Influence of audit committees on internal audit conformance with internal audit standards

Abstract

Purpose

This study aims to provide empirical evidence of the association between audit committee characteristics and internal audit conformance with the International Standards for the Professional Practice of Internal Auditing (ISPPIA).

Design/methodology/approach

Seventy-four usable responses were received from a survey of chief internal auditors (CIAs) from Saudi companies listed on the Saudi Stock Exchange.

Findings

The results indicate that audit committee characteristics (the presence of independent members on the committee, members’ expertise in auditing and accounting and meeting with the CIA) influence internal audit conformance with the ISPPIA. Additionally, they demonstrate that such conformance is also influenced by CIA tenure.

Practical implications

The findings of this study also have significant implications for audit committees wishing to improve their overall effectiveness, by identifying the impact of the committee’s characteristics on internal audit conformance with the ISPPIA.

Originality/value

The results add to the literature on internal audit standards by introducing a Middle Eastern perspective and simultaneously providing insights for companies in their attempts to adhere to the international standards, hence, supporting efforts towards good corporate governance.

Citation

Alzeban, A. (2015), "Influence of audit committees on internal audit conformance with internal audit standards", Managerial Auditing Journal, Vol. 30 No. 6/7, pp. 539-559. https://doi.org/10.1108/MAJ-12-2014-1132