FACTORS DETERMINING THE INTERNAL AUDIT INTELLIGENCE ORIENTATION EMPIRICAL EVIDENCE FROM LISTED FIRMS ON THE STOCK EXCHANGE OF THAILAND
Keywords:
internal audit intelligence orientation, corporate sustainability vision, top management support, best accounting system, technology acceptance, environmental turbulenceAbstract
Organizations have encountered rapid changes, which the challenges of defining the role of internal audit complicated by a dynamic business environment. Internal audit department adds intelligence to internal audit task can help department alertness to the environment and a timely and appropriate response. This study examines antecedent factors influencing internal audit intelligence orientation of listed firms on the Stock Exchange of Thailand. Data was collected from responses to a questionnaire addressed to internal audit executive of 134 listed firms on the Stock Exchange of Thailand. Ordinary least squared (OLS) regression analysis examines the association between the five antecedent factors and internal audit intelligence. Results reveal that corporate sustainability vision, top management support, best accounting system, and technology acceptance has a positive effect on internal audit intelligence orientation. This study provides useful information to firms and academics who are interested to identify the determinants of internal auditing intelligence orientation.
References
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Ali, A. M., Gloeck, J. D., Ali, A., Ahmi, A., & Sahdan, M. H. (2007). Internal audit in the state and local governments of Malaysia. Southern African Journal of Accountability and auditing research, 7(1), 25-57.
Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing and Taxation, 23(2), 74-86.
Arena, M., & Azzone, G. (2009). Identifying organizational drivers of internal audit effectiveness. International Journal of Auditing, 13(1), 43-60.
Armstrong, J. S. & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14(3), 396-402.
Arnold, V., Collier, P. A., Leech, S. A., & Sutton, S. G. (2001). The impact of political pressure on novice decision makers: are auditors qualified to make going concern judgements?. Critical Perspectives on Accounting, 12(3), 323-338.
Asaolu, T. O., Adedokun, S. A., & Monday, J. U. (2016). Promoting good governance through internal audit function (IAF): The Nigerian experience. International Business Research, 9(5), 196.
Bebchuk, L. A., Cohen, A., & Wang, C. C. (2013). Learning and the disappearing association between governance and returns. Journal of financial economics, 108(2), 323-348.
Brown, C. E., Wong, J. A., & Baldwin, A. A. (2007). A review and analysis of the existing research streams in continuous auditing. Journal of Emerging Technologies in Accounting, 4(1), 1-28.
Chaikambang, C., Ussahawanitchakit, P., & Boonlua, S. (2012). Strategic cost management and goal achievement: evidence from food businesses in Thailand. International Journal of Business Strategy, 12(4), 1-27.
Cohen, A., & Sayag, G. (2010). The effectiveness of internal auditing: an empirical examination of its determinants in Israeli organisations. Australian Accounting Review, 20(3), 296-307.
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: a comparison of two theoretical models. Management science, 35(8), 982-1003.
Dellai, H., & Omri, M. A. B. (2016). Factors Affecting the Internal Audit Effectiveness in Tunisian Organizations. Research Journal of Finance and Accounting, 16, 16.
Ditkaew, N. (2013). The effect of accounting information system quality in the effectiveness of internal control and reliable decision making to enhance the performance of Thai industrial firms. Journal of International Business and Economics, 13(1), 39-50.
Doyle, J., Ge, W., & McVay, S. (2007). Determinants of weaknesses in internal control over financial reporting. Journal of accounting and Economics, 44(1-2), 193-223.
Frels, J. K., Shervani, T., & Srivastava, R. K. (2003). The integrated networks model: Explaining resource allocations in network markets. Journal of marketing, 67(1), 29-45.
Geiger, M. A., & Raghunandan, K. (2001). Bankruptcies, audit reports, and the reform act. Auditing: A Journal of Practice and Theory, 20(1), 187-195.
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Ghazanfari, M. J. S. R. M., Jafari, M., & Rouhani, S. (2011). A tool to evaluate the business intelligence of enterprise systems. Scientia Iranica, 18(6), 1579-1590.
Gompers, P., Ishii, J., & Metrick, A. (2003). Corporate governance and equity prices. The quarterly journal of economics, 118(1), 107-156.
Gonzalez, G. C., Sharma, P. N., & Galletta, D. F. (2012). The antecedents of the use of continuous auditing in the internal auditing context. International Journal of Accounting Information Systems, 13(3), 248-262.
Goutsos, S., & Karacapilidis, N. (2004). Enhanced supply chain management for e-business transactions. International Journal of Production Economics, 89(2), 141-152.
