Management accounting and improving Internal Audit Quality

This study investigates how enhancing the application of management accounting tools both traditional and modern can improve governance within economic institutions through the internal audit mechanism. It addresses the core issue of the relationship between effective use of these tools and internal audit performance. The hypothesis tested suggests a statistically significant impact of improved management accounting practices on internal audit effectiveness. A field study was conducted involving economic institutions in the Wilaya of Me de a, companies listed on the Algiers Stock Exchange, and auditing firms. The theoretical model employed identifies management accounting tools as the independent variable and internal audit mechanism as the dependent one. Statistical methods such as T tests, F tests, and the coefficient of determination (R²) were used. Results indicate that the effective application of tools like budget forecasts, full costing, balanced scorecards, and activity based costing positively influences internal audit, with a marginal effect of 0.29 for traditional tools and 0.30 for modern ones, explaining 35% of variation in audit effectiveness and thus enhancing governance.