STRATEGIC INTERNAL AUDIT FUNCTIONS AND ORGANISATIONAL OUTCOMES IN DEVELOPING ECONOMIES: EVIDENCE FROM AFRICA AND ASIA (2000–2025)
Keywords:
Africa, Asia, Governance, ESG, Internal Audit, Risk Management
Abstract
This study investigates how internal audit functions shape governance, risk management, and organizational performance across six developing economies: The Gambia, Ghana, Kenya, Indonesia, Malaysia, and India between 2000 and 2025. Employing a qualitative comparative case study approach, it analyses secondary data from audit reports, policy papers, and academic sources using thematic analysis. The findings reveal strong audit independence and professional capacity in Kenya and India, contrasted with autonomy and digitalization challenges in The Gambia and Indonesia. Malaysia demonstrates progress through ESG-integrated auditing. The study develops a Cross-Regional Audit Effectiveness Framework linking institutional capacity, digital readiness, and ESG adoption to audit effectiveness. The results show that governance context mediates the strategic impact of internal audit on organizational outcomes. This research fills a gap in cross-regional evidence on how institutional and technological factors jointly determine the strategic role of internal auditing in Africa and Asia.
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References
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Lejano, R., Guo, J., Lian, H., & Yin, B. (2018). A Phenomenology of Institutions: Relationality and Governance in China and Beyond. New York: Routledge.
Masoud, N. (2025). The Critical Influence of Internal Audit Effectiveness and Sustainable Innovation on Sustainable Auditing Practices. 1-22. doi:https://doi.org/10.20944/preprints202501.0729.v1
Nasir, A., Wan Ismail, W. A., Kamarudin, K. A., Zarefar, A., & Armadani. (2024). Examining the Impact of Corporate Governance and Family Ownership on Corporate Performance: Evidence from the Indonesian Stock Exchange. Cogent Business & Management, 11(1), 1-16. doi:https://doi.org/10.1080/23311975.2024.2339546
Nejad, M. Y., Khan, A. S., & Othman, J. (2024). A Panel Data Analysis of the Effect of Audit Quality on Financial Statement Fraud. Asian Journal of Accounting Research, 9(4), 422-445. doi:https://doi.org/10.1108/AJAR-04-2023-0112
Otia, J. E., & Bracci, E. (2022). Digital Transformation and the Public Sector Auditing: The SAI's Perspective. Financial Accountability & Management, 38(2), 252-280. doi:https://doi.org/10.1111/faam.12317
Petraşcu, D., & Tieanu, A. (2014). The Role of Internal Audit in Fraud Prevention and Detection. Procedia Economics and Finance, 16, 489-497. doi:https://doi.org/10.1016/S2212-5671(14)00829-6
Pramukti, A. (2024). Audit and Sustainability: Integrating Environmental Aspects in Auditing. Golden Ratio of Auditing Research, 4(1), 43-55. doi:https://doi.org/10.52970/grar.v4i1.388
Sreekala, S. P., & Thomas, S. Y. (2025). Evaluating the Role of Supreme Audit Institutions in Fostering Accountability and Transparency in Emerging Oil and Gas Economies: Strategies for Improved Efficiency, Effectiveness, and Relevance. Texila International Journal of Management, 11(2), 1-24.
