Internal Auditing Practices And Performance Of Internal Audit Department

The performance of an internal audit department must function in a manner that is in accordance with applicable professional standards such as Standards for the Professional Practice of Internal Auditing (SPPIA, 2000) and the quality of the internal control systems

Management accounting change: ABC adoption and implementation

The current research tries to contribute to the successful design and implementation of ABC in the context of Jordanian Manufacturing Companies. In order to satisfy the research objectives, both quantitative and qualitative data are gathered. For the quantitative data, a questionnaire survey was developed for the determination of the present scenario involving ABC adoption and implementation.For the qualitative one, semi-structured interviews were utilized to find out the factors impacting the adoption and implementation of ABC.Data analysis included within company and cross-company analysis. ABC’s adoption and implementation rate were determined through the use of three criteria; namely, adopters, implementers and users or implementers.The primary findings revealed that ABC implementation in the context of Jordanian Manufacturing Companies is approximately 19.5% measured according to the third criteria which is implementers or users.Findings from the semi-structured interviews reveal that factors including fashion, forced decision, fad and efficiency are directly related to ABC implementation decision in the target companies. In addition, factors that both facilitate and motivate ABC implementation are: top management support, non-accounting ownership, higher information technology, education, globalization of consumer, increased competition, growing costs, allocation problems, inability of the traditional cost systems to provide relevant information in the new environment and financial crisis. The findings from the interviews also revealed that the barriers to ABC implementation are associated to behavioral and technical problems

The effect of institutional factors on the organizational performance through performance measures of commercial banks in Libya

This paper aims to contribute to the literature that investigates the mediating role of performance measures in the link between institutional factors (coercive and normative pressure) and organizational performance.Using the data collected from 154 commercial bank branches in Libya, the results revealed the existence of a significant and positive association between coercive pressures and organizational performance through non-financial performance measures.However, the study found no evidence of a significant relationship between normative pressures and organizational performance through non-financial performance measures

Corporate Governance on the Performance of Internal Auditors in Thailand Public Limited Company

The issue of performance of internal auditors is important since Thailand was also affected by the accounting scandals. The expanded scope in the definition of internal auditing and new regulatory requirements such as the Sarbanes-Oxley Act 2002 has increased the demands on internal auditing. This study was conducted to examine the relationship between the corporate governance on the performance of internal auditors in Thailand public limited companies. In this study, corporate governance relates to the board of directors size and audit committee size to the performance of the internal auditor. To achieve this objective, two hypotheses were developed based on previous studies and the agency theory. Survey questionnaires were sent to the Chief Audit Executives (CAEs) to determine the effectiveness on their performance based on the professional standards issued by the IPPF (2017) indicators. A total of 520 questionnaires were distributed, but only 146 were usable. Multiple regressions were used to test the relationship between the variables. The result showed that there is insignificant relationship between board of director’s size and internal auditors’ performance. This study however found that audit committee size has a positive relationship on the performance of internal auditors. Therefore, audit committee need to increase higher responsibility with regard to corporate governance by overseeing financial reporting and internal control matters

The Role of Absorptive Capacity between External Knowledge Search and Firm's Product Innovation Performance

Nowadays, it is commonly accepted that external knowledge search is important for firm's product innovation performance (PIP). However, it is still not clear, what dimensions of firms' external knowledge search strategy are crucial in determining their product innovation success, and how firms are exploiting the external knowledge from their external knowledge search activities. This study intends to open the “black box” between different dimensions of external knowledge search strategies, and PIP by proposing absorptive capacity as the mediating variable. Employing path analysis through partial-least squares structural equation modeling (PLS-SEM) in a sample of 137 Malaysian manufacturing firms, this study found that absorptive capacity is partially mediated between collaboration depth and PIP. In this way, it provides insight that collaboration depth contributes to developing firms' absorptive capacity, and yet, this strategy could also contribute directly to PIP. This study advances extant literature by explaining the way of a firm in attaining superior PIP from external search strategies and absorptive capacity and this provides insights for managers in developing suitable strategies to gain and sustain competitive advantages. As firms improve in its PIP, it could move up the value chain of a country and encourage the better economic development of the nation

The relationship between corporate governance mechanisms and going concern evaluation: Evidence from firms listed on Amman Stock Exchange