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Hair, J. F., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: A Global Perspective (7th ed.).
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Katila, R., & Mang, P. Y. (2003). Exploiting technological opportunities: the timing of collaborations. Research policy, 32(2), 317-332.
Kaneko, P., Ussahawanitchakit, P., & Muenthaisong, K. (2013). Strategic Target Costing Effectiveness and Goal Achievement: Empirical Evidence from Exporting Gem and Jewelry Buwinesses in Thailand. International Journal of Business Strategy, 13(3), 127-159.
Kepes, S., Delery, J., & Gupta, N. (2009). Contingencies in the effects of pay range on organizational effectiveness. Personnel Psychology, 62(3), 497-531.
Khanghahi, M. E., & Jafari, P. (2013). A Model for Organizational Intelligence in Islamic Azad University (Zone 8). Mathematics Education Trends and Research.
Kim, H., & Park, Y. (2009). Structural effects of R&D collaboration network on knowledge diffusion performance. Expert Systems with Applications, 36(5), 8986-8992.
Kim, S., & Garrison, G. (2009). Investigating mobile wireless technology adoption: An extension of the technology acceptance model. Information Systems Frontiers, 11(3), 323-333.
Laohamethanee, W., & Ussahawanitchakit, P. (2012). Audit professional skepticism: an empirical investigation of certified public accounting (CPAs) in Thailand. Journal of International Management Studies, 12(4).
Marand, A.A. & Bayaz, M.L.D. (2015). Survey the Effect of the Computerized Accounting Systems on the Auditing Risk Management. International Journal of Review in Life Sciences, 5(10), 607-618.
Maria, F. (2005). Improving the utilization of external strategic information. (Master of Science Thesis, Tampere University of Technology).
Maria, R. A. D. U. (2012). Corporate governance, internal audit and environmental audit-the performance tools in Romanian companies. Accounting and Management Information Systems, 11(1), 112.
Moore, M. E., Konrad, A. M., & Hunt, J. (2010). Creating a vision boosts the impact of top management support on the employment of managers with disabilities: The case of sport organizations in the USA. Equality, Diversity and Inclusion: An International Journal, 29(6), 609-626.
Morton, N. A., & Hu, Q. (2008). Implications of the fit between organizational structure and ERP: A structural contingency theory perspective. International Journal of Information Management, 28(5), 391-402.
Parasuraman, A., & Grewal, D. (2000). The impact of technology on the quality-value-loyalty chain: a research agenda. Journal of the academy of marketing science, 28(1), 168-174.
Pirttimaki, V., & Hannula, M. (2003). Process models of business intelligence. Frontiers of EBusiness Research, 250-260. Sedevich Fons, L. A. (2012). Integration of quality cost and accounting practices. The TQM Journal, 24(4), 338-351.
Seggie, S. H., Kim, D., & Cavusgil, S. T. (2006). Do supply chain IT alignment and supply chain interfirm system integration impact upon brand equity and firm performance?. Journal of business research, 59(8), 887-895.
Shamsuddin, A., Manijegar, D. B., Kirupanangtan, K., Rahman, S., & Selvanathan, S. (2014). Factors that determine the effectiveness of internal audit functions in the Malaysian public sectors. International Journal of Business, Economics and Law, 5(1), 9-17.
Soh, D. S., & Martinov-Bennie, N. (2011). The internal audit function: Perceptions of internal audit roles, effectiveness and evaluation. Managerial Auditing Journal, 26(7), 605-622.
Tan, Ö. F. (2016). Impact of Accounting Information Systems on Internal Auditors in Turkey. Marmara Üniversitesi Öneri Dergisi.
Van Gansberghe, C. N. (2005). Internal auditing in the public sector: a consultative forum in Nairobi, Kenya, shores up best practices for government audit professionals in developing nations. Internal Auditor, 62(4), 69-74.
Vasarhelyi, M. A., Alles, M., Kuenkaikaew, S., & Littley, J. (2012). The acceptance and adoption of continuous auditing by internal auditors: A micro analysis. International Journal of Accounting Information Systems, 13(3), 267-281.
Wells, D. (2008). Business analytics–getting the point. Retrieved August, 12, 2011.
Al-Dalabeeh, A. Kh., & Al- Zeaud, H. A. (2012). Accounting information systems and their role in the measurement and cost thrifting in public shareholding industrial companies in Jordan. International Journal of Business and Management, 7(12), 97-106.
