The Effectiveness of the Internal Auditor in Malaysian Listed Firms

Akauntan Nasional: Journal of Malaysian Institute of Accountants, Vol. 14, No. 9, pp. 30-33, 2001

Posted: 3 Nov 2004

See all articles by Annuar Nassir

Annuar Nassir

University Putra Malaysia

Mohamad Ali Abdul Hamid

Universiti Putra Malaysia

Shamsher Mohamad

University Putra Malaysia - Graduate School of Management

Zulkarnain Muhamad Sori

INCEIF, The Global University of Islamic Finance

Abstract

The objective of this study is to ascertain the factors contributing towards the effectiveness of an internal audit function of Malaysian listed firms. This information is important in improving the quality of internal audit function. Identifying factors that enhance internal auditor effectiveness is crucial to promote better corporate governance and corporate financial reporting procedures. The findings from this study suggest that interpersonal skills, internal auditor's commitment and support from audit committee and BOD, audit performance and integrity, audit department efficiency, auditing competencies, internal auditor's knowledge on company's business operation and industry, and auditor's independence as important attributes of a quality internal audit function. The identified factors that are perceived as important for effective internal audit function will help the internal audit department to evaluate and revise the current procedures to improve the overall quality of internal audit.

Keywords: Internal Audit, Effectiveness, Corporate Governance, Independence, Quality

JEL Classification: M41

Suggested Citation

Nassir, Annuar and Abdul Hamid, Mohamad Ali and Mohamad, Shamsher and Muhamad Sori, Zulkarnain, The Effectiveness of the Internal Auditor in Malaysian Listed Firms. Akauntan Nasional: Journal of Malaysian Institute of Accountants, Vol. 14, No. 9, pp. 30-33, 2001. Available at SSRN: https://ssrn.com/abstract=612822

Annuar Nassir (Contact Author)

University Putra Malaysia ( email )

Selangor Darul Ehsan
Serdang, Selangor 43400
Malaysia

Mohamad Ali Abdul Hamid

Universiti Putra Malaysia ( email )

Selangor Darul Ehsan
Serdang, Selangor 43400
Malaysia

Shamsher Mohamad

University Putra Malaysia - Graduate School of Management ( email )

Selangor Darul Ehsan
Serdang, Selangor 43400
Malaysia

Zulkarnain Muhamad Sori

INCEIF, The Global University of Islamic Finance ( email )

Lorong Universiti A
Kuala Lumpur, Kuala Lumpur 59100
Malaysia
+60376514173 (Phone)
8 (Fax)

HOME PAGE: http://www.inceif.org/

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