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Factors Affecting Internal Audit Effectiveness: Empirical Evidence from Vietnam

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  • Thu Trang Ta

    (School of Accounting and Auditing, National Economics University, Hanoi 10000, Vietnam)

  • Thanh Nga Doan

    (School of Accounting and Auditing, National Economics University, Hanoi 10000, Vietnam)

Abstract

This study investigated four factors affecting internal audit effectiveness in Vietnam, namely, independence of internal audit, the competence of internal auditors, management support for internal audit, and quality of internal audit work. Quantitative and qualitative evaluations were conducted, including a logistics regression model and other analyses, using SPSS software. Through semi-structured in-depth interviews and an online survey, 144 responses were obtained from internal Vietnamese auditors of nonfinancial companies listed on the Vietnamese stock market in 2021. After processing the data, the results revealed two factors (independence of internal auditor and management support for internal audit) with a positive influence on internal audit effectiveness, whereas the competence of internal auditors and quality of internal audit work did not affect internal audit effectiveness.

Suggested Citation

  • Thu Trang Ta & Thanh Nga Doan, 2022. "Factors Affecting Internal Audit Effectiveness: Empirical Evidence from Vietnam," IJFS, MDPI, vol. 10(2), pages 1-14, May.
    • Handle: RePEc:gam:jijfss:v:10:y:2022:i:2:p:37-:d:817285
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    References listed on IDEAS

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    1. Alzeban, Abdulaziz & Gwilliam, David, 2014. "Factors affecting the internal audit effectiveness: A survey of the Saudi public sector," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 23(2), pages 74-86.
    2. Fanning, Kirsten & David Piercey, M., 2014. "Internal auditors’ use of interpersonal likability, arguments, and accounting information in a corporate governance setting," Accounting, Organizations and Society, Elsevier, vol. 39(8), pages 575-589.
    3. Aaron Cohen & Gabriel Sayag, 2010. "The Effectiveness of Internal Auditing: An Empirical Examination of its Determinants in Israeli Organisations," Australian Accounting Review, CPA Australia, vol. 20(3), pages 296-307, September.
    4. Al-Akra, Mahmoud & Abdel-Qader, Waleed & Billah, Mamun, 2016. "Internal auditing in the Middle East and North Africa: A literature review," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 26(C), pages 13-27.
    5. Marius Gros & Sebastian Koch & Christoph Wallek, 2017. "Internal audit function quality and financial reporting: results of a survey on German listed companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(2), pages 291-329, June.
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    Cited by:

    1. Ayman Abdelrahim & Husam-Aldin N. Al-Malkawi, 2022. "The Influential Factors of Internal Audit Effectiveness: A Conceptual Model," IJFS, MDPI, vol. 10(3), pages 1-23, August.
    2. Steven Grima & Peter J. Baldacchino & Simon Grima & Murat Kizilkaya & Norbert Tabone & Lauren Ellul, 2023. "Designing a Characteristics Effectiveness Model for Internal Audit," JRFM, MDPI, vol. 16(2), pages 1-44, January.
    3. Madiha Afzal, 2023. "Evaluation of Factors Contributing to the Effectiveness of Internal Audit Quality in Pakistani Commercial Banks," IJFS, MDPI, vol. 11(4), pages 1-15, November.

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