The Impact of the Professional Competence of the Internal Auditor in Improving the Quality of Accounting: Analytical Study

2021 ◽  
Vol 2 (5) ◽  
pp. 85-99
Author(s):  
Jasim Rahi Kadim ◽  
Yousif Mousa Sabti ◽  
Ghazanfar Ali ◽  
Wameedh A. Khdair ◽  
Karim Hazen Shaltag
Keyword(s):  
Professional Competence ◽  
Stock Exchange ◽  
Internal Audit ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Quality Of Accounting Information ◽  
Private Banks ◽  
Questionnaire Form ◽  
The Impact

The aim of the research is to test the impact of the professional competence of the internal auditor in improving the quality of accounting information (QAI). The research community consists of a group of Iraqi private banks listed in the Iraqi Stock Exchange, and the research sample includes accountants, internal auditors and internal audit managers, and for the purpose of data collection, the researcher prepared a questionnaire form, as (52) forms were distributed to the individuals of the research sample and (49) forms were recovered from them, and the form valid for analysis reached (44) forms. The data of which were analyzed using the statistical package (SPSS). The research reached conclusions, including the existence of a correlation and moral effect between the variables of the research, and among the recommendations made by the research directing banks’ attention to the need to continue holding conferences and seminars in coordination with the competent bodies and academics to develop the capabilities and capabilities of internal auditors in companies.

scholarly journals DETERMINAN EFEKTIVITAS AUDITOR INTERNAL PEMERINTAH (Studi Pada Kantor Inspektorat Provinsi Maluku Utara)

2018 ◽  
Vol 14 (1) ◽  
pp. 55
Author(s):  
Irfan Zamzam ◽  
Suriana AR Mahdi
Keyword(s):  
Career Path ◽  
Internal Audit ◽  
Top Management ◽  
Management Support ◽  
Professional Expertise ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Top Management Support ◽  
Quality Of Work

This study examines the determinants of the effectiveness of internal auditors at the Office of the Inspectorate of North Maluku. Specifically, this study tests; influence of professional expertise, quality of work, independence, perceived career path and top management influence of internal auditor on the effectiveness of internal audit. Analysis was conducted by using multiple regression analysis from 43 respondents. The results showed that; Professional expertise, quality of work, independence and career path affect the effectiveness of internal audit while top management support does not influence the effectiveness of internal audit.

scholarly journals DETERMINAN EFEKTIVITAS AUDITOR INTERNAL PEMERINTAH (Studi Pada Kantor Inspektorat Provinsi Maluku Utara)

2018 ◽  
Vol 14 (1) ◽  
pp. 55
Author(s):  
Irfan Zamzam ◽  
Suriana AR Mahdi
Keyword(s):  
Career Path ◽  
Internal Audit ◽  
Top Management ◽  
Management Support ◽  
Professional Expertise ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Top Management Support ◽  
Quality Of Work

This study examines the determinants of the effectiveness of internal auditors at the Office of the Inspectorate of North Maluku. Specifically, this study tests; influence of professional expertise, quality of work, independence, perceived career path and top management influence of internal auditor on the effectiveness of internal audit. Analysis was conducted by using multiple regression analysis from 43 respondents. The results showed that; Professional expertise, quality of work, independence and career path affect the effectiveness of internal audit while top management support does not influence the effectiveness of internal audit.

scholarly journals Current Planning for Internal Audit of Risk Assessment of the Company Activities

2020 ◽  
pp. 48-57
Author(s):  
М. SHYGUN
Keyword(s):  
Effective Interaction ◽  
Internal Audit ◽  
Economic Security ◽  
Management Control ◽  
Operating Conditions ◽  
Financial Indicators ◽  
Internal Auditors ◽  
Working Plan ◽  
The Impact

