• The Journal of Asian Finance, Economics and Business
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• 제8권4호
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• pp.797-808
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• 2021

This study examines the interaction between internal auditors' personality traits and the internal audit function effectiveness. It also investigates the effect of such interacted variables on financial reporting quality. This study employed a questionnaire survey to collect data from 193 internal auditors of Jordanian companies listed on the Amman Stock Exchange. The study model is validated and tested using the partial least squares structural equation modelling. The results reveal that all the examined personality traits of internal auditors significantly impact internal audit function effectiveness except for the extraversion trait. The results also show that personality traits have indirect effects on financial reporting quality via internal audit function effectiveness. These results suggest that internal auditors with high scores on openness to experience, emotional stability, and conscientiousness traits can be among the most significant contributors to the internal audit function effectiveness. The results also suggest that internal auditors' personality traits can be regarded as an internal audit function intangible resource that enhances effectiveness. The study's findings might be of interest to many different parties interested in enhancing internal audit function effectiveness and boosting the financial reporting quality, such as external and internal auditors, auditees, human resource departments, and Chief Internal Audit Executives.

• The Journal of Asian Finance, Economics and Business
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• 제8권7호
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• pp.457-468
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• 2021

This study seeks to examine the effects of fraud management accounting on organizational value creation of listed firms in Thailand through internal audit function and internal audit effectiveness as the mediators of the study. In addition, governance culture and digital capability are hypothesized to affect fraud management accounting, internal audit function, and internal audit effectiveness. The 297 listed firms in Thailand are the samples of the study. The structural equation model is applied to test the research relationships. The results of the study indicate that, firstly, fraud management accounting has an effect on internal audit function, internal audit effectiveness, and organizational value creation. Secondly, internal audit function affects both internal audit effectiveness and organizational value creation. It also mediates the fraud management accounting-organizational value creation relationships. Thirdly, internal audit effectiveness affects organizational value creation and it mediates the fraud management accounting-organizational value creation relationships. Finally, governance culture affects fraud management accounting, internal audit function and internal audit effectiveness. Accordingly, executives can support, promote and enhance the applications of fraud management accounting in an organization, and utilize its concepts as the valuable tools in order to create best organizational practices and achieve their business goals in the current and future operations.

• The Journal of Asian Finance, Economics and Business
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• 제8권1호
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• pp.271-283
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• 2021

This article provides empirical evidence on factors of internal audit (IA) characteristics affecting the internal audit effectiveness in steel enterprises in Vietnam. The study uses data from survey obtained from 114 responses representing owners, managers, and internal auditors from 38 steel enterprises in Vietnam for period from 2018 to 2019. Data collected is firstly checked with Cronbach's Alpha, then the EFA test, and the model linear regression is used to test the relationship between internal audit characteristics and internal audit effectiveness. Results reveal that internal audit effectiveness in steel enterprises in Vietnam is influenced by various internal factors, including the size of internal audit, the scope of internal audit, the capacity of internal auditors, the independence of internal auditor, and the operational bases and methods of internal audit. Based on the research results, the paper makes six recommendations: strengthening operational basis of IA; increasing the independence of IA; increasing the size and capacity of IA staff; expanding and not underestimate the scope of IA; and reforming the internal governance structure. These proposed recommendations could be applied, not only for steel companies in Vietnam, but also for other companies in Vietnam or other companies in jurisdictions that have similar conditions.

• 유통과학연구
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• 제22권4호
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• pp.59-68
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• 2024

Purpose: The function of internal audit is to help achieve company goals and targets by minimizing the impact of business risks. The distribution of internal audit activities in carrying out control and supervision covers all aspects or activities at all levels of management. The aim of the research is to determine the distribution of risk-based internal audit effectiveness assessments in companies. Data and Research Design Methodology: Researchers examined research trends regarding things that could influence the distribution of the effectiveness of the internal audit function from 2007 to 2023.This research used a systematic literature review (SLR) research method. This research used 23 papers sourced from the Scopus database. Results: The distribution of the effectiveness of audit services provided by internal auditors is more influenced by the personal characteristics of internal auditors and has little to do with the leadership of the chief internal auditor, technology, and risk management. Conclusion: The distribution of monitoring services provided by internal auditors covers all levels of departments or divisions of the organization. The assessment of internal audit effectiveness is more influenced by the auditor's personal attributes such as independence, competence, and management support.

• The Journal of Asian Finance, Economics and Business
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• 제9권1호
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• pp.311-324
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• 2022

The objective of this study is to examine the influence of fraud investigation on organizational performance of Thai listed companies through mediating effects of internal audit quality, accounting information transparency and financial effectiveness, and moderating effect of corporate governance. In this study, 333 Thai listed companies are the samples of the study. Both the structural equation model and multiple regression analysis are used to examine the research relationships. The results of this study show that fraud investigation has a significant influence on internal audit quality, accounting information transparency, and financial effectiveness. Internal audit quality significantly influences accounting information transparency, financial effectiveness, and organizational performance while financial effectiveness significantly influences organizational performance. Next, both internal audit quality and financial effectiveness potentially mediate the fraud investigation-organizational performance relationships. In addition, corporate governance critically moderates the fraud investigation-internal audit quality relationships and the fraud investigation-financial effectiveness relationships. In summary, fraud investigation functions as an important valuable technique of internal audit practices. As a result, businesses must build and implement a systematic fraud investigation procedure to generate and improve beneficial outcomes in the short, medium, and long term.

