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Proceedings ofthe 31st International Business Information Management Association Conference

(IBIMA)

25-26April2018Milan, Italy

ISBN: 978-0-9998551-0-2

Innovation Management and Education Excellence through Vision 2020

Editor

Khalid S. Soliman

International Business Information Management Association (IBIMA)

Copyright2018

Innovation Management and Education Excellence Ihrough Vision 2020

Conference Chair

Khalid S. SolimanInternational Business Information Management Association, USA

Special Track Chair

Beata SlusarczykCzestochowa University of Technology, Faculty of Management, PolandNorth-West University, Faculty of Economic Sciences and IT, South África

Conference Advisory Committee

John F. Affisco, Hofstra University, USAAbdul Rahman Ahmad, Universiti Tun Hussein Onn Malaysia, MalaysiaOrnar AI-Azzam, University of Minnesota Crookston, USAHesham H. Ali, University ofNebraska at Omaha, USAAhmedAzam. DeVry University, USANajiba Benabess, Millikin University, USAAz-Eddine Bennani, Reims Management School, FranceEm// Boasson, Central Michigan University, USARegina Connolly, Dublin City University, Irelandfíene Leveaux, University of Technology, Sydney, AustráliaSusana de Juana Espinosa, Universidad de Alicante, SpainXiuzhen Feng, Beijing University of Technology, ChinaMohammadAyub Khan, Technologico de Monterrey, MéxicoSherif Kamel, The American University in Cairo, EgyptNajib Saylani, Florida State College at Jacksonville, USAMagdy Serour, InContext Solutions, AustráliaAmine Nehari Talet, King Fahd University of Petroleum & Mineral, KSAAbraham G. van der Vyver, Monash University, South África

Program Committee

Vladimír Bures, University of Hradec Kràlové, Czech HepublicKhadijah Mohamed, Universiti Utara Malaysia, MalaysiaCarmen Balan, The Bucharest University of Economic Studies, RomaniaRoziah Mohd Rasdi, Universiti Putra Malaysia, MalaysiaIrína Bilan, Alexandru loan Cuza University of /as/, RomaniaNuruihasanah Abdul Rahman, Universiti Sains Malaysia, MalaysiaNur Amalina Mohamad Zakí, Universiti Malaysia Terengganu, MalaysiaStefanita SUSU, Stefan ce/ Maré University, RomaniaIgor Klyuchnikov, International Banking Institute (St. Petersburg), RússiaMiroslav Tomek, Tomas Bata University in Zlín, Faculty of Logistics and Crisis Management, Czech RepublicStepan Kavan, Faculty of Health ana Social Science, University of South Bohemia in Ceske Budejovice, CzechRepublicArkadiusz Kowalski, Wroclaw University ofScience and Technology, PolandTatiana Pekarskaia Dauxert, University of Paris 1 Panthéon-Sorbonne, FranceConstantin-Marius Apostoaie, Alexandru loan Cuza University of la§i, Romania

II


Victoría Abosede Akinjare, Covenant University, NigeriaElena Hlaciuc, Stefan cel Maré of Suceava, RomaniaAlexandra loanid. University Politehnica ofBucharest, RomaniaMuhammad Ibrar, Harbin Institute of Technology, ChinaZulkhairi Md Dahalin, Universiti Utara Malaysia, MalaysiaSyed Ahmed Salman, Internatíonal Islamic University Malaysia, MalaysiaMuhammad Rafiq, Harbin Institute of Technology, ChinaIwona Pisz, Opole University, PolandBeatrice Um Fui Yee, Universiti Malaysia Sabah, MalaysiaM. Eulalia Torras Virgili, OBS Business School, SpainElewechi Okike, International Centre for Research in Accountability & Governance, UKGabriela Tigu, Bucharest University of Economic Studies, HomaniaDoina l. Popescu, The Bucharest University of Economic Studies, RomaniaStefan-Alexandru Catana, The Bucharest University of Economic Studies, RomaniaAlexandra França, University of Vigo, SpainLukasevich Igor, Financiai University under the Government of HF, RússiaJan Tluchor, University of West Bohemia, Czech RepublicGordana Kordic, Uníversity of Zagreb, Faculty of Economics and Business, Zagreb, CroatiaPetrÕech, Institute of Hospitality Management in Prague, Czech RepublicUmmu Kolsome Farouk, Universiti Tunku Abdul Rahman, MalaysiaAdebanji W. Ayeni, Landmark University, Omu-Aran, Kwara State, NigeriaAitAtmsne Braham, UniversityA. Mira. Bejaia, AlgeriaCristina lovu, Bucharest Academy of Economic Studies, RomaniaRadu D. Stanciu, University "Politehnica" of Bucharest, RomaniaAdelaida Cristina Hontuç, University ofAgronomic Sciences and Veterinary Medicine ofBucharest, Faculty ofManagement, Economic Engineering in Agrículture and Rural Development, RomaniaHelena Sajgalíková, University of Economics in Bratislava, SlovakiaAida Matri Ben Jemaa, ISG-Tunis, TunisiaAnna Zarkada, AUEB, GreeceMaria José Angélico Gonçalves, PP/ISCAP, PortugalMargareta llie, Ovidius University of Constanta, RomaniaNeculita Mihaela, Dunarea De Jos University of Galati, RomaniaCristina Leovaridis, National University ofPolitical Studies and Public Administration, RomaniaLaura Maríana Cismas, West University of Tímisoara, RomaniaAdela Coman, University of Bucharest, RomaniaElena Stoian, University ofAgronomic Sciences and Veterinary Medicine ofBucharest, RomaniaAura Emanuela Domil, West Uníversíty of Timisoara, RomaniaCristina-Claudia Osman, Babes-Bolyaí University, Business Informatics Research Center, RomaniaFrantisek Hortai, Brno University of Technology, Czech RepublicMonica Boldea, West University of Timisoara, Romanialoana Ceausu, The Bucharest University of Economic Studies, RomaniaAdeel Waheed Khan, University of Bradford, UKVictoria A. Degtereva, SPbPU, RússiaTeresa Maria Leitão Dieguez, ISCAP-IPP, PortugalJaya Ganesan, Multimedia University, MalaysiaPavelJurica, Bmo University of Technology, Czech HepublicOleg Nikolaevich Petukhov, National Hesearch Tomsk Polytechnic University, Tomsk State University ofContrai Systems and Radioetectronics, RússiaAbir Mchergui, Sfax University, TunisiaGabriel Etim Umoren, Covenant University, NigeriaMuhammad Usman, University of International Business and Economics, Beijing, ChinaPeter Fred, Covenant University, NsgeriaBlanka Bazsova, VSB-TU Ostrava, Czech RepublicTung-Liang Chen, Chung-Hua University, Taiwan, R. O. C.Samina Riaz, IQHA University, PakistanLaurentiu Gabriel Talaghir, Dunarea de Jos University ofGalati, HomaniaCometia Neagu, Centre for Industry and Services Economics, RomaniaGalina Badicu, Academy ofEconomic Studies of Moldava, Moldava

