Authors: Georgia Boskou, Efstathios Kirkos, Charalambos Spathis

Title: Factors influencing internal audit compliance in Greece

Abstract

In recent years there has been an increasing interest in internal auditing. Literature on internal audit has recognized the need for internal audit quality. Corporate governance mandates and listing rules identify Internal Audit Function (IAF) as a central internal control mechanism. External auditors are expected to assess the quality of IAF before placing reliance of their work. This study’s objectives are to uncover the factors influencing Internal Audit Quality (IAQ) in Greek public listed companies. We carry out in-depth examination of publicly available data from the Annual Reports of various firms of Athens Exchange Group (AEG). We assess the internal audit compliance in terms of corporate governance, risk management, information systems and internal audit processes. The aim of this study is to contribute to the research related to the requirements of Internal Audit Quality by applying statistical techniques. Previous literature was chosen in order to highlight significant independent variables. Linear regression analysis examines the association between Internal Audit Compliance (IAC) and a number of principal factors. The contribution of internal audit quality has greatly increased nowadays due to the hard economic conditions that our country faces.