The Impact of Audit Culture and Internal Control Systems on Audit Quality: The Case of Lebanese Banks
##plugins.themes.bootstrap3.article.sidebar##
PDF
Submitted Sep 12, 2022
Published Oct 29, 2022
Published Oct 29, 2022
DOI
Abstract viewed = 248 times
Issue
Section
Articles
##plugins.themes.bootstrap3.article.main##
The audit process is a representation of the engagement team's testing procedures. A company's culture and working procedures are two factors that might affect one's performance on the job. Leaders may message that they care about their and their audit firm's reputations by showing appreciation for high standards of audit quality and stressing the necessity of "doing the right thing" in the public interest. The Center for Audit Quality is only one part of the Audit Quality Disclosure Framework. There should be a clear emphasis on audit quality, and leaders should set the tone by doing so themselves. Only 300 employees from the businesses above participated in the research. Those 288 employees work for a wide variety of companies. This study’s findings shed light on the connection between strong internal controls and good governance in Lebanon’s banking sector. Senior management will focus on organizational compliance, the internal control system and monitoring methodologies, effective corporate governance, risk assessment, quality assurance, and independent forensic investigation since these are all prerequisites for an independent audit role. The chance of management undermining internal controls designed to identify and prevent fraud will decrease, and a more positive culture will result. Both managers will check that sufficient internal procedures are in place to safeguard corporate property.
Keywords: Audit Culture, Audit Quality, Governance, Internal Control.
References
Adams, T., A., & Zhou, Y. (2018). The effect of audit quality on a firm’s internal information environment: Evidence from group audits. Retrieved from: https://www.fox.temple.edu.
Ado, A. B., Rashid, N., Mustapha, U. A., & Ademola, L. S. (2020). The impact of audit quality on the financial performance of listed companies Nigeria. Journal of Critical Reviews, 7(9), 37-42. DOI: 10.31838/jcr.07.09.07.
Ahmad, B. O. (2018). The effect of internal audit on organizational performance: An empirical exploration of selected Jordanian banks. Research Journal of Finance and Accounting, 9(14), 1-8.
Akande, B. M. (2019). Effect of internal audit in the financial performance of commercial bank: A case study of united bank for Africa. Doctoral Dissertation, University of Nigeria. Retrieved from: https://www.academia.edu/38401615/
Alflahat, M. T. (2017). The impact of internal audit on organizational performance of selected Jordanian companies. International Journal of Multidisciplinary Research and Development, 4(8), 85-289.
Amin, A., Lukviarman, N., Suhardjanto, D., & Setiany, E. (2018). Audit committee characteristics and audit-earnings quality: Empirical evidence of the company with concentrated ownership. Review of Integrative Business and Economics Research, 7, 18-33.
Barzan, O. A. (2018). Factors influencing the effectiveness of internal audit on organizational performance. International Journal of Advanced Engineering, Management and Science, 4(4), 219-226.
Bilal, Chen, S., & Komal, B. (2018). Audit committee financial expertise and earnings quality: A meta-analysis. Journal of Business Research, 84, 253-270.
Dahir, A. A., & Omar, N. (2016). Effects of internal audit practice on organizational performance of remittance companies in Modadishu-Somalia. Journal of Business Management, 2(9), 12-33.
Dellai, H., & Omri, M. A. B. (2016). Factors affecting the internal audit effectiveness in Tunisian organizations. Research Journal of Finance and Accounting, 7(16), 208-211.
El-Gharboui, B., & Chraibi, A. (2021). Internal audit quality and financial performance: A systematic literature review pointing to new research opportunities. International Journal of Management Sciences, 4(2), 794-820.
Enekwe, C., Nwoha, C., & Udeh, S. N. (2020). Effect of audit quality on financial performance of listed manufacturing firms in Nigeria (2006-2016). Advance Journal of Management, Accounting and Finance, 5(1), 1-12.
Grediani, E. (2019). Effects of company size, company age, audit committee, and auditor quality on Sharia information disclosure compliance-an indonesian Sharia’financial industry evidence. KnE Social Sciences, 200-216.
Hazaea, S., Tabash, M., Khatib, S., Zhu, J., & Al-Kuhali, A. (2020). The Impact of internal audit quality on financial performance of Yemeni commercial banks: An empirical investigation. Journal of Asian Finance, Economics and Business, 7(11), 867–875.
IIA. (2017). The framework for internal audit effectiveness: The new IPPF. The Institute of Internal Auditors. Retrieved from: https://na.theiia.org/standards-guidance/Public%20Documents/TheFramework-for-Internal-AuditEffectiveness-The-New-IPPFBrochure.pdf.
Legoria, J., Reichelt, K. J., & Soileau, J. S. (2018). Auditors and disclosure quality: The case of major customer disclosures. Auditing: A Journal of Practice & Theory, 37(3), 163-189. DOI: 10.2308/ajpt-51835.
Matoke, V. N., & Omwenga, J. (2016). Audit quality and financial performance of companies listed in Nairobi securities exchange. International Journal of Scientific and Research Publications, 6(11), 2250-3153.
Moses, T., Ofurum, C., & Egbe, S. (2016). Audit committee characteristics and quality of financial reporting in quoted Nigerian banks. International Journal of Advanced Academic Research, 2(5), 1-10.
Phan, T., Lai, L., Le, T., & Tran, D. (2020). The impact of audit quality on performance of enterprises listed on Hanoi Stock Exchange. Management Science Letters, 10(1), 217-224.
Sayar, H. (2018). The effect of audit quality on firm performance: Evidence from Malaysia. European Accounting Review, 16(4), 72-88.
Surbakti, L. P., Shaari, H. B., & Bamahros, H. M. A. (2017). Effect of audit committee expertise and meeting on earnings quality in Indonesian listed companies: A conceptual approach. Journal of Accounting and Finance in Emerging Economies, 3(1), 47-54. DOI: 10.26710/jafee.v3i1.97.
Yi-Fang, Y., Yang, L. W., & Lee, M.-N. (2015). Service quality, size, and performance of audit firms: Consideration of market segments and business strategies. The International Journal of Business and Finance Research, 9(4), 51-66.
Zalata, A. M., Tauringana, V., & Tingbani, I. (2018). Audit committee financial expertise, gender, and earnings management: Does gender of the financial expert matter? International Review of Financial Analysis, 55, 170-183. DOI: 10.1016/j.irfa.2017.11.002.
Downloads
Download data is not yet available.
##plugins.themes.bootstrap3.article.details##
How to Cite
Diya, L. (2022). The Impact of Audit Culture and Internal Control Systems on Audit Quality: The Case of Lebanese Banks. European Journal of Business and Management Research, 7(5), 255–261. https://doi.org/10.24018/ejbmr.2022.7.5.1675
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
