Title: Influencing factors for internal audit effectiveness in the Indian context

Authors: Prem Lal Joshi; Govindan Marthandan

Addresses: Indian Council of Social Sciences Research (ICSSR) Western Regional Centre, India ' Faculty of Management, Multimedia University, Cyberjaya, Malaysia

Abstract: This research is to assess the empirical evidence on the critical determinants of internal audit (IA) effectiveness in Indian Nifty500 companies. IA effectiveness is arguably a result of the interplay among different factors that may have an immense effect but have not been thoroughly investigated in the Indian environment. Using the proportionate stratified sampling technique, 64 usable questionnaires were received and the response rate was 28.2%. Non-response bias and common method bias were tested. From the factor analysis and multiple regression models, the following critical determinants were established: 1) 'interaction between internal auditor and audit committee'; 2) 'risk-based planning and guidelines'; 3) 'moderating role of management support with Big Data Analytics' for IA effectiveness in Indian context. The implications are the critical determinants that potentially influence this effectiveness in the changing business and technological environment which are important for policy decision purposes.

Keywords: internal audit effectiveness; audit committee; risk-based planning; big data and analytics; BDA; management support; critical determinants; moderating role.

DOI: 10.1504/AAJFA.2023.129544

Afro-Asian Journal of Finance and Accounting, 2023 Vol.13 No.2, pp.253 - 276

Received: 18 Jun 2020
Accepted: 28 Sep 2020
Published online: 14 Mar 2023 *

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