Impact of Internal Audit Effectiveness on Firm’s Financial Health

For better corporate governance and to safeguard the interest of stakeholders, Internal Audit emerged as one of the crucial departments to not only control the internal functions but also increase the efficiency of the organization. But the effect of Internal Audit Quality on financial performance, is still mystified. The main objective of this research is to explore the Internal Audit Quality overall impact on Firm Financial Performance. Secondary Data has been collected from non-financial Omani companies’ Audited Financial Reports available on website of Muscat Stock Exchange (MSX) and company’s own website, for a period of 5 years from 2017 to 2021. The data has been analyzed with partial least square (PLS) technique for Structural Equation Modeling (SEM) using SmartPLS. One of the major findings of the study was that including female auditors in the team results in significant audit competency influence on return on equity (ROE). Although management support is vital for economic sustainability, yet, the research did not have enough statistical evidence to prove its influence on Financial Performance.