Lack of management control of the activity risks creates critical operating conditions for the enterprise, in which the financial indicators may change unexpectedly and unfavorably. Avoidance of the risks of an entity's activity is possible if effective interaction is made primarily between economic security and internal audit departments. Productive work of internal auditors to identify, evaluate and reduce the impact of risks on the performance of the enterprise is possible with its proper organization. The article describes the key principles for planning the activities of internal auditors to ensure the quality of audit procedures. Approaches to the organization and planning of the Internal Audit Department's work on identifying risks of the entity's activities, minimizing them and preventing them in the future are disclosed. A working plan for the application of audit procedures in the department of accounting, cashier and warehouse is presented, which demonstrates procedures for identifying and assessing such types of risks as market, payment, currency, financial, tax, credit, loss of assets. The working plan of the audit procedures developed contains the most effective procedures, depending on the objects of the audit, determines the scope of the audit, the procedure of its carrying out, responsible executors, the terms of the procedures. The use of the following suggestions for the planning of internal audit allows to apply qualitatively different forms and methods of audit, types of audit procedures, specialize the audit activities, correctly establish the order of audits, take into account the results of audit in the preparation and approval of various types of enterprise reports.

scholarly journals The Effect of Corporate Governance in Palestine on the Efficiency of Internal Audit: Empirical Evidence

2016 ◽  
Vol 8 (5) ◽  
pp. 124 ◽  
Author(s):  
Suhaib Tawfiq Jarrar
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Audit Quality ◽  
Internal Audit ◽  
Public Companies ◽  
Internal Auditor ◽  
The Right ◽  
The Impact

This paper comes to examine the impact of corporate governance in Palestine on the efficiency of internal audit from the reality of the listed corporations in the Palestine Exchange; [PEX]. The population of this paper consists of all the 25 listed Palestinian companies in the Palestine Exchange that have internal auditor. It also includes another 5 companies that rely on the internal audit by external companies. Hence, the number of the reviewed companies by this study is 30 companies (Palestine Exchange Market). Thereupon, 30 questionaires were distributed and retrived. However, this manuscript states a summary of the most important results. These results are explained as is shown in the following: (1) the findings of the study state that there is an effect of applying the variables of corporate governance altogether on the quality of the internal audit of the listed public companies in the Palestine Exchange. These rules are (disclosure and transparency, accountability, responsibility, justice, and independency). (2) The results of the study indicate that there is a significant effect of applying the corporate governance variables individually on the quality of the internal audit of the listed public companies in the Palestine Exchange. Thus, the effect of these variables appears contrasted respectively as the following: disclosure and transparency, justice and accountability, independency and responsibility. (3) The corporate governance represents combining the right practices and procedures which operate within the standards and rules that governed by the obligatory standards. These standards aim at ensuring that there aren’t any contradictions between the strategic goals of the company and the fuctional procedures of the administration in achieving these goals. (4) The internal audit adds value to the company through the functions that enhance its performance within corporate governance. This includes providing information to all levels of the management, evaluating the system of the internal control and the risk management, in addition to sticking the company with the principles of corporate governance. The findings of the study come up with the following recommendations: (1) the study assures the importance of applying the corporate governance principles because of their clear effect on the internal audit quality. It also recommends working efficiently on the professional development of the auditors and improving their performance through training programs, as well, encouraging them to keep up with the latest developments in the field of the auditing and other related fields. (2) It strongly recommends working on enhancing and activating the role of the board of directors and the audit committee; as well as granting them the independency. Hence, they will be able to carry out the tasks assigned to them. Consequently, they will avoid the effects that the company may be exposed to as a result of the internal weakness of the practical aspects of the principles of corporate governance; in addition to the negative impacts of this issue on the quality of the internal audit.

Influence of audit committees on internal audit conformance with internal audit standards

2015 ◽  
Vol 30 (6/7) ◽  
pp. 539-559 ◽  
Author(s):  
Abdulaziz Alzeban
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Middle Eastern ◽  
Internal Audit ◽  
International Standards ◽  
Audit Committees ◽  
Content Type ◽  
Internal Auditors ◽  
The Impact ◽  
Audit Standards

Purpose – This study aims to provide empirical evidence of the association between audit committee characteristics and internal audit conformance with the International Standards for the Professional Practice of Internal Auditing (ISPPIA). Design/methodology/approach – Seventy-four usable responses were received from a survey of chief internal auditors (CIAs) from Saudi companies listed on the Saudi Stock Exchange. Findings – The results indicate that audit committee characteristics (the presence of independent members on the committee, members’ expertise in auditing and accounting and meeting with the CIA) influence internal audit conformance with the ISPPIA. Additionally, they demonstrate that such conformance is also influenced by CIA tenure. Practical implications – The findings of this study also have significant implications for audit committees wishing to improve their overall effectiveness, by identifying the impact of the committee’s characteristics on internal audit conformance with the ISPPIA. Originality/value – The results add to the literature on internal audit standards by introducing a Middle Eastern perspective and simultaneously providing insights for companies in their attempts to adhere to the international standards, hence, supporting efforts towards good corporate governance.