• The Journal of Asian Finance, Economics and Business
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• 제8권2호
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• pp.223-230
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• 2021

The concept of Shariah-based internal audit has received increasing attention from researchers in recent times especially since Islamic financial institutions have been developing in several Asian countries like Bangladesh. To avoid financial irregularities and to maintain Shariah-based financial transactions, an effective Shariah-based internal audit system is extremely important for Islamic financial institutions such as Islamic banks. Hence, the objective of this study is to determine the factors that influence the effectiveness of the Shariah-based audit system. Study data has been gathered from Shariah auditors, members of the Shariah board and audit committee of six private Islamic banks in Dhaka, Bangladesh. A total of 210 survey questionnaires were sent and finally 136 responses were retained, indicating a final sample size of n=136, with a survey feedback rate of 65%. The study adopted a quantitative measure and collected only primary data, followed by convenience sampling. SPSS has been used to run necessary statistical interpretation. Results reveal that auditor's work autonomy, level of competency, and work performance significantly impact the Shariah-based internal audit effectiveness. The study findings can be adopted as guidelines to improve the overall effectiveness of the Shariah-based internal audit system in Islamic financial institutions.

• 한국콘텐츠학회논문지
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• 제15권9호
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• pp.106-117
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• 2015

지방자치단체의 감사제도는 여러 부문에서 문제점이 있으며, 지방자치의 발전을 위해서 이러한 문제의 개선이 필수적이다. 본 연구는 지방자치단체 감사제도의 문제점을 살펴보고 개선을 목적으로 하고 있다. 지방자치단체 감사제도의 문제점은 다음과 같다. 첫째, 내외부 감사의 비효율성과 중복성이 많다. 둘째, 자치단체 감사조직 및 기구의 측면에서 독립성이 미비하다. 셋째, 감사인력의 측면에서 전문성이 부족하다. 넷째, 감사실시 및 결과 처리의 측면에서 실효성 확보가 미흡하다. 지방자치단체 감사제도의 문제점에 관한 개선방안은 다음과 같다. 첫째, 국가와 지방자치단체 감사의 단일화, 지방감사에 관한 법률체계 구축이 필요하다. 둘째, 자체감사기구의 독립성의 확보를 위해 독립적인 자체감사기구의 설치, 감사기관장의 직급상향 조정 등이 필요하다. 셋째, 감사인력의 전문성 제고를 위해 감사인력 인사와 관련된 다양한 인사제도를 도입, 감사요원에 대한 교육훈련 강화 등이 필요하다. 넷째, 감사결과 조치의 실효성 및 민주성 확보를 위해서 감사결과의 공개, 주민참여 등이 필요하다.

• The Journal of Asian Finance, Economics and Business
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• 제7권11호
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• pp.867-875
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• 2020

Quality internal audit (IA) plays a crucial role in accountability, transparency and preserving public properties. This paper gives a brief background of the IA system in Yemen and examines its impact with regards to financial performance in Yemeni commercial banks based on five factors: (i) independence of IAs, (ii) adherence to IA standards, (iii) governance principles implementation, (iv) size of the IA, and (v) frequency of internal audits committees' meetings. The primary data for the study were collected through a questionnaire prepared for this purpose. Fifty questionnaires were distributed out of which forty-two were retrieved and valid in the analysis process. For the empirical analysis, descriptive analysis and T-test were used for verification of the research hypotheses. Results revealed that sticking to standards internal audit, internal auditors' independence and quality governance have significant impact on banks' financial performance, while the size of internal audits committees, as well as their meeting, frequently has insignificant positive impact on banks' performance. Moreover, the country results show that the use of automated internal audit in banks has an impact on improving financial performance. This article provides avenues for further studies, mainly in developing countries, including Yemen, in quality internal audit and financial performance.

• 디지털융복합연구
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• 제12권3호
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• pp.37-53
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• 2014

지방자치단체에 의한 감사는 지방자치단체의 내부 통제를 개선하고 자신들의 정책을 진단하여 관리능력을 향상시키며 정책 오류를 예방하는 역할을 한다. 그러나 자기기관 감사와 검사 수준은 매우 낮은 실정이다. 이는 전문가 수준의 직원보다 빈번한 순환 보직으로 실무 경험이 미흡한 감사요원을 배치하기 때문이다. 이러한 문제를 극복하고 지방자치단체의 자체감사기능을 강화하기 위하여 여러 가지 감사환경을 고려한 솔루션으로 새로운 시스템을 제안한다. 본 연구는 지방감사의 문제점을 찾아 자체 감사평가시스템의 새로운 체계를 제시하였다. 자체전자감사평가시스템은 자체기관 감사 및 검사를 강화하여 궁극적으로 지방정부의 역량을 강화시킬 것이다.

• 경영과학
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• 제12권2호
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• pp.129-146
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• 1995

As society's relience on computerized information systems to support a wide range of activities proliferates, the long recognized importance for adequate data quality becomes imperative. Furthermore, current trends in information systems such as dispersal of the data resource together with its management have increased the difficulty of maintaining suitable levels of data integrity. Especially, the importance of adequate accounting (transaction) data quality has been long recognized and many procedures (extensive and often elaborate checks and controls) to prevent errors in accounting systems have been introduced and developed. Nevertheless, over time, even in the best maintained systems, deficiencies in stored data will develop. In order to maintain the accuracy and reliability of accounting data at certain level, periodic internal checks and error corrections (internal audits) are required as a part of internal control system. In this paper we develop a general data quality degradation (error accumulation ) and cost model for an account in which we have both error occurrences and error amounts and provide a closed form of optimal audit timing in terms of the number of transactions that should occur before an internal audit should be initiated. This paper also considers the cost- effectiveness of various audit types and different error prevention efforts and suggests how to select the most economical audit type and error prevention method.