The Effect of Internal Audit on Management Performance in (ADCO)

Abstract

The research paper studies the effect of internal audit on management performance in a public enterprise- Abu Dhabi Company for Onshore Oil Operations (ADCO).  The research focuses on studying the internal audit practices of ADCO; understanding how internal audit impacts management performance and suggesting the best practices for the internal audit issues. The data required for the study was obtained by using a mixed method approach using both primary and secondary data collection methods.  Survey of ADCO employees and the ratio analysis of financial statements of ADCO were the two major primary methods used for the research. Several issues were identified with ADCO’s internal auditing function which can either be due to the poor functioning of the internal auditing or due to the negative perceptions of employees towards internal audit function. Based on the issues identified, recommendations were provided to ADCO to improve their internal audit function.

Keywords: Internal audit, corporate governance, perceptions, ROA, performance