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The fundamental reason for the examination is to explain the relationship between the Internal Audit Functions (IAF) and the nature of financial reporting quality in the segment of the Pakistan textile. Samples of 100 internal auditors of fifty different textile units which are located in the Punjab province are taken for this study. The data was collected by (Questionnaire).The study provided the findings that when the IAF and external audit have strong relationship with each other by having regular meetings and more collaboration in the preparation of the annual audit, the textile units showed high quality in the financial reporting. The results of the study propose that there is certain relationship exists between the IAF commitment during the time spent the money related accounting and the nature of the budgetary reporting. The discoveries of the study prescribe that IAFs play an essential part in the way of the financial reporting. The major limitations of this research are cost, time, research culture and the scarcity of the internal auditor.

Abdul Hameed, Dr. Abou Bakar, Nouman Mughal, Muhammad Imran. (2017) The Internal Audit and Financial Reporting Quality, Paradigms , Vol 11, Issue 2 .
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