III


Dana Corina Deselnicu, University Politehnica of Bucharest, FiomaniaGrace O. Evbuomwan, Covenant University, NigeriaNader Naifar, Al Imam University (IMSIU), KSANasreen Khan, Multimedia University, MalaysiaJ. Fernando Larios Meono, Universidad San Ignacio de Loyola, PeruJosé Martins, University of Trás-os-Montes e Alto Douro, PortugalOgunrinola Ifeoluwa Israel, Covenant University, NigeriaJaroslava Gburová, University of Presov, Faculty of Management, SlovakiaGavrila Simona Petrina, University"Dunarea de Jos" of Galati, HomaniaVirlanuta Florina Oana, Dunarea de Jos University of Galati, HomaniaLiwen Chen, Chung-Hua University, Taiwan, Fi. O. C.João Paulo Pereira de Sousa, Polytechnic Instiïute of Bragança (IPB), PortugalDavydova Olesia, Plekhanov Russian University of Economics, RússiaIrina-Adriana Chiurciu, USAMV Bucharest, fíomaniaJakub Trojan, Tomas Bata University, Czech FiepublicVioleta Chiriloaie / Stanciu, U. S. A. M. V, RomaniaMohd Saiful Izwaan bin Saadon, Universiti Malaysia Terengganu, MalaysiaCiprian-Octavian Truica, Computei Science and Engineering Department, Faculty ofAutomatic Control andComputers, University Politehnica of Bucharest, RomaniaJessica Sze Yin Ho, Sunway University Business School, MalaysiaYong Chen Chen, University of Malaya, MalaysiaDaniela Lívia Tra§ca, The Bucharest University of Economic Studies, RomaniaSn Fatiany Abdul Kader Jailani, Universiti Teknologi MAFIA, MalaysiaBãcanu Çerban Constanta, University Dunarea de Jos, Galati, RomanisMirela Panait, Petroleum Gás University of Ploiesti, RomaniaAminah Md Yusof, Universiti Teknologi Malaysia, MalaysiaLídia Alexa, "Gheorghe Asachi" Technical University of /as/, RomaniaKlara Anílova, Technical University of Liberec, Czech RepublicNermin Khalifa, AAST, EgyptIntan Nwbaizura Zainuddin, Universiti Teknologi MARA, MalaysiaTan Choo Peng, Multimedia University, MalaysiaMihai Caramihai, University Politehnica Bucharest, RomaniaAnca Monica Ardeleanu, University of Bucharest, RomaniaMohammad AI-Khasawneh, The World Islamic Sciences and Education University (WISE), JordanIvica Linderová, College of Polytechnics Jihlava, Czech Republicloana Pop, University "Lucian Blaga" of Sibiu, RomaniaPilasluck Choomta, Bucharest University of Economic Studies, RomaniaBulan Prabawani, Diponegoro University, IndonésiaSyuhaida Ismail, Universiti Teknologi Malaysia, MalaysiaFiadu Alin Paunescu, Bucharest University o f Ecobnomic Studies, RomaniaDing Hooi Ting, Universiti Teknologi PETRONAS, MalaysiaConstantin lonut, University of Bucharest, RomaniaIngríd Majerova, Silesian University in Opava, Czech RepublicLukás Smerek, Matej Bei University, SlovakiaTijani Amara, University of Gafsa, TunisiaFrederico Branco, University of Trás-os-Montes e Alto Douro, PortugalMohd Fadil Mohd Yusof, Universiti Malaysia Kelantan, MalaysiaAsmiza Abdul San/, University of Malaya, MalaysiaOlga Loyko, Polytechnic University Tomsk, RússiaLê Hieu Hoc, Hanoi University ofScience and Technology, VietnamAbirZouari, University of Sfax, TunisiaIhna V. Kablashova, Voronezh State Technical University, RússiaAmalia Venera Todorut, ,, Constantin Brancusi" University of Targu-Jiu, RomaniaCezar Toader, Technical University of Cluj-Napoca, RomaniaSimona Nicolae, University Politehnica of Bucharest, HomaniaElena Agamagomedova, Belgorod State Technological University named after V. G. Shukhov, RússiaCristisna Tindeche, University of Agricultural Sciences and Veterinary Medicine Bucharest, RomaniaKamla AI-Busaidi, SOU, Oman

IV


Elena Lacatus, Polytechnic University of Bucharest, HomaniaGirjanauth Boodraj, University of Technology, Jamaica, JamaicaMa Mana Bandeira, ISCAP - P. Porto, PortugalT. G. Vasista, Mizan-Tepi Universify (on contract)/(King Saud Uníversity-Guest), Ethiopia, KSAAndreea Elena Matic, University "Dunarea de Jos"of Galati, FtomaniaAdina Moise-Titei Ovidius University of Constanta, Faculty of Economic Sciences, Romania R. GyHashim, Universiti Teknologi MARA, MalaysiaAurelia Bëlan, University ofAgronomic Sciences and Veterinary Medicine ofBucharest, RomaniaOvidiu Blajina, University Politehnica ofBucharest, RomaniaMohamed Cherchem, University of Oran 2 Algería, AlgeriaMartina Hedvicakova, University of Hradec Kralove, Czech RepublicAngela Roman, "Alexandra loan Cuza" University of lasi, RomaniaDawuda Alhassan, University of Warsaw, PolandGeorge-Adrian Muntean, Politehnica University of Timisoara, RomaniaAslina Baharum, Universiti Malaysia Sabah, MalaysiaHusam Rjoub. Cyprus International University, North Cyprus TurkeyGeorgiy Greyz, South Urals State University. RússiaIrina Lychagina, South Ural State University (National Research University), RússiaNoor Hafizah Hassan, Universiti Teknologi Malaysia, MalaysiaHaykelBen Khelil, FSEGT, TunisiaElena Sira, University of Preëov, SlovakiaDalia Susniene, Kaunas University of Technology, LithuaniaCamille Salinesi, University Paris 1 Panthéon - Sorbonne, FranceAtina Marcuta, University of Agricultural Sciences and Veterinary Medicine Bucharest, RomaniaBogdan Tiganoaia, University Politehnica Bucharest, RomaniaSanaullah Ansan, ShaheedZulfikar Ali Bhutto Institute ofScience and Technology (SZABIST), PakistanCristian Eparu, Petroleum Gás University of Ploiesti, FiomaniaYulia A. Dubolazova, Graduate School of Economics and Engineeríng, Peter the Great Saint-PetersburgPolytechnic University, RússiaCamélia Delcea, Bucharest University ofEconomic Studies, RomanisSanaa Boukhari, Université Mohammed V de Rabat, MoroccoAna lolanda Voda, Alexandru loan Cuza University, RomaniaMichal Paták, University of Pardubice, Czech RepublicPasquale Dei Vecchio, University of Salento, ItalyIslem Khefacha, FSEG Mahdia; University of Monastir, TunisiaDavid Ullrich, University of Defence, Czech RepublicAdrian Moise, Petroleum-Gas University of Ploiesti, HomaniaElia Georgiana Dragomir, Petroleum - Gás University from Ploiesti, RomaniaPiotr Wittbrodt, Opole University of Technology, PolandElena ladrennikova, Federal University named after the first President of Rússia B. N. Yeltsin (UrFU), RússiaMarina Fados. Comenius University in Bratislava, SlovakiaCitra Sukmadilaga, Universitas Padjadjaran, IndonésiaNoor Azlinna Azizan, Prince Sultan University, KSAAhlem Soualhia, Faculte dês Sciences Economiques et de Gestion de Sfax, TunisiaAntranig Tangoukian, NDU, LebanonZelenskaya Jeanne, South Ural State University (National Research University), RússiaValentina N. Rodionova, Voronezh State Technical University, RússiaLew Sook Ling, Multímedia University, MalaysiaDhafer Thabet, Mannouba University, TunísiaIrina Aleksandrovna Dokukina, Central Russian Institute of Management, Branch ofRANEPA, RússiaBabajide Abiola Ayopo, Covenant Uníversity, NigeríaAlin Moldoveanu, University POLITEHNICA ofBucharest, RomaniaPãrean Mihai Olimpiu. West University of Timisoara, RomaniaKhalid Rouggani, Hassan l University, MoroccoDiana-lrinel BãílS, University Politehnica ofBucharest, RomaniaAgnieszka Komor, University of Life Sciences in Lublin, PolandlonelaMituko Vlad, UASVM of Bucharest, Romania

Dmitrii Tikhonov, Peter the Great Saint-Petersburg Polytechnic University, Rússiav


