Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Factors Influencing Internal Accounting and Financial Audit Effectiveness: Evidence from Oman

Author(s): Haider Alaaldin Alsabti, Azam Abdelhakeem Khalid

The study aims to investigate the factors influencing internal audit effectiveness (IAE) in the companies listed in Muscat Securities Market (MSM). The selected accounting information system (AIS) factors were reliability, relevance, flexibility and integration. A quantitative approach using structural equation modelling (SEM) was utilised as the main research design. The data was collected from a group of respondents comprising financial\accounts manager, accountant, internal auditor, audit committee member through simple random sampling. The actual survey questionnaire was distributed to 397 respondents, and the data were analysed using SEM to determine the factors influencing IAE in the companies listed in MSM. The study results indicated that AIS factors have a significant influence on IAE. The positive significant relations were reliability (β =0.255, p<0.05), followed by relevance (β= 0.200, p< 0.05), flexibility (β=0.197, p<0.05) and integration (β = 0.107, p<0.05). In conclusion, reliability is the most dominant AIS factor that influence on IAE. The main practical implication of the study is that companies listed in MSM should focus on the improvement of AIS factors to enhance IAE. To the researcher’s knowledge, this study is the first of its kind in Oman that investigate the factors influencing IAE in the companies listed in MSM.

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