The sourcing arrangements of internal audit function (IAF) under COVID-19 pandemic: empirical evidence from emerging market

References

• Accountancy Europe. (2020). Coronavirus crisis: Implications on reporting and auditing, accountancy Europe. https://www.accountancyeurope.eu/publications/coronavirus-crisis-implications-on-reporting-and-auditing/(accessed 20 March 2020).
   Google Scholar
• Albitar, K., Gerged, A. M., Kikhia, H., & Hussainey, K. (2020). Auditing in times of social distancing: The effect of COVID-19 on auditing quality. International Journal of Accounting & Information Management, 29(1), 1–10. https://doi.org/10.1108/IJAIM-08-2020-0128
   Web of Science ®Google Scholar
• Ali, M., Alam, N., & Rizvi, S. A. R. (2020). Coronavirus (COVID-19)—An epidemic or pandemic for financial markets. Journal of Behavioral and Experimental Finance, 27, 100341. doi: https://doi.org/10.1016/j.jbef.2020.100341.
   PubMed Web of Science ®Google Scholar
• Al-Khresheh, M., Mohamed, A. M., & Asif, M. (2022). Teachers’ perspectives towards online professional development programs during the period of COVID-19 pandemic in the Saudi EFL context. FWU Journal of Social Sciences, 16(2), 1-17. https://doi.org/10.51709/19951272/Summer2022/1
   Web of Science ®Google Scholar
• Al-Qadasi, A. A., Abidin, S., & Al-Jaifi, H. A. (2019). The puzzle of internal audit function budget toward specialist auditor choice and audit fees: Does family ownership matter? Malaysian evidence. Managerial Auditing Journal, 34(2), 208–243. https://doi.org/10.1108/MAJ-09-2017-1655
   Web of Science ®Google Scholar
• Al-Qadasi, A., Baatwah, S. R., & Omer, W. K. (2023). Audit fees under the COVID-19 pandemic: evidence from Oman. Journal of Accounting in Emerging Economies, 13(4), 806–824. https://doi.org/10.1108/JAEE-08-2021-0269
   Web of Science ®Google Scholar
• Baatwah, S. R., Al-Ebel, A. M., & Amrah, M. R. (2019). Is the type of outsourced internal audit function provider associated with audit efficiency? Empirical evidence from Oman. International Journal of Auditing, 23(3), 424–443. https://doi.org/10.1111/ijau.12170
   Web of Science ®Google Scholar
• Baatwah, S. R., Aljaaidi, K. S., Almoataz, E. S., & Bajaher, M. S. (2021). Determinants of industry expertise outsourced IAF: Do company and auditor attributes affect the selection? Cogent Business & Management, 8(1), 1938931. https://doi.org/10.1080/23311975.2021.1938931
   Web of Science ®Google Scholar
• Baatwah, S. R., & Al-Qadasi, A. A. (2020). Determinants of outsourced internal audit function: A further analysis. Eurasian Business Review, 10(4), 629–659. https://doi.org/10.1007/s40821-019-00142-9
   Web of Science ®Google Scholar
• Baatwah, S. R., Al-Qadasi, A. A., Al-Shehri, A. M., & Derouiche, I. (2022). Corporate social responsibility budgeting and spending during COVID–19 in Oman: A humanitarian response to the pandemic. Finance Research Letters, 47, 102686. https://doi.org/10.1016/j.frl.2022.102686
   PubMed Web of Science ®Google Scholar
• Bajary, A. R., Shafie, R., & Ali, A. (2023). COVID-19 pandemic, internal audit function and audit report lag: Evidence from emerging economy. Cogent Business & Management, 10(1), 2178360. https://doi.org/10.1080/23311975.2023.2178360
   Web of Science ®Google Scholar
• Bhattacharya, A., & Banerjee, P. (2020). An empirical analysis of audit pricing and auditor selection: Evidence from India. Managerial Auditing Journal, 35(1), 111–151. https://doi.org/10.1108/MAJ-11-2018-2101
   Web of Science ®Google Scholar
• Boonlert-U-Thai, K., & Suttipun, M. (2023). Influence of external and internal auditors on key audit matters (KAMs) reporting in Thailand. Cogent Business & Management, 10(3), 2256084. https://doi.org/10.1080/23311975.2023.2256084
   Web of Science ®Google Scholar
• Burton, F. G., Emett, S. A., Simon, C. A., & Wood, D. A. (2012). Corporate managers’ reliance on internal auditor recommendations. AUDITING: A Journal of Practice & Theory, 31(2), 151–166. https://doi.org/10.2308/ajpt-10234
   Web of Science ®Google Scholar
• Carey, P., Subramaniam, N., & Ching, K. C. W. (2006). Internal audit outsourcing in Australia. Accounting and Finance, 46(1), 11–30. https://doi.org/10.1111/j.1467-629X.2006.00159.x
   Web of Science ®Google Scholar
• Chen, H., Liu, S., Liu, X., & Wang, J. (2022). Opportunistic timing of management earnings forecasts during the COVID-19 crisis in China. Accounting & Finance, 62(S1), 1495–1533. https://doi.org/10.1111/acfi.12830
   Google Scholar
• Coram, P., Ferguson, C., & Moroney, R. (2008). Internal audit, alternative internal audit structures and the level of misappropriation of assets fraud. Accounting & Finance, 48(4), 543–559. https://doi.org/10.1111/j.1467-629X.2007.00247.x
   Web of Science ®Google Scholar
• Deloitte. (2020). Internal Audit considerations in response to COVID-19 navigating change: An unprecedented challenge. https://www2.deloitte.com/
   Google Scholar
• Desai, N. K., Gerard, G. J., & Tripathy, A. (2011). Internal audit sourcing arrangements and reliance by external auditors. AUDITING: A Journal of Practice & Theory, 30(1), 149–171. https://doi.org/10.2308/aud.2011.30.1.149
   Web of Science ®Google Scholar
• Eichenseher, J. W., Hagigi, M., & Shields, D. (1989). Market reaction to auditor changes by OTC companies. Auditing: A Journal of Practice & Theory, 9(1), 29–40.
