The Role of The Internal Auditor in Strengthening the Governance of Economic Organizations Using the Three Lines of Defense Model

Omar Ikbal Tawfik (), Omar Durrah and Karima Ali Aljawhar
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Omar Ikbal Tawfik: Department of Accounting, Dhofar University, Dhofar, Salalah 211, Oman
Omar Durrah: Department of Management, Dhofar University, Dhofar, Salalah 211, Oman
Karima Ali Aljawhar: Department of Accounting, Mustansiriyah University, Baghdad 14022, Iraq

JRFM, 2023, vol. 16, issue 7, 1-15

Abstract: Purpose: This paper aims to investigate the impact of the three lines of defense (TLOD) in strengthening corporate governance in industrial companies in the Sultanate of Oman. Methodology: A questionnaire was used to collect data from industrial companies in the Sultanate of Oman. A total of 300 questionnaires were distributed; for the 159 valid questionnaires used for analysis, PLS-SEM was used in the data analysis. Results: The results showed a significant impact of the three variables (commitment of operational management to legal, regulatory, and ethical requirements; risk management, compliance, and quality functions; and the role of assertive internal auditing according to the third line of defense model) in strengthening corporate governance. Practical implications: The study indicates that the TLOD model plays a more decisive role in determining the strengthening of corporate governance, and therefore, the results of the study can help industrial companies to understand the role of the TLOD model in strengthening control procedures, risk management, and governance. Originality/value: The study constitutes a management strategy that assists organizations in diagnosing the degree of corporate compliance with the TLOD and identifying weaknesses in their procedures.

Keywords: three lines of defense model; corporate governance; industrial companies; Sultanate of Oman (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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