Antecedents and organisational performance implications of internal audit effectiveness: Some propositions and research agenda
Abstract
Purpose
The purpose of this paper is to synthesize relevant theoretical and empirical literature to develop propositions and suggest a research agenda on the antecedents and organisational performance implications of internal audit effectiveness.
Design/methodology/approach
The paper employs institutional theory and Karl Marx's theory of the “circuit of industrial capital” to synthesize relevant internal audit literature to develop theoretically justifiable propositions and highlight an operational research agenda.
Findings
Propositions and a research agenda are provided on potential antecedents of internal audit effectiveness and its possible association with company performance measured as rate of return on capital employed. Also, key variables are identified and operationalisation issues discussed.
Originality/value
As the extant literature does not provide a canon of internal audit effectiveness, the paper's originality is its argument that a positive association between compliance with standards for the professional practice of internal auditors and organisational goal achievement could serve as an approach to assess internal audit effectiveness. Furthermore, the use of the two theories in combination provides additional insights into identifying the antecedents of internal audit effectiveness and its measurement.
Keywords
Citation
Getie Mihret, D., James, K. and Mula, J.M. (2010), "Antecedents and organisational performance implications of internal audit effectiveness: Some propositions and research agenda", Pacific Accounting Review, Vol. 22 No. 3, pp. 224-252. https://doi.org/10.1108/01140581011091684
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited