Factors Influencing the Effectiveness of the Internal Audit Function in Thailand

Abstract

There is a dearth of research and absence of any research model which identifies and examines the effectiveness of IAF in the Kingdom of Thailand (Thailand). Accordingly, the research conducted culminated in the construction of conceptual and empirical IAF models, which should prove useful to internal audit practitioners and academic researchers in Thailand. The purpose of this dissertation is to identify, measure, and evaluate factors that influence the effectiveness of the internal audit function in Thailand. Understanding the factors which influence internal audit function effectiveness will help Thai internal auditors at all levels (e.g. junior, senior, manager, and executive) improve the efficiency, efficacy, and value of the function to their companies and constituents. Main statistic tests were used such as multiple regression, exploratory factor analysis, and structural equations modeling (SEM). This study found that three new factors (compliance with the Institute of Internal Auditors (IIA) standards, use of a risk-based audit plan, and presence of a quality assurance and improvement program) have high influence to the internal audit function effectiveness in Thailand