The Influence of Internal Audit Competency on the Operational Efficiency of Companies Listed on the Stock Exchange of Thailand
Article Sidebar
Main Article Content
Abstract
This article aims to achieve two objectives: 1) to examine the levels of opinion on internal audit competency and operational efficiency of companies listed on the Stock Exchange of Thailand, and 2) to investigate the influence of internal audit competency on the operational efficiency of these companies. This research is quantitative and utilizes a questionnaire as a data collection tool targeting internal audit executives of listed companies. A total of 327 responses were received. The statistical methods used for data analysis include percentages, means, standard deviations, correlation analysis, and multiple regression analysis. The researcher ensured preliminary agreement to obtain reliable and academically acceptable data. The research results indicate that internal audit competency in audit planning, execution, reporting, and monitoring positively influences performance at a significant level of 0.05. The findings can serve as a guide for enhancing the potential of internal auditors to work proactively, thereby helping to prevent corruption, manage risks, reduce operational waste, and align performance with the company’s objectives. Additionally, this can foster confidence and transparency among stakeholders, leading to increased trust and acceptance of the company’s operations.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Views and opinions appearing in articles in the Journal of Arts of Management It is the responsibility of the author of the article. and does not constitute the view and responsibility of the editorial team I agree that the article is copyright of the Arts and Management Journal.
References
Aaker, D.A, Kumar, V., & Day, G.S. (2001). Marketing research (7th ed.). John Wiley & Sons.
Abbott, L.J., Barr-Pulliam, D., Buslepp, W. L., & Parker, S. (2024). The real effects of internal audit function quality: Evidence from investment strategies. Journal of Accounting, Auditing & Finance, 39(2), 540-567.
Abdelrahim, A. & Husam-Aldin, N.A. (2022). The influential factors of internal audit effectiveness: A conceptual model. International Journal of Financial Studies. 10(3), 1-23. https://doi.org/10.3390/ijfs10030071
Aidi, A., Sayuthi, S., Susanto, I., Junaidi, A., & Abdurohim, A. (2022). The effect of competencies and independence internal auditors on internal audit quality: The theoretical review approach. Ilomata International Journal of Tax and Accounting, 3(1), 103-116. https://doi.org/10.52728/ijtc.v3i1.434
ALAWAQLEH, Q. A. (2021). The effect of internal control on employee performance of small and medium-sized enterprises in Jordan: The role of accounting information system. The Journal of Asian Finance, Economics and Business, 8(3), 855–863.
Armstrong, J.S., & Overton, T.S. (1977). Estimating nonresponse bias in mail surveys. Journal of marketing research, 14(3), 396-402.
Bovornchotisakool, C., & Yangklan, P. (2022). The internal control factor according to the concept of COSO-ERM towards risk assessment of the bank for agriculture's internal audit and agricultural cooperatives. Journal Of Legal Entity Management and Local Innovation, 8(12), 228-242.
Chen, Y., Lin, B., Lu, L., & Zhou, G. (2020). Can internal audit functions improve firm operational efficiency? Evidence from China. Managerial Auditing Journal, 35(8), 1167-1188. https://doi.org/10.1108/MAJ-01-2019-2136
Choomnirat, R., & Ritthidach, P. (2023). Relationship between Operational Efficiency and Firm Value of The Listed Companies in Thailand Sustainability Investment. University of the Thai Chamber of Commerce Journal, 43(2), 39-60.
Grima S., Baldacchino, P.J., Grima S., Kizilkaya, M., Tabone, N., & Ellu, L. (2023). Designing a characteristics effectiveness model for internal audit. Journal of Risk and Financial Management, 16(56), 1-44. https://doi.org/10.3390/jrfm16020056
Hair, J.F., Black, W.C., Babin, B.J., & Anderson, R.E. (2018). Multivariate data analysis (7th ed.). Cengage Learning EMEA.
He-Boong, K., & Jooh, L. (2019), Exploring the differential impact of environmental sustainability, operational efficiency, and corporate reputation on market valuation in high-tech-oriented firms. International Journal of Production Economics, 211(1), 1–14.
Hiransalee, P. (2023). The impact of good internal control system on the operational efficiency of listed companies in the Stock Exchange of Thailand. Journal of Roi Kaensarn Academi, 8(5), 33-48.
Intisang, S., & Janopat, S., (2023). Relationships between internal audit efficiency and performance of local government organizations in Sakon Nakhon, Nakhon Phanom and Mukdahan. Journal of Humanities and Social Sciences Nakhon Phanom University, 13(3), 232-245.
Jachi, M., & Yona, L. (2019). The impact of professional competence & staffing of internal audit function on transparency and accountability case of Zimbabwe local authorities. Research Journal of Finance and Accounting, 10(8), 149-164.
Khamhaengphon, P., & Chienwattanasook, K., (2023). The way for improving the functioning of the internal audit department of public organizations to becoming an organization of excellence. Journal of Academic for Public and Private Management, 5(2), 1-15.