This study aims to examine the relationship between corporate governance mechanisms (representative by each of managerial, institutional ownership, board independence and board meeting) and going concern evaluation among Jordanian listed firms. Through using multiple regression analysis, the results of this study illustrates that there is a positive relationship between managerial ownership, board independence and board meeting and going-concern evaluation, while a negative relationship is found with institutional ownership.There are four main hypotheses, two of them which are managerial and institutional ownership are accepted, while board independence and board meeting are not supported. This study shed more light on the importance of complying with the requirements of governance code and instructions by the companies and the need to impose fines or sanctions on non-compliant companies.The results of this study contribute to the creditors‟ interest to be more alert to companies which may possess characteristics that contribute in manipulation of future companies

Contextual factors of performance measurement systems design in Libyan commercial banks

Based on the contingency theory, this study examines the contextual factors that influence the design of performance measurement systems (PMS). Specifically, this study examines the influence of business strategy and organizational structure on the choice of measurements in Libyan commercial banks. Since the early 1980s, contingency-based research has focused on the search for the best design of management control systems. This research renews this idea by including two factors - business strategy and organizational structure. This research is conducted to contribute to the inconclusive and limited evidence concerning the influence of contextual variables in the design of PMS, particularly in the service industry in less developed countries, such as Libya. The data were gathered from Libyan commercial banks using a survey questionnaire mailed to the branch managers. Data analysis was conducted by employing descriptive analysis, factor analysis, reliability analysis, and multiple regression. The findings show that business strategy has a positive and significant relationship with PMS, while organizational structure has an insignificant influence on PMS design. The results of this study imply that managers should consider the contextual factors that may influence the choice of performance measures, so that the design of their PMS will result in better organizational performance

The effect of board of directors characteristics, audit committee characteristics and executive committee characteristics on firm performance in Oman: An empirical study

This study is an attempt to achieve the main objective by examining the association between the board of director’s characteristics, audit committee characteristics and the executive committee characteristics and the performance of the Oman companies.This study used many assumptions to test the relationship between independent variables and dependent variable as discussed in the section explaining the study method.The data comprised of 162 non-financial companies because financial and non-financial companies employ different methods and they have different structures.As this study attempts to bridge the gap in the existing literature by investigating the association between corporate governance mechanisms and firm performance in the emerging market of Oman, it focuses on adding new important variables of corporate governance mechanisms like board change, the role of secretary on the board, the legal counsel and the executive committee characteristics that improve firm performance.The findings indicated a significantly positive relationship between board size, board meeting, audit committee independence and executive committee independence, and the Tobin`s Q. On the other hand, board independence and legal counsel are significantly and negatively related to Tobin`s Q. Moreover, a positive but insignificant relationship is found between CEO tenure, CEO compensation, audit committee size, and the firm performance (Tobin`s Q). Furthermore, board change, the role of the secretary on the board, audit committee meeting, executive committee size and executive committee meeting are revealed to have a negative but insignificant association with firm performance (Tobin`s Q). Finally, this study provides recommendations for future research

Service quality and customer satisfaction in Thailand’s audit firms

Customer satisfaction is an important factor for firms.In the high levels of competition, many firms are trying to increase customer satisfaction.Increasing customer satisfaction decreases customer complaints, increase repurchase intentions, get higher future profitability and lead to better financial performance.Service quality is a key factor for customer satisfaction. It is an important tool for audit firms for increasing their income and market share.The aim of this research is to determine whether service quality will affect customer satisfaction in Thailand’s audit firms. Perceived service quality of audit firms were measure by adapted and modified 22 items of SERVQUAL scale. The seven-point Likert scale was used for measuring all of the observed variables (service quality and customer satisfaction) which ranged from “1 = strongly disagree” to “7 = strongly agree”.The design of this study used the survey method with data collection through questionnaire by mailing to president/director, accounting manager, or department head of finance and accounting department who act as an agent for their companies and play and important roles in engaging auditor for the audit works. The data were collected from a sample of 296 companies listed on the Stock Exchange of Thailand that spans all of the eight industries during the 2nd quarter of 2014. There are: 1) Agro and Food Industry 2) Consumer Products 3) Financials 4) Industrials 5) Property and Construction 6) Resources 7) Services and 8) Technology. All of these are using auditors under Thailand law and regulations and approved by the office of the Stock Exchange of Thailand in order to audit the Securities and Exchange Commission registrants.In order to test the research hypotheses, correlation and regression analysis was used.Empirical findings of the research show that perceived service quality of audit firms affects customer satisfaction.The results of the findings suggest that audit firm needs to emphasise on service quality.This is to their service quality is usually assessed by measures of the service provider’s relationship with customers.Thus, audit firm service management should pay attention to staff skill improvement and offering fast and efficient services