Internal audit functions and audit outcomes: Evidence from Indonesia

Dzikrullah, Achmad Dzulfikar; Harymawan, Iman; Ratri, Melinda Cahyaning

doi:10.1080/23311975.2020.1750331

Cited by 27 publications

(26 citation statements)

References 28 publications

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“…Hence, the company will be willing to pay high audit fees. This data is consistent with the findings of Dzikrullah et al (2020) and Al-Qadasi and Abidin (2018), who also shows that the company will be a willingness to pay high audit fees to achieve high auditor quality when they have solid internal governance. Specifically, the result indicates that IAEXP has a positive and significant relationship with audit fees.…”

Section: Main Analysissupporting

confidence: 91%

“…On the contrary, Srinidhi and Firth (2014) noted that high audit fees would be required for a company that has good corporate governance and request quality audit. Moreover, companies that invest in IA also invest in external audits (Dzikrullah et al, 2020). This fact corresponds with the concept that investment into a mechanism will impact additional investment into other instruments (Beasley & Salterio, 2001).…”

Section: Introductionmentioning

confidence: 80%

“…At the same time, the independent variable used in this study is the IA function. This study measures IA as the number of internal auditors, internal personnel certification and essential accounting expertise (Dzikrullah et al, 2020).…”

Section: Methodsmentioning

confidence: 99%

“…In addition, this study measures IA accounting expertise as a dummy variable, where one equal if the company has IA members with bachelor's in accounting and 0 if otherwise, size of IA is measured as a number of internal auditors in the company, IA certification is calculated as a dummy variable where one equal if the company have a certified auditor (CPA/CIA) as a member of internal auditors and 0 if otherwise. All the measurement were adopted from Dzikrullah et al (2020). Table 1 below shows the summary of the size of the variables used in this study.…”

Section: Measurement Of Variablementioning

confidence: 99%

See 3 more Smart Citations

Internal Audit Function and Audit Fees: Evidence from Nigeria

Ali

Abdullah

2021

LiFalah

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The purpose of this study is to analyse the relationship between audit fees and internal audit function in the Nigerian listed companies. This study observes 60 non-financial firms over four years (2012 to 2015) and uses random effect regression model to examine the hypothesis. The result of the study found internal audit to be significantly related with amount of audit fees paid by the listed firms. Specifically, this study found internal audit expertise and size of internal audit unit to have a positive and significant relationship with audit fees while no relationship was documented between internal audit certificate and the amount of audit fees. The study concludes that company with effective and adequate internal audit unit tend to pay higher audit fees to the external auditors.

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Section: Main Analysissupporting

confidence: 91%

Section: Introductionmentioning

confidence: 80%

Section: Methodsmentioning

confidence: 99%

Section: Measurement Of Variablementioning

confidence: 99%

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Internal Audit Function and Audit Fees: Evidence from Nigeria

Ali

Abdullah

2021

LiFalah

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“…This indicates that efforts to improve and enforce the law can increase public satisfaction and trust. Basically, audit findings can illustrate weaknesses in financial management, internal control structures, operational inefficiencies, non-compliance with accounting standards and financial reporting regulations, and corruption that occur in managing public revenues and expenditures (Cohen & Leventis, 2013;Dzikrullah et al, 2020;Johnson et al, 2012;Liu & Lin, 2012;Rahayu et al, 2020;Tumwebaze et al, 2018;Widyaningsih et al, 2019). For deficiencies/weaknesses/non-compliance/violations found in the audit process, the auditor will usually provide audit recommendations to the auditee in order to overcome these problems (Furqan et al, 2020).…”

Section: Empirical Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Financial reporting, public services and local executives’ re-electability in Indonesia

Furqan

Wardhani

Martani

et al. 2021

Cogent Business & Management

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This study aims to analyze the effects of audit findings, follow-up of audit recommendations, quality of financial reporting and public services on the incumbent electability. Using subnational elections data in Indonesia in 2015 and 2017, the final sample amounted to 291 observations, which consisted of 11 provincial elections, 55 municipal elections, and 255 district elections. The results showed a negative effect of audit findings on the incumbent electability, as hypothesized. Further findings present the positive influences of the follow-up of audit recommendations, financial reporting quality on incumbent electability. The last result implies the originality of the study in which non-financial performance factor as proxied by the quality of public services in subnational entities in Indonesia are used as the basis for political decision-making by constituents to elect the incumbent or challenger. The practical implications are the need for subnational executives to pay attention to the importance of accounting and auditing practices as well as public service in increasing local community satisfaction and trust. The theoretical findings are insightful in providing mechanisms of government accounting management and the usefulness of public sector information in influencing electoral democracy in local governments in Indonesia. The novelty of this study is in the empirical examination to link auditing practices and its political consequences.

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Legal infrastructure construction and audit opinion: Evidence from the implementation of China's new securities law

Li,

2024

Finance Research Letters

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Internal audit functions and audit outcomes: Evidence from Indonesia

Cited by 27 publications

References 28 publications

Internal Audit Function and Audit Fees: Evidence from Nigeria

Internal Audit Function and Audit Fees: Evidence from Nigeria

Financial reporting, public services and local executives’ re-electability in Indonesia

Legal infrastructure construction and audit opinion: Evidence from the implementation of China's new securities law

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