Olga Osipova, Financiai University under the Government of the Russian Federation, RússiaElisabeta loanas, The Bucharest University ofEconomic Studies. RomaniaNatalia L. Goncharova, Peter the Great St. Petersburg Polytechnic University, RússiaEme Suzila Kassim, Universiti Teknologi MARA, MalaysiaDiana Dumitrescu, West University of Tim/soara, HomaniaLaura Martínez-Buelvas, Universidad Tecnológica de Bolivar, ColômbiaUgochukwu Moses Urim, Covenant University, NigeriaElvira Taipova, South Ural State University, RússiaBeata Sofrankova, University of Presov in Presov, Faculty of Management, SlovakiaEva Malichova, University of Zilina, SlovakiaOrnar Bin Musa, Unitar International University, MalaysiaHiadh Bouslimi, University of Tunis, TunisiaNormalini Md Kassim, Universiti Sains Malaysia, MalaysiaBogdan Ówik, Military University of Technology, PolandCorina Pelau, Bucharest University of Economic Studies, HomaniaIveta Kmecová, ITB in Ceské Budëjovice, Czech HepublicSuparschii (Bondar!) V. Valentina, University Dunârea de Jos, RomaniaStefania Cristina Miríca, University "Dunarea de Jos" of Galati, RomaniaWided Ragmoun, CBE- Qassim University, KSAZdenëk Caha, Institute of Technology and Business in Ôeské Budëjovice, Czech RepublicGuanyan Fan, Renmin University of China, ChinaPetr V Nikitin, Mari State University, fíuss/aChoo-Kim Tan, Multimedia University, MalaysiaIgnasheva Tatyana Andreevna, Man State University, RússiaJanusz Wielki, Opole University of Technology, PolandBalázs Kotosz, University of Szeged, HungaryLamyaa El Bassiti, ENSIAS, Mohammed V University in Habat, MoroccoSimona CStãlina Çtefan, The Bucharest University of Economic Studies, RomaniaAnaNovak, University of Zagreb, CrpatiaEmese Tokarõíková, University of Zilina, SlovakiaIrina Avdeeva, Central Russian Institute of Management, Branch of RANEPA, RússiaTatyana Golovina, Central Russian Institute of Management, Branch of RANEPA, RússiaAndrei Jean Vasile, Petroleum-Gas University of Ploiesti, RomaniaConsuela-Mãdãlina Gheorghe, "Caro/ Davila" University of Medicine and Pharmacy, Romania AndreeaEmanuela Dragai, Institute for World Economy, Romanian Academy, RomaniaMazni Alias, Multimedia University Cyberjaya, MalaysiaCristian Marinas, The Bucharest University of Economic Studies, RomaniaTatiana Maximova, ITMO University, RússiaAdam Pawliczek, Moravian University College Olomouc, Czech RepublicFelix Sadyrbaev, Daugavpils Universily, LatviaInna Babenko, Southwest Staïe University, RússiaValery Maslennikov, PRUE (Moscow), RússiaSandrina Francisca Teixeira, University Polytechnic of Porto. Porto Accounting and Business School, PortugalEduard Gabriel Ceptureanu, The Bucharest University ofEconomic Studies, fíomaniaBogdan Cimpan, Bucharest University of Economic Studies, HomaniaBogdan Florin Filip, ""AI. I.Cuza" Universityofla§i, RomaniaJan Chromy, The Institute of Hospitality Management in Prague, Czech RepublicEnrique Rosales-Asensio, Universidad de La Laguna, SpainFitra Lestari, UIN Sultan Syarif Kasim, IndonésiaCiprían-Octavian Truicà, Computei Science and Engineering Department, Faculty ofAutomatic Control andComputers, University Politehnica ofBucharest, RomaniaNg Kim Soon, Universiti Tun Hussein Onn Malaysia (UTHM), MalaysiaAlia Bobyleva, Lomonosov Moscow State University, HussiaTâmara V Mescheryakova, Tomsk State Pedagogical University, Siberían State Medicai University, RússiaYu. B. Rzhavina, Man State University, RússiaSyed Asim Ali, University of Karachi, PakistanAmparo Maset-Llaudes, Universitat Jaume l, SpainArmenita Arghiroiu, UASVM Bucharest, Homania

VI


Abdul Kadir Othman, Universiti Teknologi MARA, Shah Alam, MalaysiaMd. Shamim Hossain, Hajee Mohammad Danesh Science and Technology University, BangladeshAzura Abdullah Ef fendi, Universiti Sains Malaysia (USM), MalaysiaLiubov Silakova, ITMO Uníversity, RússiaAna Ursu, Research Institute for Agricultural Economics and Rural Development, RomaniaLaurencia S. Krísmadewi, University of Economias, Praha, Czech RepublicAzizan Abdullah, Universiti Teknologi MAHA, MalaysiaSafarik Zdenek, Tomas Bata University in Zlin, Czech RepublicMaria A. Plakhotnikova, South West state University, RússiaMuhammad Hafiz Abd Rashid, Universiti Teknologi MARA, MalaysiaAgnieszka Janik, Silesian University of Technology, PolandAndreea Claudia Serban, Bucharest University of Economic Studies, RomaniaAntonello Cammarano, University of Salerno, ItalyYana Radyukova, Tambov State Universíty. G. R. Derzhavin, RússiaBarbara Scozzi. University Politécnico di Bar/, ItalyIrína Prosvirina, South Ural State University (National Research University), RússiaShirshikova Liudmila, South Ural State University (National Research University), RússiaDorin Maier, Technical University of Cluj-Napoca, RomaniaDiana-Eugenia Panait-loncicã, BUES, RomaniaOana Coca, Alexandru loan Cuza Universíty oflasi, RomaniaAbiolaE. Ogunmokun, Bucharest University of Economia Studies, RomaniaSabina Irimie, University of Petrosani, RomaniaFeliz Gouveia, University Fernando Pessoa, PortugalAlissa Dubgorn, Peter the Great Si. Petersburg Polytechnic University, RússiaMariana Burcea, USAMV Bucharest, FtomaniaEva Lukásková, Tomas Bata University in Zlín, Czech HepublicSiti Fiohaida Mohamed, USM, Malaysialoan-Bogdan Robu, Alexandru loan Cuza University of /as/, FlomaniaAgnieszka Tfuczak, Opole University, PolandChinonye Love Moses, Covenant University, NigeriaLucie Severová, CULS in Prague, Czech RepublicKatarína Rentková, Comenius Universily in Bratislava, Faculíy of Management, SlovafáaLourdes Daza Aramayo, University of Economics, Prague, Czech RepublicArij Lahmar, Faculty of Sfax, TunisiaMarek Vokoun, Instituto of Technology and Business in Ceske Budejovice, Czech RepublicNicoleta Daniela Ignat, University Politehnica cf Bucharest, RomaniaAurelia-loana Chereji, University of Oradea, Faculty of Environmental Protection, RomaniaSusana Silva, School of Hospitality and Tourism - Institute Polytechnic of Porto, PortugalNik Hazimah Nik Mat, Universiti Malaysia Terengganu, MalaysiaAleksandr Lepekhin, Peter the Great St. Petersburg Polytechnic University, RússiaIrina Severín, University Politehnica of Bucharest, RomaniaAgatha Popescu, University of Agricultural Sciences and Veterinary Medicine Bucharest, RomaniaIvona Stoica, "Dimitrie Cantemir" Christian University, RomaniaMohd-Nazri Muhayiddin, Universiti Malaysia Kelantan, MalaysiaSvetlana Mihaila, Academy of Economic Studies, MoldavaHa f ida Bouziane-Chouarfia, University ofScíences and Technology o f Oran Mohamed Boudiaf (USTO-MB),Algerialoana - Ruxandra Lie, University "Politehnica" of Bucharest, RomaniaDumitru Goldbach, Valahia University o f Targoviste, RomaniaEva Juriôková, Tomas Bata University in Zlín, Czech FtepublicH. Hosney Zurub, The Bucharest Universíty of Economic Studies, RomaniaMihaela Muntean, West University of Timisoara, RomaniaKamal Abou El Jaouad, National School of Business and Management of Casablanca Hassan II University,MoroccoDmitrijs Finaskins, University of Economics and Culture, LatviaAmai Trifa, National School of Computei Sciences, TunisiaSase/ M. AI-Eideh, Kuwait University, Kuwaitfíene Leveaux, UTS, Austrália

VII


Nicoleta Radneantu, Romanian-American University, RomaniaMarina V. Ryzhkova, Tomsk Polytechnic University, Tomsk State University, RússiaNouha Taifi, Université Mohammed V, MoroccoAriana Nefat, Juraj Dobrila University of Pula, Faculty ofEconomics and Touhsm "Dr. Mijo Mirkovió", CroatiaA. Omoíayo Osibanjo, Covenant University, NigeriaMarlita Mat Yusof, Universiti Teknologi MARA Selangor, MalaysiaHugo Rehesaar, Griffith University, AustráliaTomás Sadílek, University of Economics, Czech RepublicBlazenka Knezevic, University of Zagreb, CroatiaJudit Oláh, University of Debrecen, HungaryManuela Tvaronavicienè, Vilnius Gediminas Technical University, LithuaniaKlauda Smolqg, Czestochowa University of Technology, PolandMiroslav Frankovsky, Presov Univeristy, Faculty of Management, SlovakiaBeata Slusarczyk, Czestochowa University of Technology, PolandSebastian Kot, North-West University, South ÁfricaKalubi R. D. M, Peterthe Great, St. Petersburg Polytechnic University, RússiaMarius Bulearca, Center for Industry and Services Economics, Romanian Academy, Bucharest, RomaniaFadoua Laghzaoui, Universíté Abdelmalek Essaâdi, MoroccoAnita Talaja, University of Split, CroatiaBogdan Oancea, University of Bucharest, RomaniaAndrea Valachová, University of Economics in Bratislava, Faculty of National Economy, SlovakiaIwona Lapunka, Opole University of Technology, PolandAizzat Mohd Nasurdin, Universiti Sains Malaysia, MalaysiaAnushia Chelvarayan, Multimedia University, MalaysiaSock Lee Ching, Universiti Sains Malaysia, MalaysiaAnastasia Levina, Peter the Greal Saint-Petersburg Polytechnic University, RússiaGabriela-Mariana lonescu, SCOSAAR - Romanian Academy, FlomaniaJosé/ Botlík, SU in Opava, Czech Fiepublicloana Balan, (Ex- Phd. Student at Doctoral School of Economics, "Al. l. Cuza" University, lasi), RomaniaDaiva Zostautiene, Kaunas University of Technology, LithuaniaMarinela Mircea, The Bucharest University of Economic Studies, RomaniaVladimír Bolek, University ofEconomics in Bratislava, SlovakiaPatrik Pucer, University of Primorska, SloveniaKulachinskaya Anastasia Urievna, Peter the Great St. Petersburg Polytechnic University, RússiaEkaterina Malevskaia-Malevich, Peter the Great Saint-Petersburg Polytechnic University, RússiaOctavian Dospinescu, Alexandru loan Cuza University of /as/, FiomaniaMaher Toukabri, Northern Border University, KSAVeronika A. Malanina, National Research Tomsk Polytechnic University, FtussiaAlexandra loanid, University Politehnica of Bucharest, RomaniaStanislav Martinat, School of Geography and Planning, Cardiff University, UKMafgorzata Jasiulewicz-Kaczmarek, Poznan University of Technology, PolandAndrea Székely, University of Szeged, HungaryMichat Sqsiadek, University of Zielona Gora, PolandJan Strohmandl, Tomas Bata University in Zlín, Czech HepublicIvana Blahunkovâ, Comenius University in Bratislava, Faculty of Management, SlovakiaAlexandra França, University of Vigo, SpainDorian-Laurentiu Florea, Universidad Anáhuac México, MéxicoOldrich Horák, Un/versity of Pardubice, Czech RepublicBeatrice Leusfean, University "Politehnica" of Bucharest, RomaniaIrina Danilo va, South Ural State University, RússiaOlga A. Lvova, Lomonosov Moscow State University, RússiaCamélia Delcea, Bucharest University of Economic Studies, RomaniaEtena Kolesnichenko, TambovState University named after G. R. Derzhavin, HussiaT. Ramayah, Universiti Sains Malaysia, MalaysiaRaden Aswin Rahadi, School of Business and Management, Institui Teknologi Bandung (SBM-ITB), IndonésiaStanislaw Wrycza, University of Gdansk, Department of Business Informatics, PolandJu//us Golej, Slovak University of Technology in Bratislava, SlovakiaLev Kazakovtsev, Reshetnev University, Rússia

