Designing a Characteristics Effectiveness Model for Internal Audit

Grima, Steven; Baldacchino, Peter J.; Grima, Simon; Kızılkaya, Murat; Tabone, Norbert; Ellul, Lauren

doi:10.3390/jrfm16020056

Cited by 7 publications

(7 citation statements)

References 57 publications

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“…Auditor experience pertains to the knowledge, skills, and learning acquired while conducting audit activities (Smith, G., 2005; Jeppesen, K.K., 2007; AL Fayi, S.M., 2022). Auditors are professionals specialized in examining and evaluating financial, operational, or other information within an organization to ensure compliance with appropriate standards, regulations, and practices (Abdelrahim, Ayman., et al 2022;Grima, Steven., et al 2023). This activity aims to provide assurance or recommendations to enhance efficiency and operations.…”

Section: B) Auditor Experiencementioning

confidence: 99%

Antecedents of Professional Skepticism, Auditor Experience, and Time Pressure in Fraud Detection

Suriani,

Abubakar,

Nur

et al. 2023

IJAERS

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Fraud is an unlawful act committed by individuals, both from within and outside an organization, with the aim of obtaining personal or group benefits that directly harm others. Regional autonomy, which leads to the central government delegating authority to district/city areas, can also transfer the potential for fraud from the center to the regions. One of the government's efforts in preventing and detecting fraud is through audits; however, the performance of fraud detection is highly influenced by professional skepticism, auditor experience, and the limited time provided. This study aims to: (1) Analyze professional skepticism as an antecedent in an auditor's fraud detection. (2) Analyze the level of auditor experience in handling fraud, as not all auditors with experience uncover fraudulent activities. (3) Analyze the moderating role of time pressure in fraud detection. Data were obtained through observation, in-depth interviews, surveys, documentation, and the use of questionnaires. This research is a causal associative study. The total sample collected was 45 individuals, selected using convenience sampling. The results of this study indicate that: 1) Work Experience has a positive influence on Auditor's Ability to Detect Fraud. 2) Professional Skepticism has a positive influence on Auditor's Ability to Detect Fraud. 3) Time Pressure has a negative influence on Auditor's Ability to Detect Fraud. 4) Work Experience, Professional Skepticism, and Time Pressure collectively influence Auditor's Ability to Detect Fraud.

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Section: B) Auditor Experiencementioning

confidence: 99%

Antecedents of Professional Skepticism, Auditor Experience, and Time Pressure in Fraud Detection

Suriani,

Abubakar,

Nur

et al. 2023

IJAERS

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“…The AC plays a vital role in promoting the IAors' role and is responsible for evaluating whether the IAU adheres to the Code and IIA Standards (IIA, 2013), among other duties. In fact, according to Jameson (2011), for the IAor to work freely and without any fear of retribution due to presenting critical findings, support from the AC is essential, and this cooperation improves the overall IAU effectiveness (Grima et al, 2023). Additionally, an effective AC allows for a more unbiased evaluation of how closely IAors follow the International Professional Practices Framework (IPPF).…”

Section: Audit Committee Effectivenessmentioning

confidence: 99%

“…The Internal Audit Function (IAF) has evolved from being solely focused on fraud detection and compliance to becoming a dynamic function that encompasses all aspects of organizational processes (Grima, 2022). The IAF plays a crucial role in the overall "governance mosaic" by providing assurance on internal controls, risk management, and compliance (Soh & Martinov-Bennie, 2011).…”

Section: Introductionmentioning

confidence: 99%

Ethical Conduct and Code of Ethics Compliance Among Maltese Internal Auditors: An Analytical Perspective

