Title: Determinants affecting the decision to outsource the internal audit function in Abu Dhabi Stock Exchange

Authors: Riham Suleiman Muqattash

Addresses: College of Business Administration, Accounting Department, Al-Ain University of Science and Technology, Abu Dhabi Campus, UAE

Abstract: This paper explores internal audit function (IAF) outsourcing practices in Abu Dhabi Stock Exchange (ADX). It examines the effect of the determinants, such as independence of the external provider, cost saving, technical competence, corporate governance strategy, and company size, on the decision to outsource the IAF in UAE. A questionnaire has been developed piloted to the Chief Audit Executive, in 65 listed companies in ADX. The results show a significant positive relationship between independent variables and the decision to outsource the IAF. However, results find no significant relationship between the independence of the external provider and the decision to outsource the IAF, and a significant positive relationship between (technical competence, cost savings) and the decision to outsource the IAF. Moreover, the analysis shows a significant negative relationship between the company size and the decision to outsource the IAF.

Keywords: determinants; internal audit function; IAF; outsourcing; UAE; public companies; Abu Dhabi Stock Exchange; ADX.

DOI: 10.1504/IJEBR.2017.084378

International Journal of Economics and Business Research, 2017 Vol.13 No.4, pp.317 - 334

Received: 07 Oct 2016
Accepted: 09 Oct 2016
Published online: 06 Jun 2017 *

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