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Evaluating the Quality of Internal Audits and Management Support in Enhancing the Effectiveness of Internal Control Systems

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  • Siti Aishah Binti Rasid

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia)

  • Mohd Mohid Bin Rahmat

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia)

  • Nor 'Asyiqin Binti Abu

    (Faculty of Accountancy, Universiti Teknologi MARA, 78000 Melaka, Malaysia)

  • Ainol Sarina Binti Ahmad Zazili

    (Faculty of Accountancy, Universiti Teknologi MARA, 78000 Melaka, Malaysia)

Abstract

The frequency of prominent corruption and fund misappropriation cases in Malaysia have led to substantial economic losses, estimated at RM277 billion from 2019 to 2023. The problems, together with Malaysia’s low position on the Corruption Perceptions Index, underscore inadequacies in internal controls and the quality of internal audits. Internal control systems (ICS) are essential for maintaining compliance and effective governance; nevertheless, their effectiveness depends on the efficacy of internal audits and the support of management. This study investigates the influence of management support on the correlation between internal audit quality and the effectiveness of internal control systems in Malaysia’s public sector. The study employs a sample of 34 ministries, statutory organisations, and agencies with internal audit units, involving 76 respondents. The results offer empirical data highlighting the significance of management support in enhancing internal audit functions and the effectiveness of internal control systems. This research enhances the current knowledge by substantiating a model that emphasises the mediating function of management support, in accordance with the criteria of the International Organisation of Supreme Audit Institutions (INTOSAI). It provides practical insights to enhance governance and accountability in the public sector, ensuring effective management of public resources corresponded with national objectives.

Suggested Citation

  • Siti Aishah Binti Rasid & Mohd Mohid Bin Rahmat & Nor 'Asyiqin Binti Abu & Ainol Sarina Binti Ahmad Zazili, 2025. "Evaluating the Quality of Internal Audits and Management Support in Enhancing the Effectiveness of Internal Control Systems," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(1), pages 4784-4796, January.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:1:p:4784-4796
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    References listed on IDEAS

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