scholarly journals The responsibility of the internal auditor in managing the risk of HIV/AIDS

2014 ◽  
Vol 9 (1) ◽  
pp. 72-88
Author(s):  
P Coetzee
Keyword(s):  
South African ◽  
Senior Management ◽  
Business Community ◽  
World Population ◽  
Internal Auditing ◽  
Potential Threat ◽  
Internal Auditor ◽  
Internal Auditors ◽  
The World ◽  
Hiv Aids

HIV/AIDS is not only a risk to the world population, it is potentially devastating to individual organisations. According to the King Report on Corporate Governance, as well as other governance reports world-wide, risk management is primarily the responsibility of the board and senior management. The internal auditor however, has a responsibility to assist management with this task. This paper aims to determine whether internal auditors are aware of the potential threat that HIV/AIDS holds for their organisations. If ignorance is found to be widespread, recommendations are made to the Institute of Internal Auditors to make their members aware.  If awareness is found to be adequate, the paper aims to determine whether internal auditing departments in various sectors of the South African business community are complying with this responsibility.

The Integrated Threat Theory (ITT) and Internal Auditors’ Independence in the Saudi Listed Companies

2021 ◽  
Vol 18 (1A) ◽  
pp. 1-25
Author(s):  
Mohammed Al-Abbas
Keyword(s):  
Listed Companies ◽  
Auditor Independence ◽  
Internal Auditing ◽  
Negative Attitudes ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Threat Theory

Abstract: This study aims to investigate the effect of prejudice on the attitude of the auditee toward the internal auditors’ independence in Saudi Corporations. This study adopted the definitions of prejudice put forward by Allport (1954) and Stephan & Stephan (1996) as negative attitudes or evaluations held towards a particular group because of certain characteristics that the group possesses. The Integrated Threat Theory (ITT) developed by Stephan et al. (1996) postulates that prejudice is a conflict that negatively influences out-group attitudes. Using a sample of 210 participants from the Saudi Corporations, three models were developed, and the results indicate that auditee staff will develop prejudice when they become wary about internal auditors and their reports, a result that supports the literature in this regard. In addition, the results indicate that when the managers become anxious due to threats, they also become worried about the auditor’s independence. Besides, the management will feel real threat from the internal auditor. Keywords: Internal Auditing, Prejudice, Integrated Threat Theory, Auditor Independence, Conflict, Auditing Behavioural.

Audit Committee Composition, “Gray Directors,” and Interaction with Internal Auditing

2001 ◽  
Vol 15 (2) ◽  
pp. 105-118 ◽  
Author(s):  
K. Raghunandan ◽  
Dasaratha V. Rama ◽  
William J. Read
Keyword(s):  
Audit Committee ◽  
Empirical Support ◽  
Internal Audit ◽  
Audit Committees ◽  
Internal Auditing ◽  
Public Companies ◽  
Internal Auditor ◽  
Blue Ribbon ◽  
Internal Auditors ◽  
Governance Process

The functioning of corporate audit committees was criticized in recent years by the Treadway Commission, the Public Oversight Board, the Kirk Panel, and the SEC Chairman. In response, the NYSE and NASD sponsored the Blue Ribbon Committee (BRC) on Improving the Effectiveness of Corporate Audit Committees. The BRC Report includes recommendations aimed at strengthening director independence and qualifications, and highlights the role of internal auditors in assisting audit committees in the corporate governance process. Moreover, the first three recommendations of the BRC relate to audit committee composition: absence of inside or “gray” directors, and presence of a member with financial expertise. This study examines the association between audit committee composition and the committee's interaction with internal auditing. Our results, based on responses from chief internal auditors of 114 public companies, indicate that committees comprised solely of independent directors and with at least one member having an accounting or finance background are more likely to (1) have longer meetings with the chief internal auditor; (2) provide private access to the chief internal auditor; and (3) review internal audit proposals and results of internal auditing. These findings provide empirical support for the BRC's recommendations related to audit committee composition.

Contribution of internal auditing to risk management

2016 ◽  
Vol 29 (4) ◽  
pp. 348-364 ◽  
Author(s):  
Philna Coetzee
Keyword(s):  
Risk Management ◽  
Public Sector ◽  
South African ◽  
Audit Committee ◽  
Internal Audit ◽  
Senior Management ◽  
Minor Effect ◽  
Internal Auditing ◽  
The South ◽  
Content Type

