THE RELATIONSHIP BETWEEN INTERNAL AUDIT CHARACTERISTIC, AUDIT COMMITTEE CHARACTERISTIC AND INTERACTION BETWEEN INTERNAL AUDIT AND AUDIT COMMITTEE ON INTERNAL AUDIT CONTRIBUTION

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Hasnah Haron Tong Chue Qun

Abstract

Internal auditing has becomes as an important tool in helping an organisation to achieve its objectives. Organisations with internal auditactivities capable to identify business risks, and system inefficiencies and ineffectiveness, take appropriate corrective actions, and ultimately supportcontinuous improvement. Therefore, its contribution must be monitored in order to maintain and enhance the credibility of internal audit. Theobjectives of this study are, therefore, to investigate the contribution of internal audit and its determinants of internal audit characteristics, auditcommittee characteristics, and interaction between internal audit and audit committee. Questionnaires were distributed to 413 public listed companiesin Bursa Malaysia and 172 responses were received. The finding showed that internal audit contributed the most in internal control. The resultrevealed that internal audit competence has a significant effect on internal contribution. Hence, internal audit team should consist of member withdifferent expertise; both in technical and soft skills. Factors related to audit committee and interaction between audit committee and internal audit werenot found to be significant. The relationship between audit committee and internal audit needs to be reinforced for better oversight mechanism. TheMalaysian Code of Corporate Governance (MCCG) and the International Professional Practice Framework (IPPF) should require higher complianceto IPPF with the disclosure on the audit committee activities.Keywords: Internal audit, audit committee, internal audit contribution

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How to Cite
HARON, Hasnah; CHUE QUN, Tong. THE RELATIONSHIP BETWEEN INTERNAL AUDIT CHARACTERISTIC, AUDIT COMMITTEE CHARACTERISTIC AND INTERACTION BETWEEN INTERNAL AUDIT AND AUDIT COMMITTEE ON INTERNAL AUDIT CONTRIBUTION. Management & Accounting Review (MAR), [S.l.], v. 15, n. 1, p. 169-195, june 2016. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/568>. Date accessed: 20 may 2018.
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