Title: Internal audit system and financial corruption in public institutions: case study of Yemeni public telecommunication corporation

Authors: Saddam A. Hazaea; Jinyu Zhu

Addresses: School of Accounting, Yunnan University of Finance and Economics, Kunming, China ' School of Accounting, Yunnan University of Finance and Economics, Kunming, China

Abstract: This study aims to identify the extent to which auditors are aware of the means and procedures involved in modern control system and internal audit, evaluate the possibility of applying modern methods to the internal control and auditing systems and identifying the factors that lead to the spread of corruption and ways to address them. Primary data for the study were collected through a questionnaire prepared for this purpose and distributed to offices of internal audit management and financial department in public telecommunication corporation, 45 questionnaires were distributed, and 42 valid questionnaires were retrieved in the analysis process. Therefore, the percentage of recovered questionnaires adopted was about 93% of the distributed questionnaires. This study proves that the factors encourage financial corruption in Yemen include weak internal control systems, deficiencies in accounting systems, insufficient penalties, very low salary, and nepotism. Further, it is revealed that Yemen has deeply rooted and institutionalised administrative financial corruption. This study is beneficial for academicians, policy makers, government agencies and the management of Yemeni public telecommunication corporation.

Keywords: internal audit; corruption; public institutions; Yemen.

DOI: 10.1504/IJBEX.2022.124541

International Journal of Business Excellence, 2022 Vol.27 No.3, pp.360 - 386

Received: 12 Nov 2019
Accepted: 15 Jan 2020
Published online: 28 Jul 2022 *

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