   Web of Science ®Google Scholar
• El-Chaarani, H, Beirut Arab University. (2021). COVID-19: Problems, challenges and business opportunities. Journal of Contemporary Research in Business Administration and Economic Sciences, 1(1), 1–4. https://doi.org/10.52856/jcr311280116
   Google Scholar
• Eulerich, M., Wagener, M., & Wood, D. A. (2022). Evidence on internal audit quality from transitioning to remote audits because of COVID-19. Journal of Information Systems, 36(3), 219–234. https://doi.org/10.2308/ISYS-2021-021
   Web of Science ®Google Scholar
• Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The Journal of Law and Economics, 26(2), 301–325. https://doi.org/10.1086/467037
   Web of Science ®Google Scholar
• Ghaleb, B. A. A., Kamardin, H., & Al-Qadasi, A. A. (2020). Internal audit function and real earnings management practices in an emerging market. Meditari Accountancy Research, 28(6), 1209–1230. https://doi.org/10.1108/MEDAR-02-2020-0713
   Web of Science ®Google Scholar
• Glover, S. M., Prawitt, D. F., & Wood, D. A. (2008). Internal audit sourcing arrangement and the external auditor’s reliance decision. Contemporary Accounting Research, 25(1), 193–213. https://doi.org/10.1506/car.25.1.7
   Web of Science ®Google Scholar
• Goodell, W. J. (2020). COVID-19 and finance: Agendas for future research. Finance Research Letters, 35, 101512. https://doi.org/10.1016/j.frl.2020.101512
   PubMed Web of Science ®Google Scholar
• Gujarati, D. N. (1995). Basic Econometrics. McGraw Hill.
   Google Scholar
• Haddad, H., Al Bawab, A. A., & Marei, A. (2023). The impact of Covid-19 pandemic on the auditing profession. International Journal of Professional Business Review, 8(5), e01689. https://orcid.org/0000-0003-3182-5470 https://doi.org/10.26668/businessreview/2023.v8i5.1689
   Google Scholar
• Hay, D., Shires, K., & Van Dyk, D. (2021). Auditing in the time of COVID–the impact of COVID-19 on auditing in New Zealand and subsequent reforms. Pacific Accounting Review, 33(2), 179–188. https://doi.org/10.1108/PAR-09-2020-0155
   Web of Science ®Google Scholar
• Hsu, Y. L., & Yang, Y. C. (2022). Corporate governance and financial reporting quality during the COVID-19 pandemic. Finance Research Letters, 47, 102778. https://doi.org/10.1016/j.frl.2022.102778
   PubMed Web of Science ®Google Scholar
• Institute of Internal Auditors (IIA). (2020). The IIA’s three lines model. An update of the three lines of defense. https://www.theiia.org/globalassets/site/about-us/advocacy/three-lines-model-updated.pdf (last accessed November 1st, 2022).
   Google Scholar
• James, G., Witten, D., Hastie, T., & Tibshirani, R. (2013). An Introduction to Statistical Learning: with Applications in R (1st ed.). Springer. 2013, Corr. 7th printing 2017 edition.
   Google Scholar
• Jarva, H., & Zeitler, T. (2023). Implications of the COVID-19 pandemic on internal auditing: a field study. Journal of Applied Accounting Research, https://doi.org/10.1108/JAAR-12-2021-0333
   Web of Science ®Google Scholar
• Kennedy, P. (1998). A Guide to Econometrics. Blackwell, Oxford.
