| published |
| DOI |
| Issue |
| Vol 2- Issue 1
Feb 2018
|
| Section |
| Financial and Management Studies |
Dhiaa Shamki
Assist. Prof. (PhD) at Al Zahra College for Women
Thuraiya Amur Alhajri
Internal auditor (MBA) at Public Authority for Social Insurance
Abstract
The purpose of the study is to present empirical evidence on the influence of the internal audit scope and internal auditor’s experience on the internal audit effectiveness. Employing questionnaire including four sections with 48 questions for responds of 163 employees in Public Authority for Social Insurance (PASI) in the Sultanate of Oman, descriptive analysis, correlation analysis, and multiple regressions were employed to examine the relationships among the selected three variables. The study found that a significant relationship between internal audit effectiveness and its scope and auditors’ experience. The findings suggest that awareness has to be maximized on employees to better cooperate with internal audit staff to improve the applications of internal audit standards. Managers are well interested in the organization’s activities and performance depending on the internal audit findings and observations
Keywords: Internal audit effectiveness, internal audit scope, internal auditors’ experience, PASI, the Sultanate of Oman
لملخص
تهدف هذه الدراسة الى تقديم دليل عملي يتعلق بأثر كل من نطاق التدقيق الداخلي وخبرة المدققين الداخلين على فاعلية التدقيق الداخلي. تم استخدام الاستبانة لتحقيق هذه الهدف. تكونت الاستبانة من اربعة محاور وثمان واربعون سؤالا وزعت على مائة وثلاث وستون موظفا في الهيئة العامة للتأمينات الاجتماعية في سلطنة عمان. تم توظيف التحليل التوصيفي والأرتباط والأنحدار المتعدد لفحص العلاقة بين متغيرات الدراسة المنتخبة. وجدت الدراسة ان هناك علاقة مهمة بين فاعلية التدقيق الداخلي وكل من نطاق التدقيق الداخلي وخبرة المدققين الداخليين. استنادا الى نتائج الدراسة، فانه يقترح ان يتم زيادة الاهتمام بالموظفين للحصول على مزيد من التعاون مع موظفي التدقيق الداخلي لتحسين تطبيق معاير التدقيق الداخلي. كما ان المدراء في المؤسسة سيستفيدوا من نتائج هذه الدراسة فيما يتعلق بفعاليات واداء موظفي المؤسسة.
پوخته
ئه‌م تویژینه‌وه‌یه ئامانجی بۆ ده‌رخستنی ڕێبه‌ڕێكی پراكتیكی په‌یوه‌ست به كاریگه‌ری مه‌ودای لیكۆلینه‌وه‌ی ناوخۆی و ئه‌زموونی لیكۆله‌ره‌كان له‌سه‌ر كاریگه‌ربوونی لیكۆلینه‌وه‌ی ناوخۆی . ڕاپرسی ئه‌نجام دراوه بۆ به دیهێنانی ئه‌م ئامانجه . كه پێكهاتووه له چل و هه‌شت پرسیار و دابه‌ش كراوه له سه‌ر سه‌د و شه‌ست و سێ فه‌رمانبه‌ر له یه‌كی گشتی زه‌مانی كۆمه‌لایه‌تی له عمان . شیكردنه‌وه‌ی ته‌وسیفی و په‌یوه‌ست بوون و لادانی گۆراو به‌گه‌ر خراوه بۆ پشكنینی په‌یوه‌ندی له‌نیوان گۆراوه‌كانی خویندنی هه‌ڵبژێراو . وه تویژینه‌وه‌كه ده‌ری خستووه كه په‌یوه‌ندیه‌كی گرنگ هه‌یه له نێوان كاریگه‌ری لیكۆلینه‌وه‌ی ناوخۆیی و مه‌ودای لیكۆلینه‌وه‌ی ناوخۆی و ئه‌زموونی لیكۆله‌ره‌كان . له‌سه‌ر ده‌ره‌نجامی تویژینه‌وه‌كه پێشنیاز ده‌كرێت كه زیاتر گرنگی بدرێت به فه‌رمانبه‌ران بۆ به‌ده‌ستهێنانی هاوكاری زیاتر له‌گه‌ڵ لیكۆلێنه‌ره‌كان بۆ باشتر جێبه‌جێ كردنی پێوه‌ره‌كانی پشكنین . وه سه‌ڕه‌ڕای ئه‌وه‌ی به‌ڕیوبه‌ره‌كان سوود ده‌بینن له ئه‌نجامه‌كانی ئه‌م تویژینه‌وه‌یه له لایه‌نی چالاكی و ره‌وشی فه‌رمانبه‌ره‌كانی ئه‌و داموده‌زگایه.
