A multiple-group analysis on the moderating effects of remote auditing on the internal audit effectiveness of government-owned and or controlled corporations in the Philippines and its determinants

• Main Authors: Lorenzo, Christine Paola D., Mallari, Peter Ernest C., Manlangit, Romeo Neil N., Yu, Kelly Junine C.
• Format: text
• Language: English
• Published: Animo Repository 2022
• Subjects: Auditing, Internal—Philippines; Government corporations—Philippines—Auditing; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etdb_acc/34; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1082&context=etdb_acc
• Institution: De La Salle University

The spread of the COVID-19 pandemic in the country has heavily affected establishments in all sectors. In the public sector, government workers were mandated to adjust their current setups and follow the procedures in transferring to a work from home setup. Under the Revised Philippine Government Internal Audit Manual (PGIAM) issued in 2020, the methodology for remote auditing has been included which explains its practice in the public sector. Several studies have provided the positive impacts of remote auditing on audit quality. With this, this paper seeks to determine how remote auditing moderates the direct relationship of independence of internal audit unit, management support, organizational culture, competence of internal auditors, relationship between internal and external auditor, size of the internal audit team, and motivation of internal audit staff to internal audit effectiveness in government-owned and/or controlled corporations (GOCCs) in the Philippines. Using a quantitative research approach and a causal or explanatory research design, this study involved internal auditors from a number of GOCCs and used the random sampling technique based on a minimum sample size of 25. PLS-SEM was used to identify the relationship between the variables. Results indicate that organizational culture positively affects internal audit effectiveness. Meanwhile remote auditing enhances the effect of management support on internal audit effectiveness and antagonizes the effect of the relationship between internal and external auditors on internal audit effectiveness.