Internal audit function and AML compliance: the globalisation of the internal audit function

Naheem, Mohammed Ahmad

doi:10.1108/jmlc-05-2015-0020

Cited by 31 publications

(30 citation statements)

References 25 publications

(30 reference statements)

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“…Finally, we controlled for the sector and size of the IAF. The financial sector is highly regulated, which can influence the activities performed by the IAF (Gras-Gil et al, 2012;Koutoupis and Tsamis, 2009;Naheem, 2016). The sector in which organisations operate was, therefore, included as a control variable.…”

Section: Methodsmentioning

confidence: 99%

Effects of digitalisation of organisations on internal audit activities and practices

Betti

Sarens

Poncin

2021

MAJ

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Purpose This paper aims to investigate how the internal audit function (IAF) modifies its activities and practices in relation to the digitalisation the organisation. This paper specifically examines the use of data analytics and the performance of consulting activities by internal auditors. Design/methodology/approach This paper is based on a survey conducted with 82 chief audit executives based in the USA and members of the institute of internal auditors. Findings Results indicate a positive relation between the organisation’s level of digitalisation and the use of data analytics by internal auditors during their missions. Results also indicate that the organisation’s level of digitalisation has an indirect effect on the proportion of the internal audit planning dedicated to consulting activities. Specifically, the use of data analytics mediates the relationship between the organisation’s level of digitalisation and the proportion of the internal audit planning dedicated to consulting activities. Research limitations/implications This research was conducted amongst internal auditors based in the US Future research could investigate the insights of other internal audit stakeholders and investigate different legal contexts. Practical implications Results show that digitalisation increases the use of data analytics by internal auditors and the performance of consulting activities. The results, therefore, highlight the importance of these two aspects for the IAF to continue to bring value to organisations. Originality/value This research provides more insights on internal audit working practices. The digitalisation of the organisation leads the IAF to use more data analytics and perform more consulting activities.

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Section: Methodsmentioning

confidence: 99%

Effects of digitalisation of organisations on internal audit activities and practices

Betti

Sarens

Poncin

2021

MAJ

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“…Competency. Previous studies (Mat Zain et al, 2015;Naheem, 2016) have discussed the attributes of an auditor and found that the internal auditor's capability of solving problems is a sign of audit efficiency. It has also been found that expertize can reduce the influence of irrelevant factors on the judgment of an auditor.…”

Section: Internal Sharīʿah Audit Effectivenessmentioning

confidence: 99%

Conceptual framework of internal Sharīʿah audit effectiveness factors in Islamic banks

Algabry

Alhabshi

Soualhi

et al. 2020

IJIF

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Purpose Sharīʿah audit is an important area to examine because it is considered the backbone of the Islamic finance industry. The purpose of this study is to spot and highlight the determinants that have an effect on internal Sharīʿah audit effectiveness in the Islamic banking industry. It attempts to develop a conceptual framework for those factors. Design/methodology/approach The paper reviews the existing literature to figure out the factors that frame the effectiveness of internal Sharīʿah audit in Islamic banks (IBs) and to propose a conceptual framework containing these factors. Findings This research proposes a conceptual framework of factors that impact on Sharīʿah audit effectiveness in IBs based on a comprehensive literature review. The proposed framework includes external and internal factors, as well as internal Sharīʿah audit structure, process and requirements that can be used to figure out the most significant factors of Sharīʿah audit effectiveness. Practical implications First, the regulators need to provide a detailed framework for the Sharīʿah audit, which covers the main requirements for effective Sharīʿah governance. Second, Islamic financial institutions need to pay more attention to following the Sharīʿah audit process to achieve the objective of effective Sharīʿah governance. Finally, the dearth of empirical research on the role and effectiveness of Sharīʿah audit in Islamic banking highlights the need to develop an appropriate methodology to enhance the study of the effectiveness of Sharīʿah governance practices. Originality/value The Sharīʿah ensures compliance with its rules and regulations and enhances the soundness and credibility of the Islamic finance industry. This study identifies a number of issues that require further investigation to establish a better system of Sharīʿah audit and to identify the factors that affect Sharīʿah auditing practices. Therefore, this paper is unique in covering the main elements that have an influence on the effectiveness of the Sharīʿah audit and proposes them in one framework.

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“…Bhaskar, Schroeder, and Shepardson (2019) look into the duplication of external audit with internal checks (internal audit) and provide evidence that internal checks are more likely to reveal significant discrepancies. This implies the distinctive main roles of external audit (to increase the reliability of financial statements published by the company management) and internal audit (to ensure the effective functioning of the company based on good organization of work, which is conditional on functional internal organizational structure, economy of operation, property protection, and effective use of funding sources (Kafka, 2009;Naheem, 2016;Raiborn, 2017). The aforementioned types of audit also differ in the user base.…”

Section: Literature Reviewmentioning

confidence: 99%

Management of financial statements auditing in the Visegrad Group countries

Hinke

Gezo

Smutka

et al. 2020

Problems and Perspectives in Management

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This paper aims at comparing the management perspectives with the audit conditions in the Visegrad Group (V4) countries (the Czech Republic, the Slovak Republic, Poland, and Hungary) in the following areas: legislation governing the auditing, statutory duty of auditing, mandatory rotation of auditors in public interest entities, requirements on auditors and professional activities, and audit supervision organizations. The paper also tests the hypothesis whether there is a relationship between the size of the accounting entity and the auditor’s opinion.The methodology is based on the statistical analysis of the data using the Chi-square test of independence applied to a sample of 800 randomly selected accounting entities from all V4 countries (200 per each country in question).The results demonstrated significant differences in the management approaches to financial reporting, especially in the area of the statutory duty of auditing. In addition, quantitative research was conducted to determine whether there is a relationship between the size of the accounting entity and the auditor’s opinion. At the 5% significance level, no such dependence has been found for any of the V4 countries, but at the 10% significance level, the dependence has already been proved in case of the Republic of Poland and Hungary. The practical value of the obtained results is the knowledge of how to manage accounting standards for business entities in the V4 countries, as well as to determine the statutory duty to audit financial statements. These results might be of a special practical importance for business managers, tax authorities, and auditors operating in the EU countries.

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Internal audit function and AML compliance: the globalisation of the internal audit function

Cited by 31 publications

References 25 publications

Effects of digitalisation of organisations on internal audit activities and practices

Effects of digitalisation of organisations on internal audit activities and practices

Conceptual framework of internal Sharīʿah audit effectiveness factors in Islamic banks

Management of financial statements auditing in the Visegrad Group countries

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