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Title:	Determinants of internal audit outsourcing in Malaysian companies from TCE perspective
Authors:	Saeed Abdullah Nasser (P73624)
Supervisor:	Zakiah Muhammadun Mohammed, Assoc. Prof. Dr.
Keywords:	Internal audit Malaysian companies Outsource Universiti Kebangsaan Malaysia -- Dissertations
Issue Date:	6-Feb-2018
Description:	In recent years, the internal audit (IA) function has significantly expanded to incorporate with new objectives that emphasise the importance of the IA function in adding value to organisations. Nevertheless, some organisations encounter difficulties in establishing an in-house IA function due to lack of capabilities, which consequently lead them towards outsourcing arrangement. In general, Malaysia has recently achieved a significant position in providing outsourcing services in the region. Based on the Transaction Cost Economics theory (TCE), this study aims to investigate the factors that motivate Malaysian listed companies to outsource IA functions. The study examines the relationship between asset specificity, uncertainty, frequency and cost pressure on the intensity of Internal Audit outsourcing (IAO) as well as the interactions between frequency and asset specificity, and cost pressure with the intensity of IAO. This study introduces a moderation variable, specifically, the frequency that moderates the relationship between cost pressure and intensity of IAO. The results indicate that asset specificity, frequency and cost pressure are significantly related to the intensity of IAO. Furthermore, the result indicates that the interaction between frequency and asset specificity and cost pressure, respectively produce a significant relationship with the intensity of IAO. In addition, this study reveals that cost reduction and access to specialised internal auditors are the main reasons why companies outsource their IA functions. On the other hand, losing process control, the difficulty of knowing about the environment and culture are the reasons to establish IA functions in-house.,Master of Accounting
Pages:	133
Publisher:	UKM, Bangi
Appears in Collections:	Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

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