Review of Factors Affecting the Quality of Internal Audit

Abstract

Internal audit, as an independent and objective function, plays a key role in improving organizational performance by assessing and enhancing the effectiveness of risk management, control, and organizational processes. Although not legally required in all countries, its establishment is becoming increasingly important, particularly in the public sector, financial organizations, and corporations, to enhance operations, achieve objectives, and mitigate risks. The quality of internal audit is defined by its ability to meet organizational goals by providing valuable information to management, ensuring regulatory compliance, managing risks, and improving internal control systems and organizational processes. Its significance is reflected in increasing audit credibility, stakeholder trust, and the long-term sustainability of an organization. Key quality factors include professional standards, management support, independence, objectivity, auditor competence, and effective coordination with external auditors. Although there is no universal model for assessing internal audit quality, research emphasizes the importance of various methodological approaches, including SEM methodology, factor analysis, regression models, and systematic literature reviews, to gain a more precise understanding of quality indicators. This paper presents research focused on examining internal audit quality and identifying key factors that determine it.