References
(1) M. Davies, “The changing face of internal audit in local government” Journal of Finance and Management in Public Services, vol. 1, no. 2, 15–26, 2001.
(2) G. Dubis, P. Jain, A. Manchanda, and R. Thakkar, “Measuring internal audit effectiveness and efficiency: Practice guide”, Institute of Internal Auditors (IIA), 1-16, 2010.
(3) R. Hayes, P. Wallage, and H. Gortemaker, “Principles of auditing: An introduction to international standards on auditing”, 3rd Edition. Pearson Education Limited, 2014.
(4) J. Fraser, and H. Lindsay, “20 Questions, directors should ask about internal audit second edition”, Canadian Institute of Chartered Accountants. National Library of Canada Cataloguing in Publication, 2007.
(5) D. Soh, and N. Bennie, “The internal audit function: Perceptions of internal audit roles, effectiveness, and evaluation”, Managerial Auditing Journal, vol. 26, no. 7, 605-622, 2011.
(6) Ramamoorti, S., “Internal auditing: History, evolution, and prospects” in Research Opportunities in Internal Auditing, 1st Ed, edited by Bailey, A.D., A.A. Gramling and S. Ramamoorti, Chapter 1, The Institute of Internal Auditors Research Foundation: Altamonte Springs, FL, 2-23, 2003.
(7) J. T. Reeve, “Internal Auditing. pp. 8-1 to 8-39. In Cashin, J.A., Neuwirth, P.D., and Levy, J.F. (eds.), Cashin’s Handbook for Auditors, 2nd Ed. (Englewood Cliffs, NJ: Prentice Hall), 1986.
(8) Institute of Internal Auditors (IIA), “Measuring internal audit effectiveness and efficiency. IPPF-Practice guide”, 2010.
(9) R. R. Moeller, “Brink’s modern internal auditing: A common body of knowledge”. 7th ed. John Wiley and Sons, Inc, 2009.
(10) Institute of Internal Auditors (IIA), “Code of Ethics. Standards and guidance” International professional practice framework (IPPF)”, 2009.
(11) D. G. Mihret, and A. W. Yismaw,), “Internal audit effectiveness: an Ethiopian public sector case study”, Managerial auditing journal, vol. 22, no. 5, 470-48, 2007.
(12) K. Van Peursem, “Internal auditors’ role and authority: New Zealand evidence”, Managerial Auditing Journal, vol. 19, no. 3, 378 – 393, 2004.
(13) P. Intakhan, and P. Ussahawanitchakit, “Roles of audit experience and ethical reasoning in audit professionalism and audit effectiveness through a moderator of stakeholder pressure: An empirical study of tax auditors in Thailand”, Journal of Academy of Business and Economics, vol. 10, no. 5, 1-15, 2010.
(14) A. Wright, and S. Wright, “The effect of industry experience on hypothesis generation and audit planning decisions”, 1997. Retrieve on 1 /08 /2016 from Social Science Research Network Electronic Paper Collection: http://papers.ssrn.com/paper.taf?abstract_id=42913
(15) D. Prawittet, L. Smith, and D. Wood. (2008). Internal audit quality and earnings management. In-stitute of Internal Auditors Research Foundation, 1-42. Electronic copy available at: http://ssrn.com/abstract =916081
(16) T. Carpenter, C. Durtschi, and L. M. Gaynor, “The role of experience in professional skepticism, knowledge acquisition, and fraud detection”, 2002, Electronic copy available at: www.ssrn.comon
(17) J. Cohen, and T. Kida, “The impact of analytical review results, internal control reliability and experience on auditors› use of analytical review”, Journal of Accounting Research, vol. 27, no. 2, 263 -276, 1989.
(18) A. S. Gaballa, and Z. Ning, “An analytical study of the effects of experience on the performance of the external auditor”, International Conference on Business and Economics Research, vol. 1,169 -173, 2011.
(19) G. Moyes, “The differences in perceived level of fraud – detecting effectiveness of SAS No. 99 red flags between external and internal auditors”, Journal of Business and Economics Research, vol. 5, no. 6, 9-26, 2007.
(20) J. Chung, and G. S. Monroe,”The effects of experience and task difficulty on accuracy and confidence assessments of auditors”, Accounting and Finance, vol. 40, 135-152, 2000.
