scholarly journals The Impact of Internal Audit Committees’ Practices on Enhancing the Independence of Internal Auditors in Jordanian Commercial Banks

2018 ◽  
Vol 13 (5) ◽  
pp. 156
Author(s):  
Khalil Abu Saleem
Keyword(s):  
Commercial Banks ◽  
Internal Audit ◽  
Audit Committees ◽  
Internal Auditing ◽  
Economic Sectors ◽  
Internal Auditors ◽  
External Auditors ◽  
Descriptive Approach ◽  
The Impact

Purpose: This study aim to explain the impact of the audit committees' practices on enhancing the independence of internal auditors in Jordanian commercial banks from the perspective of external auditors.Design / methodology / approach: The statistical descriptive approach was used, the data were collected through a questionnaire designed by the researcher, which targeted the external auditors of (90) individuals. The study included four axes, three of which were allocated to measure the internal audit committees' responsibilities, functions and powers, while the fourth axis was devoted to measuring the independence of the internal auditing bodies.Results: The study found that there is a statistically significant relationship to the internal audit committees' practices in enhancing the independence of the internal auditing bodies; also the role of the audit committees has been the main impact in enhancing this independence.Recommendations: the study recommends enacting and modifying laws to enhance the independence of the audit committees to supervise all matters related to internal auditors.Originality / Value: According to the researcher, this study is one of the first studies that dealt with the practices of the audit committees combined, therefore it is useful for researchers that motivating them to conduct further research on the practices of audit committees in other economic sectors.

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.

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 An Examination Of Underreporting Of Time And Premature Signoffs By Internal Auditors

2010 ◽  
Vol 14 (4) ◽  
Author(s):  
Qianhua (Q) Ling ◽  
Michael D. Akers
Keyword(s):  
Internal Audit ◽  
Internal Controls ◽  
Professional Skepticism ◽  
Internal Auditors ◽  
External Auditors ◽  
Considerable Research ◽  
Internal Audit Function ◽  
Sarbanes Oxley ◽  
Audit Team ◽  
The Impact

The passage of the Sarbanes-Oxley Act of 2002 (SOX) heightened the importance of internal controls and accordingly, a key control - the internal audit function.  Consequently, management and external auditors have both increased their reliance on internal auditors’ work.  While there has been considerable research regarding the impact of the underreporting of time and premature sign-offs on the external audit, there has only been one study that has examined the impact of these two items on the internal auditors’ work.  Such research is dated (1994) and prior to the passage of SOX.  We surveyed members of the Institute of Internal Auditors (IIA) in the Midwest to examine their behavior and perceptions regarding these two items.  The respondents in our study believe the underreporting of time is unethical and is supported by their reporting of all time worked, even if such time exceeded the budget.  Our findings also show that the respondents feel premature sign-offs are unethical and result primarily from lack of professional skepticism and inadequate training.  Increasing training in audit areas and improving communications within the audit team are possible solutions to reduce premature sign-offs.  Premature sign-offs are more likely to occur in operational audits and to a lesser degree in financial audits and compliance audits. 

Attracting Applicants for In-House and Outsourced Internal Audit Positions: Views from External Auditors

2015 ◽  
Vol 30 (1) ◽  
pp. 143-156 ◽  
Author(s):  
Geoffrey D. Bartlett ◽  
Joleen Kremin ◽  
K. Kelli Saunders ◽  
David A. Wood
Keyword(s):  
Critical Role ◽  
Internal Audit ◽  
Job Applicants ◽  
Internal Auditing ◽  
Internal Auditors ◽  
External Auditors ◽  
Internal Audit Function ◽  
Career Option ◽  
Negative Perceptions ◽  
Survey Results

SYNOPSIS While the internal audit function (IAF) plays a critical role in organizations, it faces challenges in finding sufficient numbers of high-quality job applicants to fill its ranks. The results of two experiments suggest that practicing external auditors are twice as likely to apply for positions that are labeled as accounting positions rather than either in-house or outsourced internal audit positions. The results also suggest that external auditors have negative perceptions of the profession and work environment of internal auditors—especially in-house internal auditors relative to outsourced internal auditors—and are more likely to recommend that mediocre rather than top students apply to work in internal auditing. We also provide survey results from experienced external auditors about aspects of internal auditing that may be improved to make it a more attractive career option. Taken together, the results suggest internal auditing faces significant hiring challenges, but also offer ways to mitigate these challenges.

