IT Governance Frameworks and their Impact on the Efficiency of External Audits: Evidence from Companies When Audit Client Adoption

Ziad  Mohammad Roustom; Khalil  Hamwi; Ahmed   Armoush; Ayman Abdalla Mohammed Abubakr

doi:10.48161/qaj.v5n1a1517

Authors

Ziad Mohammad Roustom Department of Financial Management, Academic Programs for Military Colleges, Abu Dhabi University, Abu Dhabi 59911, United Arab Emirates;
Khalil Hamwi Accounting Department, Business Administration College, Al Rasheed International Private University for Science & Technology, Damascus 7928, Syria.
Ahmed Armoush Accounting Department, Business Administration College, Al Rasheed International Private University for Science & Technology, Damascus 7928, Syria.
Ayman Abdalla Mohammed Abubakr Department of Financial Management, Academic Programs for Military Colleges, Abu Dhabi University, Abu Dhabi 59911, United Arab Emirates;

DOI:

https://doi.org/10.48161/qaj.v5n1a1517

Abstract

This research examines the effect of Information Technology (IT) governance through audit clients on external auditing efficiency. To analyze the auditing efficiency of these contracts and to test the hypotheses that the Authors have set for this study, The study seeks to cover the research gap that the current literature has not adequately addressed regarding the impact of IT governance on the efficiency of external audits, concerning audit clients and giving priority to companies that can conduct audits quickly and cost-effectively, the Authors conducted a study of 30 audit contracts that were carried out by two auditing firms operating in Syria as an experiment and considered Syria adopts the IT governance framework in the Mediterranean basin and used data envelopment analysis to measure the auditing efficiency of these contracts. Furthermore, survey questionnaires were given to the audited companies to determine the extent of their compliance with IT governance, based on some of the principles of the Qubit 5 model. The data was analyzed, and the hypotheses were tested using regression analysis by employing SPSS software. The study establishes a positive correlation between the use of IT governance by audit clients and external audit efficiency based on two efficiency measures, CRS and VRS.

Downloads

Download data is not yet available.

References

Danjuma, S., Dams, G. L., & Simon, A. (2017). Proposed approach for resource allocation management in service oriented architecture (SOA) environment. Science World Journal, 16(3).

Mohamed, A. M. E., Alnor, N. H. A., Mohammed, O. A. A., Al-Matari, E. M., Alhebri, A., & Ahmed, A. (2024). The impact of information technology governance according to the COBIT on performance. International Journal of Advanced and Applied Sciences, 11(3), 127–136.

Mensah, I. K. (2020). Impact of government capacity and e-government performance on the adoption of e-government services. International Journal of Public Administration, 43(4).

Chohan, S. R., & Hu, G. (2020). Success factors influencing citizens’ adoption of IoT service orchestration for public value creation in smart government. IEEE Access, 8.

Shariffuddin, N., & Mohamed, A. (2020). IT security and IT governance alignment: A review. In ACM International Conference Proceeding Series.

Al-Sartawi, A. M. A. M. (2020). Information technology governance and cybersecurity at the board level. International Journal of Critical Infrastructures, 16(2).

Alsaleem, E. A., & Husin, N. M. (2023). The impact of information technology governance under COBIT-5 framework on reducing the audit risk in Jordanian companies. International Journal of Professional Business Review, 8(2).

IAASB. (2023). International Auditing and Assurance Standards Board / 2022 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements (Vol. I).

Ibrahim, S. N. S., Khaidzi, N. A., & Arshad, Y. (2023). Information technology governance mechanisms and audit technology performance in Malaysia. In Proceedings of the International Symposium & Exhibition on Business and Accounting 2022 (ISEBA 2022).

Alsaleem, E. A., & Husin, N. M. (2024). IT governance and audit risk in Jordanian companies: The moderating role of audit quality. Revista de Gestao Social e Ambiental, 18(4).

AL-Dabboos, S. A. A. F., Jaafar Alhabshi, S. M. B. S., & Mahadi, N. F. B. (2023). The impact of applying information technology governance in Kuwaiti banks to realize the independence of the external auditor. International Journal of Academic Research in Accounting, Finance and Management Sciences, 13(4).

