Internal Audit Quality Research Articles

Research on Internal Audit Externalization Based on SWOT Analysis in Colleges and Universities

Nowadays, the system of university is increasingly reformed. The mode of management is in the process of escalating and the economic activity is increasing. Internal audit plays an increasingly important role, but there are some shortcomings and hidden danger in current internal audit of colleges and universities. This needs us to make research on the internal audit externalization to improve the quality of internal audit. This paper focuses on the SWOT analysis of internal audit externalization in colleges and universities. It will simply illustrate the strengths, weaknesses, opportunities and threats of the internal audit externalization and analyze every aspect. Finally, the author will provide some strategies in the internal audit externalization on weaknesses and threats, hoping it will have a certain guiding role in practice and better develop internal audit externalization.

The Effect of Using Administrative Accounting Tools on Improving Internal Audit Quality in Iraqi Private Banks: Balanced Scorecard as a Model

This study examined the impact on the efficiency of internal audit in Iraqi private banks using administrative accounting tools based on balanced scorecards. In order to achieve this aim, an information scorecard questionnaire has been created to assess its effects on the standard of internal auditing. In the case of Iraqi Middle East Investment Bank (IMEIB), Baghdad, Iraq, this work aimed at applying the Balanced Scorecard (BSC) to the strategic design of private banks. The bibliographic and documentary analysis technique and case studies were employed in the production of the work. The work ends by checking that the MSC ensures the harmonization of finance, industry, technology and innovation and that it is indispensable for communication strategies, management control systems and organizational strategies. With the outcome of the strategic objectives defined in the learning and growth prospects, IMEIB, Baghdad will support its internal business processes, thereby helping to achieve the desired results in terms of consumer and financial perspectives. In turn it is possible to get an overview of the real disadvantages in the strategic implementation process and to launch corrective steps through the results of the control process. In summary, BSC provides a holistic view of the organization for IMEIB management, including customer satisfaction operating measures, innovation levels and improvement programs, as well as financial measures.

Quality control of auditing: Ukrainian prospects

The authors conducted a study of the current audit quality control system in Ukraine to develop proposals according to the main areas of its development and improvement based on the positive foreign experience and criteria determined by users of audit services. The information base of the empirical study was the data from the reports of the Audit Chamber of Ukraine on the activities of audit companies and their statistical indicators. The results of the study, analytical findings and recommendations for practice and research prospects are presented in the article. The provisions of the current legislation of Ukraine are used as a source of representation of conceptual definitions and methods for assessing the quality of audit in Ukraine. The research methodology is based on theoretical generalizations and the use of the scientific tools, including comparative analysis, a survey of users of audit services regarding its qualitative characteristics and the study of the experience of foreign countries. The necessity of introducing social (public) supervision, development of internal audit quality control, increasing the responsibility of audit entities, will help to overcome the identified shortcomings associated with the quality parameters of the provided audit services. A number of hypotheses are formulated, which were confirmed during the study or require additional research. The proposed recommendations can have a positive impact on the overall quality of audit activities, provided that they are put into practice in a comprehensive manner. Thus, it is not necessary that they all be implemented at the same time. sequential implementation option is possible.

Pengaruh Efektivitas Komite Audit, Efektivitas Internal Audit dan Kualitas Audit terhadap Pengungkapan Sukarela

The purpose of this study is to prove the truth, internal audit, internal audit, and audit quality on voluntary disclosures in companies listed on the Indonesia Stock Exchange for the period of 2016-2018. The sample was selected using a purposive sampling technique to obtain a sample of 100 companies, the hypothesis was taken using multiple linear regression. The results of this study prove the importance of audit audits, internal audits, and audit quality applied to company voluntary disclosures.
 Keywords: Effectiveness of Audit Committee; Internal Audit; Audit Quality; Voluntary Disclosure.

