The mediating effect of governance on audit culture, quality and control issues

Khodor Shatila (), Nirjhar Nigam () and Cristiane Benetti ()
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Khodor Shatila: Ph.D Student, ICN Artem Business School
Nirjhar Nigam: Ph.D Student, ICN Artem Business School
Cristiane Benetti: Ph.D Student, ICN Artem Business School

International Journal of Disclosure and Governance, 2025, vol. 22, issue 1, No 6, 94-108

Abstract: Abstract This study investigates whether governance acts as a mediating factor between audit culture, audit quality, and internal control aspects by examining the factors contributing to effective governance. This study uses a quantitative research design; we collect primary data using a structured survey questionnaire. The study was conducted on responses received for 350 respondents and analysed using structural equation models. The results indicate that governance leadership mediates the relationship between audit culture, internal control, and audit quality to some extent. By emphasizing the importance of governance for audit culture and quality, regulators can develop effective policies to promote high-quality audits and financial reporting. Indeed, governance acts as a guiding force in an organization’s culture. Think of it as the compass that sets the direction and promotes transparency, accountability, and ethical behavior, thereby fostering a strong audit culture. Internal control, on the other hand, encompasses the policies, procedures, and practices that protect assets, ensure accurate financial reporting, and comply with regulations. Governance structures provide the framework within which internal control operates, overseeing its functions and establishing mechanisms for accountability and reporting. The results of this research have important practical implications for accounting and audit firms and regulators.

Keywords: Audit; Governance; Internal control; Audit culture; Quality; Emerging countries (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1057/s41310-024-00235-6

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