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This study aims to examine the moderating effect of internal control on the relationship between internal quality assurance implementation and higher education institution (HEI) quality.

The study employed a survey method with hypothesis testing using partial least squares-structural equation modelling (PLS-SEM) technique with a second-order analysis approach. The questionnaire survey was administered to 191 HEIs.

The results revealed that internal control and internal quality assurance implementations are positively associated with HEI quality. Additionally, internal control implementation strengthened the relationship between internal quality assurance and HEI quality.

This study adds to the body of knowledge on the moderating role of internal control in the HEI sector and its role in the non-economic aspect, namely, the HEI quality.

This study investigates internal control implementation contribution to quality management at higher education institutions (HEIs).

This study employed a qualitative method by conducting semi-structured interviews. The research respondents (interviewees) consisted of internal auditors, HEI management members and accreditation assessors of Indonesian HEIs. A total of 15 respondents were successfully interviewed to collect the data; 12 were from different HEIs, and 3 were from the HEI accreditation board.

This study deduced that internal control implementation could contribute to HEI quality management and improvement if integrated with other control policies, such as internal quality assurance, performance measurement systems and performance-based budgeting. By doing so, internal control corroborates total quality management (TQM) implementation within HEIs since it promotes employee empowerment and supervision, reduces budget wastage, increases the achievement of budget targets on output and outcome of programs and activities, enhances strategic and integrated system practices, provides reliable information for better decision-making, and promotes effective communication and coordination and good leadership culture.

The current study presents beneficial suggestions for HEI management on how internal control contributes to quality management at HEIs.

As suggested by Chalmers et al. (2019), most studies related to internal control were conducted in profit-oriented organisation settings, i.e. companies, and focused on their impact on economic aspects, such as profitability, cost efficiency and fraud mitigation. Meanwhile, internal control-related studies in the context of non-profit-oriented organisations, such as HEIs, and their role in non-economic aspects, in this case, the quality management in HEIs, is still lacking.

Two main objectives and they are: to determine whether the internal audit department of the companies listed in the Bursa Malaysia complies with the Standards for the Professional Practice of Internal Auditors IIA (2000); and, to determine whether compliance to SPPIA will affect the quality of the internal control system of the company.

Two sets of questionnaires were used in the study. Internal auditing practices was measured by the items listed in the SPPIA and the internal control was measured by means of the statement on internal control: guidance for directors of public listed companies. The population used in this study was all the companies listed in the Bursa Malaysia in 2001. This study used both descriptive and inferential analyses.

It was found that management of internal audit department, professional proficiency, objectivity and review significantly influence the monitoring aspect of the internal control system. Scope of work and performance of audit work significantly influences the information and communication aspect of the internal control system while performance of audit work, professional proficiency and objectivity significantly influence the control environment aspect of the internal control system. The study also shows that management of internal audit department, performance of audit work, audit program and audit reporting significantly influences the risk assessment aspect of the internal control system. Lastly, performance of audit work and audit reporting significantly influences the control activities aspect of the internal control system.

The research has contributed to the agency theory with respect to the bonding costs that management has to pay to the internal auditors for the best interest of the principals of the companies. Another important implication pertains to the extent of the internal auditing practices among internal auditors in Malaysian public listed companies. Research has also shown that the compliance with internal auditing practices partially influence certain aspects of the quality of the internal control system.

This is the first empirical study that has linked the compliance of the internal auditing function to the SPPIA and its effect on the internal control system.

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

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.

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.

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.

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.

In 2001, the US moved to regulate internal control reporting by management and auditors. While some jurisdictions have followed the lead of the US, many others have not. An important question, therefore, is the relevance of internal control to stakeholders. The more specific issue of the benefits of US-style regulation of internal control reporting is also topical. We review studies on the determinants of internal control quality and its economic consequences for stakeholders including investors, creditors, managers, auditors and financial analysts. We extend previous reviews by focusing on US studies published since 2013 as well as all non-US studies investigating IC quality including countries regulating IC disclosure as well as unregulated settings and both developed and developing economies. In doing so, we identify research questions where evidence remains mixed and new directions in which there are research opportunities.

