Factors affecting internal audit effectiveness: A survey of the Saudi public sector
Alzeban and Gwilliam (2014) stated that different factors affecting internal audit effectiveness in Saudi Arabia. It is also assessed that data were collected through 203 management and 239 internal auditors through 79 Saudi Arabian public sector companies. In addition, multiple regression assessment assesses the relationship amid IAE and five principal elements. It is assessed that management support for IAE and drives the perceived efficiency related to internal audit purpose with the view of management and internal auditor’s perspective.
On the other side, Jizi Salama Dixon and Stratling (2014) evaluated that there is a different lack of investigation related to the association between corporate social responsibility and corporate governance in the banking sector. It is assessed that after US sub-prime debt crisis, corporate governance has an impact on the role of the board of directors as well as the quality of CSR disclosure in US-listed banks. In addition, this research paper is focusing on a sample of large US commercial bank for the period 2009-2011. It also states the ways of controlling the audit committee characteristic, the frequency of board meeting, the profitability of banks, size, and risk. The two board characteristics are usually related to security of shareholder interest and this will positively impact on CSR disclosure.
Peters and Romi (2014) assessed that this investigation facilitates sustainability-oriented corporate governance mechanism and it affects the controlled assurance associated with corporate sustainability statement. It also focuses on existence and features of environmental groups such as chief sustainability officer and board of directors between the management team. It also examines the assurance services, which is beneficial for making difference between those services offered by consultants, professional accountants, as well as internal auditors.
In opposed to this, Filatotchev and Nakajima (2014) stated institutional theory and assesses inter-relationship between the corporate governance of the firm. It also focuses on responsible leadership and CSR approaches in a different recognized way. It also demonstrates the critiques of corporate governance and agency theory together with, emphasizes CSR compliance and regulations.
There are many common things that are discussed in these four articles on corporate governance. It is evaluated that corporate governance could lead to make policy and lead them for making a reliable decision. Further, it is also examined that corporate social responsibility is also discussed in all articles as it could lead to making a positive image of the firm among a huge number of consumers (Alzeban and Gwilliam, 2014). Moreover, it is also evaluated that corporate governance could lead to the organization for operating the financial function of the business process (Filatotchev and Nakajima, 2014). It could also be effective for the accomplishment of the desired goal in the least time and cost. From the analysis, it is addressed that corporate governance could also direct to top management of manager for managerial decision in the context of auditing. It is addressed hat how auditors are imperative in the corporate governance (Jizi, et al., 2014). It is evaluated that the corporate governance could be imperative for promoting the interest among shareholders towards the organization. In addition, it is evaluated that auditors could evaluate the existing and past situation of the firm and make a reliable decision. The auditor could deeply analysis financial situation of firm and support to make a reliable decision and direct them for long-term (Peters, and Romi, 2014).
The relationship between corporate social responsibility and corporate governance among US-listed banks
Alzeban and Gwilliam (2014) stated that Saudi Arabia is illustrative of a different developing and developed atmosphere. It also evaluated that the current governance system and audit is considered in nations at the global level. In addition, its particular cultural customs entailing clan as well as tribal communities, universal, and core religious opinion. It is highly entailed in GCC nations, the Arab world specifically and other developing nations, regardless of wealth.
On the other side, Jizi Salama Dixon and Stratling (2014) discussed that powerful CEOs may endorse the visibility regarding CSR activities of banks for private advantageous as per the perspectives of agency theory. This also stated that powerful CEOs act under specific pressure for settling concern of stakeholders. They may abuse their position by offering a high extent of CSR disclosure and this may be an indication of managerial uncertainty and private image issue of managers.
Peters and Romi (2014) evaluated environmental committees with higher proficiency demonstrates preference of higher quality assurance facility of professional accounting companies. In addition, prefer assurance facility from peers with sustainability proficiency aids in employing consultants. It is found that the company considers a CSO and demonstrating poor environmental performances with respect to other firms in their industry.
