Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/326600 
Year of Publication: 
2024
Citation: 
[Journal:] Cogent Business & Management [ISSN:] 2331-1975 [Volume:] 11 [Issue:] 1 [Article No.:] 2412738 [Year:] 2024 [Pages:] 1-23
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
The Egyptian economy has been facing challenges due to the COVID-19 pandemic and global conflicts. This study, conducted from a macroeconomic perspective, has highlighted the importance of mandating audits for Egyptian SMEs, which primarily operate in the informal economy. This study draws on the 2013 COSO Framework, a widely accepted standard for internal control, to define IC and its features. The research utilized a comprehensive mixed methodology, combining qualitative and quantitative research methods and relevant theory to examine the impact of mandatory audits on the Internal Control Quality (ICQ) of Small and Medium-sized Enterprises (SMEs). Data was gathered through questionnaires and NILEX financial reports spanning from 2010 to 2023. Questionnaires resulted in 803 responses from auditors, owners, and managers of SMEs, as well as 217 academics/economists in Egypt. The study employed various analyses, such as ANOVA, Scheffe’s post hoc test, Wilcoxon signed rank test, and Cohen’s d, to assess the effect of mandatory audits on SMEs’ ICQ and identify any discrepancies, ensuring the thoroughness and reliability of the conclusions. The research indicates statistically significant differences in perceptions among SME management, auditors, and academics/economists. This study plays a crucial role in supporting the Egyptian national economy by creating a standardized and concise scale for measuring ICQ among SMEs, which aligns with their unique attributes and features. This customized scale facilitates comparisons among SMEs and opens doors for further scholarly investigations, instilling a sense of optimism for the future of the Egyptian SME sector. The findings of this study are significant. They reveal an apparent enhancement in internal control quality following the implementation of mandatory audits for Egyptian SMEs. This evidence was derived from an analysis of ICQ before and after the mandatory audit requirement among a substantial sample of 56 SMEs in Egypt, covering the period from 2010 to 2023.
Subjects: 
Mandatory audits
Egyptian SMEs
SME auditing
Internal controls
Internal control quality
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.