VIII


Ivanov Maxím Vladimirovich, Peter the Great St. Petersburg Polytechnic University, RússiaIrina Zaychenko, Peter ïhe Great Saint-Petersburg Polytechnic University, RússiaRossazana Ab Rahim, Universiti Malaysia Sarawak, MalaysiaFalsai Alkhateeb, Southern University at New Orleans, USACorina - lonela Dumitrescu, University Politehnica of Bucharest, Faculty of Entrepre/ieurship, BusinessEngineering and Management, Economics Department, RomaniaOlga S. Nadezhina, Peter the Great St. Petersburg Polytechnic University, RússiaUturestantix, Cenderawasih University, IndonésiaMagdalena Turek Rahoveanu, University Dunarea de Jos of Galati, RomaniaAnna Hnydiuk-Stefan, Opole University of Technology, PolandLibuëe Svobodová, University ofHradec Králové, Czech fíepublicKatarína Krpálková Krelová, University ofEconomics, Prague, Czech RepublicNorAzlina Ab Rahman International Islamic College, International Islamic University Malaysia, MalaysiaRadica lanole-Calin, University of Bucharest, RomaníaDarina Saxunova, Faculty of Management, Comeníus Universityin Bratislava, SlovakiaRuxandra Bejinaru, "Stefan ce/ Maré" Uníversity of Suceava, RomaniaDagmar Weberova, Tomas Bata University in Zlin, Czech RepublicSilvius Stanciu, Dunàrea de Jos of Galati, RomaniaAbdullah Al Mamun Sarwar, Multimedia University, Cyberjaya, MalaysiaNicoleta Sírghi, West University of Timi§oara, fíomaniaKonstantin Shvetsov, Peterthe Great St. Petersburg Polytechnic University, HussiaJaroslav Skrabal, Silesian Uníversity in Opava, School ofBusiness Administration in Karviná, Czech RepublicElena Yuricheva, Man State University, RússiaAceleanu Mirela lonela, The Bucharest University of Economic Studies, RomaniaMihai-Bogdan Afrãsinei, Alexandru loan Cuza University of lasi, RomaniaEcaterina Daniela Zeca, "Dunarea de Jos" University of Galati. fíomaniaTatiana Sokolova, National Research University Higher School of Economics, RússiaOlga Kalimullina, ITMO University, RússiaArmand Kasztelan, University of Life Sciences, PolandNatalya Alexandrovna Sokolitsyna, Peter the Great St. Petersburg Polytechnic University, RússiaV. V. Kravchenko, Peter the Great St. Petersburg Polytechnic University (SPbPU), RússiaMaurice Abi Raad, Flabdan Academy, UAENacim Yanes, Manouba University, TunisiaSihem Ben Sassi, Manouba University, TunisiaRaquel Reis Soares, Universidade Europeia, PortugalArkadiusz Piwowar, Wrocfaw University of Economics, PolandDomínio Azuh, Covenant University, NigeriaFethi Saidi, Qatar University, QatarPaulus Insap Santosa, Universitas Gadjah Mada, IndonésiaRobert Jeyakumar, Multimedia University, MalaysiaOlga Kalinina, Peter the Great St. Petersburg Polytechnic University, RússiaSilviu Beciu, University ofAgronomic Sciences and Veterinary Medicine from Bucharest, RomaniaNadezhda A. Lvova, Saint Petersburg State University, RússiaAna Cláudia Rodrigues, ISCAP-Porto Polytechnic, PortugalKhalifa Ahsina, Ibn Tofail University, MoroccoJaishree Asarpota, Higher Colleges of Technology, UAEOtilia P. Manta, Romanian Academy - CCFM, RomaniaGheorghe Donca, University ofOradea, RomaniaIsibor Areghan, Covenant University, NigeriaSíawomir Dorocki, The Pedagogical University ofKraków, PolandCeptureanu Sebastian lon, The Bucharest University of Economic Studies, Roman/aTereza Semerádová, Technical University of Liberec, Czech RepublicMarta Ferreira Dias, University of Aveiro, PortugalMouna Damak Turki, Faculte dês Sciences de Sfax, TunisiaV. Y. Kuporov, Peter the Great St. Petersburg Polytechnic University (SPbPU), RússiaWee Yu Ghee, Universiti Malaysia Kelantan, MalaysiaLatifah Binti Abd Latib, Universiti Selangor, MalaysiaApetri An/soatra Niculina, Çlefan cel Maré University of Suceava, Romania

IX


Derek Ong Lai Teik, Sunway University Business School, MalaysiaAlena Oulehlová, University of Defence, Czech FtepublicZarina Abdul Munir, Universiti Teknologi MAHA, MalaysiaNatalia Pokrovskaia, St Petersburg State University, RússiaAgnieszka Tamowska, Wroclaw University of Economics, PolandMartha Claudia Hodríguez Villalobos, Universidad de Monterrey, MéxicoLarisa Mihoreanu, Buchaest University ofEconomic Studies, RomaniaLaura Vasilescu, University of Craiova, RomaniaAnton Sorín Gabriel, Alexandru loan Cuza University of /as/, RomaniaMafgorzata Okrçglicka, Czestochowa University of Technology, PolandYosra Essid Mamas, Effat University, KSAGeorgiana Marin, PTC Eastern Europe, RomaniaMaja Pervan, University of Split, Faculty of Economics, CroatiaHaslindar Ibrahim, Universiti Sains Malaysia (USM), MalaysiaNoraina Mazuin, National Energy University, MalaysiaElena Shkarupeta, Voronezh State Technical University, RússiaGoh Choon Yih, Mulíimedia University, MalaysiaAmiruddin Ahamat, Universiti Teknikal Malaysia Melaka (UTeM), MalaysiaAlexanderN. Litvinenko, Saint-Petersburg University of Internai Affairs of Rússia, RússiaLukas Valek, University of Hradec Kralove, Czech RepublicCristian Bucur, Petroleum-Gas University of Ploiesti, Romania/// Salsabila Abd fíazak, Univeristi Utara Malaysia, MalaysiaIvan Darushin, St. Petersburg Sïate University, RússiaAnita Romanová, University of Economics in Bratislava, SlovakiaLúcia Morosan-Danila, "Stefan Cel Maré" of Suceava, RomaniaMarínela Vríncianu, Bucharest University of Economic Studies, RomaniaArsen Tleppayev, German-Kazakh University, KazakhstanNatalia Manea, University Politehnica of Bucharest, HomaniaZugravu Gheorghe Adrian, University "Dunarea de Jos" of Galati, RomaniaAthanasios Podaras, Technical University of Liberec, Czech RepublicBenedicta Drobota, Independent Researcher, RomaniaAdrian Turek Rahoveanu, USAMV Bucharest, FtomaniaLiliia Matraeva, Russian State Social University, RússiaAlexandra Borremans, Peter the Great St. Petersburg Polytechnic University, HussiaOlga Sinenko, Far Eastern Federal University, RússiaKamal Amarouche, Mohammed V University, MoroccoAtina Ginghinã, University of Bucharest, RomaniaHsu Kuan Liu, 1-Shou University, TaiwanEwa Stanczyk - Hugiet, Wrociaw University of Economics, PolandAnastasiya A. Peshkova, Ural Federal University, HussiaVladislav Spitsin, Tomsk Polytechnic University, HussiaPaula Odeie Fernandes, Polytechnic Institute of Bragança (IPB), PortugalA/e^ceyA. Golovin, South WestState University, Rússialuliana Fialuca Gheorghe, Carol Davila University of Medicine and Pharmacy, RomaniaOana Balan, University Politehnica of Bucharest, HomaniaM-SaidOukil, University Alger-3, AlgeriaYulia Vertakova, Southwest State Un/versity, fíussiaJana Matosková, Tomas Bata University in Zlín, Czech RepublicIrina Maltseva, Southwest State University, RússiaDoina Fotache, Alexandru loan Cuza University, RomaniaArkady Trachuk, The Financiai University Under the Government of lhe Russian Federation, fíussiaAleksandra Zygmunt, Opole University of Technology, PolandAbd Halim Mohd Noor, Universiti Teknologi MARA, MalaysiaSuganthi Hamasamy, Multimedia University (Melaka), MalaysiaZuzana Kirchmayer, Comenius University in Bratislava, SlovakiaVioleta Sima, Petroleum-Gas University of Ploiesti, HomaniaJustyna Zygmunt, Opole University of Technology, PolandAlexey Bataev, Peter the Great St. Petersburg Polytechnic University, Rússia

