Factors Impact on Internal Audit Effectiveness: The Case of Duhok University in Kurdistan-Iraq

Ahmed Yahya Abdullah,Aree Saeed Mustafa

doi:10.15294/ibarj.v4i2.128

Ahmed Yahya Abdullah, Aree Saeed Mustafa

Open Access

https://doi.org/10.15294/ibarj.v4i2.128

Copy DOI

Abstract

This study investigates the factors impact on internal audit effectiveness (IAE) in Kurdistan Iraq. Data were collected from 15 directors of Colleges and 15 internal audit managers at University of Duhok. The relationship between IAE and three principle factors has been examined using multiple regression analysis. Findings reflect that management support for IAE perceived effectiveness of internal audit from both directors of colleges and internal auditor’s perspective. Management support is related to occupy experienced and trained staff, providing sufficient resources. However, this study found insignificant relationship between independence of the internal audit and internal audit effectiveness.

Highlights

Internal audit is oversighting the financial compliance and internal control of an organization
The second variable includes four items that dealt with competence of the internal audit (Cronbach’s alpha .83), and third variable consist of seven items which covered independence (Cronbach’s alpha .86)
internal audit effectiveness (IAE) is positively associated with three variables (P> Internal Audit (IND), Management Support for Internal Audit (MSUP) & Competence of the Internal Audit (COM))

Summary

Introduction

Internal audit is oversighting the financial compliance and internal control of an organization. Public sector noun as government sector conduct their activities under the monitor of internal audit department. Effectiveness is the proxy to assess whether the aims of the organization has been accomplished or not. The internal audit should be so effective which they could meet the aims of their audit function. Internal audit effectiveness is the proxy to assess whether the internal audit task is capable to meet the aim of that task. Arena and Azone (2009) report that internal audit effectiveness derived by feature of the audit team, audit proves and the organization relationship. Mihret and Yismaw (2007) mentioned that organization features could impact positively and negatively on internal audit effectiveness. Alzeban and Gwilliam (2014) report that management support; independence and competence of internal audit team have positive relationship with internal audit effectiveness Arena and Azone (2009) report that internal audit effectiveness derived by feature of the audit team, audit proves and the organization relationship. Mihret and Yismaw (2007) mentioned that organization features could impact positively and negatively on internal audit effectiveness. Alzeban and Gwilliam (2014) report that management support; independence and competence of internal audit team have positive relationship with internal audit effectiveness

Methods

Results

Conclusion