Almaqtari, F. A., Farhan, N. H. S., Al-Hattami, H. M., & Elsheikh, T. (2023). The moderating role of information technology governance in the relationship between board characteristics and continuity management during the Covid-19 pandemic in an emerging economy. Humanities and Social Sciences Communications, 10(1).

Manfra, L., et al. (2024). Towards sustainable management of beach-cast seagrass in Mediterranean coastal areas. Sustainability, 16(2).

Hinnebusch, R. (2019). Sectarianism and governance in Syria. Studies in Ethnicity and Nationalism, 19(1).

Douedari, Y., & Howard, N. (2019). Perspectives on rebuilding health system governance in opposition-controlled Syria: A qualitative study. International Journal of Health Policy and Management, 8(4).

Kahf, A. (2021). Decentralization as an entry point to peacebuilding in Syria. In Perspectives on Development in the Middle East and North Africa (MENA) Region.

Andry, J. F., & Setiawan, A. K. (2019). IT governance evaluation using COBIT 5 framework on the national library. Jurnal Sistem Informasi, 15(1).

Haouam, D. (2020). IT governance impact on financial reporting quality using COBIT framework. Global Journal of Computer Sciences: Theory and Research, 10(1).

Henriques, D., Pereira, R. F., Almeida, R., & Mira da Silva, M. (2020). IT governance enablers in relation to IoT implementation: A systematic literature review.

Al-taee, S. H. H., & Flayyih, H. H. (2022). The impact of the audit committee and audit team characteristics on the audit quality: Mediating impact of effective audit process. International Journal of Economics and Finance Studies, 14(3).

Phornlaphatrachakorn, K. (2020). Audit committee effectiveness, internal audit quality, financial reporting quality, and organizational success: An empirical investigation of Thai listed firms. International Journal of Business, 25(4).

Levstek, A., Pucihar, A., & Hovelja, T. (2022). Towards an adaptive strategic IT governance model for SMEs. Journal of Theoretical and Applied Electronic Commerce Research, 17(1).

Fu, Q., Rahman, A. A. A., Jiang, H., Abbas, J., & Comite, U. (2022). Sustainable supply chain and business performance: The impact of strategy, network design, information systems, and organizational structure. Sustainability, 14(3).

Tangprasert, S. (2020). A study of information technology risk management of government and business organizations in Thailand using COSO-ERM based on the COBIT 5 framework. Journal of Applied Sciences (Thailand), 19(1).

Telino, V., Massa, R., Mota, I., Gomes, A., & Moreira, F. (2020). A methodology for creating a macro action plan to improve IT use and its governance in organizations. Information, 11(9).

Yusheng, K., & Samuel, E. N. (2020). Impact of effective information technology governance on audit technology performance in Ghana. Research Journal of Finance and Accounting, 11(4).

Betti, N., & Sarens, G. (2021). Understanding the internal audit function in a digitalised business environment. Journal of Accounting and Organizational Change, 17(2).

Almashhadani, M., Almashhadani, H., & Almashhadani, H. A. (2022). Corporate governance as an internal control mechanism and its impact on corporate performance. International Journal of Business and Management Invention, 11(8).

Knechel, W. R., Thomas, E., & Driskill, M. (2020). Understanding financial auditing from a service perspective. Accounting, Organizations and Society, 81.

Akman, V., Acar, B., & Kızıl, C. (2018). Auditing techniques to avoid cost accounting frauds. Ethics in Accounting: A Decision-Making Approach, 7(2).

Monteiro, A., & Cepêda, C. (2021). Accounting information systems: Scientific production and trends in research. Systems, 9(3).

Danutirta, A. S., Hariadhy, R. P., & Lubis, M. (2022). Evaluating IT governance implementation in the plantation company using COBIT 5 framework DSS01 domain. In ACM International Conference Proceeding Series.

Joshi, A., Benitez, J., Huygh, T., Ruiz, L., & De Haes, S. (2022). Impact of IT governance process capability on business performance: Theory and empirical evidence. Decision Support Systems, 153.

Amorim, A. C., Mira da Silva, M., Pereira, R., & Gonçalves, M. (2021). Using agile methodologies for adopting COBIT. Information Systems, 101.

Agustinus, T., & Legowo, N. (2020). Information system governance in higher education foundation using COBIT 5 framework. International Journal of Recent Technology and Engineering, 8(6).

