Table 4 Factor structure for internal...

Table 4

Factor structure for internal audit quality

Outer loadings			VIF	α	CR	AVE
ID	The board/council approve the internal audit work plans	0.746	1.343	0.700	0.81	0.517
	Internal auditors have the strength to say no to instances that lead to fraud	0.744	1.341
	The internal auditor general of the government reviews the internal audit reports	0.728	1.416
	The board/council always approves the internal audit budget	0.654	1.198
IC	Always exhibit wide knowledge of the international standards for the professional performance of internal audit	0.761	1.696	0.808	0.862	0.510
	Adequately document their findings	0.720	1.543
	Always advise the board on anti-fraud measures	0.709	1.526
	Are able to analyse complex information	0.700	1.493
	Regularly exhibit good interpersonal interactions	0.700	1.551
	Regularly report suspected fraud cases	0.695	1.419
CPS	Internal audit work plans are adequately executed	0.819	1.459	0.700	0.819	0.601
	Quality assurance is conducted on the internal audit activities	0.773	1.405
	The head of internal audit periodically inform the board/council of issues regarding the internal audit independence	0.731	1.184
UIF	Adherence to the ethical code is emphasized in the internal audit reports	0.753	1.542	0.773	0.846	0.524
	Risks of fraud have been reduced due to regular internal audits	0.748	1.822
	Compliance with entity policies is emphasised in internal audit reports	0.722	1.458
	Productivity has improved due to internal audit recommendations	0.708	1.649
	Strict accountability is emphasised by internal auditors	0.689	1.411

Outer loadings			VIF	α	CR	AVE
ID	The board/council approve the internal audit work plans	0.746	1.343	0.700	0.81	0.517
	Internal auditors have the strength to say no to instances that lead to fraud	0.744	1.341
	The internal auditor general of the government reviews the internal audit reports	0.728	1.416
	The board/council always approves the internal audit budget	0.654	1.198
IC	Always exhibit wide knowledge of the international standards for the professional performance of internal audit	0.761	1.696	0.808	0.862	0.510
	Adequately document their findings	0.720	1.543
	Always advise the board on anti-fraud measures	0.709	1.526
	Are able to analyse complex information	0.700	1.493
	Regularly exhibit good interpersonal interactions	0.700	1.551
	Regularly report suspected fraud cases	0.695	1.419
CPS	Internal audit work plans are adequately executed	0.819	1.459	0.700	0.819	0.601
	Quality assurance is conducted on the internal audit activities	0.773	1.405
	The head of internal audit periodically inform the board/council of issues regarding the internal audit independence	0.731	1.184
UIF	Adherence to the ethical code is emphasized in the internal audit reports	0.753	1.542	0.773	0.846	0.524
	Risks of fraud have been reduced due to regular internal audits	0.748	1.822
	Compliance with entity policies is emphasised in internal audit reports	0.722	1.458
	Productivity has improved due to internal audit recommendations	0.708	1.649
	Strict accountability is emphasised by internal auditors	0.689	1.411

Note(s): HTMT Ratio: IC <-> CPS = 0.646; ID <-> CPS = 0.467; ID <-> IC = 0.591; PU <->0.531; PU <-> 0.510; PU <-> 0.432

CR = Composite Reliability; ID = Internal Audit Independence; IC = Internal Audit Competence; CPS = Compliance with Professional Standards; UIF = Usefulness of Internal Audit Function

Source(s): Primary data

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