This analysis reveals the relationship between internal audit effectiveness and financial reporting quality in companies, indicating AIS plays a crucial role.
The Financial Reporting Quality (FRQ) has a great impact on the effective decision-making and business success due to enhance credibility. Hence, the main focus of this study is to judge the mediating role of Internal Audit Effectiveness (IAE) between Accounting Information System (AIS) and FRQ. Primary data has been taken through questionnaire under self-delivery and collection method. Based on a sample of 250 audit managers in Pakistani Textile Sector, the results indicate that the AIS helps to enhance IAQ and FRQ. The findings of current study are useful for academics, government and companies of textile sectors that prioritize transparency and accuracy in their financial reporting tend to be more successful in the long term, with better access to capital and stronger stakeholder relationships.
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Fayyaz et al. (2025) studied this question.
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