Altowaijri, Hamad Hmooad (2024) Impact of Continuous Auditing and Centralising the Purchasing Functions for Higher Internal Audit Effectiveness: A Study of Saudi Arabia Companies. PhD thesis, Victoria University.

Abstract

This research examines internal audit effectiveness and the factors influencing internal auditors’ intentions to use continuous auditing in non-financial companies in Saudi Arabia. Specifically, employing the resource-based theory, this study explores the effects of continuous auditing and the centralisation of purchasing functions on the effectiveness of internal audit. Additionally, utilising the unified theory of acceptance and use of technology, this research investigates how performance expectancy, facilitating conditions, effort expectancy and social influence affect internal auditors’ intentions to adopt continuous auditing. The data for this research were gathered utilising a questionnaire method. Questionnaires were distributed to internal auditors in non-financial companies in Saudi Arabia, resulting in 152 completed and useable questionnaires. The data were analysed using the Statistical Package for the Social Sciences. This study employed two multiple regression analyses, estimated using ordinary least squares methods. The findings from the first multiple regression model indicated that both continuous auditing and the centralisation of purchasing functions were significant factors influencing internal audit effectiveness in non-financial companies in Saudi Arabia. Specifically, in the first regression model, continuous auditing and the centralisation of purchasing functions accounted for 20.2% of the variance in internal audit effectiveness. Moreover, continuous auditing was the most important factor affecting the effectiveness of internal audit. The findings from the second multiple regression model revealed that performance expectancy was the sole significant factor influencing internal auditors’ intentions to use continuous auditing. In the second regression model, performance expectancy accounted for 33% of the variance in the internal auditors’ intentions to use continuous auditing. According to the resource-based theory, non-financial companies in Saudi Arabia enhance their internal audit effectiveness and gain a competitive advantage by implementing continuous auditing and centralising purchasing functions. These functions are important for ensuring more efficient and effective audit processes, which can lead to better decision-making and overall organisational performance. Moreover, with respect to the unified theory of acceptance and use of technology, there is a need for non-financial companies in Saudi Arabia to develop training programs to enhance their internal auditors’ understanding of the benefits of continuous auditing and its potential for improving internal auditors’ performance. These training courses should focus on demonstrating to internal auditors how implementing continuous auditing can increase their performance efficiency and effectiveness.

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