Local Auditing Research Articles

Is buying cheaper than sharing? A study of the effect stand-alone contracting out versus public co-production has on cost in Norwegian local auditing services

ABSTRACT Contracting out and public co-production are widely used alternatives supplementing inhouse service delivery with aims to decrease costs. Scholars struggle however with establishing causal relationships comparing how these alternatives affect performance. This paper analyzes the effects outsourcing and intermunicipal cooperation has on costs, using Norwegian local auditing services as case. We set out to determine how organisation, in the form of single municipalities contracting out versus intermunicipal production, and the size of the cooperation (i.e. number of cooperating municipalities) affect costs. The results indicate that under competitive market conditions, cooperation in general is more costly than contracting out to private actors. However, when it comes to cooperation size, the results show that costs decrease when more members are included, indicating that smaller cooperations are more costly than larger ones. This indicates that an increase in cooperation size creates significant returns to scale.

Investigating ISA adaptation in a developing country context: the selective influence of Big Four affiliates

ABSTRACT This paper examines how the national process of adapting the International Standards on Auditing (ISAs) unfolds in developing countries, focusing on the case of Egypt. The study relies on data gathered from 33 semi-structured interviews with government officials and senior auditors alongside documentary evidence. Our findings show how legacy state institutions that were involved in the national standard-setting committee have largely fallen short of their aspirations to align local auditing standards with the expectations set out in the ISAs. The lack of a coherent approach to developing state policy objectives, resources, and public consultation, together with technical demands and translation difficulties, hampered the process. Such weaknesses provided an opportunity for the local Big Four affiliates to become deeply involved. The firms’ strategic manoeuvres were driven not only by a material desire to protect their market position/status but also by a commitment to a perceived national duty to support government attempts at national standard-setting. Importantly, our findings reveal the selectivity of such interventions and the differential impact of ISA adaptation on the diverse constituency of audit firms. Theoretically, we propose the institutional void perspective to conceptualise the intervention of private actors as well as to articulate the elements of a void in an audit regulatory process. While Big Four firms typically seek to position themselves in such processes, we argue that international reforms and policies should focus on fostering a more inclusive, accountable, and deliberative system that promotes the presence of diverse, independent and representative local audit actors.

Prevalence of surgical site infections and antibiotic resistance pattern in a Tertiary care Orthopaedic unit

Introduction: Surgical site infections (SSIs) in orthopaedic surgeries pose a significant risk to outcomes. These infections ranging from superficial to periprosthetic joint complications result from various factors including patient-related conditions and environmental factors. Staphylococcus aureus, with increasing antibiotic resistance, is a predominant cause. Perioperative antibiotic prophylaxis recommended by the WHO is crucial. Establishing national surveillance considering local antibiotic resistance and continuous auditing are essential for formulating effective guidelines to prevent and manage SSIs. Methods: This is a retrospective study conducted at a tertiary care hospital from December 2022 to November 2023 at the orthopaedic unit. The study population was all the patients who had surgical site infections following clean orthopaedic surgeries during the study period. An institutional-level ethical clearance was obtained. Results: This retrospective study conducted at a tertiary orthopaedic unit in Jaffna, Sri Lanka, aimed to investigate surgical site infections (SSI) following clean orthopaedic surgeries. Analyzing data from 1676 surgeries over one year, the study identified 83 culture-proven SSIs, yielding an annual incidence of 4.95%. The majority of SSIs occurred in males (62.7%) and were associated predominantly with lower limb surgeries (83.1%). Contrary to global trends, Pseudomonas emerged as the most common causative organism (31.3%). Discussion: Notably, the study revealed significant variations in antibiotic sensitivity patterns among isolated organisms. While Pseudomonas exhibited sensitivity to a wide range of antibiotics, coliforms displayed resistance to several agents. This emphasizes regional and institutional differences in antibiotic resistance patterns. Conclusion: Continuous large-scale institutional audits are crucial for shaping effective antibiotic policies. The study underscores the dynamic nature of SSI aetiology, emphasizing the need for tailored preventive measures based on regional data.