x


Sergey Klevtsov, Belgorod University of Cooperation, Economics & Law, RússiaMonika Hodinková, STING Academy, Czech RepublicEkaterina V. Plotnikova, Pefer the Great St. Petersburg Polytechnic Uníversity, Rússialuliana Petronela Gârdan, Spiru Haret University, RomaniaOskar G. Turovets, Voronezh Staíe Technical University, RússiaTan Booi Chen, Multimedia Uníversity, MalaysiaSn Mulyani, Universitas Padjadjaran, IndonésiaCàtãlina Hadu, The Bucharest University of Economic Studies, HomaniaLarisa Ivascu, Politehnica Universíty of Timisoara, RomaniaMi Yoke Cheng, ÍCOOP College, MalaysiaJolanta Baran, Silesian University of Technology, PolandLarysaNovak-Kalyayeva, Lviv Regional Institute for Public Administratíon ofthe National Academy forPublicAdministration under the President of Ukraine, UkraineDaisy Kee Mui Hung, Universiti Sains Malaysia, MalaysiaMiroslaw Moroz, Wroclaw University of Economics, PolandDragos Smedescu, University ofAgronomic Sciences ana Veterinary Medicine of Bucharest, RomaniaCostea-Dunãrintu Anca, ,,Dimitrie Cantemir" Christian University, RomaníaMuntazir Haider Ali, Institute of Business Management, PakistanEgle Vaiciukynaite, Kaunas University of Technology, LithuaniaRozalia Kicsi, "Stefan cel Maré" University of Suceava, RomaniaMuhammad Hasmi Abu Hassan Asaari, Universiti Sains Malaysia, MalaysiaNatalia Sokolova, Saint-Petersburg State University, RússiaSemeh Ben Safem, Polytechnic Tunisian School, TunisiaMarina Ivanova, St. Petersburg State University ofEconomics, RússiaAnna Dolinsksa, South Ural Stale Universíty, RússiaZygmunt Kruczek, University School Of Physical Education in Krakow, Polandlonela Carmen Pirnea, Bucharest University of Economic Studies, RomaniaAzizah Ornar, Universiti Sains Malaysia, MalaysiaTakács lldikó-Csilla, Bucharest University of Economic Studies, RomaniaAlaa Abdul Saiam Al Yamani, University ofMosul, IraqKateryna Tiulkina. Odessa State Academy of Civil Engineeríng and Architecture, Odessa State EnvironmentalUniversity, UkraineCássia Bômer Galvão, Texas A&M Uni versity, USAAdam Ryszko, Silesian University of Technology, PolandNatalia Pokrovskaia, St Petersburg State University, RússiaCari Osunde, Onitsha Business School, NígeriaChantal Souaid Mchantaf, Notre Dame University, LebanonAlzbeta Kucharõíková, University of Zilina, SlovakiaAkhmetshin Elvir Munirovich, Kazan Federal University, Elabuga Institute ofKFU, ElabugaRohail Hassan, Universiti Teknologi Petronas (UTP), MalaysiaAchugamonu Bede Uzoma, Covenant University, NigeriaAleksandra Krajnovió, Universily of Zadar, CroatiaCamélia Hategan, West University of Timisoars, RomaniaPiotr Bebenek, Opole University of Technology, PolandIbidunni Oyebisi M., Bells University, NigeriaM Muzamil Naqshbandi, University of Dubai, UAElacovoiu Viorela Beatrice, Oil and Gás University of Ploiesti. HomaniaPavla Ríhová, Universily of West Bohemia in PÍIsen, Czech HepublicSergey l. Shanygin, St. Petersburg State University, RússiaAdelBéjaoui, University of Jendouba, TunisiaLiliana Manes, Athenaeum University, RomaniaLiudmila Nikolova, Peterthe Great St. Petersburg Polytechnic University, RússiaSrimannarayana Grandhi, Central Queensland University, AustráliaLenkaLízbetinová, Institute of Technology ana Business in Ôeské Budëjovice, Czech RepublicViktoriia Koretskaia-Garmash, Ural Federal University named after the first President o f Rússia B. N. Yeltsin,RússiaDenisa Florentina Burcea (Fulgeanu), USAMV Bucharest, RomaniaFolashade Owolabi, Covenant University, Nigeria

XI


Cristina Raluca Gh. Popescu, The Bucharest University ofEconomic Studies, RomaniaArtyom A. Golovin, South West State University, RússiaNatalia V. Gorodnova, Ural Federal University, RússiaMihail Busu, The Bucharest University of Economic Studies, RomaniaRozalia Nistor, "Dunarea de Jos" University of Galati, RomaniaJoanna Radomska, Wrocfaw University ofEconomics, PolandMihai Mieilã, Valahia University of Târgoviste, RomaniaAna Ivanisevic Hernaus, University of Zagreb, Faculty of Economics and Business, CroatiaOlawale David Johnson, Covenant University, NigeriaAlen Stojanovic, University of Zagreb, Faculty of Economics and Business, Croatiafíussayani Ismail, Un/versiti Utara Malaysia, MalaysiaAfshan Raul, Instítute of Business Management, PakistanAnna Kowalska, University of Economics in Wroclaw, PolandSaoussen Kouki, FSEG Elmanar, TunisiaCristina Burghelea, Hyperion University, Bucharest, RomaniaJolly Sahni, Prince Sultan University, KSAIndrani Hazarika, Higher Colleges of Technolog, UAEAna Paula Preto Mendes Afonso, Oporto Polytechnic Institute/ ISCAP, PortugalAnna Olszanska, Wrocfaw University of Economics, PolandLiudmila A. Guzikova, Peter the Great Saint-Petersburg Polytechnic University, RússiaEmad Bataineh, Zayed University, UAELiliana Nicoleta Simionescu, The Bucharest University ofEconomic Study, RomaniaE. V. Vorontsova, Southwest State University, fíuss/aNorzalíta Abd Aziz, Universiti Kebangsaan Malaysia, Malaysia/-/atem Ben Sta, University of Tunis El Manar, TunisiaJolanta Maj, Opole University of Technology, PolandMohamed Gharbi, Instituí Supérieur dês Etudes Technologiques de Bizerte, TunisiaSabina Kubiciel-Lodzinska, Opole University of Technology, PolandThouraya Daouas, IHEC of Carthage, TunisiaIsaiah Oluranti Oluhnola, Covenant University, NigeriaAreeba Khan, The Islamia University of Bahawalpur, PakistanFi. Shashi Kumar, Bangalore University, Bangalore, índiaAlina Zaharia, The Bucharest University of Economic Studies, HomaniaMaríum Mateen Khan, Institute of Business Management (loBM), PakistanMohammad AIShiab, Higher Colleges of Technology (HCT), UAENawazAhmad, Institute of Business Management (loBM), PakistanNorliAli, UiTM, MalaysiaLiviu-Adrian Coifas, The Bucharest University ofEconomic Studies, HomaniaEluyela Damilola Felix, Landmark University, NigeriaGorzen-Mitka Iwona, Czestochowa University of Technology, PolandFolasade Bosede Adegboye, Covenant University, NigeriaJohnson Adewale Akomolafe, Ogun State Institute of Technology, Igbesa, NigeriaSaoussen Aguir Bargaoui, School of Business IHE of Sousse, TunisiaRahulA Kulkarni, S~M. Agrawal Institute of Management, Chalisgaon - North Maharashtra University, Jalgaon,índiaWoo Kok Hoong, Universiti Tunku Abdul Rahman, MalaysiaLawrence Uchenna Okoye, Covenant University Ota, NigeriaValentina Ndou, University of Salento, ItalyNasina binti Mat Desa, Universiti Sains Malaysia, MalaysiaAbdul Hadi Bin Zulkafli, Universiti Sains Malaysía, MalaysiaTatiana Dyukina, St. Petersburg State Universíty, RússiaTatyana Bylkova, National Research Tomsk Polytechnic University, Tomsk University of Control System andRadioelectronics, RússiaFilofteia Repez, "Caro/ /" National Defence University, Bucharest, FtomaniaCheah Phaik Kin, Universiti Tunku Abdul Fiahman, MalaysiaElizaveta A. Gromova, Peter the Great St. Pefersburg Polytechnic University, Rússialoana Cristina Floresça, The Bucharest University of Economic Studies, RomanisDedi Purwana, Universitas Negeri Jakarta, Indonésia

