The Role Of The Internal Audit Function In Reducing The Practices Of Creative Accounting :, Case Study In Some Companies In The Provinces Of Ain Defla And Chlef

2018 ◽  
pp. 82
Author(s):  
Abou Bakr Essedik Kidaouene ◽  
Abou Bakr Essedik Kidaouene
Keyword(s):  
Internal Audit ◽  
Creative Accounting ◽  
Internal Audit Function

An Examination of Internal Auditor Objectivity: In-House versus Outsourcing

2004 ◽  
Vol 23 (2) ◽  
pp. 147-158 ◽  
Author(s):  
Sunita S. Ahlawat ◽  
D. Jordan Lowe
Keyword(s):  
Exploratory Study ◽  
Internal Audit ◽  
Accounting Firms ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Internal Audit Function ◽  
Big 4 ◽  
Client Advocacy

The internal audit function is evolving from its traditional oversight function to one that includes a wider spectrum of activities that add value to their organizations. In addition, economic pressures have forced many companies to consider outsourcing as an alternative. These ongoing changes have caused some concern regarding the potential lack of objectivity and independence for internal auditors. This exploratory study examines whether outsourcing of the internal audit function is susceptible to client advocacy vis-a`-vis in-house auditing, which itself may be sensitive to an employer advocacy Sixty-six practicing members of the Institute of Internal Auditors (IIA) completed a case study involving a corporate acquisition scenario. Of the 66 participants, 35 were from corporations (in-house), while the remaining 31 were from the Big 4 accounting firms (outsource). Advocacy was manipulated by asking participants to assume the role of internal auditor for either the buyer or the seller of a target division. Result s indicate that significant advocacy existed in the judgments of both in-house and outsource internal auditors. However, the extent of advocacy was less severe in the case of outsource auditors.

The Role of Accounting Mechanisms for Corporate Governance in Reducing Creative Accounting Practices in Telecommunications Sector Companies in Riyadh City: An Empirical Study: دور الآليات المحاسبية لحوكمة الشركات في الحد من ممارسات المحاسبة الإبداعية في شركات قطاع الاتصالات بمدينة الرياض: دراسة ميدانية

2020 ◽  
Vol 4 (15) ◽  
Author(s):  
Lamis Jameel Banasser, Maha Faisal Alsayegh
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
Internal Auditors ◽  
External Auditors ◽  
Riyadh City ◽  
Creative Accounting ◽  
Telecommunications Sector

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.

Outsourcing relationship management: accounting in the decision mix

2018 ◽  
Vol 39 (5) ◽  
pp. 41-49
Author(s):  
Mirghani Nimir Ahmed
Keyword(s):  
Management Accounting ◽  
Accounting Information ◽  
Relationship Management ◽  
Internal Audit ◽  
Management Control ◽  
Control Mechanisms ◽  
Monitoring Cost ◽  
Content Type

Purpose The paper aims to examine the role of management accounting and accounting information in decisions to outsource and manage outsourcing relationships. Design/methodology/approach The paper uses a case study method. Data are collected through semi-structured interviews and informal discussions with executives of the participating companies. Official documents and secondary materials were analysed. Findings The findings of these cases present evidence of some roles given to accounting information and varying tasks assumed by accountants and finance staff in the outsourcing projects undertaken. These roles and tasks range from financial evaluation of new outsourcing proposals and alternatives, consultation and price negotiations in the planning and feasibility stages to the management of outsourcing relationships including monitoring, cost analysis, performance measurement, internal audit, design and implementation of risk-reward payment schemes. Managing the outsourced functions in one case involved in the use of informal control mechanisms such as trust, knowledge sharing, mutual understanding and cooperation between partners. Practical implications The paper highlights the role of management accounting and information in outsourcing relationship management and evaluation. The case findings provide the opportunity for management practitioners to understand the strategic role of management accountants in the management of inter-firm relationships. Originality/value The case study presents new empirical evidence of the role of management accounting and accounting information in the management control of outsourcing relationships.

scholarly journals Internal Audit Role in Digital Zakat Finance: Case Study at a Zakat Institution in Indonesia

2019 ◽  
Author(s):  
Mulyaning Wulan ◽  
Hera Khairunnisa ◽  
Efri Syamsul Bahri
Keyword(s):  
Information Technology ◽  
Significant Risk ◽  
Internal Audit ◽  
Collection System ◽  
Literature Study ◽  
Digital Platforms ◽  
Bank Transfer ◽  
Study Techniques

