Agency Theory and the Internal Audit

Michael B. Adams (Lecturer in the Department of Accountancy, Massey University, Palmserston North, New Zealand.)

Managerial Auditing Journal

ISSN: 0268-6902

Publication date: 1 December 1994


Agency theory is extensively employed in the accounting literature to explain and predict the appointment and performance of external auditors. Argues that agency theory also provides a useful theoretical framework for the study of the internal auditing function. Proposes that agency theory not only helps to explain and predict the existence of internal audit but that it also helps to explain the role and responsibilities assigned to internal auditors by the organization, and that agency theory predicts how the internal audit function is likely to be affected by organizational change. Concludes that agency theory provides a basis for rich research which can benefit both the academic community and the internal auditing profession.



Adams, M. (1994), "Agency Theory and the Internal Audit", Managerial Auditing Journal, Vol. 9 No. 8, pp. 8-12.

Download as .RIS




Copyright © 1994, MCB UP Limited

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.
To rent this content from Deepdyve, please click the button.