   Google Scholar
• KPMG. (2020a). “COVID-19: Potential impact on financial reporting.” https://home.kpmg/xx/en/home/insights/2020/03/covid-19- financial-reporting-resource-centre.html (accessed 27 April 2020).
   Google Scholar
• KPMG. (2020b). Impact of the COVID-19 crisis on internal audit functions of financial institutions. https://assets.kpmg/content/dam/kpmg/cy/pdf/2020/04/impact-of-the-covid-19-crisis-on-internal-audit-func tions-of-financial-institutions.pdf
   Google Scholar
• Lenz, R., & Hahn, U. (2015). A synthesis of empirical internal audit effectiveness literature pointing to new research opportunities. Managerial Auditing Journal, 30(1), 5–33. https://doi.org/10.1108/MAJ-08-2014-1072
   Web of Science ®Google Scholar
• Lin, S., Pizzini, M., Vargus, M., & Bardhan, I. R. (2011). The role of the internal audit function in the disclosure of material weaknesses. The Accounting Review, 86(1), 287–323. https://doi.org/10.2308/accr.00000016
   Web of Science ®Google Scholar
• Myers, R. H. (1990). Detecting and combating multicollinearity. Classical and modern regression with applications. 368–423. Boston: Duxbury Press Belmont, CAPWS-Kent Publishing.
   Google Scholar
• Nichols, D. R., & Smith, D. B. (1983). Auditor credibility and auditor changes. Journal of Accounting Research, 21(2), 534–544. https://doi.org/10.2307/2490789
   Web of Science ®Google Scholar
• Nor, M. N. M., & Ishak, S. (2019). An analysis of internal audit investment among top Malaysian listed companies. KnE Social Sciences, 485-497. https://doi.org/10.18502/kss.v3i22.5068
   Google Scholar
• Nour, A. N. I., & Tanbour, K. M. (2023). The impact of the code of professional conduct for internal auditors on the effectiveness of internal auditing units in banks listed on the Palestine stock exchange during COVID-19 pandemic. In Alareeni, B., Hamdan, A. (Eds.), Explore Business, Technology Opportunities and Challenges After the Covid-19 Pandemic. ICBT 2022. Lecture Notes in Networks and Systems (vol. 495, pp. 504–522). Cham: Springer. https://doi.org/10.1007/978-3-031-08954-1_45
   Google Scholar
• Omer, W. K. H. (2022). Going-Concern Audit Opinion and Firm-Specific Expertise of Outsourced IAF Providers: Empirical Evidence from an Emerging Market. ESIC Market, 53(2), e287–e287. https://doi.org/10.7200/esicm.53.287
   Google Scholar
• Organization WH. (2020). Coronavirus disease (COVID-2019) situation reports. – 88. Geneva: WHO. https://www.who.int/emergencies/diseases/novel-coronavirus-2019/situation-reports.
   Google Scholar
• Petersen, M. A. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. Review of Financial Studies, 22(1), 435–480. https://doi.org/10.1093/rfs/hhn053
   Web of Science ®Google Scholar
• Pooe, J. B., Barac, K., Plant, K., & Steyn, B. (2022). Signalling of internal audit effectiveness. South African Journal of Accounting Research, 36(3), 213–249. https://doi.org/10.1080/10291954.2021.2000727
   Web of Science ®Google Scholar
• Pozzoli, M., Pagani, A., & Paolone, F. (2022). The impact of audit committee characteristics on ESG performance in the European Union member states: Empirical evidence before and during the COVID-19 pandemic. Journal of Cleaner Production, 371, 133411. https://doi.org/10.1016/j.jclepro.2022.133411
   Web of Science ®Google Scholar
• Rahman, M. J., Ding, J., Hossain, M. M., & Khan, E. A. (2023). COVID-19 and earnings management: A comparison between Chinese family and non-family enterprises. Journal of Family Business Management, 13(2), 229–246. https://doi.org/10.1108/JFBM-01-2022-0011
   Web of Science ®Google Scholar
• Seymore, M., & Robertson, J. C. (2020). Managers’ intentions to share knowledge to internal auditors: The effects of procedural fairness and internal auditor type. Journal of Management Accounting Research, 32(2), 225–241. https://doi.org/10.2308/jmar-52563
   Web of Science ®Google Scholar
• Wan-Hussin, W. N., & Bamahros, H. M. (2013). Do investment in and the sourcing arrangement of the internal audit function affect audit delay? Journal of Contemporary Accounting & Economics, 9(1), 19–32. https://doi.org/10.1016/j.jcae.2012.08.001
   Google Scholar
• Westhausen, H. U. (2022). Did Covid-19 increase the risk of internal auditing? Economic Review  Journal of Economics and Business, 2, 79–95. https://doi.org/10.51558/2303-680X.2022.20.2.79
   Google Scholar