Structural equation model for the relationship between accounting information system and internal audit effectiveness with moderating effect of experience


  • Oday Jasim Almaliki Faculty of Administration and Economic, Universiti of Misan, Amarah, Iraq
  • Nor Hanani Ahamad Rapani Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjung Malim, Perak, Malaysia
  • Azam Abdelhakeem Khalid Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjung Malim, Perak, Malaysia
  • Rasool Majid Sahaib Faculty of Administration and Economics, University of Misan, Amarah, Iraq



Accounting information system, internal audit effectiveness, experience


Accounting information system and internal audit effectiveness assist management in making appropriate decisions. The experience of accountants and auditors may enhance decision making. Moreover, the effect of accountants’ and auditors’ experience on the relation between accounting information system and internal audit effectiveness was not considered in the previous studies. This research aims to develop a structural equation model for the moderating effect of experiences on the relation between accounting information system characteristics and the internal audit effectiveness in Iraqi stock exchange-traded companies. Five constructs representing the characteristics of accounting information system have been selected including integration, flexibility, reliability, relevance, and timeliness. A quantitative approach has been used to achieve the research objective. A survey was conducted on 365 respondents including accountants, auditors and managers in several companies in the Iraqi stock exchange. Statistical Package for the Social Sciences and Analysis of Moment Structure were used to analyze the data and develop the structural equation model. The research results indicated that all the selected accounting information system characteristics had significant effects on internal audit effectiveness. Moreover, experience moderated the relationships between flexibility, integration characteristics, and internal audit effectiveness. Such research findings can assist organizations in assessing and enhancing the quality of their information and the skills and knowledge of their employees, particularly their accountants and auditors.


Download data is not yet available.


Abbas, Q., & Iqbal, J. (2012). Internal Control System: Analyzing Theoretical Perspective and Practices. Middle-East Journal of Scientific Research, 12(4), 530–538.

Abdallah, A. A. J. (2014). The impact of using accounting information systems on the quality of financial statements submitted to the income and sales tax department In Jordan. European Scientific Journal, ESJ, 9(10).

Adams, M. B. (1994). Agency theory and the internal audit. Managerial Auditing Journal, 9(8), 8-12.

Aller, M. B., Vargas, I., Garcia, I., Coderch, J., Colomés, L., Llopart, J. R., & Vázquez, M. L. (2013). A tool for assessing continuity of care across care levels: an extended psychometric validation of the CCAENA questionnaire. International Journal of Integrated Care, 13(4).

Almaliki, O. J., Rapani, N. H. A., & Khalid, A. A. (2018). The Effect of Accounting Information System on Internal Audit Effectiveness ; Testing the Moderating Role of Experience. Journal of Advanced Research in Dynamical & Control Systems, 10(10), 65–75.

Al-Qudah & Ahmed G.M. (2011).in a study entitled: The Impact of Accounting Information System on Effectiveness of Internal Control in Jordan Commercial Bank "Field Study", stated that AIS has an influence on the effectiveness of internal control.

Alshanti, A.M.(2013) .The impact of applying accounting information systems to improve the effectiveness and efficiency of internal auditing in the Jordanian industrial sector, the Islamic University Journal of Economic and Administrative Studies, 21(I)

Altawalbeh, M. A. F., Na’el Rawhi Hashem, F., & Alduneibat, K. A. A. (2017). The Role of Accounting Information Systems in Activating the Role of the Responsibility in the Jordanian Industrial Companies. Journal of Modern Accounting and Auditing, 13(1), 1-7.

Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing and Taxation, 23(2), 74-86.‏

Arena, M. and Azzone, G. (2009), Identifying organizational drivers of internal audit effectiveness, International Journal of Auditing, Vol. 13 No. 1, pp. 43-60.

Bazley, M., Hancock, P., & Robinson, P. (2014). Contemporary Accounting PDF. Cengage Learning Australia.

Bukenya, M. (2014). Quality of accounting information and financial performance of the public sector in Uganda. American Journal of Research Communication, 2(25), 183–203.

Changwony, M. K., & Rotich, G. (2015). Role of internal audit function in promoting effective corporate governance of commercial banks in Kenya. International Journal of Business & Law Research, 3(1), 15-33.

Chenhall, R. H., & Morris, D. (1986). The impact of structure, environment, and interdependence on the perceived usefulness of management accounting systems. Accounting Review, 16-35.

Classen, N., Van Gils, A., Bammens, Y., & Carree, M. (2012). Accessing Resources from Innovation Partners: The Search Breadth of Family SMEs. Journal of Small Business Management, 50(2), 191–215.

Datta, S., & Iskandar-Datta, M. (2014). Upper-echelon executive human capital and compensation: Generalist vs specialist skills. Strategic Management Journal, 35(12), 1853–1866.

Farrell, A. M. (2010). Insufficient discriminant validity: A comment on Bove, Pervan, Beatty. Journal of Business Research, 63(3), 324-327.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Latham, R. (2010).Multivariate data analysis (7thed). New Jersey: Pearson.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006a). Multivariate data analysis (Vol. 6): Pearson Prentice Hall Upper Saddle River, NJ.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing theory and Practice, 19(2), 139-152.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.

Herda, D. N., & Martin, K. A. (2016). The effects of auditor experience and professional commitment on acceptance of underreporting time: A moderated mediation analysis. Current Issues in Auditing, 10(2), A14-A27.