Internal Audit Structure and Fraud Risk Assessment From a Regulatory Perspective

2019 ◽  
pp. 302-332
Author(s):  
Lale Aslan
Keyword(s):  
Risk Assessment ◽  
Portfolio Management ◽  
Internal Audit ◽  
Internal Auditors ◽  
Fraud Risk ◽  
Critical Areas ◽  
Regulatory Perspective ◽  
Descriptive Approach ◽  
Audit Standards

This chapter aims to depict the role of internal audit in Turkish capital markets by comparing the internal audit structure and its role in detecting fraud in financial institutions and developing a framework for assessing fraud risk in intermediary institutions. The newly constructed regulations concerning banks, intermediary institutions, and portfolio management companies are compared to a global benchmark by using a conceptual and descriptive approach. According to the results of this comparison, it is clear that Turkish legislation needs to be improved in critical areas. “Integrity” should be incorporated as a founding concept of the internal audit function. Certification of internal auditors needs to be encouraged, and internal audit standards need to be adapted. As a result, a fraud risk assessment template influenced by the new regulatory framework is developed for intermediary institutions.

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.

scholarly journals Building a Research Model and Hypotheses Development for Internal Audit Consulting: Insights from Literature and Findings of Exploratory Interviews

2018 ◽  
Vol 10 (2) ◽  
pp. 1257-1283
Author(s):  
Suhaily Shahimi ◽  
Nurmazilah Mahzan
Keyword(s):  
Literature Review ◽  
Internal Audit ◽  
Stewardship Theory ◽  
Research Model ◽  
Growth Opportunities ◽  
Detailed Review ◽  
Internal Auditors ◽  
And Performance ◽  
The Impact

This study identifies two main variables and one moderating variable that have an influence on the consulting role of internal auditors and the impact on a firm’s growth opportunities and performance and specifies how each of them can exert its influence. This study is based on a literature review, underlying theory that is stewardship theory and findings of exploratory interviews by the present researcher; and contributes to the literature by developing a specific and structured research model. Firstly, it explains the development of hypotheses based on the literature and findings of exploratory interviews. It presents a detailed review of the variables influencing the internal audit consulting in which it gives an impact on the firm’s growth as well as the performance. Finally, the theoretical linkages between each relationship in the framework of this study are presented in this study. 

DEVELOPMENT AND THE CURRENT PROFILE OF INTERNAL AUDITING – THE RESULTS OF THE TWO EMPIRICAL STUDIES IN SLOVENIAN ORGANISATIONS

2006 ◽  
Vol 12 (2) ◽  
pp. 55-69
Author(s):  
Marjan Odar ◽  
Bojana Korošec ◽  
Robert Horvat
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Work Experience ◽  
Empirical Studies ◽  
Internal Audit ◽  
Developed Countries ◽  
Internal Auditing ◽  
Current Profile ◽  
Internal Auditors

Results of (the first) two empirical studies with the aim to reveal the state-of-the-art and development of internal audit in Slovenia are presented in the article. Internal auditing, one of the cornerstones in modern corporate governance, has a relatively short tradition in this new EU member country. Nevertheless, beside the first and mandatory established internal audit units, which were initiated by the corresponding industry’s laws in financial services in the early 90s, there is already evidence of a significant and growing number of non-mandatory, voluntary established internal auditing units in other industries. And a variety of internal audit practices regarding establishment, reporting lines, size and scope of work performed by internal audit units, and professional qualifications of internal auditors characterizes the current profile of internal auditing in Slovenian organisations. It can be concluded that internal auditing in Slovenia is following the trends of practice in developed countries, although, in some cases internal auditors are facing problems, mainly due to their lack of work experience, to (un)professionality of corporate governing bodies, and to top management’s lack of awareness or even misunderstanding of the role of internal auditing in corporate governance.

The Role Of Audit Committee Independence, Auditor Tenure, And Their Interaction On Managers’ Accounting Discretion

2011 ◽  
Vol 19 (4) ◽  
Author(s):  
Ho Young Lee
Keyword(s):  
Audit Committee ◽  
Audit Committees ◽  
Negatively Associated ◽  
External Auditors ◽  
Auditor Tenure ◽  
Incremental Effect ◽  
The Impact ◽  
Independent Audit

This study examines the role of audit committee independence and auditor tenure on client managers’ accounting discretion. It also examines the impact of the interaction between independent audit committees and long lasting auditors on managers’ accounting discretion. The results show that independent audit committees lower managers’ accounting discretion and auditor tenure is negatively associated with managers’ accounting discretion. In addition, this study provides evidence that the interaction between independent audit committees and external auditors having long-term relationships has an incremental effect on the managers’ reporting flexibility.

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