Transaction cost economics: a theory for internal audit?

Spraakman, Gary

doi:10.1108/02686909710180670

Cited by 46 publications

(49 citation statements)

References 14 publications

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“…Sad to say, synthesis that has been conducted by researchers like Boyle (1993) and Spraakman (1997) in their studies is not going adequate consideration to the part played by transaction cost economics.Itcannot be denied the usefulness of transaction cost economics in undertaking the operation cost of companies and this in fact is of great assistance to the manger1990. As Penno (1990) justify this concept as to how internal audit findings can be very objective as and when the hierarchy of the organization is made aware off.…”

Section: Transaction Cost Economicsmentioning

confidence: 99%

Determinants of Audit Report Lag and Corporate Governance in Malaysia

Apadore¹,

Noor²

2013

IJBM

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Inevitably, an accurate and timely financial statement contributes enormously to the success of many organizations. Therefore, accuracy and availability about financial information is vital for investors and shareholders in order to ease their decision making process. This paper aims to analyze the relation between the characteristics of corporate governance; board independence, ownership concentration, audit committee independence, expertise, meeting, size, internal audit investment and audit report lag among companies listed under Bursa Malaysia. The samples covered are among 180 companies listed at Bursa Malaysia for 2009 and 2010. The samples were chosen randomly from 843 companies, the population. Descriptive statistics have been used to provide better perception of the length of time needed by an auditor, to complete an audit. The results show that in average, the companies took about 100 days to complete their audit report with maximum and minimum days of 148 days and 26 days respectively. In addition, regression analysis was used to provide empirical evidence on which variables had strong bonding with audit report lag. The outcomes elicit that audit committee size, ownership concentration; organization size and profitability are significantly associated with audit report lag. However the other six variables (audit committee independence, meetings, expertise and types of auditors) were found to have insignificant relationship with audit report lag.

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Section: Transaction Cost Economicsmentioning

confidence: 99%

Determinants of Audit Report Lag and Corporate Governance in Malaysia

Apadore¹,

Noor²

2013

IJBM

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“…Dittenhofer (2001) has also observed that if internal audit quality is maintained, it will contribute to the appropriateness of procedures and operations of the auditee, and thereby internal audit contributes to effectiveness of the auditee and the organization as a whole. Using agency theory, Xiangdong (1997) explained the role that internal audit plays in an economy and points out that internal audit has an advantage over external audit in obtaining information quickly and finding problems at an earlier stage; and Spraakman (1997), applying the theory of transaction cost economics, demonstrated how internal audit recommendations are important to the management of government organizations.…”

Section: Internal Audit Effectivenessmentioning

confidence: 99%

“…Prior literature relating to internal audit effectiveness has either focused on the internal audit's ability to plan, execute and objectively communicate useful findings (Xiangdong, 1997;Spraakman, 1997;Dittenhofer, 2001); or taken a broader view and included factors that transcend the boundary of a single organization (Van Gansberghe, 2005). This paper attempts to introduce a new perspective for evaluation of internal audit effectiveness by identifying factors within an organization that impact on audit effectiveness.…”

Section: Internal Audit Effectivenessmentioning

confidence: 99%

Internal audit effectiveness: an Ethiopian public sector case study

Mihret

Yismaw

2007

Managerial Auditing Journal

225

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Purpose -The purpose of the study is to identify factors impacting the effectiveness of internal audit services.Design/methodology/approach -Based upon a case study of a large public sector higher educational institution in Ethiopia, the paper examines how internal audit quality, management support, organizational setting, auditee attributes, and the interplay among these factors, influence internal audit effectiveness.Findings -The findings of the study highlight that internal audit effectiveness is strongly influenced by internal audit quality and management support, whereas organizational setting and auditee attributes do not have a strong impact on audit effectiveness.Research limitation/implications -As in all case studies, the generalisability of the conclusions is limited.Originality/value -Internal audit services have apparently hitherto been the subject of limited examination. However, this study, in arguably the most thorough treatment so far, highlights the areas requiring improvement.

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“…Research using agency theory (Xiangdong, 1997;Adams, 1994) and transaction cost theory (Spraakman, 1997) demonstrate internal audit's role in the management and governance of organisations. The literature (Dittenhofer, 2001) also discusses internal audit effectiveness and identifies basic tenets for its achievement.…”

Section: Literature Review and Focus Of The Studymentioning

confidence: 99%

Value‐added role of internal audit: an Ethiopian case study

Mihret

Woldeyohannis²

2008

Managerial Auditing Journal

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The purpose of this paper is to draw inferences -from the results of an Ethiopian public sector corporation (for-profit) case study -on how the attributes of a value-adding internal audit department would vary among organisations.The case study strategy is employed. The internal audit function of a public sector corporation was examined using an analytical framework derived from the literature. Research evidence was gathered distributing questionnaires to managers and internal auditors, conducting a semi-structured interview with the internal audit department manager, and reviewing documents.The results highlight that traditional/compliance audit is dominant in the organisation studied as contrasted with value-added auditing. The paper concludes that goals and strategies pursued and the level of risk faced by organisations to which internal audit provides service, appear to shape the attributes of a value-adding internal audit department. The study also demonstrates that the quality of strategic planning for, and marketing of, internal audit would influence the extent to which an appropriate value-added profile is attained in a particular context.

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Transaction cost economics: a theory for internal audit?

Cited by 46 publications

References 14 publications

Determinants of Audit Report Lag and Corporate Governance in Malaysia

Determinants of Audit Report Lag and Corporate Governance in Malaysia

Internal audit effectiveness: an Ethiopian public sector case study

Value‐added role of internal audit: an Ethiopian case study

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