Abstract
National Audit Department (NAD) had repetitively recommended Federal Ministries/ Departments and Government-Linked Companies (GLCs) through its Auditor-General’s Report on the need to have an effective internal audit function to identify and mitigate weaknesses in their activities. Therefore, the purpose of this study is to examine factors that influence the effectiveness of the internal auditors especially for those that work in GLCs in Malaysia. It is to determine the internal auditors’ perception toward the effectiveness of internal audit activities, influenced by the individual factors related to the internal auditors themselves. This study also aims to determine the relationship between factors that contribute to the effectiveness. 300 questionnaires were distributed to internal auditors that work in GLCs in Malaysia using convenience sampling method, of which, 124 internal auditors had responded. Several statistical techniques such as the descriptive statistic, correlation and regression analysis were used to analyse the data from the survey. The result of the study showed that there were significant relationships among the factors analysed in this study which are the internal auditors’ competency, usage of information technology (IT) and career expectation. Hence, the effectiveness of internal audit will depend strongly to the attributes of the factors analysed in this study. This study will help organisations especially GLCs in understanding the factors that influence the internal auditors’ effectiveness and taking necessary action to improve their internal audit function. Consequently, the internal audit function could perform better in reporting findings and giving significant recommendations that give impact to the organisations.
Highlights
Internal audit is intended to be an independent, objective assurance and consulting activity designed to add value and improve an organisation‟s operations. It is an important part of the internal control framework that help the organisation to achieve its objectives by evaluating and improving the effectiveness of risk management, internal controls and governance processes of the organisation.In regard to the public sector auditing, Malaysia had developed National Audit Department (NAD) with the purpose to assist the public sector in ensuring integrity and good governance in managing public fund
The purpose of this study is to examine factors that influence the effectiveness of the internal auditors especially for those that work in Government-Linked Companies (GLCs) in Malaysia, focusing on the auditor‟s competency, usage of the information technology (IT) and career expectation
It is an important part of the internal control framework that help the organisation to achieve its objectives by evaluating and improving the effectiveness of risk management, internal controls and governance processes of the organisation.there are a lot of weaknesses in relation to the financial management and activities conducted by the federal ministries/departments, Government-Linked Companies (GLCs) and Federal Government-linked agencies
Summary
Internal audit is intended to be an independent, objective assurance and consulting activity designed to add value and improve an organisation‟s operations (https://global.theiia.org). It is an important part of the internal control framework that help the organisation to achieve its objectives by evaluating and improving the effectiveness of risk management, internal controls and governance processes of the organisation.In regard to the public sector auditing, Malaysia had developed National Audit Department (NAD) with the purpose to assist the public sector in ensuring integrity and good governance in managing public fund. NAO‟s recommendations and reports helped UK government to improve public services which led to audited savings of £1.21 billion in 2015(https://www.nao.org.uk). The improvement was noted in Australia where the government had realised $3.9 billion in savings since 2012 across all its fraud and Published by Sciedu Press
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