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Information system projects often go awry and when they do internal auditors are often in a position to bring the problems to management’s attention. However, managers are not always receptive to risk warnings, even when internal auditors who are role prescribed to carry out this function deliver such warnings. This phenomenon is known as the deaf effect. This paper aims to examine the actions that internal auditors take to resolve the deaf effect and how these actions affect the auditor–manager relationship.

Based on a multiple case study approach, the authors conducted in-depth interviews with auditors and examined ten cases of the deaf effect from the auditor’s perspective.

The findings revealed three categories of actions that auditors took in response to the deaf effect and how these actions immediately affected the auditor–manager relationship. Further, by analyzing the subsequent sequence of actions taken by the auditor in each case, the authors identified three distinct patterns that capture the dynamics of the auditor–manager relationship over time until the deaf effect was, ultimately, resolved.

Several practitioner studies have shown that internal auditors and managers struggle to build effective relationships, even under the most favorable circumstances and the authors suggest that deaf effect situations are likely to pose an even greater challenge to the auditor–manager relationship. The study contributes to the discourse on internal audit effectiveness in several ways. First, the authors identified three categories of actions that internal auditors took in response to the deaf effect. The authors found that two of these categories of action are related to the two distinct roles that internal auditors can play (inspector or consultant). Second, the authors examined how these categories of actions played out over time, influencing the auditor–manager relationship dynamics.

Relationships between stress and interpersonal dynamics of internal auditing, particularly auditor‐auditee relations, are focused on. An overview is presented of behavioural dynamics of auditor‐auditee relations supported by survey data on relationships between a scalar measure of stress and several behavioural factors of internal auditors' relations with auditees. Summary findings are also presented on certain features of audit departments that are related to employee stress levels, and strategies for reducing stress are described.

The purpose of this paper is to understand how external auditors communicate with audit committees (ACs).

A total of 53 interviews were conducted with participants in the ACs of 22 French companies listed in the CAC 40 index, including external and internal auditors, CFOs, AC chairpersons, and members.

In multiple accountability relationships, external auditors sit in the middle. They therefore use impression management (IM). While AC members expect them to be transparent, they are also expected to preserve managers’ “face” by sustaining impressions of consistency. The construction of impressions of consistency and transparency takes place mainly backstage, through time-consuming teamwork shared by auditors and CFOs. External auditors have power to make things transparent, but the use of such power is tricky, because it can damage relationships with CFOs. External auditors have a difficult “discrepant role” (Goffman, 1959) to play.

This study provides insights into what occurs behind the scenes with ACs, which can help regulators think deeper about relationships between external auditors and ACs.

This research makes contribution to governance, IM, and AC literature. It analyzes the AC process from external auditors’ – rather than AC members’ – points of view. Highlighting the AC process backstage, it shows that IM can be carried out collectively toward an internal rather than external audience and demonstrates that external auditors practice rather than limiting IM.

This paper investigate the antecedents of the public sector's senior management in interpersonal trust relationships involving sceptical internal audits in public services administrations. This is fundamental for a positive audit, as it affects the auditing relationship and assures a sound public administration.

The author surveyed 261 senior management from 24 Israel's local authorities (about 30%), representing large, medium and small administrations in Israel's North District.

The results indicate that senior management's antecedents to trust sceptically minded internal audits are positive for audit knowledge sharing. Findings also reveal that the internal auditor's ability, integrity and benevolence significantly impact senior management's trust. Whereas open communication does not significantly affect the senior management's propensity to trust, its satisfaction with its internal auditor fosters positive trust and support.

Understanding the antecedents of the senior public manager on internal audit benefits the audit outcomes. Albeit audit professional scepticism's interpersonal trust relationship with senior public manager influences the audit. Audits efficiently related to organisational culture and outcomes.

A new practical model of senior management trust antecedents is presented for a more effective auditing system and public administration. The model is original, as no other empirical studies have yet dealt with senior management's trust in internal audits in the public sector.

This chapter combines quantitative studies of the connections between stressors and performance in accounting settings and identifies the mediators and moderators of stressors–performance relationships. Using meta-analyses and path analyses, this research compiles 72 studies to investigate the relationships of stressors with accountant and auditor performance. As hypothesized, bivariate meta-analyses results indicate that work-related stressors negatively affect performance, and burnout and stress are negatively related to performance, whereas motivation is positively related to performance. Moreover, a meta-analytical structural equation modeling indicates that role stressors have significant direct and indirect effects (through burnout and stress) on job performance. Accumulation of multiple samples through meta-analysis bolsters statistical power compared to single-sample studies and thus reveals the sign of residual direct effects of role stressors on job performance in accounting settings.

