Factors Affecting the Internal Audit Effectiveness: A Research of the Turkish Private Sector Organizations

Abstract

The aim of present study is to examine the factors that have an impact on internal audit effectiveness (IAE) in Turkey. The datas of research were obtained from 187 internal auditors who are members of The Institute of Internal Auditors-Turkey, working in private sector organizations through the questionnaire prepared as a result of the item pool assessment. The relationship between the IAE and six main factors revealed by applying Principle Component Analysis was tested with Multiple Regression Analysis. The results supported that specifications of internal audit had a direct impact on IAE. The results of study showed that the factors that have an impact on IAE are management’s support, competence, independence, participation in risk management activities and cooperation with external auditor, respectively. This study has replaced one of the missing pieces of the literature. The results would underpin executives and academics to focus on IAE in Turkish private sector.

Keywords

• internal audit effectiveness
• internal audit in developing countries
• private sector audit
• regression analysis

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