scholarly journals Examining CAATTs Implementation by Internal Auditors in the Public Sector

2017 ◽  
Vol 1 (2) ◽  
pp. 50-56
Author(s):  
Aidi Ahmi ◽  
Siti Zabedah Saidin ◽  
Akilah Abdullah
Keyword(s):  
Public Sector ◽  
Internal Audit ◽  
State Level ◽  
Maintenance Cost ◽  
Computer Assisted ◽  
Successful Implementation ◽  
Internal Auditors ◽  
The Public ◽  
Efficiency And Effectiveness ◽  
The Government

Computer Assisted Audit Tools and Techniques (CAATTs) are not new for auditors, and it needs to be adopted to gain the audit efficiency and effectiveness especially in a current era of technology. This paper examined the implementation of CAATTs by internal auditors in the public sector. Accordingly, this research reports the results from 12 interviews made with internal audit departments in public sector in both federal and state level in Malaysia. This research found that the implementation of CAATTs by internal auditors in public sector is still low due to lack of expertise, high implementation and maintenance cost, limited access of auditee’s data, and most of them prefer to conduct the audit manually. Furthermore, it is not mandatory for them to use CAATTs. The evidence is a contrast with the encouragement made by the government to improve the IT usage in public sector. The results implied that training for future auditors in CAATTs to ensure the successful implementation is crucial. For CAATTs to be a success, the head of internal audit also must have the awareness about the importance of CAATTs as well as enforcement of its implementation.

New perspective on the black box of internal auditing and organisational change

2016 ◽  
Vol 31 (8/9) ◽  
pp. 804-820 ◽  
Author(s):  
Aviv Kidron ◽  
Yuval Ofek ◽  
Herztel Cohen
Keyword(s):  
Public Sector ◽  
Quantitative Methods ◽  
Internal Audit ◽  
Organisational Change ◽  
Internal Auditing ◽  
Content Type ◽  
Internal Auditors ◽  
The Public ◽  
Innovative Model ◽  
Audit Information

Purpose The shift from the traditional audit towards performance audit implies that internal auditors in the public sector function as change agents who underpin the fundamental change process. This paper aims to propose a model that identifies the determinants of organisational change in the public sector that result from internal auditing and the way internal auditors facilitate it. Design/methodology/approach The conceptual discussion of this paper is based on a review of relevant literature, both practical and academic. Findings This paper develops an innovative model that describes the factors leading to auditees’ change readiness after undergoing internal audit processes. The independent variable is audit information quality and the dependent variable, organisational change. Auditees’ perceptions is the mediator variable, and accessibility to audit information is the moderator variable. Practical implications The proposed model suggests the advantages that can be gained by audit-related services, which in turn will add value to the organisation. The relationships between the variables inform practitioners on how to support effective audits as a means of increasing performance and influencing organisational change. Originality/value As the paper offers an innovative model, it may open up new research areas in internal auditing that can be studied by using both qualitative and quantitative methods.

Financial Misappropriation in the Nigerian Public Sector: A Determination of the Role of the Internal Auditor

2017 ◽  
Vol 3 (2) ◽  
pp. 7-17
Author(s):  
J. K. Oyadonghan ◽  
S. Ogoun
Keyword(s):  
Public Sector ◽  
Research Effort ◽  
Internal Audit ◽  
The State ◽  
Least Square ◽  
Primary Data ◽  
Economic Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
The Public

The continued search for a solution to the problem of poor economic management due to financial misappropriation in the public sector, and the public’s outcry against internal auditors because of their perceived connivance necessitated the current study. Furthermore, the position canvassed by internal auditors with respect to their scope of responsibility further justified the need for this research effort. Accordingly, this study was undertaken to determine, whether or not, the internal auditor has a role to play in ensuring the proper utilization of the nation’s economic resources, bearing in mind the rules specifying the scope of the internal audit function in the public sector. Drawing from the research model of survey design, both a structured questionnaire and oral interview data collection platforms were deployed to collect primary data from audit, and another staff of selected ministries in the State and the least-square regression analysis was adopted in testing the hypotheses. From the analysis, and from personal interview, the researchers were able to find out that internal audit has a responsibility to detect and prevent financial misappropriation in the public sector. It was also found out that the internal auditors in the State Civil Service are not independent, which affects their freedom to report such acts of financial misappropriation to the legislative arm for proper action. Therefore, it is recommended that The State legislative arm should ensure that the independence of the internal auditor is guaranteed by a statute.

scholarly journals System for Electronic Archiving of Document in Republic of Kosovo: An Evaluation of Success Factors- Design-Reality Gap Analysis

2017 ◽  
Vol 8 (1) ◽  
pp. 347-352 ◽  
Author(s):  
Fakije Zejnullahu ◽  
Indrit Baholli
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Success Factors ◽  
Gap Analysis ◽  
Successful Implementation ◽  
The Public ◽  
Critical Success ◽  
Project Risks ◽  
The Government ◽  
Failure Factors

