The effect of internal audit planning on risk factors: evidence from Yemen’s banks

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This study aims to determine the extension of implicating risk factors in strategic planning for internal audit in Yemeni commercial banks, including inherent risk factors and control risks, whether caused by internal or external influences, and focuses on the strategic purpose of internal audit. A questionnaire instrument, specifically designed for this research purposes, was distributed to 58 respondents comprising internal auditors of commercial banks, as well as auditors of the External Control Department of the Central Bank of Yemen. The study determines whether Yemeni commercial banks include internal auditing in their operational structure. It also determines the risks that internal auditors prioritize while developing their internal audit strategies. This study uses Smart PLS methodologies to evaluate the hypotheses through data analysis. The results indicate that internal audit is considered one of the important operational activities in the structure of commercial banks of Yemen, and that the planning process for internal audit largely takes into account the inherent risk factors and control risk factors, whether the audit process is carried out by internal auditors or auditors of Central Bank of Yemen.

Acknowledgment
The authors extend their appreciation to the Deanship of Scientific Research at King Khalid University for funding this work through a large-group Research Project under grant number (RGP.2/131/45)”.

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    • Figure 1. Structural measurement
    • Figure 2. Path coefficient
    • Table 1. Demographic variables (frequencies/percentage)
    • Table 2. Descriptive statistics
    • Table 3. Reliability results
    • Table 4. Fornell-Larcker discriminant validity results
    • Table 5. Indicator cross-loadings
    • Table 6. Structural model path coefficients and significance
    • Table 7. Model goodness, predictive relevance, and model fit
    • Conceptualization
      Adeeb Alhebri
    • Data curation
      Adeeb Alhebri
    • Software
      Adeeb Alhebri
    • Writing – original draft
      Adeeb Alhebri
    • Formal Analysis
      Radwan Hussien Alkebsee, Ebrahim Mohammed Al-Matari
    • Methodology
      Radwan Hussien Alkebsee, Mohammed A. Al-bukhrani, Adam Mohamed Omer
    • Supervision
      Radwan Hussien Alkebsee, Ebrahim Mohammed Al-Matari, Mohammed A. Al-bukhrani
    • Writing – review & editing
      Radwan Hussien Alkebsee, Ebrahim Mohammed Al-Matari, Mohammed A. Al-bukhrani, Adam Mohamed Omer
    • Funding acquisition
      Ebrahim Mohammed Al-Matari
    • Project administration
      Mohammed A. Al-bukhrani, Adam Mohamed Omer
    • Validation
      Mohammed A. Al-bukhrani
    • Investigation
      Adam Mohamed Omer
    • Visualization
      Adam Mohamed Omer