scholarly journals Factors Influence Internal Audit Effectiveness

2017 ◽  
Vol 12 (10) ◽  
pp. 143 ◽  
Author(s):  
Dhiaa Shamki ◽  
Thuraiya Amur Alhajri
Keyword(s):  
Public Sector ◽  
Board Of Directors ◽  
Social Insurance ◽  
Descriptive Analysis ◽  
Internal Audit ◽  
Sultanate Of Oman ◽  
The Board Of Directors ◽  
And Performance ◽  
Audit Effectiveness ◽  
Audit Standards

This study aims to examine to what extent internal audit effectiveness could be influenced by selected factors namely internal audit scope, internal auditor’s experience and senior management's response in the Omani public sector. Employing questionnaire including four sections with 48 questions for responds of 45 managers and 163 employees in Public Authority for Social Insurance (PASI) in the Sultanate of Oman, descriptive analysis, correlation analysis, and multiple regressions were employed to examine the relationships among the study’s variables. The study found that a significant relationship between internal audit effectiveness and its scope and auditors’ experience in the employees’ sample while they were insignificant in the managers’ sample. Finally, it is found that there is insignificant relationship between internal audit effectiveness and senior management's response. Based on the findings, an awareness has to be maximized on employees to better cooperate with internal audit staff to improve the applications of internal audit standards. Managers are well interested in organization’s activities and performance depending on the internal audit findings and observations. The board of directors has to take in its considerations the reasons of these insignificant results if the reasons are not related to the small size of the managers’ sample. The study’s contribution is to provide evidence regarding the influence of three mentioned factors on the internal audit effectiveness in public sector.

scholarly journals Penerapan Asas Piercing The Corporate Veil: Perspektif Tanggung Jawab Direksi Perseroan Terbatas

2018 ◽  
Vol 1 (1) ◽  
pp. 45
Author(s):  
Putri Sari Harahap ◽  
Tumanggor Tumanggor
Keyword(s):  
Board Of Directors ◽  
Common Law ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Good Faith ◽  
Fiduciary Duty ◽  
Legal Research ◽  
The Board Of Directors ◽  
Piercing The Corporate Veil ◽  
The Veil

<p>Piercing The Corporate Veil principle is a common law doctrine that teaches about the veil special breakout company (corporate veil) covering the Board of Directors and other organs in running the company does not fit or have violated the principle of fiduciary duty (good faith) to the intent and purpose of the company.This type of research in this thesis is a normative legal research means tend to use secondary data in the form of primary legal materials, secondary law and tertiary  legal materials. To collect the data in this research is a stud y done by the descriptive analysis. The resulted in losses for both the company and third parties, First Defendant's actions can be categorized  as a tort (onrechtmatige daad) under Article 1365 of the Civil Code. In the verdict the judge in his ruling has been applying the principle of piercing the corporate veil but does not necessarily resolve the matter of debts between the Compa- ny (Plaintiff) with rights holders of promissory notes "mayofield notes" or the Board of Directors (Defendant 1) with the holders of promissory notes " mayofield note.</p><p>Keywords: Piercing the corporate veil, directors fiduciary duty</p>

scholarly journals The state of internal audit’s regulatory mandate

2016 ◽  
Vol 6 (3) ◽  
pp. 93-99
Author(s):  
Christo Ackermann
Keyword(s):  
Board Of Directors ◽  
South African ◽  
Best Practice ◽  
Internal Audit ◽  
Audit Committees ◽  
Detailed Review ◽  
Internal Audit Function ◽  
Key Stakeholders ◽  
The Board Of Directors ◽  
State Of Affairs

