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The impact of internal audit function characteristics on internal control quality

Ahmed Atef Oussii (Department of Accounting, Institut Supérieur d’Adminidtration des Affaires de Sfax, University of Sfax, Sfax, Tunisia and DEFI Research Unit, Ecole Superieure des Sciences Economiques et Commerciales de Tunis, University of Tunis, Tunis, Tunisia)
Neila Boulila Taktak (IHEC Carthage, University of Carthage, Tunis, Tunisia and DEFI Research Unit, Ecole Superieure des Sciences Economiques et Commerciales de Tunis, University of Tunis, Tunis, Tunisia)

Managerial Auditing Journal

ISSN: 0268-6902

Article publication date: 1 May 2018

Issue publication date: 18 June 2018

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Abstract

Purpose

This paper aims to investigate the association between internal audit function (IAF) characteristics and internal control quality.

Design/methodology/approach

Using data gathered from 59 chief audit executives from Tunisian listed companies, this paper uses a regression model to examine research hypothesis related to the association between IAF characteristics and internal control quality.

Findings

The findings of the current study reveal that internal control quality is significantly and positively associated with IAF competence, internal audit quality control assurance level, follow-up process and audit committee’s involvement in reviewing the internal audit program and results.

Practical implications

The findings have significant implications for IAF wishing to enhance their effectiveness, by recognizing the impact of the IAF’s characteristics on internal control quality. The findings of this study also have significant implications for regulatory bodies who are concerned with the internal control quality, managers and audit committees who determine IAF investment, oversight IAF activities and assess internal auditors’ performance.

Originality/value

This study helps fill a gap in the extant literature where existing empirical evidence of how the IAF characteristics influences the quality of the financial reporting process in emerging markets is scant.

Keywords

Citation

Oussii, A.A. and Boulila Taktak, N. (2018), "The impact of internal audit function characteristics on internal control quality", Managerial Auditing Journal, Vol. 33 No. 5, pp. 450-469. https://doi.org/10.1108/MAJ-06-2017-1579

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited