Factors Affecting Internal Audit Quality: Audit Experience, Independence and Competence

Abstrak

This literature reviews factors influencing internal audit quality, focusing on Audit Experience, Independence, and Competence. Experienced auditors are better equipped to understand an organization's operational and financial complexities and can identify early signs of fraud or non-compliance. Independence enables auditors to report findings objectively, ensuring that audit results are reliable for stakeholders like top management and boards. Competence involves the technical and analytical skills necessary for auditing, including knowledge of audit standards, legal requirements, and accounting principles, as well as strong analytical abilities. By exploring these factors, this article aims to develop solid hypotheses about their relationship within internal audit quality, ultimately supporting improvements in audit practices across various sectors. Findings from this literature review indicate: 1) Audit experience positively impacts Internal Audit Quality, 2) Independence is crucial for audit reliability, and 3) Competence enhances Internal Audit Quality.