Corporate Governance, Internal Audit and Profitability: “Evidence from P.I.G.S. Countries”

Balios, Dimitris; Zaroulea, Theodora

doi:10.5171/2020.668702

Cited by 9 publications

(9 citation statements)

References 21 publications

(30 reference statements)

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“…As a result, it may seek to implement low-cost control systems in order to save money for such other activities (Ernest & Young, 2006). Prior and recent studies pointed significant relationship between the corporate governance and firms performance (Alexakis et al, 2006;Balios and Zaroulea, 2020;Ravenstein et al, 2013;Kalantonis et al, 2021).…”

Section: Corporate Governancementioning

confidence: 96%

Exploring the Effect of Corporate Governance on the Audit Effort: The Case of Greek Port Authorities

Xanthopoulou¹,

Delegos²,

Kalantonis³

et al. 2021

IJEBA

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Purpose:The goal of this paper is to investigate the impact of corporate governance on the implementation of internal audits (ΙΑ) in the Greek public sector. Internal audit services have been adopted as a major strategy by the management of public organizations over the last decade in order to achieve their objectives in an efficient and effective manner. Under this framework, the present research investigates how the Board of Directors' williness, support, and implementation of IA, improve public governance. Design/methodology/approach: Data for the study were gathered from the annual financial reports of 13 Port Authorities which have the legal status of Societies Anonymes, between 2012 and 2020. In the regression analysis, audit effort (audit team size) was chosen as dependent variable and as independent variables, the Board of Directors' size, the BIG 5 audit firms and the implementation of internal audit function.To estimate internal audit economic models, various quantitative approaches such as ordinary least squares, weights least squares, fixed effect, and random effect were used. Findings: According to our findings, IA plays a crucial role in the corporate governance system by providing a systematic disciplined approach to monitoring public organizations' policies and procedures and influencing their value. Organizations that completely outsource their IA have been influenced positively in terms of good governance. The high quality of outsourcing IA, has an impact on external auditors' audit services, since external auditors adjust their strategy based on IA reports. Practical Implications: In case of Port Authorities, audit's quality in both internal and external services affects their economic growth and investors' attraction, since it enhances the transparency and accountability of financial reports. Originality/value: In Greece, internal audit was implemented in the public sector, for the first time, in 2005, but it became mandatory in 2019 (Law 4622/2019). Few organizations apply IAF until today, so there are few available information and data of IA' effects on public governance and vice versa. Few researchers focus their studies on IA in public sector.

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Section: Corporate Governancementioning

confidence: 96%

Exploring the Effect of Corporate Governance on the Audit Effort: The Case of Greek Port Authorities

Xanthopoulou¹,

Delegos²,

Kalantonis³

et al. 2021

IJEBA

View full text Add to dashboard Cite

show abstract

“…Alles, Brennan, Kogan, and Vasarhelyi, (2006) argued that continuous audit can be useful for Continuous Control Monitoring and Continuous Data Assurance. Besides, firms' automated internal audit procedures enable them to save cost, conduct more frequent audits, and minimise audit staff involvement (Alles, Kogan, & Vasarhelyi, 2002;Balios and Zaroulea, 2020).…”

Section: Impact On the Audit Practice And Effectivenessmentioning

confidence: 99%

Big Data, Data Analytics and External Auditing

Balios¹,

Kotsilaras²,

Eriotis³

et al. 2020

JMAA

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Big Data and Data Analytics affect almost all aspects of modern organisations' decision-making and business strategies. Big Data and Data Analytics create opportunities, challenges, and implications for the external auditing procedure. The purpose of this article is to reveal essential aspects of the impact of Big Data and Data Analytics on external auditing. It seems that Big Data Analytics is a critical tool for organisations, as well as auditors, that contributes to the enhancement of the auditing process. Also, legislative implications must be taken under consideration, since existing standards may need to change. Last, auditors need to develop new skills and competence, and educational organisations need to change their educational programs in order to be able to correspond to new market needs.

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“…Interestingly, the findings revealed that a vast majority of the sample literature (87 studies) was not based on any reached theory such as (Abdolmohammadi, 2013;Van Peursem and Jiang, 2008;Quick and Henrizi, 2019;Barišić and Tušek, 2016;Betti and Sarens, 2020;Balios and Zaroulea, 2020) and this represents one of the main limitations of studies that were not based on theories. Thus, the absence of theoretical bases in these studies may make it difficult to better understand or explain the results.…”

Section: Introductionmentioning

confidence: 99%

“…The results indicate that five countries accounted for more than 53% of the total studies, suggesting the need for greater research in countries where the number of studies is low, such as Luxembourg, Portugal, The Netherlands, the Czech Republic, Malta and France. Interestingly, the findings revealed that a vast majority of the sample literature (87 studies) was not based on theoretical lenses (Abdolmohammadi, 2013; Van Peursem and Jiang, 2008; Lois et al , 2020; Quick and Henrizi, 2019; Barii and Tuek, 2016; Betti and Sarens, 2021; Balios and Zaroulea, 2020), which represents one of the main limitations of sample literature. Thus, the absence of a theoretical basis in these studies may make it difficult to better understand or explain the results.…”

Section: Introductionmentioning

confidence: 99%

Mapping the literature of internal auditing in Europe: a systematic review and agenda for future research

Hazaea

Zhu

Khatib

et al. 2022

MEDAR

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Purpose Although many firms are investing considerable resources in building and designing strong and effective internal auditing (IA) to improve corporate governance and internal control processes, IA literature is still relatively fragmented. Therefore, this paper aims to provide a systematic review of studies on IA in 27 European countries and the UK. Design/methodology/approach Based on the Scopus database, 142 papers published between 1987 and 2022 were analyzed. This study focused on evaluating and analyzing the characteristics of literature and the themes investigated with a focus on four key aspects: governance, the effectiveness of IA, the relationship between internal auditors and other parties and risk management to provide directions for future research. Findings This study found that IA literature did not provide the integrated knowledge of internal audit functions (IAFs) and the factors that could contribute to their implementation as required. The results showed that the UK, Greece and Italy dominate the published literature in terms of the number of studies. There are a few studies that investigate IA in private institutions and nonprofit organizations. Interestingly, a vast majority of studies are not based on theoretical grounds. The results also showed that there is an absence of studies that discuss the impact of cultural and political systems as well as the demographic characteristics of auditors on the implementation of IAFs. Originality/value This study is useful for researchers, organizations and regulators because it contributes to the literature by highlighting the intellectual development of IA in the European countries and the UK, providing several directions for future studies. To the best of the authors’ knowledge, this research is the first study to use a systematic review approach in evaluating the intellectual development of IA research in European countries, identifying areas and elements that received less attention in previous studies and providing a roadmap for future studies.

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Corporate Governance, Internal Audit and Profitability: “Evidence from P.I.G.S. Countries”

Cited by 9 publications

References 21 publications

Exploring the Effect of Corporate Governance on the Audit Effort: The Case of Greek Port Authorities

Exploring the Effect of Corporate Governance on the Audit Effort: The Case of Greek Port Authorities

Big Data, Data Analytics and External Auditing

Mapping the literature of internal auditing in Europe: a systematic review and agenda for future research

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