The association between firm characteristics and the quality characteristics of the internal audit function in the UK: an agency perspective

Ismael, Hazem Ramadan

doi:10.1504/ijaape.2019.099133

Cited by 3 publications

(5 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For example, the study by Krane and Eulerich (2020) used three theories: agency theory, institutional theory and cost theory, to investigate factors contributing to the internationalization of the IAFs. Also, Ismael (2019) used two theories, the agency theory and the transaction cost economic theory, to investigate the effect of corporate characteristics on the quality of IAFs. Interestingly, the vast majority of the sample literature (87studies) was not based on any theoretical ground such as Barii and Tuek (2016), Quick and Henrizi (2019); Abdolmohammadi (2013), Van Peursem and Jiang (2008); Lois et al (2020), Balios and Zaroulea (2020); and Betti and Sarens (2021).…”

Section: Discussion and Resultsmentioning

confidence: 99%

“…The IA literature used agency theory to explore and review the role of IA after the financial crisis (Thi et al, 2019), the relationship between internal auditors and external auditors (Argento et al, 2018;Axén 2018), and IAFs and corporate governance (Rabóczki, 2018). In some studies, multiple types of theories have been used together with the agency theory to explore the multiple aspects of IA, such as the impact of firm characteristics on the quality of IA (Ismael, 2019) and to investigate the factors that could affect the internationalization of IAFs (Krane & Eulerich, 2020). However, such a topic is still limited.…”

Section: Agency Theorymentioning

confidence: 99%

“…Regarding the determinants of the effectiveness of IA, Krane and Eulerich (2020) reported that some factors positively related to the effectiveness of IAFs, including support to management, cooperation with audit committees and cooperation with specialized local experts. Several other factors have been introduced as important drivers of IA quality, including audit fees (Sierra-García et al , 2019), cooperation between internal and external auditors (Gras-Gil et al , 2012), digital business (Betti and Sarens, 2021), cash flow, and firm size (Ismael, 2019), training of audit staff, governance and the use of modern technology (Lenz et al , 2014). The quality of IAFs has been investigated in relation to themes such as IA and financial reports (Gras-Gil et al , 2012; Gros et al , 2017; Alzeban, 2018), internationalization of IAFs (Krane and Eulerich, 2020), factors affecting the audit fees (Sierra-García et al , 2019), firm characteristics and quality of IAFs (Ismael, 2019) and perspectives of IA on enterprises of business quality (Tuek and Sever, 2008).…”

Section: Research Themesmentioning

confidence: 99%

“…Several other factors have been introduced as important drivers of IA quality, including audit fees (Sierra-García et al , 2019), cooperation between internal and external auditors (Gras-Gil et al , 2012), digital business (Betti and Sarens, 2021), cash flow, and firm size (Ismael, 2019), training of audit staff, governance and the use of modern technology (Lenz et al , 2014). The quality of IAFs has been investigated in relation to themes such as IA and financial reports (Gras-Gil et al , 2012; Gros et al , 2017; Alzeban, 2018), internationalization of IAFs (Krane and Eulerich, 2020), factors affecting the audit fees (Sierra-García et al , 2019), firm characteristics and quality of IAFs (Ismael, 2019) and perspectives of IA on enterprises of business quality (Tuek and Sever, 2008). However, few studies have addressed the role of information technology in improving the IAFs (Abdolmohammadi and Boss, 2010).…”

Section: Research Themesmentioning

confidence: 99%

See 3 more Smart Citations

Mapping the literature of internal auditing in Europe: a systematic review and agenda for future research

Hazaea

Zhu

Khatib

et al. 2022

MEDAR

View full text Add to dashboard Cite

Purpose Although many firms are investing considerable resources in building and designing strong and effective internal auditing (IA) to improve corporate governance and internal control processes, IA literature is still relatively fragmented. Therefore, this paper aims to provide a systematic review of studies on IA in 27 European countries and the UK. Design/methodology/approach Based on the Scopus database, 142 papers published between 1987 and 2022 were analyzed. This study focused on evaluating and analyzing the characteristics of literature and the themes investigated with a focus on four key aspects: governance, the effectiveness of IA, the relationship between internal auditors and other parties and risk management to provide directions for future research. Findings This study found that IA literature did not provide the integrated knowledge of internal audit functions (IAFs) and the factors that could contribute to their implementation as required. The results showed that the UK, Greece and Italy dominate the published literature in terms of the number of studies. There are a few studies that investigate IA in private institutions and nonprofit organizations. Interestingly, a vast majority of studies are not based on theoretical grounds. The results also showed that there is an absence of studies that discuss the impact of cultural and political systems as well as the demographic characteristics of auditors on the implementation of IAFs. Originality/value This study is useful for researchers, organizations and regulators because it contributes to the literature by highlighting the intellectual development of IA in the European countries and the UK, providing several directions for future studies. To the best of the authors’ knowledge, this research is the first study to use a systematic review approach in evaluating the intellectual development of IA research in European countries, identifying areas and elements that received less attention in previous studies and providing a roadmap for future studies.

