The role of internal auditors’ independence in the effectiveness of internal audit disclosure: Evidence from Egypt

This research aims to examine the role of internal auditors’ independence in the effectiveness of a voluntary forward-looking disclosure represented in internal audit disclosure in the joint stock companies listed on the Egyptian Stock Exchange. This objective could be done by studying the obstacles and solutions related to internal auditors’ independence and investigating its effect on the effectiveness of internal audit disclosure. The research used the questionnaire method to collect the data required for testing the research hypotheses. The sample was selected from internal auditors, financial analysts, external auditors, accountants, and academics in accounting and auditing to collect the data needed for the research. A total of (350) questionnaires were distributed, of which (273) questionnaires were completed and valid for the statistical analysis, representing )78% (response rate.
The study found that there is a significant positive relationship between the solutions related to internal auditors’ independence and the effectiveness of internal audit disclosure in the Egyptian joint stock companies. Whereas the obstacles to internal auditors’ independence tend to increase the obstacles to internal audit disclosure. The research contributes to internal audit disclosure literature and proposing solutions related to increasing internal auditors’ independence. According to the author’s knowledge, there is no prior study that has investigated the role of internal auditors’ independence in the effectiveness of internal audit disclosure.