Koncome, A., Akarak, P., & Kittimalai, J. (2022). the effects of internal audit standards on the efficiency of internal auditing of provincial administrative organizations in Thailand. Journal of Management Science Research, Surindra Rajabhat University, 6(1), 138-153.
Krongten, M., & Panmareng, K. (2022). Risk management, internal control, and internal audit on the reduce liquidity risk, firm performance and firm value of listed companies in The Stock Exchange of Thailand. Journal of Positive School Psychology, 6(6), 1351-1361.
Mulyandini, V. C. (2020). The impact of internal audit function and internal auditor competency on detection of fraudulent financial statement survey in internal auditors of state-owned bank in Indonesia. American International Journal of Business Management, 3(8), 61-66.
Nabila, G., Rochayatun, S., & Madina, F. (2023). Competencies and knowledge of internal auditor in Islamic financial institution: A literature review. El Muhasaba Jurnal Akuntansi, 14(1), 80-87.
Nerantzidis, M., Pazarskis, M., Drogalas, G., & Galanis, S. (2022). Internal auditing in the public sector: a systematic literature review and future research agenda. Journal of Public Budgeting, Accounting & Financial Management, 34(2), 189-209.
Nuanlaong, P. (2023). The professional competencies of Thai accountants under international education standards for professional accountants. NRRU Community Research Journal, 17(3), 1-14.
Pethung, W., & Sincharoonsak T. (2022). Competency of accounting performers and internal government audits affecting the quality of public accounting performance assessment of government vocational schools under the office of vocational education commission. Journal of Modern Learning Development, 7(9), 235-249.
Rakkarnsil, S., & Butsalee, P., (2022). The influence of corporate governance and profitability affecting operational efficiency of the listed companies of the stock exchange of Thailand. International Journal of Economics and Finance Studies, 14(1), 259-284.
Raopraser, T. (2022). Employees’ fraud drive the case study: logistic service industry in the eastern economic corridor. Journal of Graduate Studies Valaya Alongkorn Rajabhat University, 16(1), 45-55.
Runghiran, P., & Penwuttikul, P. (2022). The impact of internal audit strategies on the quality of internal audits of listed companies in the stock exchange of Thailand in the consumer products. NEU Academic and Research Journal, 12(1), 359-373.
Rungruang, P., Wangcharoendate, S., & Poonpool, N. (2022). The influences of strategic management accounting effectiveness and operational quality of Thai-listed companies. Hatyai Academic Journal, 20(2), 259-278.
Salkind, N. J. (2019). Exploring resrearch (9th ed.). Pearson Education.
Sakakorn, C., & Srijunpetch S. (2021). Internal control and audit. T.P.N. Press.
Setyaningrum, D., & Kuntadi, C. (2019). The effects of competence, independence, audit work, and communication on the effectiveness of internal audit. Journal of Economics, Business, and Accountancy Ventura, 22(1), 39-47. https://doi.org/10.14414/jebav.v22i1.879
Setyaningrum, D., Mita, A.F., & Rosdini, D. (2022). Internal Auditor Competency Gap:Perception Of Students, Academics And Practitioners. Jurnal Reviu Akuntansi dan Keuangan, 12(3), 696-710.
Shrestha, N. (2020). Detecting multicollinearity in regression analysis. American Journal of Applied Mathematics and Statistics, 8(2), 39-42.
Siniam, R., Chuebang, P., & Ratanasongtham, W. (2023). Effect of modern internal auditing concept and management policies towards internal audit success in public higher education institutions in Thailand. Christian University Journal, 29(2), 100-114.
Soma, R., & Pongpanpattana, J. (2017). Effects of internal audit strategy on operational efficiency of universities under the commission on higher education. Humanities and Social Sciences Journal of Graduate School, Pibulsongkram Rajabhat University, 11(2), 162-173.
Taibanguay, S., Tansaenee, P., & Kraiyuth A. (2019). The role of outsourced internal auditors in the borderless era. Journal of Business Administration and Social Sciences Ramkhamhaeng University, 2(2), 48-63.
Weerananthawet, P., & Bosakoranut, S. (2020). Modern internal audit. Journal of Management and Development Ubon Ratchathani Rajabhat University, 7(1), 165-178.
Ruannoy, P., Thitiyapramote, N., & Langkhunsaen, S. (2022). The effect of professional internal audit characteristics on the internal audit effectiveness in higher education institution of Thailand. Journal Of Legal Entity Management and Local Innovation, 8(8), 193-202.
Wimuktayon, S., Pongpanpattana. J., & Intakhan, P. (2019). Effects of internal audit review competency on achieve goals of internal auditors in Thai listed companies. Humanities and Social Sciences Journal of Pibulsongkram Rajabhat University, 13(2), 383-396.
Yusnaini Y. (2023). Triangle model of responsibility theory in perspective of internal auditor's responsibility for fraud detection. International Journal of Economic Behavior and Organization, 11(3), 146-153.
Zaidan, A.M., & Neamah, A.S. (2022). The effect of the quality of internal audit function to improve the operational efficiency of companies: An empirical study. Webology, 19(1), 6990-7019.