Does the chief audit executive gender matter to internal audit effectiveness? Evidence from Tunisia

Abstract

Purpose The purpose of this paper is to investigate whether chief audit executive (CAE) gender has a significant impact on the internal audit function (IAF) effectiveness as proxied by the extent to which the internal audit function uses quality assurance techniques. Design/methodology/approach This study uses a multivariate regression model to analyze the association between CAE gender and the use of quality assurance techniques in fieldwork as a proxy for IAF effectiveness. Data were collected using a survey of 74 internal auditors from Tunisian listed companies. Findings The results indicate that IAFs run by a female CAE are more likely to incorporate quality assurance techniques into fieldwork than IAFs run by male CAEs. Therefore, internal audit departments managed by women tend to be more effective. Practical implications Findings highlight to regulators and reform advocates the importance of having women on the CAE position will improve internal audit practices’ quality. Thus, the gender difference in internal auditing should be more strongly emphasized in different cultural and economic contexts. Originality/value This study provides new insights which add to the existing gender literature by introducing a North African perspective and simultaneously providing new insights that highlight the importance of having women on top management positions in internal auditing and the positive effects which come with it.

Efektifitas Peran Internal Audit Dalam Mencegah Dan Mendeteksi Kecurangan

“…Faktor lainnya yang turut membantu entitas dalam mencapai fungsi internal audit yang dimiliki adalah terkait gender kepala departemen internal audit (chief audit executive-CAE). CAE perempuan cenderung akan menjadikan fungsi internal audit lebih efektif (Oussii dan Klibi, 2019;Hardies, Breesch, dan Branson, 2015;Ittonen, Vähämaa, dan Vähämaa, 2013). Pemimpin perempuan cenderung lebih berkompetensi, stabil secara emosional dan independent dari pada laki-laki (Dennis dan Kunkel, 2004).Stewart, dan Munro (2007) menunjukkan adanya direktur perempuan memiliki komunikasi yang lebihbaik.…”

Internal Auditing in the Arab World: A Systematic Literature Review and Directions for Future Research

“…The IIA (1999) defines the IA as an independent and objective advisory investigation to protect institutions’ funds and add value. According to the results of studies conducted on institutions in Arab countries, IA’s independence and objectivity are among the main factors that are positively affected by the presence of independent risk management committees, ACs size, and firms connected to the finance sector (Alhajri, 2017; Al-Twaijry et al, 2004), sound CG (Alaraji, 2020), the gender of chief audit executive (Muqattash, 2017; Oussii & Klibi, 2019), and salary (Muqattash, 2017). As presented in Table 6, the investigation revealed that very limited studies has been directed to the IAFs and the quality of small-medium enterprises (Shaiti & Al-Matari, 2020).…”

Internal Audit Quality, Corporate Governance, and Corporate Social Responsibility: Determinants of Financial Reporting Quality

“…The effectiveness internal audit function can be measured by several dimensions, such as competence, independence, compliance with professional standards (Kaawaase et al, 2021), and the sufficiency of audit committee members (Oussii & Klibi, 2019). A sufficient audit committee members can enhance control activities and participate reducing the firm's risk.…”

“…To measure internal audit quality, we used the number of the audit committee in the companies. Oussii & Klibi (2019) stated that the number of internal audit committees was significantly associated with higher quality financial reports. Internal audit committee provides assessment on preparing financial reports by using quality assurance techniques in the business activities.…”