Mifsud,

Calleja,

Baldacchino

et al. 2023

JCGIRM

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Through a mixed-methods research approach, this study investigates the factors influencing the ethical conduct of Internal Auditors (IAors) in Malta, assesses their awareness of ethical dilemmas and threats alongside their obligations under the Institute of Internal Auditors' Code of Ethics (the Code), and evaluates how frequently and under what circumstances IAors refer to the Code. Interviews were conducted with twenty-two participants, including nine internal auditors from Maltese listed organizations (MLEreps), five from government entities (Govtreps), and eight outsourced auditors (Outreps). The analysis reveals that IAors' commitment to ethical principles is primarily driven by personal integrity rather than mere obligation to the Code, with personality and character standing out as the foremost predictors of ethical behavior. Nonetheless, the significance of a wellarticulated Code of Ethics, organizational culture, the efficacy of the audit committee, and auditors' experience in shaping ethical conduct was also noted. It was found that internal auditors, especially those within government organizations, are more frequently confronted with ethical dilemmas than their external counterparts due to the nature of their work involving scrutiny of colleagues' actions. Outsourced auditors (Outreps) face distinct challenges in maintaining confidentiality. Across all groups, the threat of over-familiarity was identified as a substantial risk to ethical integrity, with government auditors (Govtreps) additionally perceiving intimidation as a significant concern. Despite these challenges, the Code was viewed by many, particularly MLEreps, as insufficient in addressing the ethical issues and risks encountered. Although a majority of IAors exhibit a willingness to comply with the Code, only a small fraction actively consults and reference it in their reports. This has led to calls among Maltese IAors for an enhanced Code and clearer guidelines, highlighting a reliance on the Code of Ethics for Warrant Holders for further direction due to the lack of practical examples in the current framework.

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“…A few research studies offer theoretical models for RBIA implementation (Coetzee and Lubbe 2014), yet not much has been published on the link between the RBIA application effect on organizational performance (Apreku-Djan et al 2022;Kirogo et al 2014) and specific organizational factors (Lois et al 2021;Abidin 2017). For this reason, more research is necessary, as stated by many scholars (Alrawad et al 2023;Apreku-Djan et al 2022;Benli and Celayir 2014;Drogalas and Siopi 2017;Endaya and Hanefah 2016;Grima et al 2023;Mujalli and Almgrashi 2020). For instance, Grima et al (2023) andPark et al (2019) point out insufficient empirical work has been conducted on internal auditing.…”

Section: Introductionmentioning

confidence: 99%

“…For this reason, more research is necessary, as stated by many scholars (Alrawad et al 2023;Apreku-Djan et al 2022;Benli and Celayir 2014;Drogalas and Siopi 2017;Endaya and Hanefah 2016;Grima et al 2023;Mujalli and Almgrashi 2020). For instance, Grima et al (2023) andPark et al (2019) point out insufficient empirical work has been conducted on internal auditing. Similarly, Coetzee and Lubbe (2014), Lois et al (2021), Turetken et al (2020), andAbidin (2017) have specified the necessity for more research to empirically test the factors affecting RBIA implementation.…”

Section: Introductionmentioning

confidence: 99%

Factors Affecting the Implementation of Risk-Based Internal Auditing

Mujalli

2024

JRFM

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This paper aims to investigate the factors affecting risk-based internal audit (RBIA) implementation in public sector organizations in Saudi Arabia. This paper utilized 234 usable answered questionnaires from internal audit managers, internal auditors, accountants, and executives working in Saudi public sector agencies. The gathered data were analyzed by applying partial least squares–structural equation modeling (PLS-SEM). Results show that management support, internal auditor role, risk management system, and training in risk management all positively and significantly influence the RBIA. Improved internal auditing procedures and an efficient internal monitoring system will significantly curtail any risks impeding the organization’s goals, diminish the temptation to fabricate financial data or statistics, and enhance the accuracy of financial reporting/statements. Moreover, this study’s results have crucial implications for managers of public sector organizations, heads of internal audit departments, internal auditors, and accountants seeking to improve the reliability of internal audits and other aspects of financial information. Published research on what variables are influencing RBIA implementation is scarce. This study adds to the nascent literature by focusing on Saudi Arabian public sector organizations, establishing empirical variables based on an in-depth review of the relevant research and conducting an empirical investigation of the factors associated with RBIA implementation in the Saudi economy. By concentrating on public sector organizations in Saudi Arabia, this paper sheds light on other nations with comparable systems for governance policies and processes in their government-run entities.

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Designing a Characteristics Effectiveness Model for Internal Audit

Cited by 7 publications

References 57 publications

Antecedents of Professional Skepticism, Auditor Experience, and Time Pressure in Fraud Detection

Antecedents of Professional Skepticism, Auditor Experience, and Time Pressure in Fraud Detection

Ethical Conduct and Code of Ethics Compliance Among Maltese Internal Auditors: An Analytical Perspective

Factors Affecting the Implementation of Risk-Based Internal Auditing

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