This article sheds light on the reasons for practice variation in internal auditing (IA) introduction and development. From a policy perspective, the article's findings highlight the relevance of ...accounting and accountability reforms as a crucial step for developing a new 'awareness' of the importance of internal controls and illustrate how IA can provide assurance on the internal control system. A further implication is that there is no 'one-size-fits-all' solution because different contexts need different IA models to mitigate the power and interests of the actors involved to ensure that IA is effective in terms of day-to-day activities.
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•CEO narcissism is a psychological condition that leads to more aggressive tax policies.•The tax evasion brought about by narcissistic CEOs is reduced in larger audit committees.•Female directors in ...audit committees moderate the attitude and consequences of narcissistic CEOs by limiting tax avoidance.•Results support the role of women in constraining aggressive tax behavior.•The effect of CEO narcissism on tax avoidance is moderated by the internal governance context.
This paper examines the effect of chief executive officerś (CEOs) narcissistic tendencies regarding corporate tax avoidance. Moreover, it aims to test the moderating effect of two audit committee characteristics, size and gender, on the relationship between narcissism and tax avoidance. By using a Spanish sample of analysis composed of 1303 firm-year observations from the period 2008–2017, the findings indicate support for our hypotheses. Specifically, CEO narcissism is positively related to tax avoidance. Narcissism is considered a personality trait that causes CEOs to implement tax avoidance strategies. However, this discretional behavior is constrained by some audit committee characteristics. Specifically, firms with larger audit committees help to control the consequences of CEO narcissism on tax avoidance. In addition, gender diverse audit committees are more sensitive to firm tax aggressiveness, and they reduce aggressive tax practices promoted by narcissistic CEOs. Therefore, audit committee effectiveness is critical in monitoring managerial decisions related to tax avoidance.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Nowadays, internal audit procedures are increasingly supported by the use of technological tools, such as integrated ERP (Enterprise Resource Planning) systems, aiming to improve the performance of ...internal auditors, as well as the effectiveness and efficiency of their work. In fact, the adoption of these systems, together with a good implementation strategy, enhances the strengths of a business, while mitigating its weaknesses. This study, through a questionnaire, aims to understand the impact of ERP systems on internal audit work in Portugal. Starting by understanding which systems, modules and functionalities are most used, the study also aims to assess how these systems influence the effectiveness and efficiency of audit work and also the level of satisfaction of internal auditors in their use. The main findings show that there is a wide variety of ERP systems used by internal auditors in Portugal, the most used being SAP ERP, and the Financial Accounting, Treasury and Purchasing modules. It is also concluded that internal auditors agree that the use of ERP functionalities positively influences the effectiveness and efficiency of their work, and they are generally satisfied with the use of these functionalities in their work.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Анотацш. Вийськови дп та военний стан в УкраМ суттево вплинули на дияльнисть тдроздтю внутрШнього аудиту центральних органив виконавчоИ влади. Виддалена робота працивникив тдроздту, неможливiсть ...безпосередньоН взаемодп з об'ектами аудитив обмежуе функцй внутрШнього аудиту, але при цьому, не втрачаеться його важливiсть в управлтт публичними финансами. Новi виклики вимагають вид внутрШних аудиторiв тдвищенням якостi проведення аудитiв, яка безпосередньо залежить вiд кшьюсного та якисного складу тдроздшв внутрШнього аудиту. Метою статтi е розробка концептуальних засад пидвищення якостi кадрового забезпечення пiдроздiлiв внутрШнього аудиту в державних органах влади. Анализ укомплектування, организации дiяльностi з внутрШнього аудиту у головних розпоряднитв бюджетних коштiв та Их тдвидомчих установах за 2017-2021 рр. свiдчить про постийне зменшення штатноИ чисельностi та збильшення вiдсотку вакантних посад внутрiшнiх аудитора. Виникнення такоИ ситуаци е наслидком низки чинникив, але найвагомiший з них - це недостаттсть висококвалiфiкованих, вмотивованих кадрив, як б володили професийною компетентнiстю, що Грунтуеться на вiдповiднiй освiтi та практичному досвiдi, для належного виконання аудиторських завдань. У статтi запропоновано чотирьохрiвневу модель пiдготовки фахiвцiв з професп «державний внутришний аудитор», яка забезпечуе поступове формування фахових компетенций та практичного досвиду, починаючи вид засвоення базових теоретичних знань у вищих навчальних закладах до обов 'язковоИ сертификацИ на робочому мисци. Для реализацп наданих пропозиций важливо на законодавчому pieHİ закртити вимоги до освтньо-професшного ртня претендент^ на посаду внутршнш аудитор, а також обов 'язковi вимоги щодо пiдвищення Их квалiфiкацii пiсля зарахування на цю посаду. Досл^ження кнуючих на сьогоднi законодавчих та нормативних документw з питань органпацИ дiяльностi пiдроздiлiв внутрШнього аудиту органт центральноИ влади, св^чить про вiдсутнiсть будь-яких норм, як б чтко регулювати дат питання.
