حسابرسی داخلی و اثربخشی کنترل داخلی در خلال عملیات
Abstract
1- Introduction
2- Institutional background and regulations of internal control in Taiwan
3- Literature review and hypothesis development
4- Research design
5- Results
6- Additional analysis
7- Discussion and conclusion
References
Abstract
The internal audit function (IAF) assists management in improving internal controls over operations, reporting, and compliance. While many studies examine the association between the IAF and the internal control over financial reporting (ICFR), little is known about internal control over operations and compliance. Using a unique dataset from Taiwan, this paper examines the association between IAF quality and internal control deficiencies in operations and compliance. The results suggest that a larger internal audit team can enhance internal audit performance for both operations and compliance, whereas internal auditor competence is positively associated with the effectiveness of internal control over compliance, but not operations. This study contributes to the literature by shedding light on the determinants of the achievement of operations and compliance objectives. It also provides important implications for stakeholders and practitioners, as a company’s control over operations and compliance may mutually influence its ICFR and ultimately its business success.
Introduction
An effective internal audit function (IAF) can ensure quality corporate governance by assisting management in improving internal controls (Chartered Institute of Internal Auditors, 2015). The key responsibilities of internal auditors are to examine, evaluate, and monitor the adequacy and effectiveness of internal control objectives over operations, reporting, and compliance (American Institute of Certified Public Accountants [AICPA], 2008; Committee of Sponsoring Organizations of the Treadway Commission [COSO], 2012; Institute of Internal Auditors [IIA], 2012).1 While many studies investigate internal control over financial reporting (ICFR) (e.g., Abbott et al., 2016; Ege, 2015; Lin et al., 2011; Prawitt et al., 2009), data constraints have ensured that so far there has been relatively little empirical research that assesses internal control over operations and compliance.