Umam, C., Mahmud, W., Hidajat, M. S., & Setiarso, I. (2023). Information technology management governance analysis using COBIT 5 (Case study at Universitas Dian Nuswantoro-PSDKU Kediri). TEKNOSAINS: Jurnal Sains, Teknologi dan Informatika, 10(2).

Christianto, K., Gunadi, J., Ferdinal, R., & Hendrawan, T. F. (2022). Audit of finance application using COBIT 5 framework (Case study in banking). International Journal of Engineering and Information Systems, 6(6).

Talab, H. R., & Flayyih, H. H. (2023). An empirical study to measure the impact of information technology governance under the control objectives for information and related technologies on financial performance. International Journal of Professional Business Review, 8(4).

Al-Fatlawi, Q. A., Al Farttoosi, D. S., & Almagtome, A. H. (2021). Accounting information security and IT governance under COBIT 5 framework: A case study. Webology, 18(Special Issue 2).

Mambu, J. Y., Doringin, V., Hamise, S., & Lompoliu, E. M. (2020). Information technology audit using COBIT 5 on deliver domain, service and support (DSS) in PT. XYZ, a mining company. Kemenristekdikt, 6(2).

ISSAI 300. (2019). Performance audit principles. The International Organisation of Supreme Audit Institutions.

Noordin, N. A., Hussainey, K., & Hayek, A. F. (2022). The use of artificial intelligence and audit quality: An analysis from the perspectives of external auditors in the UAE. Journal of Risk and Financial Management, 15(8).

Xiao, T., Geng, C., & Yuan, C. (2020). How audit effort affects audit quality: An audit process and audit output perspective. China Journal of Accounting Research, 13(1).

Salih, J. I., & Flayyih, H. H. (2020). Impact of audit quality in reducing external audit profession risks.

Wu, Q., Liu, X., Qin, J., Zhou, L., Garg, H., & Mardani, A. (2022). Consensus reaching for prospect cross-efficiency in data envelopment analysis with minimum adjustments. Computers & Industrial Engineering, 168.

Zhu, Q., Aparicio, J., Li, F., Wu, J., & Kou, G. (2022). Determining closest targets on the extended facet production possibility set in data envelopment analysis: Modeling and computational aspects. European Journal of Operational Research, 296(3).

Domokos, L., & Szolnoki, D. W. (2020). Audit performance measurement model and the main areas of performance management. Public Finance Quarterly, 65.

Asgarkhani, M. (2022). Failed tech deployment initiatives: Is poor IT governance to blame? In Proceedings of the European Conference on Management, Leadership and Governance.

Kompiang, A. A., Sudana, O., Wirdiani, N. K. A., & Paramartha, I. B. A. (2021). Evaluation of IT governance at Office X using the COBIT 5 framework. Jurnal Ilmiah Merpati, 9(1).

Naguib, H. M., Kassem, H. M., & Naem, A. E.-H. M. A. (2024). The impact of IT governance and data governance on financial and non-financial performance. Future Business Journal, 10(1).

Frogeri, R. F., Pardini, D. J., Cardoso, A. M. P., Prado, L. Á., Piurcosky, F. P., & Portugal Júnior, P. D. S. (2020). IT governance in SMEs: Proposal of a theoretical model through an interdisciplinary perspective. RISTI - Revista Ibérica de Sistemas e Tecnologias de Informação, 2020(E27).

Maulana, Y. M. (2024). Information technology governance using control objectives for information and related technology: Review. Jurnal Teknik Informatika dan Sistem Informasi, 9(3).

Saeed, A. L. H. G., Hussein, L. M. D., & Saudi, A. L. O. A. (2023). The impacts of information technology governance on internal auditing: A literature review. Journal of Administration and Economics, 133.

Khamees, B. A. (2023). Information technology governance and bank performance: A situational approach. International Journal of Financial Studies, 11(1).

Ugoani, J. N. N., & Ibeenwo, G. I. (2022). External audit process failures: Unethical practices and business demise. Business, Management and Economics Research, 81.

Peykani, P., & Mohammadi, E. (2018). Interval network data envelopment analysis model for classification of investment companies in the presence of uncertain data. Journal of Industrial and Systems Engineering, 11(1984).

Majumder, A., & Datt, K. (2017). Variable returns to scale in DEA and summary of efficiency and slacks. Project Guru.

Benicio, J., & De Mello, J. C. S. (2015). Productivity analysis and variable returns of scale: DEA efficiency frontier interpretation. Procedia Computer Science, 55.

Kao, C., & Liu, S.-T. (2011). Scale efficiency measurement in data envelopment analysis with interval data: A two-level programming approach. Journal of CENTRUM Cathedra: The Business and Economics Research Journal, 4(2).

Machado, B. da R. S., & Hermany, R. (2022). The multilevel governance and external control in public health policies at the local level: The inducing possibility of the opinions of the Court of Auditors. Revista Brasileira de Políticas Públicas, 12(3).

Sakty, I., Haning, M. T., Nara, N., Syahribulan, & Ibrahim, M. A. (2024). Effective external control strategy to improve network governance in national development. Journal of Law and Sustainable Development, 12(1).

Aoun, C., Vatanasakdakul, S., & Chen, Y. (2011). IT governance framework adoption: Establishing success factors. In IFIP Advances in Information and Communication Technology.

Hallaj, O. A. (2015). The balance-sheet of conflict: Criminal revenues and warlords in Syria. Norwegian Peace Building Resource Centre.

Arabshahi, M., Wang, D., Wang, Y., Rahnamayiezekavat, P., Tang, W., & Wang, X. (2022). A governance framework to assist with the adoption of sensing technologies in construction. Sensors, 22(1).

Al-Taee, S. H. H., & Flayyih, H. H. (2023). Impact of the electronic internal auditing based on IT governance to reduce auditing risk. Corporate Governance and Organizational Behavior Review, 7(1).

(2022). The effect of auditor competence and remote audit support on audit quality through digital-based governance with information technology as moderating variable in state financial audit. International Journal of Business and Technology Management, 4(2).

Nasr Ali, A. A.-W. (2024). The effect of the fourth industrial revolution from the perspective of the auditing profession. Alexandria Journal of Managerial Research and Information Systems, 2(2).

Askarany, D., Askary, S., & Ugras, Y. J. (2025). A financial auditing approach using failure effect mode analysis. International Journal of Applied Decision Sciences, 18(1).

Fotoh, L., & Mugwira, T. (2024). Resistance to adopting emerging technologies in external auditing: An exploration of auditors’ perceptions. SSRN Electronic Journal.

Tang, F. (2024). Fair value estimates of investment property, corporate governance and audit pricing: Evidence from the Hong Kong real estate industry. Journal of Accounting in Emerging Economies, 14(4).

Wang, X. (2023). Research on audit risk prevention and control in Ruihua Accounting Firm. Academic Journal of Management and Social Sciences, 4(2).

Chronopoulos, D. K., Rempoutsika, L. M., & Wilson, J. O. S. (2024). Audit committee oversight and bank financial reporting quality. Journal of Business Finance & Accounting, 51(1–2).

Fan, H., Zhao, C., Yang, Y., & Yang, X. (2025). Rapid reduction of air pollution and short-term exposure risks in China. Journal of Environmental Sciences, 149.

Yan, H., Jiang, H., Zhao, H., Geng, Z., & Hu, F. (2024). Do different cooling-off modes affect audit quality? A study based on the audit rotation system in China. Asia-Pacific Journal of Accounting and Economics.

Al-Hajaya, K. (2019). The impact of audit committee effectiveness on audit quality: Evidence from the Middle East. International Review of Management and Marketing, 9(5).

Info Cloud. (2016). An overview of ISO/IEC 27000 family of information security management system standards.

Fraser, C. (2024). Finance application: Portfolio analysis with a market index as a leading indicator in simple linear regression. In Business Statistics for Competitive Advantage with Excel and JMP.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis (7th ed.). Pearson.

Edwards, K. (2024). Simulation. In OCN 683 - Advanced Statistics in R.

Louwers, T. J., Blay, A. D., & Sinason, D. H. (2021). Auditing & assurance services (8th ed.). McGraw-Hill Education.

Machado, S., & Chen, Y. (2023). Association of Chartered Certified Accountants experience as a professional accounting body promoting integrated reporting.