ISSN: 2225-8329
Open access
The public sector plays a crucial role in attaining novel development objectives through its responsibility to ensure the efficient and transparent utilization of financial and technical support. Implementing effective governance practices within the public sector can enhance the overall well-being of citizens and foster more confidence in the government's capacity to administer public resources proficiently. In order to promote accountability and enhance the efficiency of public governance, internal auditors must evaluate the internal control system. Furthermore, it can enhance public sector governance by ensuring that the Chief Audit Executive (CAE) and internal auditor are affiliated with the Institute of Internal Auditors (IIA). This study aims to examine the influence of internal auditor competency and the efficacy of the internal control system on public governance. The study found a strong correlation between the effectiveness of the internal control system (r = 0.761) and internal audit effectiveness with a significant level of (P < 0.01). Additionally, there was a moderate positive correlation between the competence of an internal auditor and internal audit effectiveness with r = 0.539. The findings demonstrate a statistically significant and favourable association between internal auditors' proficiency and internal control systems' effectiveness, resulting in enhanced governance within the public sector.
Abu Bakar, N. B. (2013). Disclosure of accountability information in public sector annual report: the case of Malaysian federal statutory bodies (Doctoral dissertation, University of Malaya).
Ace, K. (2014). Debate: New guidance to improve public sector governance. Public Money & Management, 34(6), 405-406.
Ahmad, H.N. (2015), Internal audit (IA) effectiveness: resource-based and institutional perspectives, Australian Journal of Basic and Applied Sciences, Vol. 9 No. 9, pp. 95-104.
Ali, O. S. (2022). The Impact of Corruption on the Performance of Islamic Banking in the United Arab Emirates: Empirical Evidence by Using Static Panel Analysis. Journal of Economics Finance and Accounting, 9(4), 166-177.
Almashhadani, M., & Almashhadani, H. A. (2022). Corporate Governance as an Internal Control Mechanism and its Impact on Corporate Performance. International Journal of Business and Management Invention, 11(8), 53-59.
Almquist, R., Grossi, G., Van Helden, G. J., & Reichard, C. (2013). Public sector governance and accountability. Critical Perspectives on Accounting, 24(7-8), 479-487. https://doi.org/10.1016/j.cpa.2012.11.005
Alqooti, A. A. (2020). Public governance in the public sector: literature review. International Journal of Business Ethics and Governance, 3(3), 14-25.
Asian Pacific Economic Cooperative. (APEC) (2011). Good practice guide on public sector governance. Singapore.
Asare, T. (2009). Internal auditing in the public sector: Promoting good governance and performance improvement. International Journal on Governmental Financial Management, 9(1), 15-28.
Australian National Audit Office. (ANAO) (2014). Public sector governance: Strengthening performance through good governance. Better Practice Guide, June 2014. Australia.
Aziz, M. A. A., Rahman, H. A., Alam, M. M., & Said, J. (2015), Enhancement of the Accountability of Public Sectors through Integrity System, Internal Control System and Leadership Practices: A Review Study, Procedia Economics and Finance, 28, pp. 163- 169.
Backman, M. (2001). Asian eclipse: Exposing the dark side of business in Asia. Wiley.
Baltaci, M. & Yilmaz, S. (2006), Keeping an Eye on Subnational Governments: Internal Control and Audit at Local Levels, World Bank Publications, pp.7-15
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, Vol. 17 No. 1, pp. 99-120. https://doi.org/10.1177/014920639101700108
Blackburn, K., & Forgues-Puccio, G. F. (2009). Why is corruption less harmful in some countries than in others? Journal of Economic Behavior & Organization, 72(3), 797–810. doi:10.1016/j.jebo.2009.08.009
Chee, S. (1991). Public accountability in Malaysia: Form and substance. In Pradhan, G.B.N. & Reforma, M.A. (Eds.), Public management in the 1990s: Challenges and opportunities. Manila: EROPA.
