Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia
This study examined the impact of the quality of the internal audit function (IAF), an integral part of corporate governance structure, on the financial reporting quality (FRQ) of all Saudi companies listed in the Saudi stock exchange (TADAWL) in 2009, excluding banks. Both secondary and primary inf...
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| Format: | Article |
| Language: | English |
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Academic Journals
2011
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| Online Access: | http://psasir.upm.edu.my/id/eprint/22848/ http://psasir.upm.edu.my/id/eprint/22848/1/22848.pdf |
| _version_ | 1848844597142224896 |
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| author | Al-Shetwi, Mohammed Ramadilli Mohd, Shamsher Mohamad Chowdury, Taufiq Hassan Shah Muhamad Sori, Zulkarnain |
| author_facet | Al-Shetwi, Mohammed Ramadilli Mohd, Shamsher Mohamad Chowdury, Taufiq Hassan Shah Muhamad Sori, Zulkarnain |
| author_sort | Al-Shetwi, Mohammed |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study examined the impact of the quality of the internal audit function (IAF), an integral part of corporate governance structure, on the financial reporting quality (FRQ) of all Saudi companies listed in the Saudi stock exchange (TADAWL) in 2009, excluding banks. Both secondary and primary information was collected through a matched survey and interview of internal and external auditors. The findings show weak association between IAF quality and FRQ. The findings imply that the listed firms merely use IAF to provide a symbolic conformity to capital market authority (CMA) regulations. For better internal control and global recognition, CMA needs to put in place more initiatives to increase the role of IAF on firms in Saudi Arabia. Considering the environmental factors of emerging institutions, this study added different insights on the issue of IAF and its role in FRQ in the oil-based economy of Saudi Arabia. |
| first_indexed | 2025-11-15T08:33:27Z |
| format | Article |
| id | upm-22848 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:33:27Z |
| publishDate | 2011 |
| publisher | Academic Journals |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-228482017-11-16T02:27:27Z http://psasir.upm.edu.my/id/eprint/22848/ Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia Al-Shetwi, Mohammed Ramadilli Mohd, Shamsher Mohamad Chowdury, Taufiq Hassan Shah Muhamad Sori, Zulkarnain This study examined the impact of the quality of the internal audit function (IAF), an integral part of corporate governance structure, on the financial reporting quality (FRQ) of all Saudi companies listed in the Saudi stock exchange (TADAWL) in 2009, excluding banks. Both secondary and primary information was collected through a matched survey and interview of internal and external auditors. The findings show weak association between IAF quality and FRQ. The findings imply that the listed firms merely use IAF to provide a symbolic conformity to capital market authority (CMA) regulations. For better internal control and global recognition, CMA needs to put in place more initiatives to increase the role of IAF on firms in Saudi Arabia. Considering the environmental factors of emerging institutions, this study added different insights on the issue of IAF and its role in FRQ in the oil-based economy of Saudi Arabia. Academic Journals 2011-11 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22848/1/22848.pdf Al-Shetwi, Mohammed and Ramadilli Mohd, Shamsher Mohamad and Chowdury, Taufiq Hassan Shah and Muhamad Sori, Zulkarnain (2011) Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia. African Journal of Business Management, 5 (27). art. no. 282D10817825. pp. 11189-11198. ISSN 1993-8233 http://www.academicjournals.org/journal/AJBM/article-abstract/282D10817825 10.5897/AJBM11.1805 |
| spellingShingle | Al-Shetwi, Mohammed Ramadilli Mohd, Shamsher Mohamad Chowdury, Taufiq Hassan Shah Muhamad Sori, Zulkarnain Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia |
| title | Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia |
| title_full | Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia |
| title_fullStr | Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia |
| title_full_unstemmed | Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia |
| title_short | Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia |
| title_sort | impact of internal audit function (iaf) on financial reporting quality (frq): evidence from saudi arabia |
| url | http://psasir.upm.edu.my/id/eprint/22848/ http://psasir.upm.edu.my/id/eprint/22848/ http://psasir.upm.edu.my/id/eprint/22848/ http://psasir.upm.edu.my/id/eprint/22848/1/22848.pdf |