The Effect of Internal Auditors’ Involvement in Enterprise Risk Management on Internal Audit Objectivity: Evidence from Malaysia

2018 ◽  
Vol 6 (3) ◽  
pp. 1-11
Author(s):  
Mahmoud Kertali ◽  
Sulaiman Tahajuddin
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Internal Auditors ◽  
Enterprise Risk

scholarly journals Peran Internal Audit dalam Implementasi Enterprise Risk Management berupa Pelaporan Kerusakan Prosedur Risiko.

2020 ◽  
Vol 14 (2) ◽  
Author(s):  
Indarti Indarti
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Audit Committees ◽  
Corporate Risk Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Enterprise Risk ◽  
Management Procedures ◽  
Corporate Risk

Implementation of Enterprise Risk Management (ERM) by Internal Audit in an orga-nization or company becomes important because Internal Audit is expected to help the organization achieve its objectives by approaching systematic and discipline to evaluate and improve the effectiveness of risk management, control, and governance process. As for which affects it is the involvement of internal auditors, the relation-ship of the audit committee with the internal auditor, and ERM.This study aims to analyze the involvement of Internal Audit in Enterprise Risk mana-gement implementation. Internal auditors should assist both management and audit committees in risk management responsibilities and supervisory roles by examining, evaluating, reporting and recommending improvements to the adequacy and effec-tiveness of risk management processes. An interesting issue is whether internal auditors involved in corporate risk management have a link to the willingness of internal auditors to report to the audit committee.The population in this study are the internal auditors and audit committees who working in companies manufacturing and financial services. The reason for determining the company is because the researcher wants to know how internal audit is involved in ERM implementation on that entity. The sample used in this research is internal auditor at private company and at Banking in this case internal auditor at local bank.The analytical method used is multiple regression analysis with SPSS version 23 pro-gram. The analysis technique used in this research is descriptive statistical analysis, classical assumption test, F-statistic hypothesis test to test influence together with 5% confidence level and use t-statistics to test partial regression coefficients. This re-search was conducted to analyze how much influence the role of Internal Audit in applying Enterprise Risk Management in the implementation of Audit.The result of this research is that the high level of internal auditor involvement in Enterprise Risk management implementation has no significant and significant im-pact on reporting of damage to risk management procedures. This indicates that the role of internal auditors in corporate risk management does not affect the reporting of damage to corporate risk management procedures. While the characteristics of strong relationships between internal auditors and audit committees positively and significantly influence the reporting of risk procedures, this indicates that internal audits that have strong internal audit-audit committee relationships strongly support internal auditors who have high involvement to report damage Greater risk procedures.

Core and Legitimate Roles of Internal Audit Function and Enterprise Risk Management: Propositions for Future Research

2019 ◽  
Vol 10 (9) ◽  
pp. 891-901
Author(s):  
Suaad Jassem ◽  
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Corporate Scandals ◽  
The Core ◽  
Enterprise Risk ◽  
Core Components ◽  
The Impact

In the aftermath of global corporate scandals at the start of the new millennium government policy makers and international regulatory organizations launched several initiatives to anticipate and mitigate the impact of enterprise risk that can seriously damage economies of nations and bankrupt globally recognized companies. The typical roles of internal auditors have failed to prevent frauds and financial crimes from taking root in organizations. As a result, paradigms such as Enterprise Risk Management took centre-stage and became vital considerations and organizations such as the Institute of Internal Auditors along with other global platforms such as the Committee of Sponsoring Organizations of the Treadway Commission to address the issue of enterprise risk. However, despite all these measures new corporate scandals have emerged, inviting scope for further investigation on matters such as how defined internal audit functions relate to Enterprise Risk Management. This paper proposes a conceptual link between the core and legitimate roles of internal auditor function and enterprise risk management. The roles of internal auditor function are based on the Institute of Internal Auditors Position Paper (2009) and the core components of Enterprise Risk Management are identified based on the Committee of Sponsoring Organizations (2017) Enterprise Risk Management Integrated Framework. This study further proposes a set of propositions suggesting the possible association of the core and legitimate roles of internal auditors on the five core components of Enterprise Risk Management. The output of this study is expected to lay the foundation for further empirical studies to develop a finer-grained understanding of how internal auditor function roles relate to Enterprise Risk Management implementation.

