Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Effects of Internal Audit Quality on the Severity and Persistence of Controls Deficiencies

Effects of Internal Audit Quality on the Severity and Persistence of Controls Deficiencies The objective of this study is to test the effects of internal audit quality on the severity and persistence of the internal controls deficiencies (ICD). Internal audit quality is investigated through the internal audit process, internal audit input and types of ICD. The paper extends previous findings on ICD severity and ICD persistence. Using private data collected with questionnaires and performing logistic regressions, we find that the improvement of planning – scoping and testing – monitoring quality and competences – independence reduces ICD severity, decreasing significant deficiencies and material weaknesses, and reduces persistence of ICD over time. We also find that revenues are the most severe type of ICD, while human resources and period end accounts are the most persistent. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Auditing Wiley

Effects of Internal Audit Quality on the Severity and Persistence of Controls Deficiencies

Loading next page...
 
/lp/wiley/effects-of-internal-audit-quality-on-the-severity-and-persistence-of-gJWDGCsPb3
Publisher
Wiley
Copyright
Copyright © 2015 John Wiley & Sons Ltd
ISSN
1090-6738
eISSN
1099-1123
DOI
10.1111/ijau.12044
Publisher site
See Article on Publisher Site

Abstract

The objective of this study is to test the effects of internal audit quality on the severity and persistence of the internal controls deficiencies (ICD). Internal audit quality is investigated through the internal audit process, internal audit input and types of ICD. The paper extends previous findings on ICD severity and ICD persistence. Using private data collected with questionnaires and performing logistic regressions, we find that the improvement of planning – scoping and testing – monitoring quality and competences – independence reduces ICD severity, decreasing significant deficiencies and material weaknesses, and reduces persistence of ICD over time. We also find that revenues are the most severe type of ICD, while human resources and period end accounts are the most persistent.

Journal

International Journal of AuditingWiley

Published: Nov 1, 2015

References