XII


Mohd SyuhaidiAbu Bakar, Universiti Teknologi MAFÍA (UiTM), MalaysiaJayanty Kuppusamy, Multimedia University, MalaysiaAnna Nowak. University of Life Sciences in Lublin, PolandStanciu Vasile Miltiade, Spiru Haret Universíty, RomaniaCristina Buturoaga, The Bucharest University ofEconomic Studies, HomaniaAngi Erastievich Skhvediani, Peter the Great St. Petersburg Polytechnic University, RússiaIVan Syahirah Binti Mohammad Zubir, Multimedia University, MalaysiaLourdes Canós-Darós, Universitat Politécnica de Valência, SpainPoorna Prabhat Sunkara, Andhra Loyola College, índiaSabrina O. Sihombing. Universitas Pelita Harapan, IndonésiaTove Engvall, Mid Sweden Uníversity, SwedenUmara Noreen, Prínce Sultan University, KSAClaudiu Constantin Cicea, Bucharest University of Economic Studies, HomaniaVladimir Plotnikov, St. Petersburg State University of Economics, RússiaAlexander Sergeevich Sokolitsyn, Graduate School of Public Administration and Financiai Management, Peterthe Great Saint-Petersburg Polytechnic University, RússiaLubov Spitsina, Tomsk Polytechnic University, RússiaDaniela Matusíková, University of Presov in Presov, SlovakiaLeonid Mylnikov, Perm National Research Polytechnic University, HussiaBenish Chaudhry, University of Modern Sciences, UAEMaria Klevtsova, South-West State University, RússiaAri Warokka, Centro Internacional "Carlos V"- Universidad Autónoma de Madrid, Spain

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XIII


The Impact of Internai Auditing on Public Management:The Case of Portuguese Local Authorities

Nuno Adriano Baptista Ribeiro, Management Applied Research Unit (UNIAG),Polytechnic Institute of Bragança, Bragança, Portugal, nunoa@ipb. pt

Rony Cleiten Cabral Dias Rirtado, Polytechnic Institute of Bragança, Bragança, Portugal,ronyfurtado 15 ©ginail.com

Sônia Paula da Silva Nogueira, Research Centre in Political Science, EsACT- Polytechnic Institute ofBragança, Bragança, Portugal, sonia@ipb. pt

Abstract

Research on Public Administration hás evolved significantly in recent Umes, but despite that evolution,several questions remain unanswered. Study of the impact and imponance of internai auditing activity inmunicipal management is one example. The main aim of this study is to understand the influence ofinternai auditing on decision-making in local authorities' executive organs. Two questionnaire surveyswere applied, one to those in charge of internai auditing and the other to a member of the executiveorgan of the 278 local authorities in mainland Portugal. The results obtained allow the conclusion thatthe two groups of respondents ha vê the same understanding of the impact and imponance of internaiauditing activity on municipal management. There was statically evidence that the requesting internaiauditing services for internai consulting is associated with the executive organ's decision-makingprocess. The degree of imponance given to internai auditing acdvity as an instrument to assess theinternai control system and fulfílment of norms and procedures was also found to contribute to theexecutive organ's decision-making.

Keywords: Internai auditing, Public management, Internai control. Local Administration, PortugueseLocal Authorities.

Introduction

The lack of true reform in how to treat the information that is produced, or that should be produced, bythe different departments or offices of public institutíons - about compliance with policies, plans,procedures, laws and regulations - particularly those of local authorities, is the basis for these not yethaving taken a signifícant step towards true control of "public matters".

Despite using disdnct strategies, various aspects unite the public and private sector. This makes itpossible for the public sector to absorb much of what is used as a management tool in the private sector.The tendency towards new public management hás also been felt in auditing, above ali in internaiauditing (TA), particulariy the evolution of its paradigms in recent years, where the previous paradigmwas grounded on "conlrol", with the current one being based on "risk".

IA is a pillar supporting governance, and in general, any action by the executive organ. It is consideredto be an important instrument in identifying risks and assessing the quality and functionality of publicenüties' internai control (Nedea, 2015). According to Raiborn el al. (2017), AI provides benefit tomanagement and other stakeholders by performing assurance that help an organization achieve itscompliance, financiai, operatíonal, and strategic objectives.

According to Marcai and Marques (2011), IA is a management instrument that was only very recentlyintroduced in Portuguese public management, with it being more usual to turn to externai bodies. IAperforms an important role in supporting managcment decisions, sine the public sector aims to maximizeeconomy, efficiency and effectiveness.

2045


There are various studies about municipal management, IA in municipal management, PublicAdnünistration and siinilar domains, but concerning the impact of IA on management of Portugueselocal authorities, little research hás been carried out. Therefore, this study is justified by the dynamicsand relevance IA hás gained in recent years in public instítutions, particularly in local authorities.

The main aim of this research is to understand to what extent IA activity hás an impact on municipalmanagement. The intention is also to identify weaknesses in municipal management, in order tocontribute to its improvement in terms of preventing mistakes and the occurrence of irregularities,among others, consequentíy allowing more effícient and effective decision-making.

Highlighted as contributions of this study is the fact of allowing reflection, by professionals in the área,about the real impact of IA on loca] authority management. Scientifícally, since this is an under-researched topic, particularly in Portugal and applied to local authorities, the intention is to raiseawareness of the importance of IA as an instrument to support management and its effectiveness inmunicipal management.

Following this introduction, the study is structured in four sections. The first presents the theoreticalframework about the relaüonship between internai auditing and management. The second presents theempirical study, namely the methodological treatment adopted in carrying out this research, the data-collecting instrument, the aim of the study, the research hypotheses and data treatment. The third sectionpresents the results and the respective analysis. Finally, the main conclusions are presented.

Internai Auditing Versus Management

In a globalized economy IA hás become an instrument for assessing and supporting the management oforganisations, both public and private, irrespective of their nature or size. IA as part of institutionalgovernance, is an independent, objective assurance and consulting activity designed to add vai ue andimprove an organizatíon's operations (Asiedu & Deffor, 2017). IA and management are closelyconnected, largely because of their common objectives. However, these are concepts existingper se, i.e.,the very existence of the organisation implies the existence of management, without the necessaryexistence of IA. The latter is not limited to control of actions taken by management.

Not só long ago - the clássica] concept - IA in most cases highlighted what had happened, related thefacts, leaving management with the task of solving the problems identified, in an attitude of simpleassessment of the fulfilment of the principies of internai control.

In the modern concept of management, ali departments are expected to add value to the work performedand contribute to improved performance and control procedures (Pinheiro, 2014).

In continuous evolution, IA hás undergone various conceptual changes, cause by lhe changing economiccontext and by changes in legislation (Costa, 2014 & Peculea, 2015). Initíally, IA was confined aboveali to functions of safeguarding organisations' asseis, confirming adherence to procedures established bythe management organ and confirming the credibility of financiai informatíon. There was alsoconsiderable emphasis on detecling fraud. Costa (2014) states that the work done by internai auditorswas relatively limited, confined fundamentally to the domain of accounting and finance.

In a more simplistic way, Pinheiro (2014) sees IA as the control of controls, established in anorganisation aiming to contribute to promoting lhe economy, effectiveness and efficiency of theoperations carried out therein.

