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International Journal of Business, Economics and Management

March 2021, Volume 8, 3, pp 154-164

Internal Audit Quality and Disclosure on Risk Management and Internal Control

Nor Hafizah Zainal Abidin

Nor Hafizah Zainal Abidin¹

Department of Accounting, International Islamic University Malaysia, Malaysia. ¹

on Google Scholar

Abidin Nor Hafizah Zainal

on PubMed

Abidin Nor Hafizah Zainal

Pages: 154-164

DOI: 10.18488/journal.62.2021.83.154.164

Article History:

Received: 23 October, 2020
Revised: 16 November, 2020
Accepted: 04 December, 2020
Published: 21 December, 2020

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Abstract:

Disclosure and transparency are essential for informed decision-making. Timely reporting and accurate financial information including risk related information are key facets of investor protection and market confidence. This study examines the impact of internal audit quality on disclosure on risk management and internal control. The empirical evidence is gathered using data extracted from the annual report of 200 listed companies in 2017. Results indicate that higher internal audit quality significantly and positively enhances greater disclosure on risk management and internal control. Other characteristics such as firm size, firm liquidity, and audit firm size were further analyzed and found that those characteristics were not significantly related to the disclosure on risk management and internal control. Hence, this study provides empirical evidence on the likelihood of internal audit quality in facilitating the oversight duties of the audit committee and the board with regards to greater disclosure on risk management and internal control.

Contribution/ Originality
This study contributes to existing literature by examining the impact of internal audit quality on disclosure on risk management and internal control.

Keywords:

Internal audit quality, Disclosure, Internal audit, Risk management , Internal control.

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