Purpose – There is a widening gap between the expectations of internal audit stakeholders and the value the function brings to the table, for example, in the management of the risks threatening an organisation. The purpose of this paper is to investigate the views of chief audit executives (CAEs), the chairs of audit committees and senior management on the contribution of the internal audit functions to risk management in the South African public sector. This contribution is considered in the context of existing risk management structures and the level of coordination between these structures and internal auditing. Design/methodology/approach – The views of heads of internal auditing, chairpersons of the audit committee and the Accounting Officer (similar to the CEO of private sector organisations) of national, provincial and local government organisations were obtained and statistically analysed. Findings – The results indicate that the CAEs have noticeably different views from the other two parties, and that the existence of risk management structures has a minor effect on how the contribution of internal auditing to risk management is perceived. Research limitations/implications – It was decided to not include the views of heads of risk management functions owing to the immaturity of risk management in this sector with in the South African public sector. Practical implications – The results of the study provide internal auditing with information on narrowing the possible gap between the perceptions of senior management and their own perceptions. Senior management could streamline the efforts of these two parties in mitigating the key risk of the organisation. The audit committee, as the independent overseer of internal auditing, will obtain information on whether internal auditing contributes to risk management, and if not, how to address these issues, taking into account the existence (or a lack thereof) of risk management structures. The legislator and regulator of public sector could be influenced to provide clearer guidance or rules in this regard in order to enhance the efficiency and effectiveness of risk management policies and practices. Originality/value – Limited studies have been conducted regarding the coordination of internal auditing and risk management in mitigating the key risks; especially within the public sector domain whether the existence of risk management structures would affect this coordination. Also the views of senior management, as the key stakeholder of internal auditing, on this matter have not yet been solicited.

scholarly journals The Effects of Interaction between Internal Auditor and Audit Committee on Fraud Detection in Malaysia

2018 ◽  
Vol 7 (4.38) ◽  
pp. 1338
Author(s):  
Sunita Lylia Hamdan ◽  
Nahariah Jaffar ◽  
Ruzanna Ab Razak
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Audit Committee ◽  
Specific Interaction ◽  
Fraud Detection ◽  
Internal Audit ◽  
Internal Auditing ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors

This study aims to examine the effect of interaction between internal auditor and audit committee on fraud detection in Malaysia.  Specific interaction is firstly; audit committee approving the appointment of chief audit executive, the evaluation of chief audit executive, the dismissal of chief audit executive, the internal audit budget and the internal audit plan or program.  Secondly, audit committee’s involvement in reviewing internal auditor’s work specifically; providing input for the internal audit plan, reviewing the results of internal auditing related to financial reporting, reviewing the results of internal auditing related to internal control, reviewing the results of internal auditing related to compliance with laws and regulation, reviewing the internal audit involvement in management responses to internal audit suggestions, reviewing the difficulties or scope restrictions encountered by internal auditors and reviewing the coordination between internal auditors and external auditors.  Survey questionnaires were mailed to internal auditors attached to 782 companies listed on Bursa Malaysia’s main market. The results of this study suggest that involvement of audit committee in approving chief audit executives’ matters is insignificant on internal auditors’ contribution to fraud detection.  However, audit committee’s involvement in reviewing internal auditors’ work significantly influence the internal auditors’ contribution in fraud detection.       

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 TACTICAL INPUTS FOR INTERNAL AUDIT PERFORMANCE IN TAX ADMINISTRATION

2019 ◽  
Vol 4 (3) ◽  
pp. 132-134
Author(s):  
Zakariya’u Gurama
Keyword(s):  
Internal Audit ◽  
Vital Role ◽  
Tax Administration ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Efficient Performance ◽  
The World ◽  
Goals And Objectives ◽  
Planned Activities ◽  
Audit Performance

Tactical inputs are strategies that internal auditors in an organization would have required that could induce his auditing performance efficiency. The tactical inputs or strategy are said to be an umbrella of patterns required by an internal auditor to achieve the purpose, goals, and objectives of the auditing functions in respect of planned activities performed in an organization. Setting right audit tactical strategies and implementing them accordingly is one of the main challenges confronting auditing activities and auditors efficiency in achieving their goals and objectives in various organizations around the world (Pitt, 2014). In view of that, internal auditors tactical plans are required to be logically and systematically articulated, well-structured, and feasibility achievable in an organization. Therefore, internal audit tactical strategy is an important mechanism to auditors that play a vital role in achieving an efficient performance of auditing function in striking a balance while performing a predetermined function in an organization (Terra & Passador, 2016).