Research on Local Financial Risk Prevention Strategies from an Audit Perspective

Financial security is an important part of building national security, and financial risk prevention affects the level of social risk. Therefore, strengthening local financial auditing will play an important role in resolving financial risks. With the rapid development of the market economy, China's overall economic development is in good condition, and local finance is developing rapidly. However, under the phenomenon of good development, the risks faced by local financial institutions also increase, especially in small and medium-sized commercial banks and other local financial institutions. This study takes small and medium-sized commercial banks in Anhui Province, China as an example, and takes an audit perspective as the entry point to explore preventive measures for local financial risks, aiming to provide effective financial risk management solutions. This study has important theoretical and practical significance and can provide strong risk management guidance for local financial institutions.

A study on audit service quality: Reliability of local independent auditing firms

The main objective of this study was to identify, evaluate, and measure the attributes of audit service quality: reliability in local independent auditing firms in Hanoi through qualitative and quantitative research methods. The study was based on a field survey using a semi-structured questionnaire on a sample of 250 general accountants and chief accountants. The period was from October 2021 to March 2022. By using statistical analytical tools, i.e., Cronbach’s alpha analysis, independent T-test, and ANOVA, the study has identified and measured five attributes of audit service quality: reliability in local independent auditing firms in Hanoi. There is not, statistically, a significant difference in the level of audit service quality in local independent auditing firms in Hanoi between these different types of work. There is not, statistically, a significant difference in the level of audit service quality in local independent auditing firms in Hanoi between these different job seniorities. Based on the findings, some recommendations are given for local independent auditing firms to improve the quality of their audit services.

Influence of local independent audit firms’ service quality on customer satisfaction

In many organizations, especially those dealing with services, customer satisfaction is considered a challenge (Pula, 2022). The study is grounded in the theory of customer satisfaction and service quality. The purpose of this study is to examine the relationship between service quality at local independent auditing firms and customer satisfaction. Between September and October 2022, the general accounting and chief accounting departments will be surveyed. There were 250 respondents in the data collection, based on exploratory factor analysis, linear regression, correlation analysis, and scale reliability analysis. According to the study, client happiness and service quality at local independent auditing firms are positively correlated. The effects of the service quality at the component level, however, vary. The findings of the study imply that clients should choose local independent auditing firms that provide high-quality services. There are some suggestions on how to enhance the caliber of their services and the growth of this industry in Vietnam. The study advances our knowledge of local independent auditing firms’ levels of service quality.

The Role of Internal Audit Based on Internal Control in Enhancing the Efficiency of the Outputs of the Government's Accounting System

The internal audit function focuses on detecting tampering that may occur in government units and enterprises, as well as identifying weaknesses and gaps that the employees of those government units and enterprises suffer from, and then addressing them by to give a neutral technical opinion. This control function of internal audit will increase its effectiveness in the case of construction. The system of tight internal control for the purpose of improving the efficiency of the outputs of the government accounting system. One of the most important results of the research was the lack of application of local and international internal auditing standards and the weakness of the internal control systems in the centrally funded government units, which contributes to the weakness of the efficiency of the outputs of the auditing agencies and a material shortage of internal control, which in turn will be reflected in the weakness of the outputs of the government accounting system. The researcher reached a set of recommendations, the most important of which is the need to implement local and international internal auditing standards in government units funded centrally in order to raise the efficiency of internal auditing agencies, develop and improve the internal control system, and develop its human cadres, which contributes positively to raising the efficiency of control work in these government units.

The influence of foreign direct investment on the Egyptian audit market: what do Big 4 partners’ perceptions tell us?

PurposeThis study aims to examine the effects of the entry of foreign direct investments (FDIs) on the audit markets in developing countries (i.e. Egypt). There is a long-standing debate on the impact of FDIs on developing markets, but little is still known about the effect of FDI on national suppliers, such as audit firms.Design/methodology/approachThis paper reports the results of a study that used qualitative research methods. It involves interviews with senior management teams of the Big 4 audit firms, to find out how these firms deal simultaneously with conflicting global and local influences. The interviews were complemented by the publicly available data on the firms’ websites as well as published reports related to the Egyptian economy and current investment regulations.FindingsDrawing on the institutional theory, the findings suggest that an increased litigious environment, compliance with developed markets’ regulations, auditor regulatory sanctions and improved local accounting and auditing standards are highly significant consequences of foreign investment inflows. The findings indicate that more emphasis has been given to the quality of audit and auditors’ independence when auditing FDIs. Both audit regulators and audit firms in the domestic market pay higher attention to improving the quality of financial reports when FDIs have entered the market. More inspections and reviews for audit firms have been conducted, and local auditing and accounting standards have been revised to be in compliance with international standards.Research limitations/implicationsOur results have important implications for investors, regulatory authorities and governments in relation to the development, implementation and enforcement of international financial reporting and auditing standards.Originality/valuePolicymakers and regulators in Egypt have responded to international pressure by revitalizing their local accounting and auditing standards and adopting international financial reporting and auditing standards. The authors identify strategies that have been adopted by audit firms to face the FDIs’ challenges.

