英文摘要 |
Internal Audit renders its importance by helping an organization accomplish its objectives via bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Using the number of internal auditor as the measure for the demand for internal audit, this paper investigates factors associated with the demand for internal audit. The results indicate that the demand for internal audit is related to monitoring incentive of the corporate board, prior period growth in revenue, and the quality of the internal auditors. Specifically, we find evidence that firms with more shares held by the board members and with less satisfactory prior period revenue growth are associated with higher demand for internal audit. Moreover, the result indicates that the quality of internal auditors is reversely related to the number of internal auditors. Firms with more experienced, educated and competent internal auditors tend to have fewer internal auditors. Fin ally, we also find that larger firms and firms have longer listing years are positively related to the demand for internal audit. |