show abstract

Section: Discussion and Resultsmentioning

confidence: 99%

Section: Agency Theorymentioning

confidence: 99%

Section: Research Themesmentioning

confidence: 99%

Section: Research Themesmentioning

confidence: 99%

See 2 more Smart Citations

Mapping the literature of internal auditing in Europe: a systematic review and agenda for future research

Hazaea

Zhu

Khatib

et al. 2022

MEDAR

View full text Add to dashboard Cite

show abstract

“…It is because, for a long time, internal control studies have been discussed more from the agency theory perspective (e.g. Zhang and Cao, 2016; Behbahaninia, 2022; Ismael, 2019). Practically, this study provides valuable inputs, especially to HEI management, regarding how internal control can be empowered to corroborate TQM implementation in HEIs.…”

Section: Introductionmentioning

confidence: 99%

Does internal control contribute to quality management in higher education institutions? Indonesia's adoption experience of the COSO integrated framework

Sofyani

Hasan

Saleh

2022

TQM

View full text Add to dashboard Cite

PurposeThis study investigates internal control implementation contribution to quality management at higher education institutions (HEIs).Design/methodology/approachThis study employed a qualitative method by conducting semi-structured interviews. The research respondents (interviewees) consisted of internal auditors, HEI management members and accreditation assessors of Indonesian HEIs. A total of 15 respondents were successfully interviewed to collect the data; 12 were from different HEIs, and 3 were from the HEI accreditation board.FindingsThis study deduced that internal control implementation could contribute to HEI quality management and improvement if integrated with other control policies, such as internal quality assurance, performance measurement systems and performance-based budgeting. By doing so, internal control corroborates total quality management (TQM) implementation within HEIs since it promotes employee empowerment and supervision, reduces budget wastage, increases the achievement of budget targets on output and outcome of programs and activities, enhances strategic and integrated system practices, provides reliable information for better decision-making, and promotes effective communication and coordination and good leadership culture.Practical implicationsThe current study presents beneficial suggestions for HEI management on how internal control contributes to quality management at HEIs.Originality/valueAs suggested by Chalmers et al. (2019), most studies related to internal control were conducted in profit-oriented organisation settings, i.e. companies, and focused on their impact on economic aspects, such as profitability, cost efficiency and fraud mitigation. Meanwhile, internal control-related studies in the context of non-profit-oriented organisations, such as HEIs, and their role in non-economic aspects, in this case, the quality management in HEIs, is still lacking.

show abstract

Internal audit quality and earnings management: evidence from the UK

Ismael

Kamel

2021

MAJ

Self Cite

View full text Add to dashboard Cite

Purpose This study aims to examine the association between internal audit quality and the involvement of UK companies in earnings management practices. Design/methodology/approach To measure the internal audit quality, this study uses 115 responses for a postal questionnaire that was addressed to the heads of internal audit departments in a sample of non-financial listed companies in the UK context. The other financial and governance data for the respondent companies were collected from the Datastream and the companies’ annual reports. The present study uses the signed abnormal accruals as a proxy for earnings management and uses both logistic and ordinary least squares regression models to test the research hypothesis. Findings This study finds a negative relationship between the internal audit quality and the abnormal accruals, implying the prominent role of internal audit in reducing the upwards earnings management. The study also finds a significant impact of the internal audit competence on reducing the engagement of UK companies in income-increasing earnings management compared to the internal audit independence. This remarkable result suggests the companies need to focus more on enhancing the internal audit competence to reduce the opportunistic management’s behaviour. Practical implications This study has important implications for the internal audit’s practice, regulation and research. Originality/value This is the first study that investigates the relationship between internal audit quality and earnings management in the UK context. Furthermore, it uses a comprehensive measure for the internal audit function (IAF) quality covering different aspects of IAF quality based on the global Institute of Internal Auditor standards and prior internal audit literature.

show abstract

The association between firm characteristics and the quality characteristics of the internal audit function in the UK: an agency perspective

Cited by 3 publications

References 0 publications

Mapping the literature of internal auditing in Europe: a systematic review and agenda for future research

Mapping the literature of internal auditing in Europe: a systematic review and agenda for future research

Does internal control contribute to quality management in higher education institutions? Indonesia's adoption experience of the COSO integrated framework

Internal audit quality and earnings management: evidence from the UK

Contact Info

Product

Resources

About