ◽

Annual Reports ◽

Substantial Impact ◽

Content Type ◽

The Impact

Purpose This paper aims to provide empirical evidence of the association between audit committee characteristics and internal audit quality through internal audit professionalization. Design/methodology/approach The investigation of the research question was based on 45 usable responses that were received from a survey of chief audit executives from firms listed on the Athens Stock Exchange and combined with publicly available information from annual reports. Findings The results indicate that audit committee characteristics (independence, diligence through frequent meetings and interaction with internal audit through valuation) influence internal audit professionalization. In addition, they demonstrate that internal audit professionalization is also influenced by CEO duality and firm’s external auditor. Practical implications The findings of this study have implications for audit committees wishing to improve their overall effectiveness, by identifying areas with substantial impact on internal audit quality. Moreover, regulators of corporate governance bodies can also benefit from the results to strengthen audit committee’s efficiency regarding internal audit function oversight. Originality/value The results add to the literature on the discussion of internal audit professionalization and complement the work of other researchers in the field of audit committee’s impact on internal audit quality/effectiveness. This study attempts to fill a gap in the literature on the effect of audit committee characteristics on internal audit professionalization, an element introduced from an institutional theory perspective.

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Software development internal audit quality with ISO 9001

Journal of Physics Conference Series ◽

10.1088/1742-6596/1567/3/032037 ◽

2020 ◽

Vol 1567 ◽

pp. 032037

Author(s):

DA Efrilianda ◽

MA Muslim ◽

AT Putra ◽

A Purwinarko

Keyword(s):

Software Development ◽

Audit Quality ◽

Internal Audit ◽

Iso 9001

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Applicability of Other Models for Internal Audit Quality Assessment

Contributions to Management Science - Quality of Internal Auditing in the Public Sector ◽

10.1007/978-3-030-29329-1_13 ◽

2019 ◽

pp. 197-220

Author(s):

Plamena Nedyalkova

Keyword(s):

Quality Assessment ◽

Audit Quality ◽

Internal Audit

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Impact of Applying Governance Standards in Evaluating the Quality of Internal Audit in Yemeni Private Universities

The Arab Journal For Quality Assurance In Higher Education ◽

10.20428/ajqahe.13.46.4 ◽

2021 ◽

Vol 13 (46) ◽

pp. 81-103

Author(s):

Ahmed Ali Qassem Mohssen

Keyword(s):

Audit Quality ◽

Private Universities ◽

Relative Weight ◽

Internal Audit ◽

Slight Variation ◽

Internal Auditing ◽

Audit Process ◽

Transparency And Disclosure ◽

The Impact

The study aimed to measure the impact of applying governance standards in evaluating the quality of internal audit in Yemeni private universities. To achieve this, the researcher followed the descriptive and analytical approach and employed a questionnaire to collect data from a sample that included (68) participants. After conducting relative analysis, governance was at an average level of (64.9%). There was also a slight variation in the level of implementation, as the dimension of transparency and disclosure was the most frequent dimension, followed by accountability and independence. Further, there was a medium level of adherence to internal auditing standards at a relative weight (65%). The level of commitment to the audit dimensions was as follows: managing the internal audit activities (67%), communicating the results (66%), assessing the risk and control management (64%), and planning and implementing the audit process (62%). and The study also found that the combined governance standards (transparency and disclosure, accountability, independence) increase the quality of the internal audit in Yemeni private universities and the highest dimensions of governance standards affecting the quality of internal auditing are the dimension of independence (80.3%), accountability (71.7%), and disclosure and transparency (63.7%). In light of this, the study recommended adopting governance standards as an integrated approach to achieve quality performance in private Yemeni universities; spreading the culture of governance in private universities among their leaders and staff by holding training courses, seminars, and conferences in order to be accepted and absorbed. In addition, governance should be included in some related academic courses in the disciplines of administrative and accounting sciences. Keywords: governance standards, internal audit quality assessment, private Yemeni universities.

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Internal Auditing Quality and Earnings Management: Evidence from Sultanate of Oman

Journal of Governance and Integrity ◽

10.15282/jgi.4.2.2021.6054 ◽

2021 ◽

Vol 4 (2) ◽

pp. 115-124

Author(s):

Hind Juma Alyaarubi ◽

Dua Said Alkindi ◽

Essia Ries Ahmed

Keyword(s):

Earnings Management ◽

Audit Quality ◽

Internal Audit ◽

Secondary Data ◽

Securities Market ◽

Internal Auditing ◽

Sultanate Of Oman ◽

Listed Firms ◽

Two Sectors ◽

Research Show

The main purpose of this research is to determine the link between internal auditing quality and earnings management in Omani companies. In this research, a sample size of 80 was designated from two sectors (Industrial, and Service) in Muscat Securities Market (MSM) in Sultanate of Oman. The secondary data collected is examined with Smart PLS 3.0. The findings of the research show a positive link between Internal audit quality and earnings management in both sectors (industrial and service). This finding indicates that the increase in audit quality will affect to enhance and improve the earning management in Omani listed firms.

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