Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Impact of Internal Audit and its Quality on Sales in Economic Institutions: A Case Study (Al-Ahlia Cement Company - Libya)

Marwan Ibrahim Alfadhli, Nik Mohd Norfadzilah bin Nik Mohd Rashid, Madam Noryati Yaakub

http://dx.doi.org/10.6007/IJARBSS/v8-i8/4434

Open access

The objective of this study was to find out the effect of internal audit and its quality on sales in the economic institutions, because the auditing works to show the actual result of the institution. The research was based on the statistical analysis program (SPSS) and descriptive analysis. The researchers used the arithmetic mean the standard deviation to describe the questionnaire items and Pearson correlation coefficient between variables. The study found that there is a strong relationship between the internal audit and the quality of internal audit, and sales in economic institutions, and that the staff of the audit department are characterized by integrity and honesty. The internal audit has a prominent role in the decision-making by the beneficiaries, and the presence of a special section of the audit of sales in the institution checks the invoices with the goods out, and monitors the sales by an independent person. The researcher recommended that the opinions of the auditors should be according to the accepted accounting principles. The courses should be done in dealing with the computer in completing the transactions. He recommended that the sales operations should be analyzed periodically to avoid fraud in the invoices.

Abu Gabriel, A. Y. (2015). The impact of internal audit on the management of profits in industrial companies listed on the Amman Stock Exchange. Master Thesis, Zarqa University: Jordan.
Abu Watfa, H. S. (2009). The role of internal audit in improving the efficiency and effectiveness of financial investments. "Applied Study on Companies Listed on the Palestine Securities Exchange". Master Thesis. Islamic University. Gaza.
Al Malty, A. F. (2016). Analytical study of the causes and effects of administrative and financial corruption in the Libyan economy. Libyan Affairs, (3), 58–71.
Al-Afifi, M. M. (2009). The extent of the internal auditor's ability to apply the standards of professional performance of the internal audit of the international financial institutions to address the phenomenon of financial corruption in the economic institutions (applied study on public shareholding companies operating in the Gaza Strip), Master Thesis, Islamic University, Gaza
Al-Futtaisi, A. A. (2014). The financial crisis and the deficiencies in the control of public money in Libya - Analytical study of the reports of the Audit Bureau for the years 2008-2012. University Journal. Vol. 1, No. 16.
Derball, S. (2012). The behavior of economic institutions in financing their internal growth - A comparative study between the small, medium and large Algerian institutions during the period from 2006 to 2010. University of Qassidi Merabah. Ouargla: Algeria.
El-Najjar, A. K. M. (2012). El Najjar, Abdel Karim Mohamed. (2012). The role of auditors in verifying the qualitative characteristics of accounting information in financial statements. - Applied research in a sample of Iraqi companies listed in the Iraqi Stock Exchange. Baghdad University.
Elsayed, D. T. (2016). Causes of Corruption in the Arab Spring Countries: A Cross-National Comparative Perspective. Paper presented at the 24th World Congress of Political Science Poznan, Poland.
Fakhr, N., & Shala, M. (2016). The importance of the auditor's acquisition of specialized knowledge in enhancing the credibility of financial reports. Tishreen University Journal of Research and Scientific Studies - Series of Economic and Legal Sciences. Vol. 37, No.3.
George, D., & Mallery, P. (2003) SPSS for windows step by step: A sample Guide & reference Boston; Allyn & Bacon.
Hafisa, I., & Rabeeha, B. K. (2015). Accounting audit on sales in an economic institution - Case study of Poultry Slaughter Company in Albuwaira Master Thesis. University of Akli Ulhaj. Algeria.
Isaac, S., & Michael, W. B. (1995). Handbook in research and evaluation. Educational and Industrial Training Services. San Diego.
Issa, S. M. (2008). Specific factors for the quality of the internal audit function in improving the quality of corporate governance - with an applied study. Journal of the Faculty of Commerce for Scientific Research. Volume. 45. Issue 1.
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement. Vol. 30. pp 607-610.
Massoud, Y. Y., & Sassi, S. O. (2016). The impact of corruption and instability on the growth of the Libyan economy Applied Study for the period 1996 - 2016. Libyan Affairs, (3), 27–45.
Mazon, M. A. (2011). Accounting Audit from an International Perspective and possibility of its Applicability in Algeria. Algeria University. Algeria.
Momani, M., & Shweiyat, Z. (2007). The auditor's ability to detect indicators of doubt about the continuity of customers. Al Manara Journal. Vol. 14. Issue 1.
Mubarak, R. I. (no, date). Quality and role of internal audit activities in reducing profit management practices. Applied study on the Saudi environment. King Saud University.
Sari, Y., & Nugroho, G. W. (2017). Pengaruh Audit Internal Terhadap Operasi Penjualan (Studi Kasus pada PT. Selamat Lestari Mandiri). Jurnal Ilmiah Ilmu Ekonomi (Jurnal Akuntansi, Pajak dan Manajemen), 5 (10), 94-108.
Shaaban, L. (2013). Internal audit and its role

In-Text Citation: (Alfadhli, Rashid, & Yaakub, 2018)
To Cite this Article: Alfadhli, M. I., Rashid, N. M. N. bin N. M., & Yaakub, M. N. (2018). The Impact of Internal Audit and its Quality on Sales in Economic Institutions: A Case Study (Al-Ahlia Cement Company - Libya). International Journal of Academic Research in Business and Social Sciences, 8(8), 50–65.