Food Safety Audits in Developing Economies: Decentralization vs. Centralization

Problem definition: This paper investigates and compares two types of food safety auditing structures: decentralized and centralized audits. Academic/practical relevance: Decentralized food safety auditing systems are common among developing economies, that is, different tiers of a food supply chain are audited by separate government agencies. Such an auditing structure has been widely criticized as ineffective at mitigating food safety risks. Some developing countries began implementing centralized auditing systems as a remedy for the mis-coordination across local auditing agencies. We compare food safety outcomes and economical payoffs of the two auditing systems. Methodology: We study a parsimonious game-theoretic model of a one-supplier, one-buyer supply chain and two agencies auditing each tier of the supply chain, respectively. Under decentralized audits, each of the two agencies minimizes its individual cost, and their decisions are sequential; under centralized audits, the agencies minimize total agency cost and make auditing commitment up front. Results: We identify forces that drive equilibrium decisions under decentralized audits. The penalty-shield effect of an agency’s auditing capability may lead to risky behavior by the supplier. The free-riding effect between the two agencies may lead to less auditing. A centralized commitment makes the agencies the leader in the game at the expense of them losing the flexibility to respond to the actions of supply chain members. The common objective under centralization strengthens the incentives for at least one agency to conduct an audit, but it may also induce the lower-cost, less-capable agency to audit. Hence, centralized audits can be detrimental to performance regarding both food safety outcomes and system payoff. Managerial implications: Changing the auditing structure from decentralization to centralization may fail to improve food safety and system payoff insofar as it may replace one form of inefficiency with another. Addressing the new inefficiencies should be part of the ongoing effort to enhance the efficacy of centralized audits. History: This paper has been accepted for the Manufacturing & Service Operations Management Special Section on Responsible Research in Operations Management. Funding: The work of D. Shi was supported by the National Natural Science Foundation of China [Grant 72102205]. Supplemental Material: The online supplement is available at https://doi.org/10.1287/msom.2021.1058 .

The Role of the Postgraduate Institute for Accounting and Financial Studies for Providing Graduates that Can Improve the Performance of the Board of Supreme Audit and Reduce Government Spending Costs for the Period 2004-2020

Institutions, institutes and colleges of higher education are the first pioneers for the outputs of specialized medical, engineering and social cadres, including accounting cadres. The Higher Institute for Accounting and Financial Studies is the Department of Accounting Studies, the main tributary for the preparation of specialized professional cadres holding a legal accounting certificate and a certificate of costs and administration, which is the highest specialized professional accounting certificate in the field Auditing and costing. The importance of these specialized cadres comes from the two certificate holders to provide the Federal Financial Supervision Bureau with these specialized accounting professional cadres for the purpose of monitoring government spending and calculating costs in productive institutions and cost and benefit in service institutions in the public and private sectors to monitor the achievement of political and social objectives of government public spending and private spending. The research investigated the study of the problem of the low percentage of the number of graduates of the Accounting Studies Department in the Legal, Cost and Administrative Accounting sub-section compared to the number of bodies and employees, which reduces the ability of the Federal Financial Supervision Bureau to follow local and international auditing standards in the pressure of public expenditures to achieve the political and social objectives of the public budget. The research reached the most important recommendations: 1. Increasing the number of legal, cost and administrative accounting graduates in the Office of Financial and Federal Supervision. 2. Developing cost-benefit and cost-benefit studies in auditing government agencies and institutions in the public and private sectors in accordance with international standards.

What Gets Measured Gets Improved-Setting Standards and Accreditation for Quality Improvement for Diabetes Services in Australia.

