THE ROLES, CHALLENGES AND BENEFITS OF INTERNAL AUDITING IN ORGANIZATIONS

Stanley Lazarus; Roslin Lazarus; Ambigai Rajendran

doi:10.46281/ijafr.v7i1.1282

Stanley Lazarus Manipal Academy of Higher Education, India
Roslin Lazarus College of Banking and Financial Studies, Oman https://orcid.org/0000-0002-6261-4978
Ambigai Rajendran Manipal Academy of Higher Education, India https://orcid.org/0000-0002-4128-6848

DOI: https://doi.org/10.46281/ijafr.v7i1.1282

Keywords: Internal Auditing (IA), Internal Audit Department (IAD), Organizations, Roles, Challenges, Benefits.

Abstract

This research examined the roles, challenges & benefits of Internal Auditing in Organizations: Evidence from Oman. A semi-structured questionnaire based on research objectives was used to collect primary data from 141 respondents associated to various service, manufacturing and merchandising organizations in Muscat, Oman. Three areas were examined (i) Roles performed by IAD in organizations. (ii) Factors being a challenge for IA in organization. (iii) Benefits derived by organizations following internal audit practices. Factor analysis technique & T-test were applied to gauge the respondent’s perception about the three areas of this study. The factor analysis findings revealed (i) three key factors were extracted of perceived roles performed by IAD in organization, explaining 61.015% of variance. (ii)Four key factors were extracted of the perceived challenging factors for internal audit in organization, explaining 63.358% of variance. (iii)And three key factors were extracted of the perceived benefits derived by organizations as result of internal audit practices, explaining 62.559% of variance. Moreover, the result of the three hypotheses revealed a P value of p<0.01, thus, evinced that a significant role performed by the IAD in organizations, relevant benefits derived as result of internal audit practices & existence of challenging factor for IAD in organizations.

JEL Classification Codes: M42, Auditing.

Author Biographies

Stanley Lazarus, Manipal Academy of Higher Education, India

Department of Commerce, Manipal Academy of Higher Education, Karnataka, India

Roslin Lazarus, College of Banking and Financial Studies, Oman

Assistant Professor, Professional Studies and Undergraduate Department, College of Banking and Financial Studies, Muscat, Sultanate of Oman

Ambigai Rajendran, Manipal Academy of Higher Education, India

Associate Professor, Department of Commerce, Manipal Academy of Higher Education, Karnataka, India

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