Tidjani, C., & Madouri, A. (2024). Fintech, Financial Inclusion, and Sustainable Development in the African Region. Frontiers in Applied Mathematics and Statistics, 10, 1-25. doi:https://doi.org/10.3389/fams.2024.1276218
Augustine, A. A. (2025). Auditing in Local Governments: Panacea for Accountability, Transparency, and Ethical Standards in Grassroots Governance and Service delivery in the 21st Century. International Journal of Management and Economics Invention, 11(3), 4124-4135. doi:https://doi.org/10.47191/ijmei/v11i3.15
Azinogo, B. K., & Erasmus, L. J. (2025). Corporate Governance Challenges and Their Impact on Public Sector Auditing in Africa: An Exploration of Effectiveness, Accountability, and Transparency. Journal of Accounting, Finance and Auditing Studies, 11(1), 1-14. doi:https://doi.org/10.56578/jafas110101
Babalola, F. I., Kokogho, E., Odio, P. E., Adeyanju, M. O., & Sikhakhane-Nwokediegwu, Z. (2022). Redefining Audit Quality: A Conceptual Framework for Assessing Audit Effectiveness in Modern Financial Markets. International Journal of Multidisciplinary Research and Growth Evaluation, 3(1), 690-699. doi:https://doi.org/10.54660/.ijmrge.2022.3.1-690-699
Bawuah, I. (2024). Audit Committee Effectiveness, Audit Quality and Earnings Management: Evidence from Ghana. Cogent Business & Management, 11(1), 1-22. doi:https://doi.org/10.1080/23311975.2024.2315318
Bhattarai, P. (2022). Exploring Dynamics of Stakeholders’ Participation in Social Audit Process of a Community School: A Case Study Approach. Pashupati Pragya पशुपति प्रज्ञा, 2(1), 92-104. doi:https://doi.org/10.3126/pp2.v2i1.79030
Boufounou, P., Eriotis, N., Kounadeas, T., Argyropoulos, P., & Poulopoulos, J. (2024). Enhancing Internal Control Mechanisms in Local Government Organizations: A Crucial Step towards Mitigating Corruption and Ensuring Economic Development. Economies, 12(4), 1-21. doi:https://doi.org/10.3390/economies12040078
Bužinskienė, R., & Padgureckienė, A. (2025). The Role of Internal Control Integration in Enhancing Organizational Performance. Management Theory and Studies for Rural Business and Infrastructure Development, 47(1), 25-48. doi:https://doi.org/10.15544/mts.2025.03
Cantù, E., Langella, C., & Vannini, I. E. (2025). Making Sense of the Internal Audit Function: Toward Internal Controls Integration and Organizational Learning. Financial Accountability & Management, 41(2), 262-273. doi:https://doi.org/10.1111/faam.12413
Daniel, K. Q., Salia, H., Fusheini, K., & Adoboe-Mensah, N. (2021). Factors Affecting the Internal Audit Effectiveness in Local Government Institutions in Ghana. Journal of Accounting and Taxation, 13(4), 255-269. doi:https://doi.org/10.5897/jat2021.0471
Dutchak, R., Kondratiuk, O., Rudenko, O., Shaikan, A., & Adilchaev, R. (2022). Internal Audit of the Business Partner’s Reliability for Sustainable Development of the Enterprise. Proceedings of the 5th International Scientific Congress Society of Ambient Intelligence, 155-166. doi:https://doi.org/10.5220/0011346200003350
Geqeza, A., & Dubihlela, J. (2024). Factors Limiting Internal Audit Efficiency in Provincial Governance Systems of South Africa. International Journal of Applied Research in Business and Management, 5(2), 1-16. doi:https://doi.org/10.51137/ijarbm.2024.5.2.3
Grace, C., & Thorogood, T. (2023). Debate: Local Public Audit and Accountability—An International and Public Value Perspective. Public Money & Management, 43(3), 197-205. doi:https://doi.org/10.1080/09540962.2021.1971867
Hakala, E. (2018). International Organisations and the Securitisation of the Environment in Post-Conflict Western Balkans. University of Helsinki, Helsinki. Retrieved from http://urn.fi/URN:ISBN:978-951-51-3332-8
Hesgrove, B., Zebrak, K., Yount, N., Sorra, J., & Ginsberg, C. (2024). Associations between Patient Safety Culture and Workplace Safety Culture in Hospital Settings. BMC Health Services Research, 24(1), 1-8. doi:https://doi.org/10.1186/s12913-024-10984-3
IIA. (2012). Supplemental Guidance: The Role of Auditing in Public Sector Governance. Florida: The Institute of Internal Auditors.
IIA. (2020). The IIA’s Three Lines Model. Florida: The Institute of Internal Auditors.