The purpose of this article is to illustrate that setting standards of care is the cornerstone for excellence in diabetes management. This is underpinned by 3 activities: a standards and accreditation process, an audit and benchmarking program and a linked quality improvement plan. While there are many examples of local auditing and quality improvement programs, there are very few that are at a national level. The National Association of Diabetes Centres (NADC) was formed by the Australian Diabetes Society and the Australian Diabetes Educators Association to set standards of diabetes care in Australia. A rigorous accreditation process was put in place to recognize primary, secondary, and tertiary level diabetes centers that meet these standards. The NADC accreditation process is underpinned by a quality improvement plan, which must be submitted for accreditation to be granted and is informed by the Australian National Diabetes Audit (ANDA). ANDA is conducted annually to gather information about treatments, complications, self-care practices and quality of life outcomes and provides a national as well as an individual report to the participating center that is used to benchmark against other like centers. The ANDA reports are important to inform national policy and advocacy for diabetes care and to also provide information for quality improvement purposes for the individual participating center. We believe that the NADC Standards and Accreditation can be an exemplar for other countries to adapt and adopt to standardize diabetes care at the highest level.

Emerging Technologies To Detect Fraud in Audit Testing: A Perception of Malaysian Big Four Auditors

Fraud surveys performed over the past decade remained at worrying levels in Malaysia. The Malaysian 1MDB scandal has attracted worldwide attention which severely damaged the local auditing profession, worsening the credibility crisis in the sector. The rise of emerging technologies is seen to bridge the expectation gap in strengthening stakeholder confidence in auditors by easing fraud detection. Unfortunately, a past study in Malaysia on task-technology fit between auditor’s knowledge and perceived importance on technology revealed a gap. A report by the Malaysian Institute of Accountants in 2019 highlighted that the lagging factor of emerging technology adoption in Malaysia is due to auditors’ non-realization of its usefulness in fraud detection. Furthermore, to render emerging technology as a useful medium for data extraction and analysis higher levels of scepticism is required. Besides, focus is placed on data quality as the accuracy of testing is heavily reliant on the input. Hence, this study intends to find whether there is a relationship between the perception of Malaysian Big Four external auditors and fraud detection in the audit testing phase. An online questionnaire based on a 5-point Likert scale was distributed and received responses from 108 external auditors where data was coded and input into the SPSS for further analysis. The results show that Malaysian Big Four external auditor’s perception of emerging technology affects the use for fraud detection in audit testing. As this study could not be generalized, further research should consider looking from the time constraints viewpoint or to study auditors from a similar firm for a greater understanding of their perception since firms have different degree of emerging technology adoption.

Food Safety Audits in Developing Economies: Decentralization vs. Centralization

Problem Definition: This paper investigates and compares two types of food safety auditing structures: decentralized audits and centralized audits. Academic/Practice Relevance: Decentralized food safety auditing systems are common among developing economies, i.e., different tiers of a food supply chain are audited by different government agencies. Such an auditing structure is widely criticized as ineffective in mitigating food safety risks. Some developing countries started implementing centralized auditing systems as a remedy for the mis-coordination among local auditing agencies. We compare food safety outcome and economical payoff of the two auditing systems. Methodology: We study a parsimonious game-theoretic model of a one-supplier-one-buyer supply chain and two agencies auditing each tier of the supply chain, respectively. Under decentralized audits, each of the two agencies minimizes its individual cost and decisions are sequential; under centralized audits, they minimize the total agency cost and commit upfront. Results: We identify driving forces behind equilibrium decisions. The penalty-shield effect of an agency's auditing capability may lead to risky behavior by the supplier. A free-riding effect between the two agencies may lead to less auditing. Centralized commitment makes the agencies the leader in the game at the expense of them losing the flexibility to respond to actions of supply chain members. The common objective under centralization increases the incentives for at least one agency to audit, but may assign the lower-cost-less-capable agency to audit. Hence, centralized audits can lead to inferior performance on both food safety outcome and system payoff. Managerial Implications: Changing the auditing structure from decentralization to centralization may fail to improve food safety and system payoff since it may replace one form of inefficiency with another. Addressing the new inefficiencies should be part of the ongoing effort to enhance centralized audits.