Three main insights arise from our analysis. First, evidence on the economic consequences of internal control quality suggests that the quality of internal control can have a significant effect on decision making by users of financial information. Second, the results of research on the empirical association between ownership structure, certain board characteristics and internal control quality is generally mixed. Empirical evidence concerning the association between audit committee characteristics and internal control quality generally supports a positive and significant association. Finally, while studies in non-US jurisdictions are increasing, opportunities remain to explore the determinants and consequences of internal control in other jurisdictions. Our review provides evidence for policy makers of whether there are benefits from requiring management and auditors to report on internal control over financial reporting.

This study aims to examine whether the internal control system quality in the French context improve the information quality having been reflected by the level of real earnings management (REM) measured by inventory overproduction, discretionary expenses reduction and sales manipulation.

The research uses a multiple regression analysis to examine the association between internal control and REM. The years 2010-2015 are used as analysis period by focusing on the French context. Three panel data are applied to the companies belonging to the Cotation Assistée en Continu (CAC) 40 index for the entire study period.

The results show that high internal control index has a negative impact on the REM and that better internal control indeed makes financial reporting more credible to investors. Further, the results demonstrate that control environment, risk assessment, control activities and monitor are the components that mainly affect REM.

The results contribute to the literature dealing with the relationship between internal control quality and REM by shedding light on the importance of internal control quality in improving information quality in the French context. Moreover, this study is using a quantitative measure of the internal control quality while much of the prior literature uses material weaknesses to estimate the effectiveness of internal control system.

The purpose of this paper is to emphasize the relationship between managerial ability, earnings management, internal control quality and audit fees to establish whether or not there is a significant relationship between the variables of managerial ability, earnings management, internal control quality and the audit fees.

The study sample includes 190 listed companies on the Tehran Stock Exchange during 2009–2016. Research hypotheses were tested using the statistical methods of multivariable linear regression and data envelopment analysis pattern.

The obtained results indicate that there is a significant and direct relationship between managerial ability and internal control quality as well as real earnings management and internal control quality. Based on the results obtained from the second hypothesis, the authors could claim that there is an inverse and significant relationship managerial ability and audit fees. The third hypothesis also revealed that in companies with lower audit fees, there is a stronger relationship between managerial ability and internal control quality. The results of related tests show no significant relationship between accrual-based earnings management and internal control quality.

This paper is the first study in Iran whose main focus is on the relationship between managerial ability, earnings management, internal control quality and audit fees.

The purpose of this paper is to investigate the relationship between internal controls weakness and financial reporting quality and the effect of family ownership on the mentioned relationship in Iranian listed firms.

In this way, the authors included the number of 139 firms from 2013 to 2017, of which 28 were family firms. The hypotheses are analyzed based on panel data and means comparison.

The results illustrated that weakness in internal controls has a significant negative relationship with financial reporting quality. In other words, internal controls weakness decreases the quality of financial reporting quality. Moreover, the results showed that being familial does not affect the aforementioned relationship.

Consequently, there is no suitable criteria to distinguish family firms and there is a need to take them into serious consideration because very few studies have been conducted focusing on this issue in Iran, as it is considered an argumentative subject to be discussed in the Iranian market.

The purpose of this study is to examine whether auditor's unqualified opinion on internal control (ARIC) is a powerful proxy for the effectiveness of internal control in Chinese context. A rich body of research conducts their designs on an assumption that companies have more effectiveness of internal controls if they disclose ARICs. This study argues that the ARICs are not always reliable, because audit market is well characterized by excessive competition and market supervision is poorer in China compared to developed countries.

The study uses 2008 and 2009 years Chinese listed‐firms data and the Tobit regression to test the relationship between ARIC and accrual quality. The paper employs the Heckman model for self‐selection bias, which are possibly introduced by choice in disclosing ARICs.

The paper finds that firms disclose ARICs do not report lower abnormal accruals relative the non‐ARIC firms, and firms with ARICs issued by dominant auditors show more reliable accruals relative to non‐ARIC firms and firms that disclose ARICs but fail to be issued by dominant auditors. The results are robust to additional accrual quality measure, additional audit quality measure, and the correction of self‐selection bias by using the inverse Millo ratio approach.

The results suggest that implementing Chinese‐SOX could be facilitated by improving audit quality.