The importance of an effective internal audit function in South African municipalities have been recognised insofar as internal audit functions are legally mandated to exist within municipalities. This also means that legally, internal audit has certain mandates which must be fulfilled in order to add value to management and audit committees, and ultimately, to the board of directors. Even though internal audit is sanctioned by this important legal mandate, evidence shows that internal audit does not always fulfil this mandate. This state of affairs has prompted a detailed review of the relevant laws and regulations governing the work of internal audit in South African municipalities in order to determine the extent to which key stakeholders find the regulatory work of internal audit useful in discharging their (stakeholders’) oversight responsibilities. Questionnaires were administered to audit committees. The results summarise the extent to which internal audit’s work assists audit committees in their oversight responsibilities as this ultimately affects the ability of audit committees to fulfil these responsibilities to the board of directors. The results indicate that audit committees are greatly dependent on internal audit as a provider of assurance on a variety of legally mandated variables. The results of this study can be used as a measure of best practice of the legally mandated duties performed by internal audit. It can also be used by other researchers in comparative studies and by practitioners to benchmark their work in order to better serve audit committees and ultimately, the board of directors.

scholarly journals Corporate Governance and Performance of Audit Committee and Internal Audit Functions in an Emerging Economy’s Public Sector

2020 ◽  
Vol 13 (1) ◽  
pp. 85-98
Author(s):  
Shewangu Dzomira
Keyword(s):  
Corporate Governance ◽  
Public Sector ◽  
Audit Committee ◽  
Qualitative Content Analysis ◽  
Internal Audit ◽  
Audit Committees ◽  
The Public ◽  
Effective Performance ◽  
And Performance ◽  
Management Audit

This article seeks to examine corporate governance and the performance of audit committee and internal audit functions in an emerging economy’s public sector. These two functions form a part of imperative corporate governance aspects, and their effective performance ensures better service delivery by public sector agencies. The study is premised on stakeholder theory, which has turned out to be the central point of public sector discourses. The study is based on qualitative content analysis, which aspires to present information about corporate governance and effectiveness of audit committees and internal audit units in South Africa’s public sector. The findings suggest that there is good corporate governance in terms of the existence of audit committees and internal audit functions in the public sector. However, the results suggest that the audit committees and internal audit units in South Africa’s public sector are not effective. Absence of advice, implementation of recommendations and inadequacy of resources have undermined the performance of audit committees and internal audit units in South Africa’s public sector. The leadership and other assurance bringers ought to consider the findings elevated by the audit committees and internal audit and execute their commendation. Their findings should be urbanised into action plans that are implemented by management. Audit committees must improve their oversight on internal audit functions so that both units would effectively perform. The subsistence of successful audit committee and internal audit components in the public sector certifies proficient and effectual exploitation of resources for the gain of all stakeholders.

scholarly journals Roles of board of directors: Evidence from Malaysian listed companies

2009 ◽  
Vol 5 (1) ◽  
pp. 22-36 ◽  
Author(s):  
Hasnah Kamardin ◽  
Hasnah Haron
Keyword(s):  
Firm Performance ◽  
Board Of Directors ◽  
Firm Size ◽  
Descriptive Analysis ◽  
Listed Companies ◽  
Annual Reports ◽  
Outside Directors ◽  
Test Analysis ◽  
Governance Practices ◽  
The Board Of Directors

This study examines the extent of roles played by the board of directors (BOD) in Malaysian listed companies and the significant differences on the roles based on the company characteristics and board characteristics: firm size, leverage, growth, firm performance (ROA), family controlled companies, and CEO duality. Data are gathered from two sources whereby questionnaires are used to ascertain the extent of BOD participation in the board roles in the financial year 2006 and companies’ annual reports are used to gather financial and board data. Using a sample of 112 companies, descriptive analysis shows that BOD mostly performs greater monitoring roles, other than performance evaluation. Strategy roles focus more on reviewing company’s strategic plan and defining company’s vision. Outside directors are required to focus on protecting shareholders’ interests, provide a balanced view, and have strategic thinking capabilities. The results of t-test analysis indicate that to some extent the roles played by the BOD are significantly different in terms of firm size, firm performance and family companies. The results have some implications to the corporate governance practices.

