Information Technology Usage, Top Management Support and Internal Audit Effectiveness

Alkebsi, Mohammed; Aziz, Khairul Azman

doi:10.17576/ajag-2017-08si-11

Cited by 17 publications

(12 citation statements)

References 55 publications

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“…They claim firms are expected to have adequate internal control system to have an appropriate WCM. Prior studies have suggested the importance to have management support on internal control system and technology implemented to ensure the effectiveness of internal audit function (for examples, Hassan et al 2015;Alkebsi & Aziz 2017). Nevertheless there are lack of empirical evidence on the relationship between internal audit investment and WCM.…”

Section: Internal Auditing and Cash Conversion Cycle (Ccc)mentioning

confidence: 99%

Do Internal Auditors Improve Firms’ Working Capital Management?

2022

AJAG

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This paper investigates the relationship between internal audit and the working capital management (WCM) of Malaysian public-listed firms. Good WCM is vital as it drives profitability. Anecdotal evidence suggests that the inventory conversion period is the most challenging part of WCM for Malaysian firms. In 2017, around RM71 billion in cash was locked up in working capital and thus suggesting that Malaysian public-listed firms are struggling with WCM. Based on this issue, we are therefore motivated to examine the association between the role of internal audit and WCM in publicly listed firms in Malaysia. Specifically, we would like to examine whether internal audit cost relates to better firms' WCM. We proxy WCM by the cash conversion cycle (CCC) ratio. With a sample of 309 firm-year observations, we observed a negative and significant relationship between internal audit cost and CCC. The findings suggest that an increase in internal audit cost improves firms' operational efficiency and effectiveness, hence improving firms' CCC ratios. Furthermore, we find consistent results on the influence of the internal auditor on two of three components of CCC, namely the inventory conversion and the receivables collection periods. Finally, our additional analysis demonstrates that CCC and internal auditing are critical components of firms' performance. By adding the role of internal audit in WCM, this study contributes to a further understanding of the role of internal auditor in agency theory. This study contributes to senior management of publicly listed firms that the cost incurred internal auditing function is an investment that helps improve WCM efficiency.

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Section: Internal Auditing and Cash Conversion Cycle (Ccc)mentioning

confidence: 99%

Do Internal Auditors Improve Firms’ Working Capital Management?

2022

AJAG

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“…Management of the organizations allows internal audit to use new software technologies and expects its work to be higher quality. There was a research that found the correlation between the importance of technology usage and performance of internal audit; in addition there was a positive relationship between management support and internal audit effectiveness (Alkebsi & Aziz, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

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2022

Bul. Kar. Univ. - Econ.

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Object: This study aims to identify the relationship between the economic results of a company and its participation in solving social problems. Modern business conditions require companies to use fundamentally new methods of drawing the attention of consumers and counterparties to their activities. One of the ways to positively influence the reputation of companies is to provide them with additional benefits. Among other things, these benefits include advantages offered by social initiatives. Corporate social responsibility (CSR) is becoming a necessary condition for compliance of a business with international standards. The global scientific community has given rise to long discussions about the impact of CSR on the financial results of companies' activities. This particular issue has determined the relevance of the present research topic.Methods: By applying economic and mathematical methods, the paper outlines the dependence between enterprises' economic outcomes and investment in social projects.Findings: The article analyzes data on ten large enterprises of the Republic of Kazakhstan participating in the implementation of social initiatives.Conclusions: By means of regression analysis, the paper has found a strong correlation between CSR expenditures, gross margin, profit, and turnover. Therefore, to strengthen market positions, it is advisable for companies to pay increased attention to solving internal and external social problems. This will contribute to strengthening the image of the enterprise, enhance its competitiveness and, as a result, financial performance. The results of the study can be used by enterprise managers to substantiate CSR development strategies.

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“…Internal audit is a systematic process and a disciplined approach to assessing and enhancing the effectiveness of risk management and control [3], [19], [32]. It is a governance process that determines the organisational performance against noncompliance, errors, and inefficiencies [35]. Effective internal audit includes audit planning, execution, and reporting on the audit findings [10].…”

Section: Literature Reviewmentioning

confidence: 99%

“…The audit team should be knowledgeable about the people and processes to be audited and skilled in analysing logic, evaluating business data and processes, and communicating at all levels within the organisation [19]. In strengthening the skills and the credibility of the internal audit team, technical competencies and ongoing training are essential as the basis for effective internal audit [35]. Continuous improvements should be implemented to ensure that incidents, threats, and risks are always controlled.…”

Section: Literature Reviewmentioning

confidence: 99%

Contributing Factors for Successful Information Security Management Implementation: A Conceptual Model

2019

IJITEE

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Information security management is a comprehensive information management technique that is used as a strategic approach for addressing risks, breaches of information security incidents that threaten confidentiality, integrity and availability. Information Security Management has become an important initiative for organizations to manage and protect their information assets responsibly and effectively. One of the common problems in organisations is the lack of guidelines for the implementation of an effective and efficient ISM. As a result, incidents and threats to organisations continue to rise causing the organisations to suffer losses and their reputation jeopardised. Therefore, this study aims to identify the success factors that could assist organisations in the implementation of ISM. The methodology used in this study is a qualitative research technique whereby a theoretical study was reviewed through existing literature together with ISM international standards, frameworks, guidelines, best practices and previous studies in the IS field. The data from the theoretical study was then analysed using content analysis. Twelve success factors were identified and the relationships between these factors are proposed. These factors are derived and grouped into aspects of people and process. Each factor contains its own element that represents either the role to play or the activity to perform. In the process aspect, the factor was further divided into the Plan, Do, Check and Act phases. The aspects and factors were then formulated as a conceptual model for information security management implementation. The conceptual model acts as a guideline and an initial setup for organisations intending to implement ISM in the future. Furthermore, it could also act as a reference for future research in the information security domain.

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Information Technology Usage, Top Management Support and Internal Audit Effectiveness

Abstract: There has been a marked increase in the global

Cited by 17 publications

References 55 publications

Do Internal Auditors Improve Firms’ Working Capital Management?

Do Internal Auditors Improve Firms’ Working Capital Management?

Untitled

Contributing Factors for Successful Information Security Management Implementation: A Conceptual Model

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