This study examines the effects of incentive compensation and guanxi, a type of informal personal relationship between people, on the objectivity of Chinese internal auditors. Given that the objectivity of internal auditors is essential for promoting financial reporting quality, it is important to investigate the effectiveness of internal audit functions, especially in emerging markets where the corporate governance mechanisms designed to promote objectivity are less mature.

The research employs a 2 × 2 between participants experiment with 116 graduate accounting student participants.

After controlling for internal auditors’ ethicality, we find that close-guanxi between management and internal auditors and incentive compensation in the form of bonuses based upon meeting earnings targets both have the capacity to impair the objectivity of Chinese internal auditors. Participants were more tolerant of management’s attempts to manage earnings when there was close guanxi or bonus compensation. Further, compensation structure only influenced internal auditors’ support of management when guanxi was distant, but when there was close guanxi between internal auditors and management, internal auditors were unlikely to challenge management regardless of the compensation structure.

A meta-evaluation is an assessment of evaluation practices. Meta-evaluations include assessments of validity and usefulness of two or more studies that focus on the same issues. Every performance audit is grounded explicitly or implicitly in one or more theories of program evaluation. A deep understanding of alternative theories of program evaluation is helpful to gain clarity about sound auditing practices. We present a review of several theories of program evaluation.

This study includes a meta-evaluation of seven government audits on the efficiency and effectiveness of tourism departments and programs. The seven tourism-marketing performance audits are program evaluations for: Missouri, North Carolina, Tennessee, Minnesota, Australia, and two for Hawaii. The majority of these audits are negative performance assessments. Similarly, although these audits are more useful than none at all, the central conclusion of the meta-evaluation is that most of these audit reports are inadequate assessments. These audits are too limited in the issues examined; not sufficiently grounded in relevant evaluation theory and practice; and fail to include recommendations, that if implemented, would result in substantial increases in performance.

The purpose of this paper is to review and critique prior research on audit committees using a practice-theory lens. Research on audit committees has followed the same trajectory as early research on boards of directors, which has been criticised for its singular theoretical perspectives and methodologies that do not capture the complexity of real-world experiences/behaviours.

The authors devise an analytical framework based on practice theory to conduct the review. The authors examine what audit committees should do (i.e. best practice) vs what audit committees actually do (i.e. actual activities in practice – praxis). Attributes of audit committee members, and the relationship dynamics relevant to their role execution (i.e. practitioners), are considered.

Research on boards has found that over-emphasis on agency theory’s monitoring role negatively impacts boards’ effectiveness. The authors invoke other theories in examining what audit committees do in practice. The authors characterise the role of audit committees as oversight not monitoring. The authors question whether, similar to auditing, audit committees are blamist tools or are genuinely orientated towards supporting improvements in organisational management systems. The authors unpack the ritualistic ceremonial behaviours and symbolic endeavours vs substantive engagement by audit committees. The analytical framework also considers the “guardianship circle” around audit committees in the form of the key practitioners and their relationships: audit committee members, auditors and managers.

Drawing on the analytical framework, the authors provide directions for further opportunities for research of audit committees.

Auditing involves a high degree of interaction with clients and colleagues if it is to be successful. We need therefore to be more aware of the psychological factors related to audit work.

This study aims to examine aspects of the construction of professional identity, based on an interpretative inquiry in two Chinese professional service firms in Beijing.

Data were gathered through participant observation, archival material and interviews. The interpretive nature of the research experience facilitated openness to the local field and avoidance of a heavy reliance on assumptions that derive from privileging the Western constructions of professional identity, where “I” (the researcher) am situated epistemologically.

Professionalism discourse, a powerful resource of ambiguity, becomes an arena where identity is “asserted” through organisational performance, incorporated in normative Western‐driven laws. Enacted professionalism appears consistent with the pursuit of an elevated Western image. The relationships with the clients, however, are embedded in guanxi dynamics and related accountabilities, reflecting the local ways of doing things.

Empirical material offers insights into professionalisation processes in Chinese firms, with a focus on the construction of professional identity, located within organisational micro‐dynamics.