The Factors Affecting Quality of Internal Audit and Firm Value: An Empirical Investigation of Listed Firms in Thailand

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สรินยา สุภัทรานนท์


The objective of the present research is to study the factors affecting quality of internal audit. The independent variables included management vision, corporate governance, accounting system fit, and competition intensity. The dependent variables were quality of internal audit in 5 dimensions: operational environment, risk assessment, internal audit planning, internal audit operations, and internal audit report. Furthermore, this research also investigated the relationship between quality of internal audit and firm value. The research hypothesis was that management vision, corporate governance, accounting system fit, and competition intensity positively related to the total quality of internal audit. In addition, another hypothesis was that the total quality of internal audit positively related to firm value. The questionnaire was used as an instrument to collect data from internal audit management in the listed companies in the Stock Exchange of Thailand. The complete responses were 132 sets of questionnaire. The results indicated that corporate governance, accounting system fit, and competition intensity had positive relationship with total quality of internal audit. Moreover, the internal audit quality in total and each dimension i.e. operational environment, internal audit   operations, and internal audit report had positive effects on firm value. The findings indicated that the organizations should be persistent to good governance of management, have modern accounting   system to increase ability to obtain accurate information quickly, and learn how to improve work procedure proper for changing environment and beneficial for firm value. The findings of the present research are useful for accounting officers, financial statement users, and organization to develop and promote quality of internal audit. 



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