Management can be seen as a synonym of administration, involving to a great extent the decision-making process, which in the public sector corresponds to taking care of others' goods; not onlyconcerning the manager, but also the organisation or audited entity (Grateron, 1999). For Boynton,Johnson and Kell (2001), the term management refers generally speaking to active planning,coordination and contrai of ali operations and transactions performed by the organisation, while in anauditing context, management refers to the managers, controllers and key personnel in supervision.

2046


With the modernisatíon of management and markets, IA no longer hás the function of merelyguaranteeing asseis, verifying compliance with procedures, giving credibility to financiai informatíon orfraud detection and is certainly not confined to the accounling-financial área. It hás come to assume aconsultancy function within organisations, thereby allowing value creation and improvement ofoperatíons, making them more economical, effective and efficient. For Enofe et al. (2013), the main aimof IA ".. .is to improve organizational efficiency and effectiveness through constructive critícism, ".

The activities carried out in the scope of IA are extremely wide-ranging and cover the wholeorganisation, in ali aspects of its operations and at ali leveis of its organic structure. It can therefore bestated thal the main function of IA is to assess the management process (Magalhães, Amaral & Ahmad,2009). According to Bednarek (2017) IA is expected to play a value-adding role that will improveorganisational processes.

For Benedek, Szenténé and Béres (2014), in truth, controlling is not only an auditing tool but a1so amanagement tool, since it allows performance assessment through comparison between forecasts andfulfilment.

In general terms, what is seen is a new era for IA, justified by the relevance it hás gained in recent years.IA hás come to make a much more pro-active and participative contributíon to management, therebyadding value to the organisation. For Raiborn et al. (2017) IA increases organizational efficiency byhelping reduce waste by identifying problems before they generate extreme cost.

Empirical study

Methodology and Data Collection

The empirical research carried out here is classifíed as being of an applied, hypothetical-deductive,exploratory and quandtative nature. Questionnaire surveys were applied, based on the study by Teixeira(2006), to lhe 278 local authorities in mainland Portugal.

This study aims to provide knowledge, with practical application, directed to solving specific problems.From likely suppositíons, research hypotheses are formulated to express the difficulties of the problem.Subsequently, consequences will be deducted, to be proven or refuted. Specifically, the study aims toincrease familiarity with the problem, só that the research can be conceived with greater understandingand precision, making it explicit or foriTiing hypotheses about it. It requires the use of statisticalresources and techniques, seeking to represent in numbers the knowledge generated throughout lheresearch (Baranãno, 2004; Provdanov & Freitas, 2013).

In the empirical research, the questionnaire is fundamental to confirm the previously formulatedhypotheses. To this end, relatíonships were established between two or more variables constructed fromthe information obtained in different questions ofthe questionnaire (Baranãno, 2004).

Data collection was through two self-administered questionnaires with closed answers, applied to headsof IA and politicians in charge of the financiai área - executive organ. The questionnaü'e includes a pre-established list of possible answers, from which respondents must indicate the one closest to theiropimon.The quesüonnaires, which are broader than the subject matter used for this study, have on average 20questions divided in two sub-groups. The first group of questions aims to gather information about lhelocal authority's organisational structure. The second group of questions aims to determine theperformance of auditing in municipal management. Although directed to two different groups, thequestionnaires intentionally include common questions to allow triangulatíon of the questions answeredby each group surveyed, according to the study's objective.

The questionnaires were applied between January and May 2017. A total of41 responses were obtainedfrom lhe group in charge of IA and 55 from members of the executíve organ, representing 12,59% and

2047


19,78% of ali those surveyed. Of the 96 responses, it was only possible to validate 90, as six presentedirregularities in completion.

Objective, Research Hypotheses Ana Data Treatment

Based on the literature review, this study aims lo assess the impact of IA on Portuguese local authoritymanagement, pardcularly concerning the decision-making process, through the perception of politiciansin the executive organ and those in charge of IA.

To attain the objective defined, the following research hypotheses were fonnulated (Hl):

Hli - The number of people responsible for IA in lhe local aulhority is associated wiíh ílie decision-making process.

Hli - Requesting IA servicesfor internai consultíng is associated with lhe decision-making process.

HI] - The degree offreedom and independence ofaction granted to the IA activity is associated with lhedecision-inaking process.

HÍ4 - The degree of importance given to the IA acïivity as an itistrument to assess the internai contraisystem (ICS) and compliance with nonns and procedures is associaíeà with lhe decision-inakingprocess.

To follow up the statistical tests, it was necessary to test the normality of the samples. Here, a confidenceinterval of 95% and a levei of signifícance of 5% were assumed, valia for ali the tests made in this study.

Considering that the sample does not follow a normal distribution, one of the groups presenting a samplesize under 30 (n=22) and having opted for more conservative conclusions given respondents'participation, it was decided to apply non-parametric tests, as indicated in those cases according toMarôco (2003). Among the non-parametric tests that can be applied, the sample data are found to matchthe assumpúons of the Fisher test, which is used when the aim is to test the independence of the Chi-squared. In those cases, when one or more cells present values under 5, it is necessary to correct thevalue ofthe Chi-squared test, through the Yates continuity correction.

Considering that the Fisher test consists of a 2x2 table, it was necessary lo transform the categoriesoriginally established in the questionnaires to a 2x2 matrix.

Presentation and Analysis of the Results

Concerning characterisation of the local authority respondents by district, the results indicate a higherresponse rate from the councils in Lisbon, Faro, Portalegre and Santarém. Most have more than 500employees with only one having under 50. Considering staff numbers, in relation to local authority size,the data indicate a greater response from medium-sized councils and those situated on the left politically.

More than half lhe executive organs participating in the study said they did not have an IA department,largely due to the lack of human resources with appropriate training, and at the moment they were notconsidering its implementation. The majority of local authorities with AI have departments formed oftwo to fíve collaborators assigned to IA actívity.

Hl i - The number ofauditors in the organisation is associated with the decision-making process.

Ofthe total 100% (n=54), 27,7% (n=15) of respondents classify the number of collaborators assigned toIA activity as having 'little' influence on the information conveyed by IA activity and 72,3% (n=39)consider there is "great' influence on the informaüon conveyed by IA activity, regarding the executiveorgan's decision-making process (Table l).

2048


Table l: Number of collaborators involved in internai auditing (CIA) versus the influence oftheinformation conveyed by internai auditing (IICIA).

CIA

IICIALITTLE

GREAT

n expected

n expected

Oid}l

44

14

116

More than 2

!3

106

25

27,4

Total

15

15.0

39

39,0

Total16 38 54

n expected 16,0 38,0 54,0

After calculating the test statistíc, Q 01,5= 1,674 and the p-value equal to 0, 182 (Table 2), HIi is notcorroborated, thereby concluding that there is no statistically significanl association between the CIAand 1ICIA, with a levei of signifícance of a=0, 05 (5%). In the results obtained, lhe vslue of theQ obs statistic is calculated with the Yates correction, as one of the cells (25%) hás a frequency no greaterthan 5, as shown in Table l, where lhe minimum expected 'n' is 4,4.

Table 2: Chi-squared test of the number of collaborators involved in internai auditing

Pcitison Chi-squared

Continuity correctinn

Fnher'» exatt test

Testevalue

2. 645

1,674

Degree offreedom

Exactsig. (2sides)p-value

0182

0, 182

When raising this question, the intention was to check whether in fact the number of internai auditors, bylocal authority, varied according to their size, a situation confirmed by the results obtained, in both thedescriptive and inferential statistic. This allowed the possibility of a direct relationship between thenumber of internai auditors assigned to a local authority and its size. Pinheiro (2013) strengthens theresult observed for HI], when stating that lhe number of auditors in an organisation determines the sizeof the IA department, as well as its suitability for the organisation, allowing understanding of the reachof auditing work in the whole organisation.

fí/2 - Requesting internai auditiitg services for internai consulting is associated with lhe decision-making process.

Of the 55 respondents (100%), 27,3% (n=15) classify that influence as 'little' and 72,7% (n=-10)consider there is 'great' influence of the information conveyed by IA activity on the executive organ'sdecision-making process (Tab)e 3).

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Table 3: Requesting internai auditing services (IAS) versas influence of the information conveyedby internai auditing (UCIA)

SAI

1ICIALITTLE

GREAT

n expected

n expected

LITHE

5.7

10

15.3

&RE4T

9.3

30

24.7

Total

15

15,0

40

40,0

21 34 55Total

n expected 21,0 34,0 55,0

The values obtained in the Q2obs=10,797 and p-value (0,002), seen in Table 4, allow to confirm of Hl; fora levei of significance of 5%, concluding there is signifícant relationship between the independentvariable of IAS and the dependent variable of IICIA. Given the results obtained, there was no need touse lhe value of the Q2obs statistic of the Yates correction, as none of the cells presented a frequency of 5or under.