In opposed to this, Filatotchev and Nakajima (2014) assessed that there is a differentiation between governance systems. It also demonstrates how these kinds of control might be associated with responsible managerial behavior and CSR strategies of the company. Moreover, it emphasizes governance studies related to organizational theory. There is link amid CSR strategies and corporate governance factors like boards of directors, executive incentives and ownership structure might differ as per legal system and institutional features in a particular nation.
Mohammad Issam Jizi, et al., (2018) stated that corporate governance could be imperative for operating the business process and reach the valid conclusion. In the current era, the auditor could play an imperative role in evaluating the financial situation of the firm and support to make a reliable decision in the context of the current issue. The corporate governance could is the structure of rules and procedure wherein the organization is controlled and directed. It could support the firm for making a balance between the organization’s interest and shareholders (Alzeban and Gwilliam, 2014). It is evaluated that auditor is leading to the organization for making a suitable decision with respect to finance situation. Moreover, it is evaluated that auditor is accountable for offering independent views towards the organization’s integrity. It could also be imperative for providing services of audit and make a favorable decision. The organization should also comprehend factor that might affect to audit effectiveness and direct to make a decision in the least time and cost (Filatotchev and Nakajima, 2014).
Impact of sustainability-oriented corporate governance mechanism on auditing
Apart from this, it is evaluated that auditor could support to hire trained and experienced employees for improving the relationship with external as well as internal auditors. It is also evaluated that corporate governance could be a tool that assists the organization in making a reliable decision (Peters and Romi, 2014). It could be imperative for the accomplishment of the desired goal. An organization should use training and development method to improve the skills of employees in the least time and cost. The organization should concentrate on selecting skilled auditors for operating the business and reach a valid conclusion (Jizi, et al., 2014).
Jizi et al., (2014) this research paper mainly discusses the corporate governance, CSR disclosure, content analysis, and financial crisis as it relied on the qualitative research method. This research is imperative for evaluating theoretical data. Thus, a researcher should need to consider the qualitative data analysis method for obtaining reliable data. For conducting further researcher, the investigator will focus on the quantitative data analysis method and make a reliable decision.
Filatotchev and Nakajima, (2014) found that corporate governance could directly impact on the sustainability of corporate. This study relies on the two theories related to corporate governance, which demonstrates that the researcher has used the content analysis method. Moreover, it is evaluated that there is a lack of research on the auditor role on the corporate governance. Hence, the researcher will concentrate on both primary as well as secondary for further research.
Peters and Romi (2014) addressed that this study could be imperative for evaluating association towards the sustainability governance characteristics and the assurance of corporate sustainability. Moreover, the auditor could offer an opportunity to sustain the position of the firm in the marketplace. In addition, it is evaluated that the researcher should use certain tool and techniques for obtaining a reliable result. This research relies on the secondary data collection that could not lead to obtaining data from the existing resources. Hence, the investigator will imply primary data collection method to get the reliable outcome. The researcher will concentrate on qualitative and quantitative data collection method to operate research and get a reliable outcome.
Abdulaziz Alzebana David Gwilliamb (2014) stated that this study is effective for evaluating factors that could be imperative for audit effectiveness. This study is conducted on 203 managers and 239 internal auditors from 79 Saudi Arabian public sector organizations. But, it is also evaluated that this research should consider less than 200 research candidates for systematically conducting the research and meet the aim and objectives. A researcher will remember this concern and make a reliable decision in the context of the current issue.
References
Alzeban, A. and Gwilliam, D., 2014. Factors affecting internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing, and Taxation, 23(2), pp.74-86.
Filatotchev, I. and Nakajima, C., 2014. Corporate governance, responsible managerial behavior, and corporate social responsibility: Organizational efficiency versus organizational legitimacy?. Academy of Management Perspectives, 28(3), pp.289-306.
Jizi, M.I., Salama, A., Dixon, R. and Stratling, R., 2014. Corporate governance and corporate social responsibility disclosure: Evidence from the US banking sector. Journal of Business Ethics, 125(4), pp.601-615.
Peters, G.F. and Romi, A.M., 2014. The association between sustainability governance characteristics and the assurance of corporate sustainability reports. Auditing: A Journal of Practice & Theory, 34(1), pp.163-198.
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