Faudziah Hanim Fadzil

Internal auditing practices and internal control system

Purpose – Two main objectives and they are: to determine whether the internal audit department of the companies listed in the Bursa Malaysia complies with the Standards for the Professional Practice of Internal Auditors IIA (2000); and, to determine whether compliance to SPPIA will affect the quality of the internal control system of the company.Design/methodology/approach – Two sets of questionnaires were used in the study. Internal auditing practices was measured by the items listed in the SPPIA and the internal control was measured by means of the statement on internal control: guidance for directors of public listed companies. The population used in this study was all the companies listed in the Bursa Malaysia in 2001. This study used both descriptive and inferential analyses.Findings – It was found that management of internal audit department, professional proficiency, objectivity and review significantly influence the monitoring aspect of the internal control system. Scope of work and performance of...

Management accounting change: ABC adoption and implementation

The current research tries to contribute to the successful design and implementation of ABC in the context of Jordanian Manufacturing Companies. In order to satisfy the research objectives, both quantitative and qualitative data are gathered. For the quantitative data, a questionnaire survey was developed for the determination of the present scenario involving ABC adoption and implementation. For the qualitative one, semi-structured interviews were utilized to find out the factors impacting the adoption and implementation of ABC. Data analysis included within company and cross-company analysis . ABC’s adoption and implementation rate were determined through the use of three criteria; namely, adopters, implementers and users or implementers. The primary findings revealed that ABC implementation in the context of Jordanian Manufacturing Companies is approximately 19.5% measured according to the third criteria which is implementers or users. Findings from the semi-structured interviews reveal that factors including fashion, forced decision, fad and efficiency are directly related to ABC implementation decision in the target companies. In addition, factors that both facilitate and motivate ABC implementation are: top management support, non -accounting ownership, higher information technology, education, globalization of consumer, increased competition, growing costs, allocation problems, inability of the traditional cost systems to provide relevant information in the new environment and financial crisis. The findings from the interviews also revealed that the barriers to ABC implementation are associated to behavioral and technical problems.