Evaluating and measuring the internal control system in light of local and international auditing standards

The study aimed to define the theoretical framework for the internal control system in the light of studies, research and recent publications by touching on the concept of the internal control system, its objectives, importance, constituents and types in general, and exposure to the components of the internal control system in light of the requirements and standards of domestic and international auditing related to the internal control system, In addition to studying and evaluating the internal controlsystem in the Circle Erbil Health Department to know the availability of local audit requirements in it and the extent of its compatibility with international auditing standards to identify the shortcomings in this system and determine the most important procedures Take it to avoid it. The study generally tries to answer the following questions: Does Circle Erbil Health Department follow proper internal control procedures?Are the control procedures followed in conformity with the laws, regulations, and instructions, and are they in compliance with local and international auditing standards? The study hypothesis is as follows: There are indicators in the performance of the internal control system in the Circle Erbil Health Department that comply with the auditing standards. To achieve the goals of the research, the descriptive approach was adopted to cover the theoretical aspect of the study and the applied approach in evaluating the internal control system in the Department of Health, Erbil. The study reached many conclusions and suggested many recommendations. Among the most important conclusions reached by thestudy issued by many international bodies and organizations Several standards and guidelines, which touched on the components and elements of the internal control system due to its importance, as studies indicate that a quarter of the international auditing standards addressed aspects related to the internal control system.

The Impact Availability of the Components of Internal Auditing By Adding Value in Government Units in Iraq

This study aims to identify the concept of adding value, the role of internal auditing in adding value and its location in the value chain, and identifying stakeholders, the internal audit components for their addition, its adding value activities, and the indicators needed to determine the expectations of stakeholders in the value of internal audit activities. In order to reach the objectives, the study presented a theoretical presentation and a questionnaire was prepared for the opinions of 78 employees of internal audit units, public administrations, supervision bodies and academics specialized in accounting and auditing. The study found that the internal audit components for adding value in government units are efficiency and quality. Assurance, insight, objectivity. Internal auditing has a number of value-adding activities: identifying areas of spending reduction, reducing fraud and Manipulation, increase the reputation of the unit, paying attention to stakeholders’ satisfaction and expectations, improving information communication. There is a correlation between these components and the internal audit activities value-adding as well as their positive impact in adding value. And the measures of adding value: the growth rate in the Employees training and information technology expenses, the percentage applied from the internal audit recommendations, the percentage of the decrease in irregularities discovered by the SAIs, Stakeholder satisfaction ratio, percentage of tasks implemented/ planned, Percentage of the amount of violations measured to annual expenditure, Number of times support requested by SAIs, The growth in the number of annual reports, the number of requests received for the perform of auditing tasks, the amount of reduction in proposed expenditures relative to annual unit expenditures, percentage of The amount of reduction in the proposed expenditures To the annual unit expenses. The study made several recommendations, the most important of which is the need to establish local internal auditing standards, Mechanisms for employment and rotation of staff in internal audit units, attention by training them on the use of modern technologies, subordinated to periodic tests, work to achieve independence by making them administratively linked to the provincial treasuries, Adoption of measures of adding v alue in internal audit and executive management evaluation.

Against Food Waste: CSR for the Social and Environmental Impact through a Network-Based Organizational Model

This article inductively develops a model of how farmers market organizations can contribute to reduce food waste, fight poverty, and improve public health through innovative Corporate Social Responsibility (CSR) practices enabled by networked activity systems. To this aim, a ten-year longitudinal case study of one of the biggest Italian farmers markets has been conducted, based on triangulated data from participant observation, interviews, and internal documents collection. This study suggests that farmers market organizations are in the position to leverage their inter-organizational relationships, institutional role, and power to build collaborative networks with businesses, government bodies, and charities, so that concrete CSR-based virtuous circles on surplus food donation are triggered at the organizational field level. Answering the call from United Nation Goals for successful examples on SDG 12, this case presents how several CSR levers can have a social and environmental impact allowing farmers and their market organizations to increase their efficiency and accountability to the local community, improve processes, reduce food waste, and contribute to public health and social inclusion. CSR actions have co-evolved with significant changes in organizational logics and identity, thus enabling accountability to the local community and innovative network-level auditing of the relevant organizational processes.

Audit in Russian Federation and the Research Toward the Determination of the Functioning of Audit Mechanism

Although the development of audit laws in Russia corresponds to the end of the 80s, there has been experienced significant progress in this respect in the early 2000s. Since the early 2000s, many laws have been developed and many local auditing standards have been prepared in the country by benefiting from the international experience. Since 2010, the government control over the audit activity began to decline. In this study, information about the legal regulations implemented in Russia has been provided. Subsequently, basic indicators pertaining to the audit for the years 2013-2014 such, as the number of auditors and audit firms, distribution services volume by the auditing company, the number of audited companies, the revenue structure of the audit firms and regional distribution of audit firms, has been discussed and the impact of legislation on audit activity was investigated. Data related to the audit, are based on information published by the Russian Ministry of Finance.

