Internal audit: The value agenda of Malaysian industrial products industry

• Main Author: Ali, Azharudin
• Format: Monograph
• Language: English
• Published: Universiti Utara Malaysia 2004
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/5703/1/INTERNAL_AUDIT.pdf; http://repo.uum.edu.my/5703/; http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000228397

The challenges of today's changing world bring in enormous opportunities for management and the board of directors. This point out, it is essential for the business entity to have competent and proactive internal auditing as the management's and board's adviser. Thus, an effective internal audit function must rise to the challenge and take the initiative in promoting a sound enterprise risk management and internal control, strong corporate governance, efficient operations and meet the assurance needs of its clients. In this context, more and more internal audit function as a function claim? If so, where and how? Therefore, the objective of this study is to examine how and where internal audit adds value to their organization. Examination of internal audit function as a function that brings "value" to the organization was conducted by sending questionnaire to all industrial products companies listed in Bursa Malaysia. The analysis of the result of the study shows that generally only 28.6% of the respondents (heads of internal audit) said that they had measured the value they deliver. Indeed majority of the respondents did not have and did not know or aware that there is a professional standard of the Institute of Internal Auditor's requiring periodic quality assurance review. This result shows that internal audit function does not really bother to know how and where they deliver and add value to the organization and how that value can be measured and maximized. However, the study found that internal audit function are performing all eight value-added activities according to the IIAM guidelines which indicated an emerging trend for internal audit activities to broaden in scope compared to their traditional role. The results also revealed that the top management recognizes the accomplishments of their internal audit functions.