A Comparative Study of The Internal Audit System Between China and The Gulf Cooperation Council Countries
Keywords:internal audit system, standards of auditing, internal audit structure, China, GCC
AbstractThe purpose of this comparative study is to clarify the fundamental differences of the internal auditing system in China and the Gulf Cooperation Council (GCC) countries. The literature review revealed several dissimilarities between the two regions. We discussed the development of the audit system in each context, the observance of international standards, its importance at present, and the challenges faced. Our results show that there is a vast difference between the internal audit system in china and GCC countries. Moreover, this study also provides some suggestions to address the challenges that weaken the implementation of effective internal auditing systems in these countries. This study is beneficial for academicians, policymakers, government agencies and the management of internal audit institutions in China and GCC countries.
Al-Twaijry, A. A., Brierley, J. A., and Gwilliam, D. R. (2003) ‘The development of internal audit in Saudi Arabia: an institutional theory perspective’, Critical Perspectives on Accounting, Vol.14, No.5, PP. 507–531.
Al-Shetwi, M., Ramadili, S. M., Chowdury, T. H. S., and Sori, Z. M. (2011) ‘Impact of internal audit function (IAF) on financial reporting quality (FRQ): evidence from Saudi Arabia,’ African Journal of business management, Vol. 5, No. 27, PP. 11189-11198. t
Almansour, M. S. (2019) ‘Challenges and opportunities from adopting IFRS in Saudi Arabia: the case of the banking sector (Doctoral dissertation, Nottingham Trent University).
Chong, H. G. (2008) ‘Auditing in China, ‘Journal of Corporate Accounting and Finance, Vol.19, No.6,PP. 49-54.
Firth, M., Mo, P. L., and Wong, R. M. (2012) ‘Auditors’ organizational form, legal liability, and reporting conservatism: Evidence from China, Contemporary Accounting Research, Vol. 29, No.1, PP. 57-93.
Funkhouser and Pu, (2019) ‘Government performance auditing in the US and China: lessons drawn from comparative review, Chinese Public Administration Review, Vol. 10, No.2, PP 65-78.
He, X., Pittman, J., Rui, O.M., (2013) ‘Reputational implications for partners after a major audit failure: evidence from China, Journal of Business Ethics, Vol. 138, No.4, PP. 703-722.
Hao, Z. (1999) ‘Regulation and organization of accountants in China; Accounting, Auditing an Accountability Journal, Vol. 12, PP. 286−302.
Hussain, M., Islam, M. M., Gunasekaran, A., and Maskooki, K. (2002) ‘Accounting standards and practices of financial institutions in GCC countries. Managerial Auditing Journal, Vol. 17, No.7, PP. 350–362. doi:10.1108/02686900210437453.
IIA (2006) ‘The role of auditing in public sector governance. Altamonte springs, FL: The Institute of Auditors Research Foundation.
IIA (2008) ‘International Standards for the Professional Practice of Internal Auditing. Altamonte Springs, FL: The Institute of Internal Auditors Research Foundation.
IIA (2012) ‘ International standards for the professional practice of internal auditing (Standards), available://www.iia.org.au/technicalResources/knowledgeitem.aspx?ID=256.
Jihad, N (2019) ‘Recent trends of internal audit and its role in supporting competitive advantage, a thesis submitted for fulfillment of the Master's degree of the philosophy of accounting, Sudan University of Science and Technology, Sudan.
Jou, Jianwua (1997) ‘The present situation and developing trends of Chinese internal auditing," Managerial Journal, Vo.12. No.4/5. PP.235-242.
Lin, K. Z., and Chan, K. H. (2000) ‘Auditing standards in China—a comparative analysis with relevant international standards and guidelines, The International Journal of Accounting. Vol.35, No.4, PP. 559-577.
Lin, Z. J., Xiao, J. Z., and Tang, Q. (2008) ‘The roles, responsibilities, and characteristics of the audit committee in China. Accounting, Auditing and Accountability Journal. Vol.21, No.5, PP.721–751. Doi:10.1108/09513570810872987.
Li, Y. (2008). A comparative study about internal auditing approach between Germany and China. Chengdu City, China: Southwestern University of Finance and Economics, October, 7.
Macve, R. (2020) ‘Perspectives from mainland China, Hong Kong and the UK on the development of China’s auditing firms: implications and a research agenda, Accounting and Business Research, 1-52.DOI:10.1080/00014788.2020.1736494.
Mulugeta, S. (2008) ‘Internal audit: reporting relationship in Ethiopian public enterprises. M.Sc. Dissertation. Ethiopia: Addis Ababa University. available online at: http://etd.aau.edu.et/dspace/bitstream/123456789/1966/1/Samuel%20Mulugeta.pdf.
Yang, S., Xiao, J. Z., and Pendlebury, M. (2008) ‘Government auditing in China: Problems and reform, Advances in Accounting, Vol. 24, N,1, PP. 119-127.
1. Author and Manuscript
- The author whose name appear in the above statement is declaring that he/she is the author of the stated manuscript
- All of the authors, if any, has already aware of this agreement and give consent for the mentioned name to act on their behalf
- The author stated that the manuscript is original and has never been published elsewhere.
- The author has obtained permissions from other contributors, if any
- The author has specifically mentioned and cited all external materials properly
- Note: External materials refers to any material, writings, figures, tables, illustrations, or any other materials which is not being produced, made, or patented by the author
- The author holds the sole responsible should there are any mistyping; unclear citation and holds responsible should there are any inappropriate manners such as unlawful, breaches, obscene, or any other reasons which are not aligned with the law and norm.
3. Deliverable of Manuscript and Other Materials
- The Contributor/Author shall deliver their manuscript using the provided and acceptable format (doc. Or docx) in the assigned date as well as author copyright document signed.
- Inability delivering the manuscript in the stated date and format will affecting the publication process thus, The Publisher have the rights to reject the manuscript and terminate the letter of acceptance or letter of offerings
- Author is responsible to deliver the manuscript using the provided format. Note: All of the figures, tables, illustrations, or any other materials that will be inserted in the manuscript need to be in high quality
- Should the author decided to alter the manuscript format, the fee will be charged and bore by authors
The Author give “Yayasan Sinergi Riset dan Edukasi” (here forth known as RSF Press) the unlimited right to publish the contribution identified above, without any restraints, in any form, at any time, directly or through others, to reproduce, transmit, archive, lease/lend, sell and distribute the contribution or parts thereof individually or together with other works in any language, revision and version (digital and hard), including reprints, translations, photographic reproductions, microform, audiograms, videograms, electronic form (offline, online), or any other reproductions of similar nature, including publication in the aforementioned book or any other book, as well as, the usage for advertising purposes. RSF Press will ensure that the Author’s name(s) is/are always clearly associated with the manuscript, and the publishers will not make any substantial change to the manuscript without consulting the author and ask for their consent. RSF Press is also entitled to carry out editorial changes in the contribution with the sole purpose of enhancing the overall organization and form of the contribution.
The Author retains the rights to publish the contribution in his/her own web site and thesis, in his/her employer’s web site and to publish a similar or revised version elsewhere, as long as it is clearly stated that the contribution was presented first RSF Press and the corresponding DOI is associated with the contribution.