Abstract This paper discusses the link between accountability and internal auditing, particularly analyzing the extent to which the latter contributes to improve the former, in Higher Education ...Institutions (HEIs). This study applied a questionnaire to the management boards of a sample of HEIs, to empirical analyze the relationship between internal auditing and accountability. The main focus was on internal auditing carried out by the offices or departments in those institutions. The paper contributes to understand how management boards perceive internal auditing to foster transparency and accountability in HEIs, allowing to corroborate that auditing, and particularly internal auditing, favors the institutions’ accountability. In effect, it promotes the principles underlying accountability practices. The information provided in the scope of internal audits is acknowledged as contributing to improve management effectiveness and helping in decision-making. HEIs wanting to create an internal auditing office or to enhance the role of an existing one, should develop this office’s activities so that it becomes an instrument to support accountability and good governance of the organization. The sample consisted of Portuguese public HEIs, universities and polytechnics. Despite a certain international convergence regarding this type of public sector organizations, and regarding their purposes and governance, certain contextual specificities might limit the generalization of the findings for other jurisdictions.
Resumen Este artículo discute la asociación entre la accountability y la auditoría interna, en particular analizando hasta qué punto esta última contribuye a mejorar la primera, en las Instituciones de Educación Superior (IES). Para analizar empíricamente la relación entre la auditoría interna y la accountability, el estudio se basa en los resultados de una encuesta enviada a los consejos de administración de una muestra de IES, con el enfoque principal en la auditoría interna realizada por las oficinas o departamentos en esas instituciones. El artículo contribuye a comprender cómo los consejos de administración perciben la auditoría interna para fomentar la transparencia y accountability en las IES, lo que permite corroborar que la auditoría, y particularmente la auditoría interna, sirve a la accountability. De hecho, ella promueve los principios subyacentes a las prácticas de accountability. Se reconoce que la información proporcionada en el ámbito de las auditorías internas contribuye a mejorar la efectividad de la gestión y ayuda en la toma de decisiones. Las IES que desean crear una oficina de auditoría interna o mejorar el papel de una existente, deben desarrollar las actividades de esta oficina para que se convierta en un instrumento de apoyo a la accountability y al buen gobierno de la organización. La muestra consistió en IES públicas portuguesas, universidades y politécnicos. A pesar de una cierta convergencia internacional con respecto a este tipo de organizaciones, así como con respecto a sus propósitos y gobernanza, ciertas especificidades contextuales pueden limitar la generalización de los resultados a otras jurisdicciones.
