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Factors Affecting the Implementation of Risk-Based Internal Auditing

Author

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  • Abdulwahab Mujalli

    (Department of Accounting and Finance, College of Business, Jazan University, Jazan 45142, Saudi Arabia)

Abstract

This paper aims to investigate the factors affecting risk-based internal audit (RBIA) implementation in public sector organizations in Saudi Arabia. This paper utilized 234 usable answered questionnaires from internal audit managers, internal auditors, accountants, and executives working in Saudi public sector agencies. The gathered data were analyzed by applying partial least squares–structural equation modeling (PLS-SEM). Results show that management support, internal auditor role, risk management system, and training in risk management all positively and significantly influence the RBIA. Improved internal auditing procedures and an efficient internal monitoring system will significantly curtail any risks impeding the organization’s goals, diminish the temptation to fabricate financial data or statistics, and enhance the accuracy of financial reporting/statements. Moreover, this study’s results have crucial implications for managers of public sector organizations, heads of internal audit departments, internal auditors, and accountants seeking to improve the reliability of internal audits and other aspects of financial information. Published research on what variables are influencing RBIA implementation is scarce. This study adds to the nascent literature by focusing on Saudi Arabian public sector organizations, establishing empirical variables based on an in-depth review of the relevant research and conducting an empirical investigation of the factors associated with RBIA implementation in the Saudi economy. By concentrating on public sector organizations in Saudi Arabia, this paper sheds light on other nations with comparable systems for governance policies and processes in their government-run entities.

Suggested Citation

  • Abdulwahab Mujalli, 2024. "Factors Affecting the Implementation of Risk-Based Internal Auditing," JRFM, MDPI, vol. 17(5), pages 1-20, May.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:5:p:196-:d:1392724
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    References listed on IDEAS

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