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

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 inf...

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Main Authors: Al-Shetwi, Mohammed, Ramadilli Mohd, Shamsher Mohamad, Chowdury, Taufiq Hassan Shah, Muhamad Sori, Zulkarnain
Format: Article
Language:English
Published: Academic Journals 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22848/1/22848.pdf
http://psasir.upm.edu.my/id/eprint/22848/
http://www.academicjournals.org/journal/AJBM/article-abstract/282D10817825
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spelling my.upm.eprints.228482017-11-16T02:27:27Z http://psasir.upm.edu.my/id/eprint/22848/ Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia Al-Shetwi, Mohammed Ramadilli Mohd, Shamsher Mohamad Chowdury, Taufiq Hassan Shah Muhamad Sori, Zulkarnain 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. Academic Journals 2011-11 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22848/1/22848.pdf Al-Shetwi, Mohammed and Ramadilli Mohd, Shamsher Mohamad 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). art. no. 282D10817825. pp. 11189-11198. ISSN 1993-8233 http://www.academicjournals.org/journal/AJBM/article-abstract/282D10817825 10.5897/AJBM11.1805
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description 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.
format Article
author Al-Shetwi, Mohammed
Ramadilli Mohd, Shamsher Mohamad
Chowdury, Taufiq Hassan Shah
Muhamad Sori, Zulkarnain
spellingShingle Al-Shetwi, Mohammed
Ramadilli Mohd, Shamsher Mohamad
Chowdury, Taufiq Hassan Shah
Muhamad Sori, Zulkarnain
Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia
author_facet Al-Shetwi, Mohammed
Ramadilli Mohd, Shamsher Mohamad
Chowdury, Taufiq Hassan Shah
Muhamad Sori, Zulkarnain
author_sort Al-Shetwi, Mohammed
title Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia
title_short Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia
title_full Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia
title_fullStr Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia
title_full_unstemmed Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia
title_sort impact of internal audit function (iaf) on financial reporting quality (frq): evidence from saudi arabia
publisher Academic Journals
publishDate 2011
url http://psasir.upm.edu.my/id/eprint/22848/1/22848.pdf
http://psasir.upm.edu.my/id/eprint/22848/
http://www.academicjournals.org/journal/AJBM/article-abstract/282D10817825
_version_ 1643827907201597440
score 13.211869

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