Abstract
Pakistani banking industry is suffering from low performance due to
ineffective internal audit practices. Due to low performance of banking
industry, the economy of Pakistan is declining. As approximately 95%
financial system of Pakistan is grounded in the banking industry. To
report this issue, the main objective of this study is to examine the major
determinants of internal audit effectives (IAE). To achieve this objective,
cross-sectional research design was selected with quantitative research
approach. Data were collected from internal auditors of all the
conventional and Islamic banks in Pakistan. Smart PLS 3 was preferred
to examine the data. It is found that independence of internal audit
department (IIAD) and management support for internal audit (MSIA)
are the major determinants of IAE. Moreover, information technology
(IT) has a mediating role to enhance the positive contribution of IIAD
and management support towards IAE. Therefore, the study contributed
in the literature by investigating the major determinants of internal audit
and mediating role of IT. This study is helpful for practitioners to
improve the banking performance by promoting internal audit
independence, management support and IT
Zeb, Asim, Rizwan Shabbir, Muhammad Farhan Basheer, Saqib Muneer. (2019) Does Information Technology (IT) Expeditethe Internal Audit System? Determinants of Internal Audit Effectives: Evidence from Pakistani Banking Industry , The Dialogue, Volume 14, Issue 2.
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