Impact of Internal Audit Function on Internal Control Disclosure

Setiawan, Amelia; Djajadikerta, Hamfri; Majidah, Majidah

doi:10.1166/asl.2017.9839

Cited by 9 publications

(8 citation statements)

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“…Hanapiyah et al (2016) measure HG in terms of leadership, integrity, religiosity, spirituality and culture. Other studies have measured human governance by board independence, board size, board education, gender diversity, board age, board education level, training attended by board members, sound internal control system and ethical commitments (Said & Hassan, 2018;Ting et al, 2014;Setiawan & Djajadikerta, 2017;Hashim et al, 2020). Hanapiyah et al (2016) have measured HG using surveys, while Ting et al (2014) have measured using annual reports.…”

Section: Relationship Between Human Governance and Sustainability Rep...mentioning

confidence: 99%

The Relationship between Islamic Corporate Governance, Human Governance, Usage of Information Technology and Sustainability Reporting: Comparison of Shariah Compliant Companies in Malaysia and Indonesia

Haron

Gui

et al. 2022

IJBS

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This study aims to evaluate the relationship between Islamic corporate governance (ICG), human governance (HG), and information technology (IT) usage on sustainability reporting (SR) by investigating Shariah compliant companies in Malaysia and Indonesia. Data was collected from 68 manufacturing Shariah compliant companies’ annual reports for Malaysia, and 70 manufacturing Shariah compliant companies’ annual reports for Indonesia, for the year ended 2019. Descriptive and multiple regression analysis was used to analyse the data. The study found that HG Index and IT Usage Index were positive and significantly related to sustainability reporting for Shariah companies in both countries. However, ICG was not found to be significantly related to sustainability reporting for Shariah companies in Malaysia and Indonesia. This could be because the study focuses only on manufacturing companies, and in Malaysia and Indonesia, only about 24% of the companies and 13% of the companies respectively, have an ICG structure in place. The study suggests that to increase SR of Shariah compliant companies, there should be a good HG structure in place, and they should increase their level of IT usage in their business operations. Resource-Based theory can explain the relationship of IT Usage and HG to SR.

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Section: Relationship Between Human Governance and Sustainability Rep...mentioning

confidence: 99%

The Relationship between Islamic Corporate Governance, Human Governance, Usage of Information Technology and Sustainability Reporting: Comparison of Shariah Compliant Companies in Malaysia and Indonesia

Haron

Gui

et al. 2022

IJBS

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“…Gender, age, training, director experience and expertise increases CSR performance (Jamil et al, 2020) found that the presence of female BOD has a positive influence of sustainability disclosure. Setiawan and Djajadikerta (2017) measured the internal control system using 6 dimensions and they are content of internal control disclosure, implementation of internal control, role of internal control, objective of internal control, internal control framework, and a separate dimension section of internal control. Hashim et al (2020) measured ethical commitment by looking at six dimensions: corporate ethical values, action to promote ethics, whistleblowing policy and code of ethics.…”

Section: Human Governancementioning

confidence: 99%

The Relationship between Islamic Corporate Governance, Human Governance and Sustainability Reporting of Shariah Compliant Companies in Malaysia

Jamil¹,

Hasnah²,

Ramli³

et al. 2022

IJARAFMS

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This study aims to evaluate the relationship between Islamic corporate governance, human governance and sustainability reporting by investigating Shariah compliant companies in Malaysia. This is very significance as to ensure that the corporate governance mechanism will lead the organization to do more sustainability practises when there is disclosure on Islamic corporate governance and human governance. Human governance is measured by job experience of Board of Directors (BOD), education background of BOD, education level of BOD, age of BOD, gender diversity of BOD, level of integrity, the quantity of training attended by BOD and internal control quality. This study investigates the relationships between sustainability reporting, which comprises economic, environmental, social, Islamic corporate governance and human governance. The study has been using quantitative analyses based on a total of 68 Shariah compliant companies' annual reports for the year ended 2019.Descriptive and multiple regression analyses were used to analyse the data. The study found that, education background of BOD, education level of BOD, age of BOD, level of integrity and internal control quality were significantly related to sustainability reporting. However, job experience of BOD, quantity of training attended by BOD and gender diversity of BOD were found not to be significantly related to sustainability reporting. Islamic corporate governance was also found not to be significantly related to sustainability reporting. Shariah companies should focus on having BOD diversity in terms of age, education level and education background. There should also be an internal quality control system and an ethical culture in place to improve its sustainability reporting. Further, this study contributes to the discussion of Islamic corporate governance, human governance and sustainability reporting. The findings can be used to identify the necessary mechanisms that should be enhanced to strengthen the practice of sustainability reporting. Hence, future research could include more items in Islamic corporate governance on the sustainability practises.

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“…In this study, there were six measurement indicators relating to the internal control disclosure system. The indicators include the contents of the internal control system, the implementation of the internal control system, the role of the internal control system, the objectives of the internal control system, the internal control system framework, and the presentation of internal control disclosure system (Setiawan, 2016). The list of companies' internal control disclosure system index can be found in Appendix 1.…”

Section: Data Collection and Processing Technicalmentioning

confidence: 99%

“…Next following by dividing the total index expressed by the maximum value of all index with the formula as depicted in Table 1. The measurement of disclosure of the internal control system in this study used Setiawan (2016) approach. This approach is seen as acceptable as it exceeds the benchmark criteria set by the Capital Market Supervisory Body through Kep-431/BL/2012 No.…”

Section: Data Collection and Processing Technicalmentioning

confidence: 99%

Exploration Disclosures of Internal Control as the Impact of Earnings Quality and Audit Committee

Pangaribuan

Donni²,

Popoola

et al. 2019

IPJAF

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Information disclosure carried out by management as an appointed agent is increasing in importance and hence, a source of concerns to users. It is widely believed that information received by the stakeholders should be appropriate and sufficient for useful decision making, especially in the era of the Fourth industrial revolution. An appropriate and sufficient disclosure in the Annual report indicates a reflection of the effective implementation of the company's operational, strategic, financial and compliance objectives that have been carried out by the management. This study employed secondary data obtained from the annual report for the banks listed in the Indonesia Stock Exchange (IDX). The data for internal control disclosure was observed through a content analysis approach by calculating the internal control system index obtained in the annual report. This study has shown that companies with high earnings quality report more openly convey the application of internal controls system disclosure. This study demonstrated that company with the high characteristics of the audit committee would significantly increase disclosure of internal controls system than a company without audit committee. Supervision, as one of the internal controls established by the management, enhances the performances of the audit committee in ensuring compliance through full disclosure of the financial statements. Thus, restoring users’ trust and confidence in making informed and useful decisions on information emanating from the management.

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Impact of Internal Audit Function on Internal Control Disclosure

Cited by 9 publications

References 0 publications

The Relationship between Islamic Corporate Governance, Human Governance, Usage of Information Technology and Sustainability Reporting: Comparison of Shariah Compliant Companies in Malaysia and Indonesia

The Relationship between Islamic Corporate Governance, Human Governance, Usage of Information Technology and Sustainability Reporting: Comparison of Shariah Compliant Companies in Malaysia and Indonesia

The Relationship between Islamic Corporate Governance, Human Governance and Sustainability Reporting of Shariah Compliant Companies in Malaysia

Exploration Disclosures of Internal Control as the Impact of Earnings Quality and Audit Committee

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