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.

scholarly journals Job satisfaction of the internal auditor – A field study on the internal auditors in the Kingdom of Saudi Arabia –: الرضا الوظيفي للمراجع الداخلي – دراسة ميدانية على المراجعين الداخليين في المملكة العربية السعودية –

2021 ◽  
Vol 5 (3) ◽  
Author(s):  
Gihan Taha Khalil
Keyword(s):  
Job Satisfaction ◽  
Saudi Arabia ◽  
Audit Committee ◽  
Internal Audit ◽  
Primary Source ◽  
Internal Auditing ◽  
Kingdom Of Saudi Arabia ◽  
Internal Auditor ◽  
Internal Auditors ◽  
The Relationship

The present study aimed to identify the extent of job satisfaction for the internal auditor in the Kingdom of Saudi Arabia where the relationship of the internal auditor with the organization is a complex relationship where on the one hand they must have a sense of independence and objectivity in the performance of their responsibilities and on the other hand their work depends on those who review their work. The population of study are members of the Saudi Association of Internal Auditors. The researcher used the electronic questionnaire as a tool to collect data that was distributed to and the researcher has reached 330 questionnaires. The results of this study contribute to understanding the factors affecting job satisfaction of the internal auditor in the Kingdom of Saudi Arabia in order to find ways to improve and development career and retain professional competencies. The study concluded that the professional and organizational conflict decreased, the study found 55.1% indicating that the internal audit report was submitted to the audit committee, and the objectives of the internal audit agreed with the goals of the organization, as the sample items agreed that salaries are the primary source for obtaining income, and 57.6% asserted that they do not match the volume of work that Assigned by the internal auditor. The study recommended that professional organizations and associations should provide greater support to the profession of internal auditing and the utility of the role of the internal auditor more in line with the internal auditing standards issued by the American Institute of Internal Auditors and providing objective criteria for evaluating the performance of the internal auditor and reformulating the salary structure in proportion to the effort made and developing incentive methods, as well as strengthening, developing and improving the relationship with the internal auditor through appreciation and continuous cooperation and notifying them that they belong to the organization and not working in it only.

scholarly journals Corporate Governance on the Performance of Internal Auditors in Thailand Public Limited Company

2018 ◽  
Vol 6 (2) ◽  
pp. 118
Author(s):  
Sutana Narkchai ◽  
Faudziah Hanim Binti Fadzil ◽  
Sompon Thungwha
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Auditing ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Sarbanes Oxley ◽  
Accounting Scandals ◽  
The Relationship

<em>The issue of performance of internal auditors is important since Thailand was also affected by the accounting scandals. The expanded scope in the definition of internal auditing and new regulatory requirements such as the Sarbanes-Oxley Act 2002 has increased the demands on internal auditing. This study was conducted to examine the relationship between the corporate governance on the performance of internal auditors in Thailand public limited companies. In this study, corporate governance relates to the board of directors size and audit committee size to the performance of the internal auditor. To achieve this objective, two hypotheses were developed based on previous studies and the agency theory. Survey questionnaires were sent to the Chief Audit Executives (CAEs) to determine the effectiveness on their performance based on the professional standards issued by the IPPF (2017) indicators. A total of 520 questionnaires were distributed, but only 146 were usable. Multiple regressions were used to test the relationship between the variables. The result showed that there is insignificant relationship between board of director’s size and internal auditors’ performance. This study however found that audit committee size has a positive relationship on the performance of internal auditors. Therefore, audit committee need to increase higher responsibility with regard to corporate governance by overseeing financial reporting and internal control matters.</em>

scholarly journals Global assessment of internal audit competence: Does one size fit all?

2019 ◽  
Vol 19 ◽  
pp. 1-21 ◽  
Author(s):  
P Coetzee ◽  
L J Erusmus ◽  
K Plant
Keyword(s):  
South Africa ◽  
Internal Audit ◽  
Competency Assessment ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Body Of Knowledge ◽  
The World ◽  
Assessment Of Competence ◽  
The Uk ◽  
Country Specific

The Certified Internal Auditor (CIA) programme is the formal globally recognised test of competence for internal auditors. However, the question is raised whether this assessment of competence has kept up with the changing demands of modern internal auditing, taking into account the fact that demands may differ from one country or region to the next. The fact that Australia, the UK & Ireland and South Africa require qualifications in addition to those of the CIA programme may be attributed to a need for a different level of competence in comparison with the Rest of the World. The objective of the study was to determine whether differences exist between the respective competency level needs for internal auditors from South Africa, the UK and Ireland, Australia and the Rest of the World. Data from the Institute of Internal Auditors’ (IIA’s) latest global Common Body of Knowledge (CBOK) study was used to determine and statistically analyse the perceived levels of importance of general competencies, technical skills and behavioural skills needed by internal auditors. The results indicated that globally internal auditors have similar perceptions of what competencies are most important for internal auditors, but the levels of importance differ among the regions. South Africa demanded a higher level of competence and aligned closely with the UK and Ireland, which could explain why South Africa now needs a customised competency assessment. Australia consistently indicated different perceptions of the levels of importance of competencies, which could explain Australia’s need for a country-specific internal audit competency assessment. Hence one size may not fit all.

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