Abstract Use of Innovation of ICT in activities of the public sector, referred to as e-Government, has helped governments to improve their services to citizens, to businesses and to government units by making them more qualitative and easily accessible. The initiative of e-Government in Kosovo was identified as a priority of the government in 2008 and since then a number of projects have been implemented, amongst them the System for Electronic Archiving of Document (SEAD). Since the partial or full failure of implementation of e-government projects is very frequent phenomenon in developing countries, the identification of success and failure factors of projects is necessary in order to address them on time. In this study are assessed the level of success of implementation of SEAD and are identified the critical success and failure factors of this system through seven dimensions ITPOSMO by using the Design Reality Gap Analysis. By measuring the design-reality gap across seven dimensions, we have assessed the success of the implementation of SEAD, which scored 18.05. Results from this study indicate that if no action is taken to reduce the size of gaps, particularly the gap in dimensions “Processes” and “Staffing and Skills”, project risks falling in the category “Partial Failure”. Findings from this research will serve to reduce the risks that may affect the successful implementation of e-governance in Republic of Kosovo, and also will serve other researchers in identifying the failure and success factors of e-Government in developing countries.

scholarly journals Independence of Internal Audit Unit Influence the Internal Audit Capability of Malaysian Public Sector Organizations

2019 ◽  
Author(s):  
Nur Ain Zakiah Mohd Yusof ◽  
Hasnah Haron ◽  
Ishak Ismail ◽  
Ong Hock Chye
Keyword(s):  
Public Sector ◽  
Internal Audit ◽  
Internal Auditors ◽  
The Public ◽  
Road Map ◽  
Public Sector Organizations ◽  
Independence Results ◽  
Level 1 ◽  
Level 2 ◽  
Capability Level

Measuring capability level of a service provider is ambiguous, so does an internal audit unit in the public sector. Prominently, there is very scarce research conducted on this issue. In this study, the Internal Audit Capability Model (IACM) is used to measure the capability while the independence of the internal audit is studied as one of the factors influencing it. Questionnaires were sent to head of internal auditors which list obtained from National Audit Department. Total of 70 responses was received and analyzed for descriptive statistics and relationship testing using SPSS and SmartPLS. It was found that 47 organizations were only at capability level 1 Initial while remaining 13 organizations were at least scored capability Level 2 Infrastructure. This shows that the Malaysian public sector must strengthen its internal audit unit, especially in People Management, to develop higher capability level. It was also found that independence of the internal audit unit has a positive and significant influence on the overall internal audit capability level. Lack of independence results in lack of quality internal audit unit thus gives an impact on the capability level. IACM used in this study could provide the organization with a road map to enhance its capability.

Factors affecting the internal auditors’ effectiveness in the Jordanian public sector

2019 ◽  
Vol 14 (3) ◽  
pp. 251-273 ◽  
Author(s):  
Hamza Mohammad Alqudah ◽  
Noor Afza Amran ◽  
Haslinda Hassan
Keyword(s):  
Public Sector ◽  
Structural Equation ◽  
Task Complexity ◽  
Internal Audit ◽  
Top Management ◽  
Content Type ◽  
Factors Affecting ◽  
Internal Auditors ◽  
External Auditors ◽  
The Public

Purpose The purpose of this paper is to investigate the moderating effect of task complexity on external auditors’ cooperation (EAC), top management empowerment and internal auditors’ independence, which affect internal auditors’ effectiveness in the Jordanian public sector. Design/methodology/approach This paper utilised 117 usable questionnaires from financial managers and internal audit (IA) managers of the Jordanian public sector institutions. The collected data were analysed using partial least squares-structural equation modelling (PLS-SEM). Findings The results reveal that EAC, top management empowerment, and internal auditors’ independence are the factors which positively and significantly affect the internal auditors’ effectiveness, as supported by the resource-based theory, with incomplete support for the task complexity’s role as a moderator. Practical implications The findings are important for the decision-makers and regulators in introducing new legislation and regulation for the IA profession in the Jordanian public sector. Social implications It is shown that the factors affecting the internal auditors’ effectiveness can definitely enhance their ability to achieve the role of IA in protecting public funds and limiting financial and administrative corrupt practices, particularly in the public sector. Originality/value To the best knowledge of the authors, this study is one of the first studies that addresses task complexity as an interaction effect on the factors affecting internal auditors’ effectiveness in the public sector.

scholarly journals Internal Audit Functions: An Empirical Study of Public and Private Sectors in Nigeria

2018 ◽  
Vol 2 (1) ◽  
pp. 26-37
Author(s):  
Abdulkadir Madawaki ◽  
Aidi Ahmi ◽  
Halimah @ Nasibah Ahmad
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Internal Audit ◽  
Audit Fees ◽  
Public And Private ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors ◽  
The Public ◽  
Private And Public

The study examines the similarities and differences between the private and public sectors internal audit functions in Nigeria. The features examined include the hierarchical position of the internal audit functions, outsourcing of internal audit activities, reporting relationship of the internal auditor, and the coordination between internal and external auditors. A survey of internal audit managers of both sectors was undertaken to establish their current practices. The results revealed that there are no much differences in the hierarchical positioning of the internal audit function in both sectors. A substantial difference was found in the reporting lines of internal auditors in both sectors. The results further showed that private sector outsources internal audit activities more than the public sector and a slight difference exists between the two sectors about the level of coordination between internal and external auditors. Finally, the result indicated that private sector experiences a reduction in external audit fees compares to its counterpart in the public sector.      

