The objective of this paper is to investigate the impact of independence, management support and external auditors’ cooperation on Effectiveness of Internal Audit. It also investigates the moderating effect of ethical culture and mediating effect of internal controls, between major factors of internal audit (independence, management support and external auditors’ cooperation) and Effectiveness of Internal Audit in private sector of Pakistan. Cross-sectional design was used in this study. Four hundred and eighty (480) questionnaires were distributed among the auditors in the chartered accountants’ firms of Pakistan situated in Lahore on convenience basis. Sixty-one (61) indicators were measured on five-point Linkert scale from one which refers to strongly disagree to five which denotes strongly agree. PLS-SEM is used for the analysis of the data. The results show that there is positive relationship between two factors of internal audit (independence and external auditors’ cooperation) and internal controls while the third factor, management support has no relationship. Moreover, the findings show that ethical culture has no moderating effect on the association between internal control system and internal audit effectiveness. Similarly, internal controls positively mediate the relationship between two factors of internal audit (independence and external auditors’ cooperation) and Effectiveness of Internal Audit. Moreover, it demonstrates the value of independence and the collaboration of external auditors in enhancing the efficiency of internal auditing and business performance. The results of this study will direct business entities and other organizations to improve the internal controls for enhancing the effectiveness of internal audit and focus on independence of IAD and external auditors’ cooperation with internal auditors as these factors are very important for getting results from internal audit department in order to achieve goals.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.