Ali, A. M., Gloeck, J. D., Ali, A., Ahmi, A., & Sahdan, M. H. (2007). Internal audit in the state and local governments of Malaysia. Southern African Journal of Accountability and auditing research, 7(1), 25-57.
Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing and Taxation, 23(2), 74-86.
Arena, M., & Azzone, G. (2009). Identifying organizational drivers of internal audit effectiveness. International Journal of Auditing, 13(1), 43-60.
Armstrong, J. S. & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14(3), 396-402.
Arnold, V., Collier, P. A., Leech, S. A., & Sutton, S. G. (2001). The impact of political pressure on novice decision makers: are auditors qualified to make going concern judgements?. Critical Perspectives on Accounting, 12(3), 323-338.
Asaolu, T. O., Adedokun, S. A., & Monday, J. U. (2016). Promoting good governance through internal audit function (IAF): The Nigerian experience. International Business Research, 9(5), 196.
Bebchuk, L. A., Cohen, A., & Wang, C. C. (2013). Learning and the disappearing association between governance and returns. Journal of financial economics, 108(2), 323-348.
Brown, C. E., Wong, J. A., & Baldwin, A. A. (2007). A review and analysis of the existing research streams in continuous auditing. Journal of Emerging Technologies in Accounting, 4(1), 1-28.
Chaikambang, C., Ussahawanitchakit, P., & Boonlua, S. (2012). Strategic cost management and goal achievement: evidence from food businesses in Thailand. International Journal of Business Strategy, 12(4), 1-27.
Cohen, A., & Sayag, G. (2010). The effectiveness of internal auditing: an empirical examination of its determinants in Israeli organisations. Australian Accounting Review, 20(3), 296-307.
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: a comparison of two theoretical models. Management science, 35(8), 982-1003.
Dellai, H., & Omri, M. A. B. (2016). Factors Affecting the Internal Audit Effectiveness in Tunisian Organizations. Research Journal of Finance and Accounting, 16, 16.
Ditkaew, N. (2013). The effect of accounting information system quality in the effectiveness of internal control and reliable decision making to enhance the performance of Thai industrial firms. Journal of International Business and Economics, 13(1), 39-50.
Doyle, J., Ge, W., & McVay, S. (2007). Determinants of weaknesses in internal control over financial reporting. Journal of accounting and Economics, 44(1-2), 193-223.
Frels, J. K., Shervani, T., & Srivastava, R. K. (2003). The integrated networks model: Explaining resource allocations in network markets. Journal of marketing, 67(1), 29-45.
Geiger, M. A., & Raghunandan, K. (2001). Bankruptcies, audit reports, and the reform act. Auditing: A Journal of Practice and Theory, 20(1), 187-195.
Geiger, M. A., Raghunandan, K., & Rama, D. V. (2006). Auditor decision-making in different litigation environments: The Private Securities Litigation Reform Act, audit reports and audit firm size. Journal of Accounting and Public Policy, 25(3), 332-353.
Ghazanfari, M. J. S. R. M., Jafari, M., & Rouhani, S. (2011). A tool to evaluate the business intelligence of enterprise systems. Scientia Iranica, 18(6), 1579-1590.
Gompers, P., Ishii, J., & Metrick, A. (2003). Corporate governance and equity prices. The quarterly journal of economics, 118(1), 107-156.
Gonzalez, G. C., Sharma, P. N., & Galletta, D. F. (2012). The antecedents of the use of continuous auditing in the internal auditing context. International Journal of Accounting Information Systems, 13(3), 248-262.
Goutsos, S., & Karacapilidis, N. (2004). Enhanced supply chain management for e-business transactions. International Journal of Production Economics, 89(2), 141-152.
Hailemariam, S. (2014). Determinants of internal audit effectiveness in the public sector, case study in selected Ethiopian public sector offices. (Doctoral dissertation, Jimma University).
Hair, J. F., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis: A Global Perspective (7th ed.).
Hass, S., Abdolmohammadi, M. J., & Burnaby, P. (2006). The Americas literature review on internal auditing. Managerial Auditing Journal, 21(8), 835-844.
Institute of Internal Auditors (IIA), (2014). Institute of Internal Auditors. Retrieved from: www.theiia,org/index
Johnson, J. L., Sohi, R. S., & Grewal, R. (2004). The role of relational knowledge stores in interfirm partnering. Journal of Marketing, 68(3), 21-36.
Katila, R., & Mang, P. Y. (2003). Exploiting technological opportunities: the timing of collaborations. Research policy, 32(2), 317-332.