Effect of Auditor Proficiency and Audit Quality on Internal Audit Effectiveness in Nigeria’s Federal Public Service

The internal audit function, with clearly defined competence and process requirements, has despite its presence within the operations of federal public sector organizations in Nigeria being unable to check the rising cases of frauds and financial improprieties which have continuously been highlighted against them. Furthermore, sufficient attention has not been given to related control issues regardless of the increasing use of information technology (ICT) in public sector operations. The study investigates the effects of competence; the role of ICT; and the quality of internal audit on internal audit effectiveness in Nigeria’s federal public service which is charged with the responsibility of the management of over half of the public revenues accruing to the Nigerian federation but with particular reference to 28 self-accounting federal public organizations operating in the North East Geo-Political Zone. Primary data was obtained from 139 valid responses out of 148 questionnaires administered on the internal auditors of such organizations. Partial least square structural equation modeling (PLS-SEM) was employed as the technique of data analysis to test the relationships. The finding of this study revealed that competence and the quality of internal audit showed positive and significant influence on internal audit effectiveness. Information and Communication Technology (ICT) however showed positive but insignificant contribution. The study recommends an effective compliance with minimum entry requirements in the employment and deployment of Internal Auditors; a review and continuous improvement of operating regulations and standards; as well as the deployment of appropriate ICT audit tools and continuous training of internal audit staff by the relevant government offices (Offices of the Accountant General and that of the Head of Civil Service of the Federation – OAGF & OHCSF; and the Nigerian Information Technology Development Agency - NITDA). Keywords : Internal Audit Effectiveness, Competence, ICT, Quality of Internal Work, Public Sector DOI: 10.7176/RJFA/11-6-01 Publication date: March 31 st 2020

PENGARUH KEPEMILIKAN INTERNAL, KUALITAS AUDIT DAN KEBIJAKAN HUTANG TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

Establishment of a company has a clear goal one of which is to maximize the firm value. There are many factors affecting firm value and this study intends to empirically learning the effect of internal ownership, audit quality, and debt policy to firm value.
 The population of this study is manufacturing companies listed on the Indonesian Stock Exchange for period 2017-2019, amounting to 149 companies. The sample of the study was selected as many as 11 companies with purposive sampling technique. Data collection method of this research is documentation. Data were analyzed using statistical decriptive and multiple regression analysis.
 The result shows that there is no positive influence of internal ownership to firm value with p=0.552 (p>0.05), audit quality has significant effect to company value with p=0.035 (p<0.05), debt policy has no significant effect on the firm value with p=0.807 (p> 0.05).
 The next study must adding other variables that also could affect the firm value such as leverage, profitability, investment, institutional ownership and others

Internal Quality Audit of R.M.C Plant Based on QCI Criteria

Internal Quality Audit of R.M.C Plant Based on QCI Criteria

Compliance with Continuing Professional Development (IES7) of Internal Auditor and Quality of Internal Audit Function

This paper aims to highlight the importance of compliance with continuing professional development (CPD) of internal auditors and its relationship to the quality of internal audit. The study utilised a Partial Least Squares Structural Equation Modelling (PLS-SEM), which emphasise on the analyses of regression and variance by distributing a questionnaire to the study sample of internal auditors in four countries (Jordan, Lebanon, Qatar and Kuwait), and the number of samples valid for statistical analysis reached 104. The paper has reached positive results regarding the importance of CPD in improving the quality of the internal audit, focused on the continuous follow-up to changes related to income and sales tax law, international financial reporting standards (IFRS), International Accounting Standards (IAS), and International Auditing Standards (IAS). Besides, modern Computer and Technological Applications in Internal audit practices and audit ethics. The results also indicated that CPD represents in professional skills is the development of skills to detect and combat theft and fraud, critical thinking skills of analyzed data. Original/Value, the CPD is the impulse by which internal auditors continue to learn new technical knowledge and skills that support them in professional work, to make them more qualified and developed in terms of knowledge and the skills needed within the labour markets.

Pengaruh Pengalaman dan Akuntabilitas Terhadap Kualitas Audit Internal

This study aims to determine the effect of work experience and accountability of internal auditors on the quality of internal audit. Supervision of regional government operations is carried out in stages starting from the Regency / City, Province to the Central level. The independent variables in this study are work experience and accountability. While the dependent variable in this study is the quality of internal audit. it is based on several literature studies and the results of previous studies, the results of this study indicate that work experience and accountability have a very strong role in determining the quality of internal audit, and if someone does the same work repeatedly or continuously, it will be faster and more professional in completing internal audits properly, This is because the auditor has truly understood the techniques or how to properly complete the audit and be careful in completing the audit as expected, therefore the auditor's experience and internal auditor's accountability in carrying out the audit can improve the quality of internal audit.