scholarly journals Successor CEO Functional And Educational Backgrounds: Influence Of Predecessor Characteristics And Performance Antecedents

2016 ◽  
Vol 32 (4) ◽  
pp. 1179-1198 ◽  
Author(s):  
Eahab Elsaid ◽  
Bradley W. Benson ◽  
Dan L. Worrell
Keyword(s):  
Board Of Directors ◽  
Institutional Investor ◽  
Firm Characteristics ◽  
Educational Backgrounds ◽  
Prior Performance ◽  
The Board Of Directors ◽  
And Performance ◽  
Ceo Characteristics ◽  
Selection Of

This study seeks to examine if boards consider CEO educational and functional background when choosing a new CEO. It also examines which factors determine whether the board of directors will seek an incoming CEO with a different educational and/or functional background from that of the current CEO. Using a sample of 832 successions between 1992 and 2009, we found that the outgoing CEO characteristics and the firm characteristics influence the selection of the incoming CEO functional backgrounds. We found an increase in the likelihood of firms hiring incoming CEOs with the same functional backgrounds as the outgoing CEOs. Incoming CEOs with functional backgrounds in engineering/manufacturing are more likely to be hired by research-oriented firms.Incoming CEOs with functional backgrounds in accounting/finance are more likely to be hired by poorly performing firms. We also find that firms are more likely to change the functional background of the successor relative to the predecessor when there has been poor prior performance and the firm has higher institutional investor ownership.

scholarly journals Analysis of Competence and Independence of Internal Auditor on Internal Audit Quality

2020 ◽  
Vol 5 (2) ◽  
pp. 96-102
Author(s):  
Leriza Desitama Anggraini
Keyword(s):  
Board Of Directors ◽  
Internal Control ◽  
Audit Quality ◽  
Task Force ◽  
Internal Audit ◽  
Study Data ◽  
Internal Auditor ◽  
The Board Of Directors ◽  
Operational Activities

Research is conducted with the aim of analyzing competencies and independence affecting the quality of audits in the company. The company's extensive scope restricts management and the board of directors from conducting direct oversight of internal and external activities in each of the company's operational activities. Therefore, management and the board of directors need a task force tasked with overseeing and examining the company's operational activities in order to improve internal control effectively and efficiently. There are still many problems of independence among internal auditors to date due to the position of internal Auditor working for management or working for the company. Research is carried out with a quantitative approach and with descriptive methods. The design of the research is a case study. Data collection techniques are carried out by questionnaire method and document inspection. Based on the results of the study concluded there is an influence of competence and independence on the quality of internal audits.

scholarly journals THE IMPACT OF CORPORATE GOVERNANCE STRUCTURE ON THE EXTERNAL AUDIT FEE IN SHARIA SHARES

2021 ◽  
Vol 31 (1) ◽  
pp. 1
Author(s):  
Abdul Rasid
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Hypothesis Test ◽  
Panel Data Analysis ◽  
Internal Audit ◽  
Audit Committees ◽  
Audit Fee ◽  
The Board Of Directors ◽  
Average Size ◽  
The Impact

Introduction: This study aims to determine the impact of corporate governance structures on external fees in sharia stocks that are consistently listed in JII in 2013-2018.Methods: The number of samples in this study recorded 12 consistent sharia stocks listed in the years 2013-2018. This study uses a quantitative approach with panel data analysis method.Results: The results show that the average size of the board of commissioners is six to seven people, the average size of the board of directors is seven to eight people, the average size of the audit committees is three to four people, and the average size of the internal audit is fifteen to sixteen people. The hypothesis test shows that variables which have a significant impact on the audit fee are the size of the board of commissioners and the internal audit. Meanwhile, the size of the board of directors and the audit committees do not have a positive impact on audit fees.Conclusion and suggestion: Companies use more funding from debt than their own capital. Judging from the liquidity ratio, it shows that the company is in a liquid state, which is very capable of fulfilling obligations or debts that must be immediately paid by the company.

