Objectivity Threats: Would it Jeopardise Malaysian Internal Auditors' Risk Judgment Quality?

In the realm of internal auditing, the rise of Risk-Based Internal Auditing has heightened the demand for auditors to excel in risk assessment. Failing in this role not only endangers audits but also exposes companies to significant losses and reputational harm. Internal auditors entrusted with crit...

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Published in:INTELLECTUAL DISCOURSE
Main Authors: Razali, Fazlida Mohd; Said, Jamaliah; Johari, Razana Juhaida; Ibrahim, Norizelini
Format: Article
Language:English
Published: INT ISLAMIC UNIV MALAYSIA, PRESS RESEARCH MANAGEMENT CENTER 2023
Subjects:
Online Access:https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001137594700006
author Razali
Fazlida Mohd; Said
Jamaliah; Johari
Razana Juhaida; Ibrahim
Norizelini
spellingShingle Razali
Fazlida Mohd; Said
Jamaliah; Johari
Razana Juhaida; Ibrahim
Norizelini
Objectivity Threats: Would it Jeopardise Malaysian Internal Auditors' Risk Judgment Quality?
Religion
author_facet Razali
Fazlida Mohd; Said
Jamaliah; Johari
Razana Juhaida; Ibrahim
Norizelini
author_sort Razali
spelling Razali, Fazlida Mohd; Said, Jamaliah; Johari, Razana Juhaida; Ibrahim, Norizelini
Objectivity Threats: Would it Jeopardise Malaysian Internal Auditors' Risk Judgment Quality?
INTELLECTUAL DISCOURSE
English
Article
In the realm of internal auditing, the rise of Risk-Based Internal Auditing has heightened the demand for auditors to excel in risk assessment. Failing in this role not only endangers audits but also exposes companies to significant losses and reputational harm. Internal auditors entrusted with critical decisions grapple with objectivity challenges that impede their ability to assess a company's risks accurately. This study investigates objectivity challenges in Malaysian internal auditing and their impact on risk assessment. Employing experimental tasks of varying complexity, it reveals that all nine objectivity threats outlined in the International Standards for Professional Practices of Internal Auditing (IPPF): Practice Guide on Independence and Objectivity are prevalent in Malaysia. These threats negatively affect risk assessment, regardless of task complexity. Prominent objectivity threats include social pressure, familiarity, and intimidation. Crucially, these threats have a more significant impact on risk assessment during simpler tasks, especially when auditors assess familiar, less intricate areas. These highlight the urgent need for internal auditors to manage objectivity effectively, strengthening their role as impartial, dependable risk assessors.
INT ISLAMIC UNIV MALAYSIA, PRESS RESEARCH MANAGEMENT CENTER
0128-4878
2289-5639
2023
31
2

Religion

WOS:001137594700006
https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001137594700006
title Objectivity Threats: Would it Jeopardise Malaysian Internal Auditors' Risk Judgment Quality?
title_short Objectivity Threats: Would it Jeopardise Malaysian Internal Auditors' Risk Judgment Quality?
title_full Objectivity Threats: Would it Jeopardise Malaysian Internal Auditors' Risk Judgment Quality?
title_fullStr Objectivity Threats: Would it Jeopardise Malaysian Internal Auditors' Risk Judgment Quality?
title_full_unstemmed Objectivity Threats: Would it Jeopardise Malaysian Internal Auditors' Risk Judgment Quality?
title_sort Objectivity Threats: Would it Jeopardise Malaysian Internal Auditors' Risk Judgment Quality?
container_title INTELLECTUAL DISCOURSE
language English
format Article
description In the realm of internal auditing, the rise of Risk-Based Internal Auditing has heightened the demand for auditors to excel in risk assessment. Failing in this role not only endangers audits but also exposes companies to significant losses and reputational harm. Internal auditors entrusted with critical decisions grapple with objectivity challenges that impede their ability to assess a company's risks accurately. This study investigates objectivity challenges in Malaysian internal auditing and their impact on risk assessment. Employing experimental tasks of varying complexity, it reveals that all nine objectivity threats outlined in the International Standards for Professional Practices of Internal Auditing (IPPF): Practice Guide on Independence and Objectivity are prevalent in Malaysia. These threats negatively affect risk assessment, regardless of task complexity. Prominent objectivity threats include social pressure, familiarity, and intimidation. Crucially, these threats have a more significant impact on risk assessment during simpler tasks, especially when auditors assess familiar, less intricate areas. These highlight the urgent need for internal auditors to manage objectivity effectively, strengthening their role as impartial, dependable risk assessors.
publisher INT ISLAMIC UNIV MALAYSIA, PRESS RESEARCH MANAGEMENT CENTER
issn 0128-4878
2289-5639
publishDate 2023
container_volume 31
container_issue 2
doi_str_mv
topic Religion
topic_facet Religion
accesstype
id WOS:001137594700006
url https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001137594700006
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