scholarly journals The Effect of Top Management Support on The Effectiveness of Public Sector Internal Audit in Indonesia with Competence and Independence as Intervening Variables

MBIA ◽  
2020 ◽  
Vol 19 (3) ◽  
pp. 243-257
Author(s):  
Kanta Rio Saputra ◽  
Srihadi Winarningsih ◽  
Evita Puspitasari
Keyword(s):  
Public Sector ◽  
Local Government ◽  
Internal Control ◽  
Local Governments ◽  
Internal Audit ◽  
Top Management ◽  
Management Support ◽  
Top Management Support ◽  
The Public ◽  
The Government

The phenomenon of corruption cases that often occur in local governments and BPK findings related to weaknesses in the internal control system indicates that the internal audit function in local governments is not yet effective. This study aims to examine and measure how much influence the factors that affect the effectiveness of internal audit in the public sector in Indonesia. The results of this study are expected to be used as a consideration for policy making by the Government, which is currently encouraging the improvement of the effectiveness of internal audit in Indonesia. The population in this study were all internal audits of local government in Indonesia. The data collected in this study were 55 internal audits of local government throughout Indonesia.  The research was conducted with a quantitative approach using SEM PLS. The results showed that independence and competence had a significant effect on the effectiveness of internal audit and top management support indirectly had a significant effect on the effectiveness of internal audit through competence and independence. However, top management support directly does not have a significant effect on the effectiveness of internal audit. This research also revealed that with the support of top management to the competence and independence of internal audit, it will be able to encourage a more effective internal audit in carrying out its duties and functions.

scholarly journals PENGARUH PENGALAMAN KERJA, INDEPENDENSI, OBJEKTIVITAS, DAN MOTIVASI TERHADAP KUALITAS HASIL PEMERIKSAAN AUDITOR INSPEKTORAT PROVINSI KALIMANTAN TENGAH

2018 ◽  
Vol 17 (2) ◽  
pp. 86-99
Author(s):  
Boby Segah
Keyword(s):  
Organizational Performance ◽  
Internal Audit ◽  
Intellectual Ability ◽  
Regional Government ◽  
Internal Auditor ◽  
Central Kalimantan ◽  
Internal Auditors ◽  
Efficiency And Effectiveness ◽  
The Government

The audit organization in Indonesia is divided into two, namely the Government External auditor conducted by the Supreme Audit Agency (BPK) and the Government Internal Auditor or better known as the Internal Controller of the Government (APIP). The function of the internal auditor is to carry out an internal audit function which is an independent appraisal function within an organization to test and evaluate the organization's activities undertaken. In addition, internal auditors are also expected to contribute more to improving efficiency and effectiveness in order to improve organizational performance. One of the units conducting an audit/examination of the Regional Government is the Regional Inspectorate. The Inspectorate Auditor of Central Kalimantan Province only conducts an examination in the form of a review of the Local Government Financial Statements to provide limited confidence in the quality of the Regional Financial Report not the opinion or opinion on the Financial Statement, but only the recommendation. This is stated in the Minister of Home Affairs Regulation No. 4 of 2008. The Auditor at the Inspectorate of Central Kalimantan Province is a government internal auditor with the same examination object each examination period, it will appear familiarity between the auditor with the object of examination. The emerging familiarity can lead to the independence of the auditor being disrupted so that the quality of the examination results decreases. The Inspectorate Auditor of Central Kalimantan Province conducts an examination based on the belief that he will gain personal pleasure, such as the enjoyment of improving intellectual ability.

AUDIT COMMITTEE’S ROLE IN ENHANCING ACCOUNTABILITY OF THE ALBANIAN, PUBLIC SECTOR

2013 ◽  
Vol 8 (4) ◽  
Author(s):  
Holtjana Bello
Keyword(s):  
Corporate Governance ◽  
Public Sector ◽  
Financial Reporting ◽  
Central Government ◽  
Good Governance ◽  
Internal Audit ◽  
Audit Committees ◽  
Main Question ◽  
Internal Auditors ◽  
The Public

The main question around which this paper is based is whether the public sector in Albania needs to establish the Audit Committees as a demand for enhanced quality of services and accountability over the use of public funds is increasing. This paper analyzes the role of public sector Audit Committees in common law practices established to advise management on the adequacy of structures and processes that ensure the integrity of the accounting, auditing, risk management internal controls, and financial reporting. This paper founds out that Audit Committees are not best practices established in every country considering the fact that this practice is appropriate to the private sector corporate governance. However, it reveals that lack of such committees put into question the achievement of good governance objectives. Therefore, this document recommends the establishment of the Audit Committees across the public sector as a practice strongly recommended in the central government bodies within United Kingdom. Such Committees will advise the head of public organizations on risk exposure, corporate governance and control issues, and will enhance and improve the professionalism of internal auditors who still in Albania are adopting and relying on a traditional financial internal audit approach.

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