Factors Affecting Effectiveness of Internal Audit of Agro & Food Industry in the Stock Exchange of Thailand

Abstract

The research aims to study factors affecting effectiveness of internal audit of Agro & Food Industry in Securities Exchange of Thailand. The sample group consists of 152 officers in the internal audit of the Agro-Industry and Food Industry group listed on the Stock Exchange of Thailand, randomly drawn by simple random sampling. Data collection uses questionnaire and is analyzed by using percentage, mean, standard deviation and hypothesis testing.

The results reveal that (1) the factors from management support, information system, organizational culture and audit report are accepted from all parties involved and they are independent variables that affect the effectiveness of internal audit in the audit work.       (2) The factors from management support, information system, organizational culture, knowledge of internal auditors, independence of the internal auditors in the audit work and the audit report are accepted from all parties involved and they are independent variables that affect the effectiveness of the internal audit in terms of accountabilities and responsibilities. (3) The factors from management support, independence of the internal auditors in audit work and report are accepted from all parties involved and they are independent variables influencing the effectiveness of internal audit in terms of performance. Finally, (4) the factors of information system, knowledge of internal auditors, and audit report are accepted from all parties involved and they are independent variables which influence the effectiveness of internal audit as early warning signs. The results of this study can be used as a guideline for improving internal audit processes, promoting the quality of work and reliability under the accounting standards. These would result in the highest efficiency and effectiveness for internal audit in the future.