Table 4: Chi-squared test of requesting internai auditing services for an opinion in the área ofinternai consulting

Peiii!>on chi-squared

Continuity correction

Fiiiher's exact test

Teste value

10. 797

8, 847

Degree offreedom

Exact sig. (2 sides)p-valuc

0. 002

0. 002

The results allow to accepl Hl;, that requesting IA services would be associated with the decision-making process, corroborating the mentioned by IIA (2009), which states that IA can provideconsultancy services that improve processes of decision-making and organisational control. However, itpoints out that the extent of this consultancy will depend greatly on other internai and externai resourcesavailable and will probably vary over time.

HIj - lhe degree of freedom and independence of action granted to internai auditing activity isassociated with the decision-making process,

3,6% (n=2) of respondents classify that influence as 'low' and 96,4% (n=53) consider 'high' lheinfluence of information conveyed by IA acüvity on the executive organ's decision-making process.

Table 5: Degree of freedom and independence of action granted to internai auditing activity(DFIIA) versus influence of the information conveyed (IICIA)

DF1IA

IICIALITTLE

GREAT

n expected

n expected

IOW

05

1.5

HIGH

15

14.5

38

385

Total

15

15.0

40

40,0

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Totaln expected 2fl

53

53,0

55

55,0

Considering the test statistic, Q^s equal to 0, 005 and the p-value equal to 1, 000, Hl3 is rejected and só isno statistically significant association between DFIIA and IICIA, with a levei of signifícance ofa=0,05 (5%). The value of the Q obs statistic was calculated with the Yates correction, as two of the cells(50%) were found to have a frequency of 5 or less.

Table 6: Chi-squared test of degree of freedom and independence

Peanon chi-çquared

Continuity correction

Iis]ier's evact test

Testevalue

O "78

0,005

Degree offreedom

Exact sig. (2 sides)p-value

0596

1000

According to the IIA (2012), IA activityhas to be independent, and internai auditors have to be objectivein performing their work. Independence in carrying out IA in any organisation is a sine qua noncondition for drawing up a trustworthy IA report free from any data manipulation. "As such, the helpprovided to executíve orgaiis is better, só that they can set up processes to ensiire their decisions can betracked' (Pinheiro, 2013, p. 56).

HI4 - The degree ofimportance given to internai audüing activity as an instrument to assess the ICSandfulfilment ofnorms andprocedwes is associated with the decision-making process.

Considering ali respondents, 21, 8% (n=12) are found to classify that influence as 'low' and 78, 2%(n=43) consider there is a 'high' influence of the information conveyed by IA activity on the executiveorgan's decision-making process.

Table 7: Degree of importance of Internai Auditing (DIIA) versus mfluence of the informationconveyed (HCIA)

DIIA

IICIA

LOW

LITTLE

GREAT

n expected

expected

33

87

HIGH

39

313

Total

15

15,0

40

40,0

Total12 43 55

n expected 12,0 43,0 55,0

The results of the Q oi,8=28,070 test stadstic and the p-value < 0,001 allow confirm HL». In this context,there seems to be significant association between DIIA and IICIA, for a a=0, 05 (5%) levei ofsignificance. The value of the Q obs statistic was calculated with the Yates correction, as one of the cells(25%) presents a frequency no greater than 5.

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Table 8: Chi-squared test of the degree of importance

Pearson chi-squaied

Continuity corrcction

Fisher'i> exact test

Testevalue

32. 088

28,070

Degree offreedom

Exact sig. (2 sides)p-value

< 0. 001

< 0. 001

With the help of IA activity assessing lhe whole ICS and fulfilment of norms and procedures,management bases its decision model on appropriate and reliable information collected and assessed ona daily basis, meaning its decision-making is as appropriate and timely as possible.A summarized table of the results of the inferential statistics is presented below, in relation to theresearch hypotheses formulated (Table 9).

Table 9: Result of the research hypotheses

Independentvariables

Dependent variable - II CIA

Q2.i Degree ottreednm

p-valuePeai&on lïate^*

Mean

HeadsofIAMembers of theexecutive organ

HIi-CI4 1.674 0. 182 1.69 1. 75

HIz-AIS 10, 797 0,002 2,63 3, 20

HI3-DFIIA 0,005 1. 000 269 271

HI4-DIIA 28,07 < 0, 001 2,09 2,43

One of the principal competences required by administrators/managers is their decision-making capacity,knowing there is no certainty that these are the most correct, but they must be taken, in the hope theyproduce the desired effect. Sometimes, ihose decisions are made considering the information producedby the departments forming the orgarúsation. The organisation's survival or the continuity of theexecutíve organ may depend on the decision-making process, justifying the need to be supplied with thebest tools and models for decisions.

Nowadays, among many management options, it hás become the practice in organisations, whatevertheir structure, to be advised by an IA department.

Even when consolidated and with clear evidence of its contribution to organisational management, IAstill faces barriers to entry in some organisations, both public and private, with its contributions toorganisations' decision-making being undervalued.

Conclusion

IA includes analysis, appreciation, recommendation, suggestion and information about everythingrelated to the activities scrutinized by the internai auditor, adding to these functions the duty to promoteeffective, efficient and economically viable contrai. Ali that activity should be carried out according topreviously defined norms, in order to give more credibility to audits themselves and uphold auditors'responsibility.

Analysis of the results leads to the condusion that as a whole the respondents attribute, to some extent, adegree of importance to IA activity, considering this adds value to local authorities in general, with themain perceptible benefits being the assurance that regulatory norms are adhered to and risks arecontrolled. However, dissatisfaction was demonstrated by both groups participating in the study inrelation to the quality of IA services. On one hand, those in charge of IA demand more and bettermaterial and technical resources, and on the other, a significant number of those in charge of executiveorgans do without IA acüvity, considering it is not necessary for their activities, meaning that só far IA

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Irmovation Management and Education Excellence through Vision 2020

hás not been implemented in the majority of Portuguese local authorities.

This study shows the respondent groups have the same understanding as to the impact and importance ofauditíng in municipal management, i.e., that it adds value to the whole organisation.

Crossing the CIA variable with that of 'influence of tíie information conveyed by IA activity on theexecutive organ's decision-making process', 72,2% (n=54) of respondents state this hás 'great' influence.Considering that the test statisdc calculated reject the existence of an association between these twovariables, this allows the conclusion that the number of collaborators allocated to IA does not contributeto some extent to executive organs' decision-making.

When crossing the independent variables of AIS and DIIA with the dependent variable of 'influence ofthe information conveyed by IA activity on the executive organ's decision-making process', 80% (n=55)of respondents said the information conveyed by IA had a great influence on the executive organ'sdecision-making process. The statistics obtained allowed accepted an association between these twoindependent variables and Lhe dependent variable. It is therefore concluded that:

requesting IA services for internai consulting is associated with the executive organ's decision-makingprocess;

the degree of importance given to IA activity as an instrument to asscss the 1CS and fulfilment of normsand procedures is associated with the executive organ's decision-making process.

Finally, crossing the degree of freedom and independence of action granted to IA activity to analyse alioperatíonal and administrative aspects in municipal domains with the influence of the informationconveyed by IA activity on the executive organ's decision-making process, 80% (n=55) of respondentsstate this hás 'great' influence. The statistical results obtained reject an association between these twovariables, allowing the conclusion that the degree of freedom and independence does not contribute tothe executive organ's decision-making.

Although some of the independem variables do not seem to be directly associated with the influence ofthe information conveyed by IA activity on the executive organ's decision-making process, advantagesof auditing municipal accounts are recognized, both by the executive organ and by other users of theinformation produced by internai auditors.

From the results obtained in this study, it became clear that local authorities ha vê shown some concernabout internai control, if only because it is in their interest to measure to what extenl and in whatcircumstances their electoral projects are being carried out. What is understood is that the main reasonleading local authorities to implement an ICS is the possibility of preparing a series of administrativeprocesses, such as the accuracy of accounting records and other documents and internai informationrequired by law rather than of a voluntary nature. Although, in part, a good ICS in itself prepares localauthorities for externai assessment, many councils do without IA for various reasons, alleging the lack ofhuman resources with, for example, appropriate training in the área, major costs for the organisationalstructure 01- because they do not consider it necessary. IA is an independem activity, providing anobjective guarantee and consultancy, destined to add value and improve an organisation's operations.From what hás been presented, it is concluded that much hás still to be done by Portuguese PublicAdministration regarding IA in local authorities.

Acknowledgment

This study was conducted at Research Centre in Political Science (U1D/CPO/0758/2013), University ofMinho and supported by the Portuguese Foundation for Science and Technology and the PortugueseMinistry of Education and Science through national funds.

UNIÃO, I&D unit funded by FCT - Portuguese Foundation for Science and Technology and thePortuguese Ministry ofEducation and Science, in the project "UID/GES/4752/2016"

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