내부감사품질이 외부감사비용에 미치는 영향 연구

내부감사품질이 외부감사비용에 미치는 영향 연구

The internal audit environment and its determinants of economy entities

The internal audit environment and its determinants of economy entities

INVESTIGATING THE EFFECT OF BUSINESS STRATEGY AND INTERNAL CONTROL ON AUDIT QUALITY

Purpose: Auditing will improve the quality of financial information. However, in today's audit quality affected by the environment. The purpose of this study to investigate the effect of business strategy and internal control on audit quality in listed companies in the Tehran Stock Exchange.
 Methodology: This is applied research in terms of its purpose and in terms of its method is correlation analysis with the regression approach. For this inference method, this research is descriptive-analytic. For this important statistical society, companies listed in the Tehran Stock Exchange during the years 2010-2017 for 8 years have the necessary conditions. According to the constraints defined in the research, companies with qualifying conditions of 107 companies and 856 years-company of observation were collected. To test the hypotheses, the multivariate regression technique was used using panel data.
 Main Findings: The business strategy modifies the relationship between the auditor's specialty in the industry and the internal control of audit quality.
 Implications: The control structure can provide an understanding of the difference between the business strategy and its diversion, which is necessary for the auditor's expertise in the industry. It is proposed to combine business strategy and audit planning, we can identify the weakness of the internal control of the system in order to improve the quality of the audit and create value for the stakeholders.
 Novelty: The study considered the effects of business strategy on the relationship between internal control and audit quality.

Implication of Internal Audit Quality, Job Satisfaction, Asimetric Information and Good Governance on Accounting Fraudulent Tendency

Implication of Internal Audit Quality, Job Satisfaction, Asimetric Information and Good Governance on Accounting Fraudulent Tendency

Analysis of Factors Affecting Internal Audit Quality: Study at the Inspectorate of Maluku Province, Ambon City and West Seram District

This study aims to empirically examine the effects of competence, independence, work experience and internal control systems. Using 61 samples of employees working as auditors in the Maluku Provincial Inspectorate, Ambon City and West Seram District, the data analysis method uses SEM-PLS with the help of the Warp PLS 6.0 application. The results showed that competency had no effect on audit quality, because respondents' demographics had competencies that were not in accordance with the standards, so that in the last few years they had received a fair audit opinion with an exception. Independence has a positive effect on audit quality, the auditor who is always objective in carrying out the audit process, will produce a quality audit. Work experience has a positive effect on audit quality, the more experienced the auditor, the easier it will be to detect audit problems. The internal control system is able to strengthen the relationship of competence, independence and job satisfaction with audit quality, this shows that a good internal control system will support the creation of quality audits.

Pengaruh Kompetensi, Profesionalisme, Dan Pengalaman Kerja Auditor Terhadap Kualitas Audit Internal Pada Perusahaan Swasta Dan Bumn Di Padang

This study aims to determine the effect of Influence of competence, professionalism, and work experience on the quality of internal audit in private and state-owned companies in the city of Padang. The population in this study are private companies and state-owned companies in the city of Padang, which have several internal auditors in their company. The sample in this study were all internal auditors in private companies and BUMN in the city of Padang. Data source is primary data. Data collection techniques with a questionnaire. The data analysis technique is multiple linear regression. The results showed that: (1) Competence had no significant effect on the quality of internal audit, where the tcount of 1.514 < 2, 042 ttable at sig 0.140> α 0.05 which meant H1 was rejected, (2) Professionalism had no significant effect on the quality of internal audit, where the value tcount 1,300 < 2,042 ttable at sig 0,204> α 0,05 which means H2 is rejected, and (3) Work Experience has a significant positive effect on the quality of internal audit, where tcount 2,704 > 2,042 ttable at sig 0,011 <α 0,05 which means H3 is accepted.

Internal audit standard compliance, potentially competing duties, and external auditors' reliance decision

AbstractThis article explores the impact of two previously overlooked characteristics, compliance with Institute of Internal Auditors (IIA) standards and the presence of potentially competing duties, on external auditors' perceptions of internal audit competence, objectivity, and, in turn, their willingness to rely on the internal audit function. This research finds that external auditors consider internal audit functions to be more competent and objective when they fully comply with IIA standards and that external auditors consider internal auditors to be more objective in the absence of any potentially competing duties in other areas. Overall, ratings of objectivity and competence relate to the decision to rely on the internal audit function. This study contributes by providing evidence that external auditors are more willing to rely on internal audit functions that comply with IIA standards and do not perform managerial/consulting duties, even though evidence suggests internal audit functions often do not fully comply with IIA standards and do perform managerial/consulting duties. Additionally, this study's results suggest that remedial action could reduce external audit fees and improve internal audit quality.