(21) M. Badara, and S. Saidin, “The relationship between audit experience and internal audit effectiveness in the public sector organizations”, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 3, no. 3, 329–339, 2013.
(22) E. Bonner, and B. L. Lewis, “Determinants of auditor expertise”, Journal of Accounting Research, vol. 28, 1-20, 1990.
(23) P. Musig, and P. Ussahawanitchakit, “Dynamic audit competency and the antecedents and con-sequences: Evidence from tax auditors in Thailand,. International Journal of Business Research, vol. 11, no. 3, 47 – 75, 2011.
(24) L. Munro, and J. Stewart, “External auditors› reliance on internal auditing: Further evidence”, Managerial Auditing Journal, 26(6), 464-481, 2011.
(25) J. L. Bierstaker, and J. C. Thibodeau, “The effect of format and experience on internal control evaluation”, Managerial Auditing Journal, 21(9), 877 – 891, 2006.
(26) S. K. Asare, A. M. Cianci, and G. T., Tsakumis, “The impact of competing goals, experience, and litigation consciousness on auditors’ judgments”, International Journal of Auditing, vol. 13, 223-236, 2009.
(27) W. Chi, L. A. Myers, T. C. Omer, and H. Xie, “The effects of auditors’ pre-client and client-specific experience on earnings quality and perceptions of earnings quality: Evidence from private and public companies in Taiwan”, 1-38, 2010. Retrieved from: https://papers.ssrn.com/sol3/Papers.cfm?abstract_id=1304953
(28) F. Choo, and K. T. Trotman, “The Relationship between knowledge structure and judgments for experienced and inexperienced auditors”, The accounting review, vol. 66, n. 3, 464-485, 1991.
(29) H. Ahmad, R. Othman, and K. Jusoff, “The Effectiveness of Internal Audit in Malaysian Public Sector”, Journal of Modern Accounting and Auditing, vol. 5 no. 9, 53-62, 2009.
(30) C. A. Knapp, and M. C. Knapp, “The effects of experience and explicit fraud risk assessment in detecting fraud with analytical procedures”, Accounting, Organizations and Society, vol. 26, 25-37, 2001.
(31) M. Arena, and G. Azzone, “Identifying organizational drivers of internal audit effectiveness”, International Journal of Auditing, vol.13, 43–60, 2009.
(32) I. Seol, J. Sarkis, and F. Lefley, “Factor structure of the competency framework for internal auditing (CFIA) skills for entering level internal auditors”, International Journal of Auditing, vol. 15, no. 3, 217–30, 2011.
(33) A. Cohen, and G. Sayag, “The effectiveness of internal auditing: An empirical examination of its determinants in Israeli organizations”, Australian Accounting Review, vol. 54, no. 20, 296-307, 2010.
(34) M. Jensen, and W. Meckling, “Theory of the firm: Managerial behavior, agency costs and ownership structure”, Journal of Financial Economics, vol. 3, 305-360, 1976.
(35) R. Holthausen, and R. Watts, “The relevance of the value-relevance literature for financial accounting standard setting”, Journal of Accounting and Economics, vol. 31, no. 1-3, 3-75, 2001.
(36) K. M. Eisenhardt, “Agency theory: An assessment and review”, Academy of Management Review, 14, 57-74, 1989.
(37) D. Weil, “The benefits and costs of transparency: A model of disclosure based regulation”, Boston University, School of management, 2002.
(38) Ministry of Finance-The Sultanate of Oman,”The state General Budget”, 2015.
(39) J. Kitzinger, “Qualitative Research” BMJ vol. 311, 299-302, 1996.
(40) M. Barrow, “Statistics for Economics, Accounting and Business Studies”, 4th ed, Pearson Education Limited, UK, 2006.
(41) Public Authority Social Insurance (PASI) in the Sultanate of Oman, “Annual reports”, 2011-2015.
(42) J. Pallant, “SPSS survival manual. 3rd ed”. McGraw Hill Education, 2007.
(43) Institute of Internal Auditors (IIA), “Definition of internal auditing. IPPF-Practice guide”, The Institute of Internal Auditors, 1999.
(44) R. K. Mautz, “Fundamentals of auditing” 2nd Ed. John Wiley and Sons, Inc, New York, 1964.
(45) Institute of Internal Auditors (IIA), “Standards for the professional practice of internal auditing. Professional: practice framework (IPPF)”, 2001.
.
