The Effect of the Factors in the Internal Audit Department on the Internal Auditors Objectivity in the Banks Operating in the United Arab Emirates: (a Field Study)
The Effect of the Factors in the Internal Audit Department on the Internal Auditors Objectivity in the Banks Operating in the United Arab Emirates: (A Field Study)
Dr. Riham Muqattash, Asisstant professor, Al-Ain University of Science and Technology, Abu-Dhabi
ABSTRACT
Since the demand for range of non-audit services increases, the need for appropriate supervision and standards for assuring professionalism and especially objectivity in audit services also increases, this study examined the factors affecting the objectivity of internal auditors in the internal audit department, in addition, it is determined if the internal auditors objectivity is affected by the independence of the internal audit activity. Hence, internal auditors are developing new strategies to meet up these challenges and are becoming more practical, providing a broadened variety of services and otherwise changing the internal audit model. This study depends on sample of Banks Operating in the United Arab Emirates. Data is collected from chief audit executive directors whom working in internal audit department of banks. A descriptive statistical methods and regression have been used. The outcome of the study showed that there is a significant positive relationship between the factors in the internal audit department and the objectivity of the internal auditors, such as: rotation of employees, outsourcing audit activities, havening a formal manual, audit charter and quality assurance department. Also the results of the study showed, there is a significant positive relationship between the independence of the internal audit activity and the objectivity of the internal auditors, and this indicated that the internal auditors' objectivity is affected by the degree of the independence of the internal audit activity.
Keywords: Internal auditors, objectivity, independence, internal audit activity.
INTRODUCTION
“Over the years, internal auditing has evolved into a highly professional
Dr. Riham Muqattash, Asisstant professor, Al-Ain University of Science and Technology, Abu-Dhabi
ABSTRACT
Since the demand for range of non-audit services increases, the need for appropriate supervision and standards for assuring professionalism and especially objectivity in audit services also increases, this study examined the factors affecting the objectivity of internal auditors in the internal audit department, in addition, it is determined if the internal auditors objectivity is affected by the independence of the internal audit activity. Hence, internal auditors are developing new strategies to meet up these challenges and are becoming more practical, providing a broadened variety of services and otherwise changing the internal audit model. This study depends on sample of Banks Operating in the United Arab Emirates. Data is collected from chief audit executive directors whom working in internal audit department of banks. A descriptive statistical methods and regression have been used. The outcome of the study showed that there is a significant positive relationship between the factors in the internal audit department and the objectivity of the internal auditors, such as: rotation of employees, outsourcing audit activities, havening a formal manual, audit charter and quality assurance department. Also the results of the study showed, there is a significant positive relationship between the independence of the internal audit activity and the objectivity of the internal auditors, and this indicated that the internal auditors' objectivity is affected by the degree of the independence of the internal audit activity.
Keywords: Internal auditors, objectivity, independence, internal audit activity.
INTRODUCTION
“Over the years, internal auditing has evolved into a highly professional