Hiedmann, M., Schäffer, U., & Strahringer. (2008). Exploring the Role of Management Accounting Sistems in Strategic Sensemaking. Information Sistems Management,25(3) 244–257.

Hooper, D., Coughlan, J., & Mullen, M. (2008). Structural equation modelling: Guidelines for determining model fit. Articles, 2.

Hussien, K. S. (2005).The Impact of accounting Information Systems on the effectiveness of internal auditing systems of the application on public shareholding companies in Sudan .Khartoum: University of Science and Technology, Unpublished Masters Thesis.

Jones, F. L., & Rama, D. V. (2003). Accounting information systems: a business process approach. Thomson/South-Western

kh Al-Dalabeeh, A. E. R., & Al-Zeaud, H. A. (2012). Accounting information systems and their role in the measurement and cost thrifting in public shareholding industrial companies in Jordan. International Journal of Business and Management, 7(12), 97.

Laudon, K. C., & Laudon, J. P. (2004). Management information systems: Managing the digital firm. New Jersey, 8.‏
McGilvray, D. (2008). Executing data quality projects: Ten steps to quality data and Trusted imformation (TM).Elsevier.

Mihret, D. G., & Yismaw, A. W. (2007). Internal audit effectiveness: An Ethiopian public sector case study. Managerial Auditing Journal, 22(5), 470–484.

Moorthy, M. K., Mohamed, A. S. Z., Gopalan, M., & San, L. H. (2011). The impact of information technology on internal auditing. African Journal of Business Management.

Napitupulu, I. H., Mahyuni, S., & Sibarani, J. L. (2016). The impact of internal control effectiveness to the quality of management accounting information system: The survey on State-Owned Enterprises (SOEs). Journal of Theoretical and Applied Information Technology, 88(2), 358–366.

Neogy, T. K. (2014). Evaluation of Efficiency of Accounting Information Systems : A Study on Mobile Telecommunication Companies in Bangladesh. Global Disclosure of Economics and Business, 3(1), 40–58.

Nicolaou, A. I. (2000). A contingency model of perceived effectiveness in accounting information systems: Organizational coordination and control effects. International Journal of Accounting Information Systems, 1(2), 91–105.

Ong, C. S., Day, M. Y., & Hsu, W. L. (2009). The measurement of user satisfaction with question answering systems. Information and Management, 46(7), 397–403.

Patel, S. B. P. (2015). Effects of accounting information system on Organizational Profitability. IJRAR- International Journal of Research and Analytical Reviews, 2(1), 72–76.

Peursem, K. V. & Pumphrey, L. D. (2005), “Internal Auditors and Independence: An Agency Lens on Corporate Practice”, Financial Reporting, Regulation and Governance , 4(2), 1-33.

Qatanani, K. M., & Hezabr, A. A. (2015). The effect of using accounting information systems to improve the value chain in business organizations-empirical study. European Journal of Accounting Auditing and Finance Research, 3(6), 1-11.‏

Romney, M. B., Steinbart, P. (2009). Accounting Information Systems. 11th Ed. Pearson.

Saatcioglu, O. Y., Ozmen, O. N. T., & Eriş, E. D. (2012). A study on knowledge management and firm performance in Turkish IT sector. International Journal of Logistics Systems and Management, 11(2), 213.

Shagari, S. L., Abdullah, A., & Saat, R. M. (2017). Contributory Factors of Accounting Information Systems Effectiveness in Nigerian Banking Sector. Asian Journal of Multidisciplinary Studies, 151.

Soudani, S. N. (2013). The Impact of Implementation of E-Accounting System on Financial Performance with Effects of Internal Control Systems. Research Journal of Finance and Accounting, 4(11), 17–28.

Sri Mulyani NS.( 2009). Sistem Informasi Manajemen (Rumah Sakit : Analisis dan Perancangan). Cetakan ke-I. Bandung: Abdi Sistematika

Tan, Ö. F. (2016). Impact of Accounting Information Systems On Internal Auditors In Turkey. Marmara Üniversitesi Öneri Dergisi @BULLET Cilt, 12(46), 1300–845.

Teru, S. P., Idoku, I., & Ndeyati, J. T. (2017). A Review of the Impact of Accounting Information System for Effective Internal Control on Firm Performance. Indian Journal of Finance and Banking, 1(2), 52-59.

Toth, Z. (2012). The current role of accounting information systems. Theory, Methodology, Practice, 8(1), 91.

Vasudevan, H., & Chawan, A. (2014). Demystifying knowledge management in Indian manufacturing SMEs. Procedia Engineering, 97, 1724–1734.

Vera-Munoz, S. C., Kinney Jr, W. R., & Bonner, S. E. (2001). The effects of domain experience and task presentation format on accountants' information relevance assurance. The Accounting Review, 76(3), 405-429.

von den Driesch, T., da Costa, M. E. S., Flatten, T. C., & Brettel, M. (2015). How CEO experience, personality, and network affect firms’ dynamic capabilities. European Management Journal, 33(4), 245–256.

Wixom, B. H., & Todd, P. A. (2005). A theoretical integration of user satisfaction and technology acceptance. Information Systems Research, 16(1), 85–102.




How to Cite

Jasim Almaliki, O., Ahamad Rapani, N. H., Khalid, A. A., & Majid Sahaib, R. (2019). Structural equation model for the relationship between accounting information system and internal audit effectiveness with moderating effect of experience. International Business Education Journal, 12, 62–82.

Most read articles by the same author(s)