Internal audit functions and sustainability audits: Insights from manufacturing firms

Figures & data

Table 1. Reliability values from cronbach’s alpha coefficients

Dimensions	Items	CA
Enactments, policies, standards, systems and procedures (EPS)	7	0.801
Internal audit effectiveness (IAE)	7	0.890
Risk management process (RMP)	7	0.778
Sustainability audits (SA)	8	0.902
Environmentally sensitive/Sustainability sensitivity (SS)	5	0.777

Table 2. Profile of respondents

Category	Criteria	Frequency	Percentage (%)
Gender	Male	764	57
	Female	576	43
Work Experience (Years)	1–5	134	10
	6–10	335	25
	11–15	482	36
	Above 15	389	29
Educational qualification	Secondary/WASSCE	134	10
	Graduate	590	44
	Post-graduate	201	15
	Professional	415	31

Table 3. Construct reliability, indicator reliability, and convergent validity

	Loading	CA	CR	AVE
EPS		0.952	0.954	0.775
EPS1	0.893
EPS2	0.892
EPS3	0.888
EPS4	0.872
EPS5	0.869
EPS6	0.882
EPS7	0.866
IAE		0.964	0.964	0.823
IAE1	0.905
IAE2	0.894
IAE3	0.905
IAE4	0.920
IAE5	0.900
IAE6	0.902
IAE7	0.923
RMP		0.929	0.933	0.778
RMP1	0.900
RMP2	0.903
RMP3	0.906
RMP4	0.850
RMP5	0.851
SA		0.921	0.924	0.646
SA1	0.713
SA2	0.757
SA3	0.858
SA4	0.779
SA5	0.840
SA6	0.798
SA7	0.819
SA8	0.854
SS		0.938	0.938	0.802
SS1	0.846
SS2	0.912
SS3	0.913
SS4	0.897
SS5	0.907

Note: EPS, IAE, RMP, SA, and SS represent Enactments, policies, standards, systems and procedures, Internal audit effectiveness, Risk management process, Sustainability audits and Sustainability sensitivity

Table 4. Heterotrait-monotrait ratio (HTMT)

	EPS	IAE	RMP	SA
IAE	0.951
RMP	0.706	0.668
SA	0.588	0.601	0.755
SS	0.682	0.649	0.934	0.785

Note: EPS, IAE, RMP, SA, and SS represent Enactments, policies, standards, systems and procedures, Internal audit effectiveness, Risk management process, Sustainability audits and Sustainability sensitivity

Table 5. PLS predict for the constructs

	Q^2 predict	PLS-SEM_RMSE	LM_RMSE	PLS-SEM_MAE	LM_MAE
SA1	0.308	0.952	0.927	0.700	0.693
SA2	0.257	0.914	0.923	0.609	0.629
SA3	0.418	0.902	0.939	0.693	0.701
SA4	0.317	0.968	1.014	0.694	0.728
SA5	0.416	0.863	0.880	0.633	0.676
SA6	0.322	0.933	0.961	0.674	0.700
SA7	0.356	0.941	0.956	0.684	0.702
SA8	0.409	0.870	0.874	0.639	0.658

Note: EPS, IAE, RMP, SA, and SS represent Enactments, policies, standards, systems and procedures, Internal audit effectiveness, Risk management process, Sustainability audits and Sustainability sensitivity

Table 6. Model fit summary

	Saturated model	Estimated model
SRMR	0.043	0.043
d_ULS	0.985	0.985
d_G	0.880	0.880
Chi-square	868.756	868.756
NFI	0.870	0.870

Note: EPS, IAE, RMP, SA, and SS represent Enactments, policies, standards, systems and procedures, Internal audit effectiveness, Risk management process, Sustainability audits and Sustainability sensitivity

Table 7. Summary of structural model

Path	O	6	|O/6|	p-values	f^2	VIF	CI		Decision Rule
							Lower Bound	Upper Bound
H1: RMP→SA	0.225	0.071	3.161	0.002	0.025	4.623	0.095	0.372	Supported
H2: SS →SA	0.455	0.074	6.155	0.000	0.109	4.418	0.299	0.587	Supported
H3: IAE→SA	0.268	0.081	3.294	0.001	0.027	6.118	0.108	0.426	Supported
H4: EPS→SA	−0.134	0.083	1.626	0.104	0.006	6.592	−0.296	0.032	Not Supported
Endogenous Variable	R^2	Adjusted R2		Q^2 predict		RMSE	MAE
SA	0.569	0.563		0.552		0.679	0.487

Note: O, 6, |O/6|, Q², RMSE and MAE depict coefficients, standard deviation, T statistics, predictive relevance, Root Mean Squared Error and Mean Absolute Error. EPS, IAE, RMP, SA, and SS represent Enactments, policies, standards, systems and procedures, Internal audit effectiveness, Risk management process, Sustainability audits and Sustainability sensitivity

Figure 1. Structural path coefficients and bootstrapping.

Note: EPS, IAE, RMP, SA, and SS represent Enactments, policies, standards, systems and procedures, Internal audit effectiveness, Risk management process, Sustainability audits and Sustainability sensitivity.

Figure 2. Importance-performance map.

Note: EPS, IAE, RMP, SA, and SS represent Enactments, policies, standards, systems and procedures, Internal audit effectiveness, Risk management process, Sustainability audits and Sustainability sensitivity.

Table 8. Importance-performance values

Variables	Total Effect (TE)	Performance (P)	Overall score (P/TE)	Rankings
SS	0.455	83.771	184.112	1
IAE	0.268	81.420	303.806	2
RMP	0.225	81.946	354.204	3
EPS	−0.134	81.701	−609.709	4

Note: EPS, IAE, RMP, and SS represent Enactments, policies, standards, systems and procedures, Internal audit effectiveness, Risk management process, and Sustainability sensitivity.

Data availability statement

Data is available upon request