Business Process Analysis and Modeling Using the Business Process Improvement Framework at the Internal Quality Assurance STMIK STIKOM Indonesia

STMIK STIKOM Indonesia is a college that organizes two study programs namely Informatics Engineering and Computer Systems. STIKI Indonesia has set SPMI in accordance with the PPEPP cycle. To ensure that SPMI can run as stipulated, the monitoring process is carried out with an Internal Quality Audit (AMI) facilitated by the STIKI Indonesia Internal Quality Assurance Institute (LPMI). Repeated business processes cause delays in obtaining the results of AMI's recapitulation, even though the results of the recapitulation are urgently needed as a report in the Senate Meeting to be evaluated as an effort to improve quality management at STMIK STIKOM Indonesia.
 Therefore the business process model that runs on the implementation of the Internal Quality Audit of STMIK STIKOM Indonesia will further be identified the existing problems and be analyzed and corrected. Business Process Improvement (BPI) is an approach or method that the writer will use to improve existing business processes at the AMI stage. BPI aims to improve business processes and ensure that issues in an organization's business processes are handled properly. Business process modeling that will be used is Business Process Model and Notation (BPMN) which is a tool to describe or model business process diagrams based on flowchart techniques, arranged to create graphical models of business operations where there are activities and flow controls that define work order

SISTEM INFORMASI AUDIT MUTU INTERNAL (SI AMI) PERGURUAN TINGGI MENGGUNAKAN METODE USER CENTERED LEARNING

The purpose of this study is to implement the User Centered Learning (UCD) method in building a Higher Education Internal Quality Audit Information System (SIAMI). There are two test scenarios that have been carried out in this research, namely: black box testing and measuring the level of satisfaction with the system using a questionnaire. Black box testing is done by testing all the function features in the system and the system results in 95% functioning properly. As for testing the level of user satisfaction with the system shows that SIAMI with UCD method can be used because it has a satisfaction level of 87%.

Impact of Internal Audit Practices on Satisfaction of Administrators: A Case in University of Jaffna, Sri Lanka

The main purpose of the study is to find out impact of internal audit practices on satisfaction of administrators in University of Jaffna, Sri Lanka. Internal audit play a major role on overall performance of the organization. Primary data was collected from administrators (academic and non-academic administrators) through developed 5 point likert scale questionnaire. Internal audit practices include internal audit practices related with administrative system review, legal compliance, control on assets usage, control on purchase & procurement and control on payment, research grant & allowance. Descriptive, correlation and regression analysis performed in this study. Descriptive analysis reveals that internal audit practices are in the moderate level based on the administrator’s satisfaction however there is below than moderate level internal audit practices related with administrative system review. Correlation analysis confirmed that there is positive significant relationship between internal audit practices and satisfaction of administrators. Further regression analysis confirmed that there is positive significant impact of internal audit practices related with administrative system review, control on purchase & procurement and legal compliance on internal audit quality. According to the findings of the study top management of the university and the government should improve internal audit practices especially they have to improve internal audit practices related with administrative system review, legal compliance and control on purchase & procurement to increase the overall performance of the University.

Implication of Internal Audit Quality, Individual Morality, Accounting Information Systems, Job Satisfaction, Asimetric Information and Good Governance on Accounting Fraudulent Tendency

This study aims to examine whether the influence of internal audit quality, individual morality, application of accounting information systems, and job satisfaction, Asimetrical Information, Good Governance towards accounting fraud tendency. The population in this study consisted of bank employees at BTN KC, BNI KC, BRI Syariah KC and BCA KCP in Tangerang city. The sampling method used is simple random sampling. In this study, the total sample was 88 respondents. The data type used is primary data obtained from the results of the questionnaire answers by the sample. Smart Partial Least Square (SmartPLS) path modeling method is used as an analysis method. The results of this study indicate that internal audit quality and job satisfaction have a negative and insignificant influence on accounting fraudulency, individual morality has a positive and significant influence on accounting fraudulent tendencies, and the application of accounting information systems has a positive and insignificant influence on accounting fraud tendencies.