Internal and external factors influencing on the effectiveness of internal auditors in Malaysian Public Universities: from the perceptions of internal auditors and senior management

The effectiveness of internal auditors is important since the serious financial wastage in Malaysian public universities have been continuously reported by Auditor General. The limited studies which has also increased the needs for studies on the
effectiveness of internal auditors in Malaysian public universities. This study ascertains the level of effectiveness of internal auditors and examined extent of internal and external factors. This study also investigated the relationship between
internal and external factors and the effectiveness of internal auditors. The Internal Factor dimensions are Independence, Quality of Work Performed, Senior Management Support and the Relationship with Audit Committee, while External Factor dimensions are the Relationship between Internal and External Auditors, and the Role of Government. Agency Theory is used to predict and explain the effectiveness of the internal auditors in Malaysian public universities and also the relationship of internal and external factors with the effectiveness of internal
auditors. Two sets of questionnaires were sent to 216 of senior management as well as internal auditors in all 20 of Malaysian public universities. The data was collected in September 2017. Only 196 (90.7%) senior management and internal auditors
responded to the questionnaires. The results of multiple regression analysis showed that internal factors (independence and senior management support) have significant influence on the effectiveness of internal auditors in Malaysian public universities. This study stimulates for improvement the internal auditing profession and increase the literature in Malaysian public universities. This study also significantly contributes to ensure that public universities uphold the accountability to the public.