The primary role played by internal audit is to assure the effectiveness of
internal control within a company. However, there is little research in this area due to the
difficulty in accessing internal audit data. Using Taiwanese listing firms as research
objects, the study investigates the effect of internal audit quality and quantity on internal
control weakness (ICW). Empirical results indicate that the better the internal audit
quality the less the ICW, although this is not statistically significant. Meanwhile,
significant negative association exists between internal audit input and ICW, indicating
that the more the internal audit input the less the ICW. In addition, the study further
incorporated individual attributes of internal auditors and found significant negative
association, indicating there is less ICW when internal auditors have external audit
experiences, CPA or CIA license. On the other hand, significant positive association
exists between internal auditors with information technology experiences and ICW.
Relationship studies between the attributes of internal auditors and ICW ratio produce
similar findings. To sum up, competence quality of internal auditors and more internal
audit input are beneficial to implementing the internal control system.
Journal of Contemporary Accounting=當代會計期刊 17(2), pp.173-208