Abstract
This study’s objective is to assess the factors that influence disclosure of internal audit (IA) in Greece. The data was hand collected and obtained from 2014 annual financial reports from 173 companies listed in Athens Stock Exchange (ASE). We assess the internal audit disclosure in terms of internal audit operations, corporate governance, and quantity of disclosure. Previous literature was chosen so as to highlight significant independent variables that are related to external audit. Linear regression analysis examines the association between internal audit operations (IAO), corporate governance code (CGC) and number of words (NW), and seven principal factors. In attempt to define IA Disclosure (IAD), we consider the disclosure of an internal audit function analyzing in operational and procedural aspects and at the same time with aspects of annual report text content. The results indicate internal audit disclosure, on the main sample of Greek listed firms, as well as the existence of significant associations between the degrees of disclosure to some external audit variables.
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Appendix
Companies in ASE 2014 | Companies from financial, insurances, and property sector | Companies on suspension | Companies with different calendar and taxable years | Companies’ final sample |
|---|---|---|---|---|
233 | 33 | 21 | 6 | 173 |
Selected industry segments | |
Agriculture and fishing | Medical equipment |
Airlines | Medical services |
Alternative electricity | Mines |
Aluminum | Nonferrous metals |
Basic chemicals | Oil and gas |
Building materials and components | Packaging materials |
Business support services | Personal care items |
Clothing and accessories | Pharmaceuticals products |
Commercial vehicles and trucks | Processing services and management waste |
Computer hardware | Publications |
Computer services | Refineries |
Construction | Refreshments |
Conventional electricity | Retail and wholesale of food |
Distillation and wine production | Software |
Durable consumer goods | Specialty chemicals |
Electrical part and equipments | Specialty retailers |
Electronic office equipment | Steel |
Food | Supplier industry |
Furniture | Telecommunications equipment |
Hotels | Tobacco |
Housing construction | Transport services |
Industrial machinery | Travel and tourism |
Internet | TV and entertainment |
Landline telephony | Water supply |
Lucky games | |
Excluded industry segments | |
Banks | Investment services |
Banquet | Life insurance |
Brewing | Mobile telephony |
Capital management | Participation and property development |
CO2 | Property estate services |
Consumers faith | Real estate |
Diversified (EEAP) | Real estate investments |
General insurance | Recreational services |
General trade | Reinsurances |
Industrial and commercial services (EEAP) | Shoes |
Insurance brokers | Speciality (EEAP) |
Insurances and property damages | Specialized financial services |
Investment companies | No durable consumer goods |
Investment services | |
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Boskou, G., Kirkos, E., Spathis, C. (2017). Internal Audit Disclosure Regarding to External Audit in Greece. In: Tsounis, N., Vlachvei, A. (eds) Advances in Applied Economic Research. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-48454-9_47
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DOI: https://doi.org/10.1007/978-3-319-48454-9_47
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