Contribution of the ISO 9001 internal audit to business performance

Abstract

Purpose -The purpose of this paper is to investigate how the internal audit can contribute to an improvement in business performance. The goal is to develop a theoretical model of the integration of quality management systems (QMS) and an internal audit within a broader managerial system and performance reviews of the company. Design/methodology/approach -A theoretical framework was developed for assessing the internal audit's contribution to the achievement of business goals. Based on the theoretically explained relationship two hypotheses related to impact of internal audits on business performance were empirically tested by a case study. Findings -A mature QMS should contribute to the achievement of a company's efficiency, which can be based on the connection of quality goals with the company's strategic goals, and in relation to this implementation of the internal audit should also be upgraded to contribute to achievement of the company's efficiency and strategic goals. Accordingly, the results of internal audits and measures that follow the audit are discussed within a strategic internal analysis of the company. Research limitations/implications -Testing on a single case has limitations regarding the ability to generalise the results to a broader spectrum of companies, however the objective was to expand and generalise theory. With the confirmed hypothesis about the contribution and positive impact of the internal audit by the case study, the statistical generalisation by using the survey method represents a logical additional step. Further research should also analyse the relationship between subjective employee assessments and objective performance data. Practical implications -Empirical results show that internal audit contributes to the achievement of business goals and that internal audit has more positive than negative effects on business performance. Therefore, the paper demonstrates that the results of an audit can be used as a foundation for choosing measures not only to assure the conformity of the QMS with the standard's requirements, but also to assure business improvements. Originality/value -The paper identified the relations between three managerial systems: QMS, total quality management (TQM) (represented by the business excellence models) and strategic management. The systems are connected in the strategy development and in the analysis phase of the strategic decision-making process. Paper integrated the internal audit into the company's performance review system. The identified positive effects of the QMS were used as a basis for assessing the internal audit's contribution to the achievement of business goals and improving company efficiency.

THE EFFECT OF THE QUALITY MANAGEMENT SYSTEM ISO 9001:2008 AND THE CONTRIBUTION OF THE INTERNAL AUDIT UPON THE ORGANIZATIONAL PERFORMANCE AT LP3I (The Educational Education and Indonesia Professional Development)

“…The dimension of this variable is covering the customers feedback, processing performance and products compliance, and SMM performance improvement. The indicator of each dimension of the variable of Internal Audit Contribution has been adopted from the questionnaires provided in the research of Alic & Rusjan (2010). Latent Variable (exogen) has used the term 'PIA' within the diagram path which has been constructing 8 (eight) indicators.…”

“…Research done by Alic and Rusjan (2010) has demonstrated that the internal audit function is to perform an inspection and evaluation upon the compliance and efficacy of the policy and procedures of the internal controlling system. The positive effects identified upon the QMS can be used as the fundamental evaluation of the internal audit refers to the achievement of the company goal and the development of the company performance.…”

Forensic Accounting on Corporate Governance Maturity mediated by Internal Audit: A Conceptual Overview

“…The model proposes that the independent variable (FA) influences the mediator (IA), which then will influence the dependent variable (CGM). As opined by [63], IA can be examined through its responsibility to ensure business transparency, examining and monitoring effectiveness of internal control and maintain high integrity in their corporate business activities and operations. FA is proposed as the independent variable based on the fact of literature and previous research, which reveals that FA can have strong influence on CGM [1,18].…”

ISO 9000 impact on product quality in a defense procurement environment

“…Jones et al (1997) found that companies who sought certification because of internal motives, either with or without additional external motives, were more likely to perceive benefits from certification. Several others also reported a stronger influence on certification benefits from internal motives than external motives (Sampaio et al, 2009;Terziovski and Power, 2007;Alic and Rusjan, 2010;Jang and Lin, 2008).…”