scholarly journals The Effect of Corporate Governance, Leverage, and Liquidity on Islamic Social Reporting (ISR) Disclosure in Islamic Commercial Banks in Indonesia

2018 ◽  
Vol 8 (2) ◽  
pp. 121
Author(s):  
Dinna Riyani
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Social Reporting ◽  
Analysis Method ◽  
Performance Reporting ◽  
Final Sample ◽  
The Board Of Directors ◽  
Islamic Financial Institutions

Islamic Social Reporting is the standard index of performance reporting in sharia-based companies. This index was born on the basis of reporting standards based on AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions). The objective of this research was to knowing the extent of Corporate Governance, leverage dan liquidity of Islamic Social Reporting Disclosure (ISR). The independent variables were used in this study is The Board of Comisionner, The Board of Directors, The Audit Comitte, Sharia Supervisory Boad, leverage and liquidity, while the dependent variable is the ISR disclosure. Samples were taken by using census sampling technique. The final sample as many as 12 islamic bank in Indonesia on 2012-2016. Data analysis method of the data used in this research is descriptive analysis, classical assumption test, and multiple linear regression using SPSS 23 for windows. The results of this study showed that The Board of Comisionner and liquidity has effect ISR disclosure. The Board of Directors, The Audit Comitte, Sharia Supervisory Boad, leverage does not affect the ISR disclosure.

scholarly journals Board, governance and firm performance: Are financial intermediaries different?

2011 ◽  
Vol 8 (2, Special issue) ◽  
pp. 60-68 ◽  
Author(s):  
Marina Brogi
Keyword(s):  
Firm Performance ◽  
Board Of Directors ◽  
Financial Intermediaries ◽  
Board Governance ◽  
Return On Assets ◽  
Board Size ◽  
Financial Firms ◽  
The Board Of Directors ◽  
And Performance ◽  
The Relationship

Drawing on Agency Theory this article investigates the relationship between board size and European firms’ performance. The focus is on the implicit differences between financial and non-financial firms. In particular the paper addresses the following questions: does board size influence firm performance? Is financial intermediaries’ corporate governance different from that of non-financial companies? The study analyses the governance of the largest listed European companies which make up the Eurotop 100 index. Companies come from 12 different countries and are subject to different regulatory and self-discipline codes. Referring to the Eurotop index the focus is on the relation between the overall size of the board of directors and the level of performance measured as Tobin’s Q and Return on Assets. Diverging results emerge depending on the typology of the firm. In particular, results suggest that for non-financial companies large boards negatively influence firm performance, whereas financial intermediaries seem to be different because of the non-relation between their board size and performance.

scholarly journals Remuneration, risk and performance in Italian companies: An empirical analysis on systems of remuneration in the board of Italian listed companies

2011 ◽  
Vol 9 (1) ◽  
pp. 294-304
Author(s):  
Marco Artiaco
Keyword(s):  
Board Of Directors ◽  
Listed Companies ◽  
Company Performance ◽  
Global Regulators ◽  
Academic Literature ◽  
The Board Of Directors ◽  
Recent Financial Crisis ◽  
And Performance ◽  
The Impact ◽  
The Relationship

The recent financial crisis highlighted the issue of Board of Directors compensation, which had been analyzed by many authors. In fact, there is a vast academic literature on the impact of the compensation of Board of Directors on corporations characterized by the separation of ownership from control. The compensation of Board of Directors has been a subject of debate, also by global regulators like OECD, FSB, Central Bank of Italy and European Commission and many are pushing for an international uniform regulation. This paper aims to investigate the relationship between the board of Directors compensation, the company performance and the risks decided by the Board. The article analyses a sample of Italian listed companies in order to test wether or not the Board of Directors compensation structure could turn into a performance incentive, given the risk taken.

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