Strategic Internal Audit Excellence and Organizational Survival: An Empirical Investigation of Finance Businesses in Thailand

Main Article Content

Thanapon Wimoonard
Phaprukbaramee Ussahawanitchakit
Suparak Janjarasjit

Abstract

In the post-GFC business world, internal audit functions have taken centre stage. Anecdotally, managers now appear to hold the belief that an internal audit system focused on excellence that will optimize decision-making, achieve organizational goals, create value and lead to long-term business success. This research aimed to uncover empirical evidence for the impact of strategic internal audit excellence (SIAE) on organizational survival via           a composite of mediating variables: best internal audit practice, internal audit efficiency, internal audit achievement, financial reporting quality, and decision-making success.            A convenience sample of 94 finance firms across Thailand was selected to participate in this survey research. Hypothesized relationships among the variables were analyzed statistically using ordinary least squares (OLS) regression. SIAE was found to have a positive impact on best internal audit practice, internal audit efficiency, and internal audit achievement. Internal audit strategies that focused on excellence were found to be capable of creating value for the internal audit and organizational operations more generally. In particular, best internal audit practice led to a significant positive effect on internal audit efficiency, internal audit achievement, financial reporting quality, and decision-making success. Moreover, financial reporting quality was discovered to have a significant effect on decision-making success and organizational survival. The benefits of SIAE for efficient and effective internal audit function and organizational survival revealed the value for organizations of aligning their internalcontrol strategies and operations with best practice.

 

Downloads

Download data is not yet available.

Article Details

How to Cite
Wimoonard, T., Ussahawanitchakit, P., & Janjarasjit, S. (2017). Strategic Internal Audit Excellence and Organizational Survival: An Empirical Investigation of Finance Businesses in Thailand. AU-GSB E-JOURNAL, 9(2), 82. Retrieved from http://www.assumptionjournal.au.edu/index.php/AU-GSB/article/view/2542
Section
Research

Most read articles by the same author(s)