THESIS TOPIC
FACTORS AFFECTING INTERNAL AUDIT
QUALITY REDUCTION BEHAVIOUR:
THE MODERATING ROLE OF
RESILIENCE
Academic Supervisor: MBA. Vo Thi Thuy Tien
Student Name: Nguyen Thi Dieu Thuyen
Company Name: Murata Manufacturing
Vietnam
Internship Position: Accountant Intern
Student ID: 20010033
www.vnuk.edu.vn
Agenda
1 INTRODUCTION 4 RESEARCH DESIGN
2 RESEARCH PROBLEM 5 RESULTS & FINDINGS
3 LITERATURE REVIEW 6 CONCLUSION
INTRODUCTIO
N
RESEARCH
PROBLEM
MMV’s Challenges
Frequent internal
audits
Lack of
Specialization
Ineffective
Collaboration
Research context
Strengthen Shortage of high-quality Digital The rise in
regulations and internal audit transformation foreign
stricter controls. workforces. investment in
Vietnam
Importance of study
• Enhancing the work efficiency of internal auditors.
• Reducing financial and legal risks for the business (Wulandari et
al., 2024).
• Fostering the reputation and trust of stakeholders (Pham et al.,
2023; Hichri, 2023)
Research Objectives
• Provide a comprehensive overview of the factors influencing Internal Audit
Quality Reduction Behavior.
• Propose actionable strategies for organizations to mitigate the impact of
work stress on IRQB.
Research Questions
• What are the key determinants that influence the internal audit quality reduction
behavior within organizations?
• How can organizations foster resilience among auditors to enhance their ability to
manage stress and maintain high-quality audit behavior?
• What strategies can organizations adopt to reduce IRQB by addressing time
pressure, role ambiguity, and work stress?
LITERATUR
E REVIEW
UNDERLYING THEORIES
Agency theory
• The relationship between principals (Ex: board members
or shareholders) and agents (Ex: internal auditors)
(Jensen & Meckling, 2019)
Stress theory
• Excessive work pressure will negatively affect employee
performance and even lead to negative behavior.(Greenhaus &
Beutell, 1985)
Social Exchange theory (SET)
• Relationships are based on the exchange of benefits and
expectations (Cropanzano et al., 2017)
RELATED STUDIES
Amiruddin, A. (2019). Mediating effect of work stress on the influence of time pressure,
Samagaio, A., Morais Francisco, P., & Felício, T. (2024). The relationship between soft
work–family conflict and role ambiguity on audit quality reduction behavior. International
skills, stress and reduced audit quality practices. Review of Accounting and Finance,
Journal of Law and Management, 61(2), 434–454.
23(3), 353–374.
PROPOSED MODEL
Conceptual Framework by Samagaio et al. (2024) and Amiruddin (2019)
RESEARCH
DESIGN
RESEARCH
DESIGN
Positivist Philosophy Deductive Approach
Emphasizes objective, Draws on existing literature and
measurable knowledge theories to formulate hypotheses.
through scientific methods.
Quantitative
Methodology
Uses structured questionnaires for data collection from a
representative sample.
DATA COLLECTION
METHODS
TARGET SAMPLING
POPULATIO TECHNIQUE
N S Random
• Stratified
• Employees are • Quota Sampling
directly engaged • The convenience
in internal audit sampling
activities.
SAMPLE DATA
• Vietnam
SIZE COLLECTI
• Collected data: •
ON
Online and offline survey
180 • Encouraging participants to
• Selected data: 172 share within professional
networks
DATA ANALYSIS METHODS
Tools Used
• SPSS 24 and AMOS 24.
Data Analysis Methods
• Descriptive Statistical Analysis
• Cronbach's Alpha Reliability Coefficient: Measures scale reliability.
• Exploratory Factor Analysis (EFA): Extracts unobservable constructs.
• Confirmatory Factor Analysis (CFA): Confirms factor structure.
• Structural Equation Modelling (SEM): Examines multidimensional interactions.
• Mediating effect test
• Moderating efect test
RESULTS
&
FINDINGS
Descriptive of participants
• Mainly mid-level professionals
-> Understanding of their task
-> Work on more independent responsibilities
Descriptive of participants
• Various cities
• Both large and medium-sized enterprises
-> Higher levels of organizational complexity and job responsibilities
• Majority of indices (CMIN/df < 3; 0.8<GFI, CFI > 0.9; TLI
<9 RMSEA< 0.08) indicate an acceptable model fit.
Confirmatory Factor Analysis Structural Equation Modeling
(CFA) (SEM)
Regression Weights
Results
Note: The negative standardized scores are due to EI scale being designed with reverse-coded questions.
Standardized Indirect Results
-> WS is increasing ->increase the effect of RA on IRQB.
• Internal auditors facing tight deadlines with their responsibilities in medium to
large companies should be aware of the direct influence of time pressure on
IRQB (H1)
-> WS as a mediator in this relationship may not be impacted by TP.
Regression Weights of Moderator
Variable
, 0 2
0
P=
• P = 0.022 <0.05, there is significant moderated relationship.
CONCLUSIO 1 HYPOTHESIS
IS REJECTED
N
RESEARCH
QUESTIONS
WERE
ANSWERED
RECOMMENDATIONS
1. Encourage Cooperation
• Foster an open-door policy where employees can discuss
challenges
• Encourage cooperation with respectful, and active-listening
culture
• Provide timely feedback and recognition
2. Enhance Technology Use
• Invest in modern audit software (TeamMate, CaseWare
etc)
• Adopt data analytics tools and management : Power BI,
SAP systerm
3. Improve Time Pressure
• Plan audits well in advance
• Add temporary staff during peak periods
RECOMMENDATIONS
4. Reduce Role Ambiguity
• Clarify roles and responsibilities for each team
• Implement mentoring programs
• Regular training and updates
5. Offer Stress-Reduction Resources
• Provide counseling services, or fitness programs
6. Improve Compensation and Benefits
• Fair compensation for overtime work
• Performance-based bonus system
LIMITATIONS
• Sample size is not large enough to
represent an overall overview
• Lack of Qualitative Research
• Limited Scope of other potential
factors such as organizational
structure, or technology, were not
explored.
YOUR ENGAGEMENT
HAS BEEN INVALUABLE
THANK YOU
Descriptive of participants
Standardized Regression Weights
result
Standardized Regression Weights result
Note: The negative standardized scores are due to EI scale being designed with reverse-coded questions.
Emotional Intelligence exerts the most significant influence on Internal Audit Quality
Reduction Behavior, followed by Work Stress, Time Pressure, Role Ambiguity.
Square Multiple Correlation
-> 36.4% of the variance in IRQB can be attributed by TP, RA, EI,
WS
RELATED STUDIES
RAQP: effectively reduce the auditors’
propensity to engage in dysfunctional
actions and judgments in auditing.
RESULT:
• Resilience sig RAQP
• Stress sig RAQP
• Resilience moderate the connection
between stress and RAQP
• Emotional Intelligence no sig RAQP
lINK :
https://www.emerald.com/insight/content/doi/1
0.1108/raf-06-2023-0186/full/html?
skipTracking=true
Samagaio, A., Morais Francisco, P., & Felício, T. (2024). The relationship between soft
skills, stress and reduced audit quality practices. Review of Accounting and Finance,
23(3), 353–374.
RELATED STUDIES
RESUL
T
Amiruddin, A. (2019). Mediating effect of work stress on the influence of time pressure, work–family conflict and role
ambiguity on audit quality reduction behavior. International Journal of Law and Management, 61(2), 434–454.
