Keyword Search:


Bookmark and Share

Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia

Al-Shetwi, Mohammed and Ramadili Mohd, Shamser Mohamed and Chowdury, Taufiq Hassan Shah and Muhamad Sori, Zulkarnain (2011) Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia. African Journal of Business Management, 5 (27). pp. 11189-11198. ISSN 1993-8233

[img] PDF (Abstract)
83Kb

Official URL: http://www.academicjournals.org/journal/AJBM/artic...

Abstract

This study examined the impact of the quality of the internal audit function (IAF), an integral part of corporate governance structure, on the financial reporting quality (FRQ) of all Saudi companies listed in the Saudi stock exchange (TADAWL) in 2009, excluding banks. Both secondary and primary information was collected through a matched survey and interview of internal and external auditors. The findings show weak association between IAF quality and FRQ. The findings imply that the listed firms merely use IAF to provide a symbolic conformity to capital market authority (CMA) regulations. For better internal control and global recognition, CMA needs to put in place more initiatives to increase the role of IAF on firms in Saudi Arabia. Considering the environmental factors of emerging institutions, this study added different insights on the issue of IAF and its role in FRQ in the oil-based economy of Saudi Arabia.

Item Type:Article
Keyword:Internal audit; Financial reporting quality; Corporate governance; Capital market authority; Audit committee; The board of directors; Saudi Arabia
Faculty or Institute:Faculty of Economics and Management
Publisher:Academic Journals
DOI Number:10.5897/AJBM11.1805
Altmetrics:http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.5897/AJBM11.1805
ID Code:22848
Deposited By: Nabilah Mustapa
Deposited On:31 Jul 2015 20:19
Last Modified:29 Sep 2015 12:50

Repository Staff Only: Edit item detail

Document Download Statistics

This item has been downloaded for since 31 Jul 2015 20:19.

View statistics for "Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia"