“The Impact of Internal Audit Function Characteristics on Internal Control Quality: The Moderating Role of Cyber Risk”

Document Type : Original Article

Authors

1 kING SALMAN INTERNATIONAL UNIVERSITY

2 Accounting, Commerce, Ain Shams

3 Faculty of Commerce, Suez Canal University, Ismailia, Egypt

Abstract

This investigation analyzes the connection between Internal Audit Function (IAF) characteristics and Internal Control Quality (ICQ) and their relationship moderation by cyber risk. The research relies on quantitative analyses of 10-year secondary data which comes from 14 banks. This study evaluates how four essential IAF characteristics namely organizational governance and expertise and risk management and investment affect ICQ. All Internal Audit Function characteristics generate positive effects on Internal Control Quality as shown in the research results. The examination data reveals strong positive correlations between organizational governance at 90% confidence and expertise, risk management, investment at 95% confidence level. The predictive power of the model reaches 71.1% as it explains 0.711 (R² = 0.711, adjusted R² = 0.703) of ICQ variance. The presence of cyber risk acted to decrease the connections between IAF attributes and ICQ with organizational governance affected at 90% confidence level while the other IAF characteristics required 95% confidence level. The existing research benefits from this study which demonstrates empirically how cyber risk affects the connection between IAF characteristics and internal control quality within banking institutions.

Keywords

Files

Share

How to cite

Statistics