Kaneko, P., Ussahawanitchakit, P., & Muenthaisong, K. (2013). Strategic Target Costing Effectiveness and Goal Achievement: Empirical Evidence from Exporting Gem and Jewelry Buwinesses in Thailand. International Journal of Business Strategy, 13(3), 127-159.
Kepes, S., Delery, J., & Gupta, N. (2009). Contingencies in the effects of pay range on organizational effectiveness. Personnel Psychology, 62(3), 497-531.
Khanghahi, M. E., & Jafari, P. (2013). A Model for Organizational Intelligence in Islamic Azad University (Zone 8). Mathematics Education Trends and Research.
Kim, H., & Park, Y. (2009). Structural effects of R&D collaboration network on knowledge diffusion performance. Expert Systems with Applications, 36(5), 8986-8992.
Kim, S., & Garrison, G. (2009). Investigating mobile wireless technology adoption: An extension of the technology acceptance model. Information Systems Frontiers, 11(3), 323-333.
Laohamethanee, W., & Ussahawanitchakit, P. (2012). Audit professional skepticism: an empirical investigation of certified public accounting (CPAs) in Thailand. Journal of International Management Studies, 12(4).
Marand, A.A. & Bayaz, M.L.D. (2015). Survey the Effect of the Computerized Accounting Systems on the Auditing Risk Management. International Journal of Review in Life Sciences, 5(10), 607-618.
Maria, F. (2005). Improving the utilization of external strategic information. (Master of Science Thesis, Tampere University of Technology).
Maria, R. A. D. U. (2012). Corporate governance, internal audit and environmental audit-the performance tools in Romanian companies. Accounting and Management Information Systems, 11(1), 112.
Moore, M. E., Konrad, A. M., & Hunt, J. (2010). Creating a vision boosts the impact of top management support on the employment of managers with disabilities: The case of sport organizations in the USA. Equality, Diversity and Inclusion: An International Journal, 29(6), 609-626.
Morton, N. A., & Hu, Q. (2008). Implications of the fit between organizational structure and ERP: A structural contingency theory perspective. International Journal of Information Management, 28(5), 391-402.
Parasuraman, A., & Grewal, D. (2000). The impact of technology on the quality-value-loyalty chain: a research agenda. Journal of the academy of marketing science, 28(1), 168-174.
Pirttimaki, V., & Hannula, M. (2003). Process models of business intelligence. Frontiers of EBusiness Research, 250-260. Sedevich Fons, L. A. (2012). Integration of quality cost and accounting practices. The TQM Journal, 24(4), 338-351.
Seggie, S. H., Kim, D., & Cavusgil, S. T. (2006). Do supply chain IT alignment and supply chain interfirm system integration impact upon brand equity and firm performance?. Journal of business research, 59(8), 887-895.
Shamsuddin, A., Manijegar, D. B., Kirupanangtan, K., Rahman, S., & Selvanathan, S. (2014). Factors that determine the effectiveness of internal audit functions in the Malaysian public sectors. International Journal of Business, Economics and Law, 5(1), 9-17.
Soh, D. S., & Martinov-Bennie, N. (2011). The internal audit function: Perceptions of internal audit roles, effectiveness and evaluation. Managerial Auditing Journal, 26(7), 605-622.
Tan, Ö. F. (2016). Impact of Accounting Information Systems on Internal Auditors in Turkey. Marmara Üniversitesi Öneri Dergisi.
Van Gansberghe, C. N. (2005). Internal auditing in the public sector: a consultative forum in Nairobi, Kenya, shores up best practices for government audit professionals in developing nations. Internal Auditor, 62(4), 69-74.
Vasarhelyi, M. A., Alles, M., Kuenkaikaew, S., & Littley, J. (2012). The acceptance and adoption of continuous auditing by internal auditors: A micro analysis. International Journal of Accounting Information Systems, 13(3), 267-281.
Wells, D. (2008). Business analytics–getting the point. Retrieved August, 12, 2011.
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28.06.2018
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กลิ่นสุคนธ์ ส.; พรลภัสรชกร ก.; วงศ์แข ค. FACTORS DETERMINING THE INTERNAL AUDIT INTELLIGENCE ORIENTATION EMPIRICAL EVIDENCE FROM LISTED FIRMS ON THE STOCK EXCHANGE OF THAILAND. RMUTT Global Business and Economics Review, Pathum Thani, Thailand, v. 13, n. 1, p. 27–42, 2018. Disponível em: https://so03.tci-thaijo.org/index.php/RMUTT-Gber/article/view/241901. Acesso em: 22 dec. 2024.
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