SYSTEMS INTEGRATION, MANAGEMENT INVOLVEMENT AND QUALITY OF INTERNAL CONTROLS AND AUDITING

Enterprise resource planning (ERP) systems are implemented to integrate internal corporate information systems. One of the benefits of ERP implementation to firms is the easy maintenance of their internal control systems. The 2013 Committee of Sponsoring Organizations framework notes that management has the responsibility and authority to build systems for achieving its internal control goals. Therefore, this study simultaneously analyzes the association between information integration and internal controls effectiveness and the relationship between management involvement and internal controls effectiveness, as well as the relationship between management involvement and audit quality. Results show that information system integration and management involvement have positive impacts on internal control effectiveness and that management involvement affects audit quality both indirectly and directly.