Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

Abstract

Purpose The purpose of this paper is to investigate the moderating effect of task complexity on external auditors’ cooperation (EAC), top management empowerment and internal auditors’ independence, which affect internal auditors’ effectiveness in the Jordanian public sector. Design/methodology/approach This paper utilised 117 usable questionnaires from financial managers and internal audit (IA) managers of the Jordanian public sector institutions. The collected data were analysed using partial least squares-structural equation modelling (PLS-SEM). Findings The results reveal that EAC, top management empowerment, and internal auditors’ independence are the factors which positively and significantly affect the internal auditors’ effectiveness, as supported by the resource-based theory, with incomplete support for the task complexity’s role as a moderator. Practical implications The findings are important for the decision-makers and regulators in introducing new legislation and regulation for the IA profession in the Jordanian public sector. Social implications It is shown that the factors affecting the internal auditors’ effectiveness can definitely enhance their ability to achieve the role of IA in protecting public funds and limiting financial and administrative corrupt practices, particularly in the public sector. Originality/value To the best knowledge of the authors, this study is one of the first studies that addresses task complexity as an interaction effect on the factors affecting internal auditors’ effectiveness in the public sector.

Investigating the Moderating Role of Environmental Uncertainty between Institutional Pressures and ERP Adoption in Jordanian SMEs

“…PLS-SEM is a multivariate statistical approach that allows for the simultaneous estimation of multiple variables in one single model. This approach also works efficiently when the model is complex (i.e., involving several latent variables), contains moderating variables, and even with relatively low sample sizes [82,[84][85][86][87]. Based on the aforementioned reasons, we employed PLS to test the posited hypotheses, in preference over other techniques, to analyze the data collected.…”

Internal audits in the digital era: opportunities risks and challenges

“…A company needs to make informed choices about the degree of technological improvement to implement, factoring in costs vs benefits in the auditing process. Two of the major factors influencing users' decisions are (1) perceived utility (PU), defined by Davis (2011) as “the degree to which a person believes that using a particular information system will enhance his work performance” and (2) perceived ease of use, defined as “the degree to which a person believes that using a particular information system will reduce his effort.” These two factors affect the auditor's attitude towards information technology and may affect their behaviour in accepting or rejecting new methods, although other studies mention that the cost of investment in technology is not always as significant (Khlif and Guidara, 2018; Alqudah et al , 2019).…”

Efektifitas Peran Internal Audit Dalam Mencegah Dan Mendeteksi Kecurangan

“…Ukuran internal auditor perlu dipertimbangkan, selaras dengan resource-based theory. Ketersediaan sumberdaya yang cukup secara jumlah dan kemampuan, membantu entitas untuk memperoleh kinerja maksimal dari internal auditor yang dimiliki (Alqudah et al, 2019). Kekurangan sumber daya menyebabkan ketidak mampuan internal auditor untuk menjalankan tugasnya secara optimal (Al-Twaijry, Brierley, dan Gwilliam, 2003).…”