https://www.um.edu.mt/library/oar/handle/123456789/44823 Sun, 05 Apr 2026 13:23:21 GMT 2026-04-05T13:23:21Z https://www.um.edu.mt/library/oar/handle/123456789/44859 Title: The effect of internal audit system on institutional governance level in businesses Authors: Gungormus, Ali Haydar Abstract: Purpose: The aim of this study is to determine the relationship between the effectiveness of the internal audit level of companies and the institutional management level. Design and Methodology: We administered a questionnaire survey to collect the data. This was collected through direct interviews with managers, by an online survey, and by telephoning the firms whose addresses were obtained from business associations. In order to test the hypothetical association of the model in this study, the PLS-SEM method was employed. Findings: In the study, it was found that companies that used internal audits effectively have high levels of institutional governance. As the efficiency of the internal audit system increased, so the level of objectivity, transparency, and formalization also increased accordingly. Practical Implications: In view of the fact that companies have become multinational enterprises in recent years, their desire to increase their capital power by going public has increased the impact of different interest groups and their expectations upon businesses. With transparency accountability, reliability concepts have become an important criterion since these interest groups seek to control enterprises. In light of the business scandals that have occurred internationally, the concept of institutional governance began to be used as an international benchmark in terms of the accountability of companies. Instituting an internal audit has performed an important function in the development of the effectiveness of institutional governance in businesses. As a tool with which to avoid future scandals, this study has investigated the association between the internal audit system and corporate governance. Significance of the Study: We assume that the findings of this study will contribute toward the enhancement of good corporate governance, which alleviates agency problems in business organizations. The findings have several implications regarding board members, managers, and organizations. Establishing corporate governance mechanisms and resolving agency issues are among the boards’ primary responsibilities. In order to ensure this, managers must establish reporting procedures with internal control and monitoring devices before inviting external control through independent auditing. Mon, 01 Jul 2019 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/44859 2019-07-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/44856 Title: Audit retention versus audit rotation : an update of the debate Authors: Zubairu, Umaru; Ochepa, Abdulhafeez; Umar, Hadiza; Kolo, Ruth; Umar, Jaafar; Usman, Asma’u Abstract: Purpose: In this paper, an update is provided on the on-going debate between audit retention and audit rotation in different parts of the world. Design and Methodology: This update is provided based on a systematic review of recent scholarship that have explored the supposed benefits or drawbacks of audit rotation amidst a climate of declining confidence in audited financial statements due to a series of financial scandals over the last few years. 28 articles were examined along four key categories, including the geographical distribution of the articles, article type, research themes and research methods. Findings: The findings of the review revealed that the debate between audit rotation and retention has no end in sight with empirical studies finding conflicting results regarding the merits or demerits of adopting a mandatory audit rotation regime in various countries. A recurring message amongst many of the studies is that perhaps time has come for the auditing profession to seek an alternative solution for maintain auditor independence. Practical Implications: A recurring message amongst many of the studies is that perhaps time has come for the auditing profession to seek an alternative solution for maintaining auditor independence. The Significance of The Study: This study reveals that auditor independence cannot be obtained merely by regulation. This is evidenced by the fact that audit-related financial scandals have continued to occur over this long period of time, despite the adoption of mandatory audit rotation in many parts of the world. Mon, 01 Jul 2019 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/44856 2019-07-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/44854 Title: Implementation of IFRS in Kosovo : effect on the quality and relevance of financial reporting Authors: Berisha Vokshi, Nexhmie; Asllanaj, Rrustem Abstract: Purpose: Kosovo’s legal framework requires from businesses to implement IFRS when preparing financial statements. Based on this, the study aims to reflect the current situation regarding the recognition of IFRS by the accountants and the level of their implementation when preparing the financial statements, their attitudes and opinions regarding the effect they have on the quality and relevance of financial reporting for business directors and for all users of accounting information. Design and Methodology: The study was carried out with data collected from 264 businesses with turnover of over 1 million € selected as a research sample and processed through descriptive statistics and the quantitative analytical method. The design of the study involves two essential steps. The first step was a secondary data survey whose purpose was to research and analyze the framework of financial reporting of businesses. Meanwhile, the second step is the primary research conducted through questionnaires filled out in businesses and addressed to accountants (one employee in each business, a total of 264 accountants interviewed). Findings: The research results showed Kosovo's economic reality as far as financial reporting is concerned, which implies that businesses prepare accounting information according to the IFRS and publish it through publicly available financial statements under the regulatory requirements for accounting, financial reporting and auditing. In addition, the study highlights the level of awareness of accountants that the IFRS affect the quality and relevance of accounting information that will be used by third parties for economic decisionmaking. Practical Implications: Recognition of IFRS by accountants and their full implementation provides a qualitative and transparent financial information, useful to all users of that information, as well as to business executives. Unification of accounting language exceeds group interests by penetrating the capital market in and out of the country. The Significance of The Study: This study presents a clear picture of the level of implementation of IFRS in Kosovo and the identification of factors affecting this level. In this respect, the study has raised the importance of enforcing standards by professionals, contributing to the improvement of financial reporting. Mon, 01 Jul 2019 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/44854 2019-07-01T00:00:00Z https://www.um.edu.mt/library/oar/handle/123456789/44853 Title: How merger and acquisition affect firm performance and its quality Authors: Edi; Irayanti, Leony Abstract: Purpose: Mergers and acquisitions are forms of corporate restructuring. This study was conducted to examine the firm's performance after the company carried out a merger and/or acquisition during the period 2010-2014. Design and Methodology: The variables used in this study are financial ratios such as Gross profit margin ratio, Operating profit margin ratio, Net profit margin ratio, Return on capital employed, Earning per share, Return on assets, Return on equity and Return on net worth. This study also focuses on how the quality of firm earnings changed following a merger and/or acquisitions to know whether the changes in firm profit will also affect the quality of profit. The sample was selected using a non-probability purposive sampling method. Data is analyzed using a descriptive statistical test, outlier test, normality test and hypothesis test (t-test). This study used paired sample t-test to analyze two different paired samples using the SPSS program. Findings: The results from this study show that the firm’s performance has decreased after mergers and acquisitions, but the quality of earnings after mergers and acquisitions have insignificant increases. Practical Implications: Management must discipline themselves to ensure good corporate governance, develop a good approach to the management of assets and liabilities, and pay attention to the knowledge transfer and technology transfer that the company gets for the benefit of the company to be able achieve the synergy of acquisition in order to increase profitability. The Significance of The Study: Statistical evidence found that company profitability will be declining significantly after a merger and acquisition occurred. But separately, this decline also makes the profits that are generated of better quality. This also means that the decrease of profitability is also increasing the better quality of their earnings. Mon, 01 Jul 2019 00:00:00 GMT https://www.um.edu.mt/library/oar/handle/123456789/44853 2019-07-01T00:00:00Z