Chenhall, R.H. (2003). Management control systems design within its organizational context: Findings from contingency- based research and directions for the future. Accounting, Organizations and Society 28(2-3): 127-168. https://doi.org/10.1016/S0361-3682(01)00027-7
Coetzee, P. and Erasmus, L.J. (2017). What drives and measures public sector internal audit effectiveness? Dependent and independent variables. International Journal of Auditing, Vol. 21 No. 3, pp. 237-248. https://doi.org/10.1111/ijau.12097
Coy, D., Fischer, M., & Gordon, T. (2001). Public accountability: A new paradigm for college and university annual reports. Critical Perspectives on Accounting, 12(1), 1-31.
CIPFA, I. (2013). Good governance in the public sector–Consultation draft for an international framework. Working Paper.
Dwipayana, Ari (2003). Membangun Good Governance. Yogyakarta: IRE Press.
Escap, U. (2009). What is good governance?.
Fatimah, A. R., Haslinda, Y., Normahiran, Y., Usha Rani, S., & CS & Radiah, O. (2015). Public sector accounting: Malaysian context.
Greiling, D., & Spraul, K. (2010). Accountability and the challenges of information disclosure. Public Administration Quarterly, 34(3), 338-377.
Hopper, Trevor.(2017). Neopatrimonialism, Good Governance, Corruption and Accounting in Africa: Idealism versus Pragmatism, Journal of Accounting in Emerging Economies 7(2) · May 2017, DOI: 10.1108/JAEE12-2015-0086.
Horwarth, Crowe. (2011). The Mind Behind The Fraudsters Crime: Key Behavioral and Environmental Element. USA: Crowe Horwarth International.
Joshi, P. L., & Karyawati Purba, G. (2022). The Institutional Theory on the Internal Audit Effectiveness: The Case of India. Iranian Journal of Management Studies, 15(1), 35-48. https://doi.org/ 10.22059/IJMS.2021.313778.674303
Juiz, C., Guerrero, C., & Lera, I. (2014). Implementing good governance principles for the public sector in information technology governance frameworks. Open Journal of Accounting, 2014.
Khalid, M., Alam, M. M., & Said, J. (2016). Empirical assessment of good governance in the public sector of Malaysia. Maizatul, AK, Alam, MM, and Said, J, 289-304.
KPMG. (2010). Corporate governance in the public sector, the road ahead. KPMG in India, June 2010, 1-17.
Mardiasmo, D. (2002). Akuntabilitas Sektor Publik Yogyakarta. Penerbit Andi Yogyakarat.
Pratiwi, D. A., & Sari, M. E. P. (2017). An analysis of good governance in the public service sector of Batam. Journal of Techno-Social, 9(1).
Prihanto, H., & Gunawan, I. D. (2020). Corruption in Indonesia (Is It Right to Governance, Leadership and It to Be Caused?). Journal of Economics and Sustainable Development, 11(2), 56-65.
Ryan, C., Dunstan, K., & Brown, J. (2002). The value of public sector annual reports and annual reporting awards in organisational legitimacy. Accounting, Auditing and Performance, 8(1), 61 76.
Said, J., Alam, M. M., & Khalid, M. (2016), Relationship between Good Governance and Integrity System: Empirical Study on the Public Sector of Malaysia, Humanomics, 32(2), pp. 151-171.
Saidin, S. Z., & Ahmi, A. (2019). Assessment of the Governance Practices in Public Sector: Case Studies of Malaysian Federal Government Agencies. Journal of Governance and Integrity, 2(2), 45-52.
Siddiquee, N. A. (2006), Public management reform in Malaysia: Recent initiatives and experiences, International Journal of Public Sector Management, 19(4), pp. 339-358.
Singam, K. (2003). Corporate governance in Malaysia. Bond Law Review, 15(1), 314-344.
Yilmaz, I., & Bashirov, G. (2018). The AKP after 15 years: Emergence of Erdoganism in Turkey. Third World Quarterly, 39(9), 1812–1830. https://doi.org/10.1080/ 01436597.2018.1447371
Zhuang, J., Edwards, D., & Capulong, M. V. A. (2001). Corporate Governance & Finance in East Asia: A Study of Indonesia, Republic of Korea, Malaysia, Philippines and Thailand. Asian Development Bank.
N/A
Copyright: © 2023 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode