The Exploration and Analysis of Internal Audit Capability

• Main Authors: Fang, Hsiao-Hui, 方曉蕙
• Other Authors: CHENG, KUEI-HUI
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/62847075101780218930

碩士 === 國立臺北大學 === 會計學系 === 101 === Compared with external audit, internal audit can easily found the problems and frauds within organization. Therefore, internal audit is given higher expectations and responsibilities, and also be expected to add value and achieve the objectives through internal audit activities. However, there is no empirical research to measure and confirm the capability of internal audit. This study cites "Internal Audit Capability Model (IA-CM)”－ Element 1 “Services and Role of Internal Auditing" , which published by “The Institute of Internal Auditors Research Foundation (IIARF)”. According to IA-CM, design the questionnaire and sent to 515 internal auditors. To understands the internal audit activities through questionnaires, and then measures the level of the IA-CM. The result of the empirical research, 62% of internal audits are staying in the lower level capability, it’s mean they are between level 1 and 2 of IA-CM. The purpose of the internal audit department is established just to obey the Taiwanese regulations. They need to do compliance auditing, plan and perform the audit engagement but not fully. There are 19% of internal auditors on the intermediate level capability, they are among the level 2, 3 and 4 of IA-CM. Internal auditor provide advisory services and performance/value-for-money audits, internal audit activity could measure performance, and reinforce overall responsibility for effective governance, risk management, and control processes over operations, compliance, and financial reporting. However, there are 19% on the higher level capability, it’s mean they are on the level 4 and 5 of the IA-CM. Internal auditing recognized as key agent of change, internal audit activities could add higher value by influencing organizational policy and contributing to better decisions by key stakeholders. The most important factors of internal audit capability are listed companies and computer auditing. In addition, the number of employees and internal auditor hold professional licenses and use computer auditing tools are also improving internal audit capability. Therefore, companies should considers how much internal auditor is enough when company grows, and internal auditor should getting professional licenses and using computer auditing tools, and then internal audit capability will be getting to optimize level.