Resumo Este artigo discute a associação entre accountability e auditoria interna, analisando particularmente até que ponto a última contribui para melhorias na primeira, nas Instituições de Ensino Superior (IES). Para analisar empiricamente a relação entre auditoria interna e accountability, o estudo baseia-se nos resultados de um questionário enviado aos órgãos de gestão de uma amostra de IES, com o foco principal na auditoria interna desenvolvida pelos gabinetes ou departamentos nessas instituições. O artigo contribui para entender como os órgãos de gestão percebem a auditoria interna para promover a transparência e a accountability nas IES, permitindo corroborar que a auditoria e, principalmente, a auditoria interna, serve a accountability. Com efeito, ela promove os princípios subjacentes às práticas de accountability. A informação proporcionada no âmbito das auditorias internas é reconhecida como contribuindo para melhorar a eficácia da gestão e ajudar na tomada de decisões. As IES que desejem criar um gabinete de auditoria interna ou aprimorar o papel de um gabinete já existente, devem desenvolver as atividades desse serviço de modo a que se torne um instrumento para apoiar a accountability e a boa governança da organização. A amostra foi constituída por IES públicas portuguesas, universidades e institutos politécnicos. Apesar de existir uma certa convergência internacional em relação a este tipo de organizações do setor público, bem como em relação aos seus propósitos e governança, certas especificidades contextuais podem limitar a generalização dos resultados desta pesquisa, para outras jurisdições.
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This paper presents a theoretical framework for a new concept of organizational control, that stimulates organizational change and adaptation. It introduces Participatory Control Systems (PCS) as a ...distinct type of control based on the complex adaptive system literature. These control systems are fundamentally different from the traditional notion of (management) control. Building on the notion of complex systems and the concept of social learning, PCS increase organizational adaptivity by enabling and facilitating social learning processes that may emerge to transformational change over time. To illustrate the PCS concept in practice, three examples are given in this paper. Moreover, some key implications for internal auditors and suggestions for future research are provided.
There is a growing interest in the organisational resilience. The internal audit function can contribute to growing and maintaining organisational resilience by including the topic in the internal ...audit plan. Auditing it requires a reference model. The study described used a mixed methods approach to develop a reference model for auditing organisational resilience. Six relevant hard and soft (behavioural) elements of resilience are determined: people, culture, strategy, processes, governance and regulation. The internal audit function can use the tool to assess attention areas to include in the audit scope and formulate a specific reference framework for the organisation.
Purpose: This research aims to identify the extent of application of internal auditing standards recognized in Iraqi commercial banks.
Theoretical framework: the Iraqi commercial banks apply ...standards of Attribute for internal auditing issued by professional organizations, and that they apply the performance standards that must be taken into account when carrying out internal auditing work.
Design/methodology/approach: In order to achieve these goals, an exploratory study was conducted according to which (48) questionnaires were distributed, of which (36) questionnaires were returned, and the researchers approved the questionnaire analysis on the SPSS statistical program.
Findings: the result of the research is that Iraqi commercial banks apply internal auditing standards issued by international professional organizations.
Research, Practical & Social implications: The senior management contributes to addressing the remarks of the internal auditor and taking appropriate measures to implement the suggestions and recommendations he makes.
Originality/value: This study measures the effects resulting from adoption the international internal auditing standards in the performance of banking activities after the transition to IFRS in iraqi banks.
Standard-setters believe high-quality internal audit functions (IAFs) serve as a key resource to audit committees for monitoring senior management. However, regulators do not enforce IAF quality or ...require disclosures relating to IAF quality, which is in stark contrast to regulatory requirements placed on boards, audit committees, and external auditors. Using proprietary data, I find that a composite measure of IAF quality is negatively associated with the likelihood of management misconduct even after controlling for board, audit committee, and external auditor quality. This result is robust to a variety of other specifications, including controlling for internal control quality and separate estimation during the pre- and post-SOX time periods. A difference-in-differences analysis indicates that misconduct firms have low IAF quality and competence during misconduct years and improve IAF quality and competence in the post-misconduct years. These findings suggest that regulators, audit committees, and other stakeholders should consider ways to improve IAF quality.
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