Internal audit quality: perceptions of Tunisian internal auditors an explanatory research

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aida Krichene ◽  
Emna Baklouti
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Access To Information ◽  
Quality Model ◽  
Internal Auditor ◽  
Content Type ◽  
Internal Auditors ◽  
External Auditor ◽  
The Relationship

Purpose The purpose of this study is to understand how internal auditors perceive the internal audit quality and to highlight the different profiles of internal auditors based on their perception of internal audit quality determinants. Design/methodology/approach The authors’ methodological approach is based on the submission of a self-administered questionnaire. The final sample consists of 104 internal auditors. The first stage of the study is in the lead of a certified public accountants (CPA), which highlights seven factors of the internal audit quality. The second step is a confirmatory factor analysis (CFA) that allowed the authors to validate the model proposed by the CPA. Finally, the authors carry out a typological analysis of the auditors according to their way of perceiving the factors extracted by the CPA. Findings The authors’ model, validated by the CFA, shows that the knowledge of the internal auditor, the independence of reporting, compliance with professional standards of internal audit, the relationship with the external auditor, the personal relationship of the internal auditor, the access to information and the field of intervention of the internal auditor have a positive association with the internal audit quality but with a different degree of significance. For example, the field of intervention of the internal auditor and the access to information explain better the internal audit quality. However, the knowledge of the internal auditor and the relationship with the external auditor are not significant to explain the internal audit quality. From the hierarchical cluster analysis, four groups of internal auditors emerged: the autonomous, the perfectionists, the rigorous ones and the objectives. Originality/value In offering these findings, the paper contributes to the existing internal audit literature by introducing evidence from an emerging country, namely, Tunisia, of the internal audit quality model. In addition, the authors proposed a new measure to the internal audit quality model which is the use of the work of the internal auditor by the external auditor. This study is also interesting to managers and professional internal audit organizations in recognizing the characteristics of the quality of the internal audit and advance reflections on the effectiveness of internal audit practices. The authors’ study proposes a typology of certified internal auditors through their perceptions of the quality of the internal audit while taking into account the specificities of the Tunisian audit market. This provides insights to managers and audit committees on the measures necessary to ensure the relevance of the internal audit work within their companies.

Internal auditor communications: an experimental investigation of managerial perceptions

2019 ◽  
Vol 34 (4) ◽  
pp. 462-485 ◽  
Author(s):  
Maia Farkas ◽  
Rina Hirsch ◽  
Julia Kokina
Keyword(s):  
Internal Audit ◽  
Audit Report ◽  
Communication Mode ◽  
Internal Auditor ◽  
Content Type ◽  
Internal Auditors ◽  
Root Cause ◽  
Report Quality ◽  
Managerial Perceptions

Purpose The purpose of this paper is to examine potential determinants of management’s agreement with internal auditor recommendations of an interim assurance engagement. Design/methodology/approach The experiment involved a 2 × 2 × 2 design with internal auditor gender, mode of communication and root cause variables randomly assigned to 228 experienced managers. Findings When the internal auditor includes a root cause for an identified deficiency in an internal audit report, management perceptions of the quality of that report improve. The gender of the internal auditor who communicates the audit finding with management does not significantly impact management’s perceptions. Additionally, communicating the internal audit report via e-mail instead of videoconference results in improved managerial perceptions of the quality of the internal auditor. While improvements in perceptions of internal auditor quality lead to greater agreement with internal auditor recommendations, improvements in perceptions of report quality lead to greater implementation of internal-auditor-recommended remediation strategies. Research limitations/implications The operationalization of the manipulated variables of interest (communication mode, gender and root cause) may limit the generalizability of the study’s results. Practical implications The paper includes managerial implications for internal auditors’ choice of communication mode and inclusion of a root cause in interim internal audit reports. Originality/value This study provides evidence on the factors that could improve management’s perceptions of internal auditors’ work. The findings can help organizations, such as the Institute of Internal Auditors, to better understand how to address the needs of those who communicate with internal auditors.

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.

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