Internal auditor characteristics, internal audit effectiveness, and moderating effect of senior management

Endaya, Khaled Ali; Hanefah, Mustafa Mohd

doi:10.1108/jeas-07-2015-0023

Cited by 85 publications

(125 citation statements)

References 36 publications

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“…Thus it might indicate that when a decision to cooperate with IAs is made, the EAs consider the IA's characteristics and efficiency gains simultaneously and consider them to be closely associated with each other, which in turn influences EAs' perceived efficiency (cf. Endaya and Hanefah 2016). The same applies to the interrelation between efficiency and improved audit quality and their subsequent relation to EAs' perceived efficiency, which has also been highlighted in the previous literature (Abbott et al 2012).…”

Section: Multiple Regression Analysismentioning

confidence: 54%

Reliance on the internal auditors’ work: experiences of Swedish external auditors

et al. 2018

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The purpose of this study is to explore how external auditors experience their decision to rely on internal auditors' work. This study employs both qualitative and quantitative methods consisting of semi-structured interviews and questionnaires administered to external auditors in Sweden. Semi-structured interviews were conducted with external auditors who are working in Big 4 audit firms in Sweden and have engagements with internal audit functions. A questionnaire was administered to authorized/approved auditors, members of the Swedish Association of Certified Public Accountants (FAR). Findings indicate that external auditors use the work of internal auditors as they gain efficiency in performing their work. Nevertheless, external auditors may compromise their independence and professionalism through closer involvement with internal auditors, which may lead to uncritical evaluation and use of the reports prepared by internal auditors. At the same time, while relying on the internal auditors' reports, external auditors appear to be conscious of the consequences for the audit quality they deliver. The study highlights the dilemma faced by external auditors in their cooperative work with internal auditors and the balance/imbalance in their opinions concerning efficiency gains, independence, professionalism and audit quality.

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Section: Multiple Regression Analysismentioning

confidence: 54%

Reliance on the internal auditors’ work: experiences of Swedish external auditors

et al. 2018

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“…Seol and Sarkis (2005) argued that other characteristics or the behavioral skills such as personal skills (handling oneself in challenging situation, under time pressure and organizational change) and interpersonal skills are the attributes that need to be focused in selecting candidates for internal auditors' position. This findings is later supported by Endaya and Mohd Hanefah (2016) who argued that internal auditor's characteristics such as objectivity, effective communication, professional due care, have a significant impact on the effectiveness of the internal audit function.…”

Section: Other Characteristicsmentioning

confidence: 76%

Knowledge, Skills and Characteristics Requirements for Shari’ah Auditors

Ali¹,

Shahimi

Shafii

2018

AJAG

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The shari'ah audit function within the Islamic financial institutions (IFIs) provides assurance on IFI's compliance with shari'ah principles. Currently, IFIs in Malaysia are experiencing a shortage of qualified shari'ah auditors (SAR) to perform the shari'ah audit function. This paper aims to explore the specific elements of knowledge, skills and other characteristics (KSOC) required of SAR in carrying out their tasks effectively. A multiple-case study involving various types of IFIs were conducted to gather insights on current practices of recruiting SAR and determine the relevant KSOC for SAR. In total, 31 respondents were interviewed comprising representatives from the regulator, SAR, and Heads of Shari'ah Audit Department of selected participating IFIs. The findings reveal that shari'ah knowledge is the essential knowledge component, followed by knowledge of Islamic banking operation and knowledge of Fiqh Muamalat. For the skill component, auditing is revealed as the main skill required of SAR to be considered as competent. In addition, this study finds that SAR must also have the willingness to learn attitude as a complementing characteristic to the knowledge and skill elements identified above, as a package requirement for a competent shari'ah auditor. This research contributes to the importance of competency practice among Islamic banking personnel. It also contributes to the management policy in the recruitment or training of shari'ah auditing professionals of IFIs in Malaysia.

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“…This study could be significant since there is a lack of studies regarding the internal auditors' effectiveness (Swinkels, 2012). This claim has been supported by Arena and Azzone (2009), Cohen and Sayag (2010), Endaya and Hanefah (2016), and Madawaki, Ahmi, & Ahmad (2017) who stressed that there is a need for further studies to empirically examine the factors that influence internal auditors' effectiveness. In addition, according to the best knowledge of the researcher limited empirical research has incorporated the extrinsic factors mentioned above in order to identify their effect on the internal auditors' effectiveness, more specifically in the context of the public sector.…”

Section: Introductionmentioning

confidence: 90%

Extrinsic Factors Influencing Internal Auditors’ Effectiveness in Jordanian Public Sector

Alqudah¹,

Amran²,

Hassan³

2019

RES

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This study focuses on the extrinsic factors, namely, top management support, complexity, independence, and internal audit department’s size that are out of internal auditors' control affecting their effectiveness in the Jordanian public sector. The current study also tries to improve understanding of the extrinsic factors affecting internal auditors’ ability to achieve the assigned goals in order to highlight internal auditors’ effectiveness. Resource-based and agency theories were used in developing the research model. Two sets of questionnaires were distributed among the financial managers and internal audit managers. The results reveal that top management support, independence, and the size of internal audit department play a significant and positive role on the effectiveness of internal auditors, whereas complexity of the task has been found to make a negative impact on the level of their performance. Given the significance of the public sector within the Jordanian economy, the findings are valuable for the internal audit function, regulators, and decision-makers in proposing new legislation and regulations of an internal audit function. Future studies may look into other factors that may restrict internal audit performance, such as organizational culture and pay satisfaction.

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Internal auditor characteristics, internal audit effectiveness, and moderating effect of senior management

Cited by 85 publications

References 36 publications

Reliance on the internal auditors’ work: experiences of Swedish external auditors

Reliance on the internal auditors’ work: experiences of Swedish external auditors

Knowledge, Skills and Characteristics Requirements for Shari’ah Auditors

Extrinsic Factors Influencing Internal Auditors’ Effectiveness in Jordanian Public Sector

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