Maintain the Consistency of Auditing Cloud

In day to day life cloud is most essential part. Now cloud storage are use for business purpose the cloud is popular due to their huge amount of advantages the cloud is portable we can able to access the cloud anywhere globally. A cloud service provider maintains much duplication and each piece of data are globally distributed on servers. The main problem of cloud is to handle duplication of data which is too costly to achieve powerful consistency on world wide .In this paper we present a novel consistency service model which contain a large amount of data cloud and multiple audit clouds In The Consistency Service model . a data cloud is maintain by Cloud service Provider (CSP) and the number of user constitute group and that group of user can constitute an audit cloud Which can check whether the data cloud provides the valid level of consistency or not we suggest the 2 level auditing architecture, two level auditing architecture requires a loosely synchronize clock in the audit cloud. Then, design algorithms to quantify the commonality of violations metrics, and the staleness of the value of a read metrics. Finally, a Analytical Auditing Strategy (AAS) to shows as many violations as possible. Thus system performed using a combination of simulations and real cloud deployments to validate Analytical Auditing Strategy (AAS). KeywordsGlobal Consistency Auditing, Local Consistency Auditing, Analytical Auditing Strategy (AAS). __________________________________________________*****_________________________________________________

TraumaNetzwerk DGU®: Optimizing patient flow and management

PurposeCaring for severely injured trauma patients is challenging for all medical professionals involved both in the preclinical and in the clinical course of treatment. While the overall quality of care in Germany is high there still are significant regional differences remaining. Reasons are geographical and infrastructural differences as well as variations in personnel and equipment of the hospitals. MethodsTo improve state-wide trauma care the German Trauma Society (DGU) initiated the TraumaNetzwerk DGU® (TNW) project. The TNW is based on five major components: (a) Whitebook for the treatment of severely injured patients; (b) evidence-based guidelines for the medical care of severe injury; (c) local auditing of participating hospitals; (d) contract of interhospital cooperation; (d) TraumaRegister DGU® documentation. ResultsBy the end of 2013, 644 German Trauma Centres (TC) had successfully passed the audit. To that date 44 regional TNWs with a mean of 13.5 TCs had been established and certified. The TNWs cover approximately 90% of the country's surface. Of those hospitals, 2.3 were acknowledged as Supraregional TC, 5.4 as Regional TC and 6.7 as Lokal TC. Moreover, cross border TNW in cooperation with hospitals in The Netherlands, Luxembourg, Switzerland and Austria have been established.Preparing for the audit 66% of the hospitals implemented organizational changes (e.g. TraumaRegister DGU® documentation and interdisciplinary guidelines), while 60% introduced personnel and 21% structural (e.g. X-ray in the ER) changes. ConclusionsThe TraumaNetzwerk DGU® project combines the control of common defined standards of care for all participating hospitals (top down) and the possibility of integrating regional cooperation by forming a regional TNW (bottom up). Based on the joint approach of healthcare professionals, it is possible to structure and influence the care of severely injured patients within a nationwide trauma system.

REVELATION TO ACHIEVEMENT OF INTERNAL AUDITING MECHANISMS IN DETECTING RISKS IN THAILAND: CASE STUDY IN THAI LOCAL GOVERNMENTS

ABSTRACT The objective of this study is to investigate why Thai local government internal auditing mechanisms continue to be ineffective by examining specify factors that the literature identifies as impediments to the effectiveness of internal auditing systems. An anonymous survey and interviews were employed to collect data from responding internal auditors within Thai local government. The results show that key three factors are causing the ineffectiveness of Thai local government internal auditing mechanisms: capabilities of the internal auditing team; participation on internal auditing systems of officials; and promotional opportunities within the internal auditing profession. These factors have significantly impacted Thai local government internal auditing. Greater competence of internal auditors, independence of internal auditors, growth prospects and working motivation and cooperation between administrators, audited entities and internal auditors will improve in the detection of risks specifically fraud and corruption risks. Keywords Internal auditing mechanisms; Corruption risks; Thai local governments.