Islam, S. (2025a). Public Finance and Policy Effectiveness A Review of Participatory Budgeting in Local Governance Systems. Journal of Sustainable Development and Policy, 1(1), 115-143. doi:https://doi.org/10.2139/ssrn.5287147
Islam, S. (2025b). A Systematic Review of Public Budgeting Strategies in Developing Economies: Tools for Transparent Fiscal Governance. American Journal of Advanced Technology and Engineering Solutions, 1(1), 602-635. doi:https://dx.doi.org/10.2139/ssrn.5287137
Joshi, P. L., & Karyawati Purba, G. (2022). The Institutional Theory on the Internal Audit Effectiveness: The Case of India. Interdisciplinary Journal of Management Studies, 15(1), 35-48. doi:https://doi.org/10.22059/ijms.2021.313778.674303
Kahyaoğlu, S. B., Sarıkaya, R., & Topal, B. (2020). Continuous Auditing as a Strategic Tool in Public Sector Internal Audit: The Turkish Case. Selçuk Üniversitesi Sosyal Bilimler Meslek Yüksekokulu Dergisi, 23(1), 208-225. doi:https://doi.org/10.29249/selcuksbmyd.670261
Koutoupis, A. G., & Tsamis, A. (2009). Risk based Internal Auditing within Greek Banks: A Case Study Approach. Journal of Management & Governance, 13(1), 101-130. doi:https://doi.org/10.1007/s10997-008-9072-7
Lehr, W., Heikkinen, M., Clark, D. D., & Bauer, S. (2011). Assessing Broadband Reliability: Measurement and Policy Challenges. Research Conference on Communication, Information and Internet Policy (TPRC), 1-38.
Lejano, R., Guo, J., Lian, H., & Yin, B. (2018). A Phenomenology of Institutions: Relationality and Governance in China and Beyond. New York: Routledge.
Masoud, N. (2025). The Critical Influence of Internal Audit Effectiveness and Sustainable Innovation on Sustainable Auditing Practices. 1-22. doi:https://doi.org/10.20944/preprints202501.0729.v1
Nasir, A., Wan Ismail, W. A., Kamarudin, K. A., Zarefar, A., & Armadani. (2024). Examining the Impact of Corporate Governance and Family Ownership on Corporate Performance: Evidence from the Indonesian Stock Exchange. Cogent Business & Management, 11(1), 1-16. doi:https://doi.org/10.1080/23311975.2024.2339546
Nejad, M. Y., Khan, A. S., & Othman, J. (2024). A Panel Data Analysis of the Effect of Audit Quality on Financial Statement Fraud. Asian Journal of Accounting Research, 9(4), 422-445. doi:https://doi.org/10.1108/AJAR-04-2023-0112
Otia, J. E., & Bracci, E. (2022). Digital Transformation and the Public Sector Auditing: The SAI's Perspective. Financial Accountability & Management, 38(2), 252-280. doi:https://doi.org/10.1111/faam.12317
Petraşcu, D., & Tieanu, A. (2014). The Role of Internal Audit in Fraud Prevention and Detection. Procedia Economics and Finance, 16, 489-497. doi:https://doi.org/10.1016/S2212-5671(14)00829-6
Pramukti, A. (2024). Audit and Sustainability: Integrating Environmental Aspects in Auditing. Golden Ratio of Auditing Research, 4(1), 43-55. doi:https://doi.org/10.52970/grar.v4i1.388
Sreekala, S. P., & Thomas, S. Y. (2025). Evaluating the Role of Supreme Audit Institutions in Fostering Accountability and Transparency in Emerging Oil and Gas Economies: Strategies for Improved Efficiency, Effectiveness, and Relevance. Texila International Journal of Management, 11(2), 1-24.
Tidjani, C., & Madouri, A. (2024). Fintech, Financial Inclusion, and Sustainable Development in the African Region. Frontiers in Applied Mathematics and Statistics, 10, 1-25. doi:https://doi.org/10.3389/fams.2024.1276218
Published
2025-07-30
How to Cite
Drammeh, L., & Leniwati, D. (2025, July 30). STRATEGIC INTERNAL AUDIT FUNCTIONS AND ORGANISATIONAL OUTCOMES IN DEVELOPING ECONOMIES: EVIDENCE FROM AFRICA AND ASIA (2000–2025). Jurnal Akuntansi Dan Keuangan (JAK), 30(2), 192-201. https://doi.org/https://doi.org/10.23960/jak.v30i2.4407
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