COSO implementation in Lebanese firms: the impact of organisational culture and leadership value competency on perceived internal control efficiency - an exploratory approach

Abstract

The purpose of this study is to test the impact of organisational culture and leadership value competency on perceived internal control efficiency in Lebanese firms. The research uses the COSO framework as the basis of assessing internal control framework. And it uses the competing values framework (CVF) model for assessing organisational culture and the Management Skills Assessment Instrument (MSAI) to measure the 12 leadership styles and value competencies. The sample consisted of 225 respondents and was composed of internal audit service providers. The data were collected with the help of questionnaires using a Likert scale ranging from 1 to 5. Results were analysed and revealed that COSO is positively perceived amongst internal auditors in Lebanon as enhancing internal control effectiveness; organisational culture and value orientation had a significant impact on overall perception; and finally that leadership value competencies play a key role in enhancing the positive perception of COSO effectiveness.