scholarly journals The Effectiveness of Enterprise Risk Management and Internal Audit Function on Quality of Financial Reporting in Universities

2017 ◽  
Vol 9 (4(J)) ◽  
pp. 230-241
Author(s):  
Wadesango N ◽  
Mhaka C.
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
State Universities ◽  
Internal Audit Function ◽  
Enterprise Risk ◽  
The Impact

This study examined the impact of enterprise risk management (ERM) and internal audit function (IAF) on the financial reporting quality (FRQ) of state universities in Zimbabwe. Utilizing a dataset of 250 respondents from across nine (9) state universities, the researchers examined the effectiveness of ERM and the IAF on the quality of financial reporting in state universities. The researchers employed the contingency theory and studied each university separately to report on items that are specific to each and then also establish a commonality in the definition of parameters to be used in setting up the benchmark against which future performance may be measured. The findings were that there is a strong and significant relationship between ERM and the FRQ and also that there is a positive relationship between the internal audit function and FRQ. Quality internal audit results improved corporate governance systems. The results also underscore the significance and need for central government to establish and monitor a system of good ERM processes that minimize corporate governance breaches and enhance integrity and independence in financial reporting in state universities.

scholarly journals UPRAVLJANJE RIZICIMA I INTERNA REVIZIJA

2021 ◽  
Vol 9 (1) ◽  
pp. 48-57
Author(s):  
Zorica Jović
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Basic Element ◽  
Security Measures ◽  
Management Framework ◽  
Internal Auditors ◽  
Consulting Services ◽  
Risk Management Framework ◽  
Enterprise Risk ◽  
And Control

People undertake risk management activities to identify, assess, manage, and control all types of events or situations. This can range from a single project or narrowly defined types of risk, for example, market risk, to the threats and opportunities faced by the organization. Organizations are under pressure to identify all business risks they face - social, ethical, and environmental risks as well as financial and operational - and to explain that they are being managed at an acceptable level. Risk management is a basic element of corporate governance. Management is responsible for establishing and operating the risk management framework on behalf of the board. A company's risk management brings many benefits that result from its structured, consistent, and coordinated approach. The key role of internal auditors concerning enterprise risk management should be to assure the effectiveness of risk management to management. When an internal audit extends its activities beyond this key role, it should apply certain security measures, including treating engagements as consulting services and applying all relevant standards. In this way, an internal audit will protect its independence and the objectivity of its assurance services

Internal audit involvement in enterprise risk management

2011 ◽  
Vol 26 (7) ◽  
pp. 586-604 ◽  
Author(s):  
Laura de Zwaan ◽  
Jenny Stewart ◽  
Nava Subramaniam
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Enterprise Risk Management ◽  
Enterprise Risk

scholarly journals Aligning Corporate Governance with Enterprise Risk Management Adoption in the Nigerian Deposit Money Banks

2017 ◽  
Vol 1 (2) ◽  
pp. 4-14
Author(s):  
Ishaya John Dabari ◽  
Sini Fave Kwaji ◽  
Mohamad Zulkurnai Ghazali
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Structural Equation ◽  
Internal Audit ◽  
Policy Formulation ◽  
Enterprise Risk Management ◽  
Equation Modeling ◽  
Survey Method ◽  
Cross Sectional ◽  
Enterprise Risk

The alarming rate of corporate failures as seen universally has necessitated this study apparently; the failures have known no boundary as it cuts across both the very big organizations and the very small corporate entities especially financial industries. The objective of this study is to align corporate governance (CG) with Enterprise Risk Management (ERM) adoption in the Nigeria Deposit Money banks (DMBs). The study adopted cross-sectional research design, survey method and questionnaire technique to collect data in 21 Nigerian DMBs. A total of 722 questionnaires were distributed, out of which 435 were found usable for further analysis. The research adopted Structural Equation Modeling in Stata for the data analysis. Empirical evidence suggests that internal audit effectiveness, human resource competency and top management commitment were positively significant. This implies that there is a significant positive relationship between CG and ERM adoption. Conclusively, the study has provided insightful results for the banking industry, regulators, practitioners and academia that will potentially assist in policy formulation, implementation and evaluation. Thus, a clarion calls for all the stakeholders in the industry to guarantee broad implementation of ERM in all the banks in compliance with the CBN Code of corporate governance.

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