This study aims to get information about: 1) How is the implementation of digital zakat finance in Indonesia?; 2) Why do zakat institutions need the Internal Audit role in the implementation of digital finance zakat?. This study is motivated by the development of zakat collection systems such as digital zakat finance system that uses a digital platform. Along with the development of technology, the role of internal audit is also expected to be expanded to the aspect of information technology audit. Internal audit division faces several challenges regarding digital zakat finance. Internal audit division has to ensure the zakat institution already mitigate the significant risk related to digital zakat finance. This study is limited to the audit aspect related to zakat collection system in BAZNAS that used digital platforms such as bank transfer collection system and collection system that collaborated with e-commerce. To achieve the study’s aims, this study uses qualitative methods with literature study techniques that are reinforced by interviews.

Factors associated with security/cybersecurity audit by internal audit function

2018 ◽  
Vol 33 (4) ◽  
pp. 377-409 ◽  
Author(s):  
Md. Shariful Islam ◽  
Nusrat Farah ◽  
Thomas F. Stafford
Keyword(s):  
Audit Committee ◽  
Internal Audit ◽  
Mixed Effect ◽  
Content Type ◽  
Internal Auditors ◽  
Factors Associated ◽  
Security Breaches ◽  
Internal Audit Function ◽  
Enterprise Risk

Purpose The purpose of the study is to explore the factors associated with the extent of security/cybersecurity audit by the internal audit function (IAF) of the firm. Specifically, the authors focused on whether IAF/CAE (certified audit executive [CAE]) characteristics, board involvement related to governance, role of the audit committee (or equivalent) and the chief risk officer (CRO) and IAF tasked with enterprise risk management (ERM) are associated with the extent to which the firm engages in security/cybersecurity audit. Design/methodology/approach For analysis, the paper uses responses of 970 CAEs as compiled in the Common Body of Knowledge database (CBOK, 2015) developed by the Institute of Internal Auditors Research Foundation (IIARF). Findings The results of the study suggest that the extent of security/cybersecurity audit by IAF is significantly and positively associated with IAF competence related to governance, risk and control. Board support regarding governance is also significant and positive. However, the Audit Committee (AC) or equivalent and the CRO role are not significant across the regions studied. Comprehensive risk assessment done by IAF and IAF quality have a significant and positive effect on security/cybersecurity audit. Unexpectedly, CAEs with security certification and IAFs tasked with ERM do not have a significant effect on security/cybersecurity audit; however, other certifications such as CISA or CPA have a marginal or mixed effect on the extent of security/cybersecurity audit. Originality/value This study is the first to describe IAF involvement in security/cybersecurity audit. It provides insights into the specific IAF/CAE characteristics and corporate governance characteristics that can lead IAF to contribute significantly to security/cybersecurity audit. The findings add to the results of prior studies on the IAF involvement in different IT-related aspects such as IT audit and XBRL implementation and on the role of the board and the audit committee (or its equivalent) in ERM and the detection and correction of security breaches.

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 Audit committee – internal audit interaction and moral courage

2016 ◽  
Vol 31 (4/5) ◽  
pp. 403-433 ◽  
Author(s):  
Imen Khelil ◽  
Khaled Hussainey ◽  
Hedi Noubbigh
Keyword(s):  
Audit Committee ◽  
Critical Role ◽  
Internal Audit ◽  
Moral Courage ◽  
Content Type ◽  
Second Stage ◽  
Internal Audit Function ◽  
Mixed Approach ◽  
Positive Effect

Purpose This paper aims to offer empirical evidence about the effect of the interaction between the audit committee and the internal audit function (IAF) on the moral courage of the chief audit executive (CAE). Design/methodology/approach A mixed approach was followed. In the first stage, questionnaires were sent to CAEs of 60 listed, financial and non-financial Tunisian companies. To enhance the depth of the analysis, in the second stage, semi-directed interviews with 22 CAEs from listed financial and non-financial Tunisian companies were performed. Findings This paper found that the existence of private access to the audit committee has a positive effect on the moral courage of the CAE. The number of meetings between the audit committee and the CAE, the examination of internal audit programmes and results together with the contribution of the audit committee to the appointment and dismissal of the CAE do not show a significant link with the moral courage of the CAE. It also found an insignificant relationship between the audit committee’s examination of interaction between management and the IAF and the moral courage of the CAE. Originality/value To the best of the authors' knowledge, this paper fills one of the major research gaps in the auditing literature by demonstrating the critical role of audit committee–internal audit interaction in promoting the CAE’s moral courage to behave ethically.

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