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1 – 10 of over 18000
Article
Publication date: 10 January 2018

Lourens Erasmus and Philna Coetzee

The purpose of this study is to determine the differences in perception of the key stakeholders on the drivers of internal audit effectiveness, namely, senior management and the…

4385

Abstract

Purpose

The purpose of this study is to determine the differences in perception of the key stakeholders on the drivers of internal audit effectiveness, namely, senior management and the audit committee, in relation to identified measures. To be seen as an effective internal audit function, value needs to be added for both these stakeholders. It is thus important for internal auditing to obtain an understanding of what these stakeholders respectively perceive as the most prominent drivers of internal audit effectiveness.

Design/methodology/approach

Heads of internal audit functions (providing insight into the drivers), chairpersons of audit committees and senior management (providing insight into the measures) within the South African public sector responded to a survey. The data were subjected to an exploratory factor analysis and principal component analysis to reduce the set of items and to provide continuous scores for use in a multivariate multiple regression analyses.

Findings

Senior management and the audit committee differ in their level or order of prominence of the identified drivers that influence the identified measures of internal audit effectiveness. No statistical similarities in their level of views could be found.

Originality/value

To enhance the effectiveness of internal auditing, the internal audit functions should take cognisance of the difference in perceptions of its key stakeholders on the drivers of internal audit effectiveness, in relation to identified measures, to manage these relationships. No previous research could find that statistically compared views of senior management and the audit committee regarding the drivers of internal audit effectiveness.

Details

Managerial Auditing Journal, vol. 33 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 30 November 2021

Bita Mashayekhi, Farzaneh Jalali and Zabihollah Rezaee

The purpose of this study is to explore the internal audit actors and stakeholders' perceptions of the IA status in Iranian companies, and those actors and stakeholders' roles in…

Abstract

Purpose

The purpose of this study is to explore the internal audit actors and stakeholders' perceptions of the IA status in Iranian companies, and those actors and stakeholders' roles in shaping the current situation of IA in Iran.

Design/methodology/approach

This paper uses the interpretive qualitative method. Data comprises of semi-structured interviews with board of directors, audit committees, chief executive officers and chief audit executives. The paper analyzes internal audit policy documents, reports and legislations.

Findings

The results illustrate that the internal audit in Iran is perceived as a “perfunctory” practice among its stakeholders due to being recognized as an inefficient process. The key actors and stakeholders in internal audit process–including executive and board managers, audit committee members and chief audit executives–play important roles in shaping the current status of internal audit via their perceptions and actions.

Practical implications

The fact that internal audit in Iran is perceived as an inefficient process and is used as a perfunctory practice highlights the importance of addressing this issue at the standardization and regulation level. The deficits in the roles of key actors and stakeholders need to be considered as the legislative guide in different levels.

Originality/value

Prior studies mostly focus on the role of internal audit in organizations. In contrast, this study focuses on the role of key actors and stakeholders of internal auditing process in shaping the current perceived role of internal audit in organizations. Also, the study examines an emerging economy, which differs from advanced economies in important ways, including regulations, organizational culture, internal control structure and internal audit.

Details

Journal of Accounting in Emerging Economies, vol. 12 no. 4
Type: Research Article
ISSN: 2042-1168

Keywords

Article
Publication date: 3 October 2016

Barry Ackers

In South Africa, King III requires companies to have their corporate social responsibility (CSR) disclosures independently assured. Within this context, the purpose of this paper…

1428

Abstract

Purpose

In South Africa, King III requires companies to have their corporate social responsibility (CSR) disclosures independently assured. Within this context, the purpose of this paper is to examine internal audit’s CSR assurance role.

Design/methodology/approach

With reference to the International Professional Practices Framework of the Institute of Internal Auditors, the first phase of the study conceptually considers whether internal audit does qualify as an independent CSR assurance provider. Using a content analysis of integrated reports, the second phase examines the extent to which internal audit’s CSR assurance role has been disclosed. The final phase relies on survey responses to understand the emerging trends observed in the second phase.

Findings

The study finds that although internal audit does provide independent CSR assurance, this assurance is primarily intended for internal stakeholders to assist in improving the quality of CSR reporting practices. With one notable exception across the study period, the results suggest that any benefits accruing to external stakeholders were not deliberate, but merely incidental. The paper concludes by arguing that although internal audit will continue to incorporate material CSR issues into its mandatory risk-based auditing approach, the results will not necessarily be publicly available. The extent of reliance that external stakeholders can place on company CSR disclosures are therefore not directly influenced by internal audit’s involvement in CSR-related matters. However, by adopting a proactive CSR role, internal audit can assist reporting companies improve their CSR reporting practices.

Originality/value

Although CSR assurance has been extensively researched, this is one of the first studies to specifically consider the CSR assurance role of the internal audit activity. Despite its South African orientation, given the emerging nature of the CSR assurance phenomenon, the study findings have global implications.

Details

Social Responsibility Journal, vol. 12 no. 4
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 18 September 2019

Lise Muriel Botha and Naomi Wilkinson

The purpose of this study is to propose a framework for the evaluation of the perceived value internal audit functions add to their organisations. The framework is based on…

1169

Abstract

Purpose

The purpose of this study is to propose a framework for the evaluation of the perceived value internal audit functions add to their organisations. The framework is based on service quality measurement principles, specifically SERVPERF, which is applied to internal auditing.

Design/methodology/approach

Insights obtained from the literature on internal auditing and service quality disciplines were synthesised to identify and structure value-adding attributes of internal auditing. A thematic analysis of published profiles (by Protiviti) of various organisations’ internal audit functions were analysed and evaluated against those attributes identified in the literature to formulate an evaluation framework based on service quality measurement principles.

Findings

The identified value-adding attributes were categorised according to the dimensions of the SERVPERF service quality measurement instrument to formulate a framework for evaluation of the value added by internal audit functions. It was found that the SERVPERF dimensions appear to be relevant to internal auditing. The SERVPERF instrument was therefore adapted to evaluate the value added by internal auditing as a service.

Practical implications

This paper contributes to both the theory and practice of internal auditing by proposing formal dimensions of a value-adding internal audit service which can then serve as a reference point from which to evaluate the value added to an organisation. The framework can serve as a starting point for internal audit functions to develop their service offering and/or form the foundation of stakeholder satisfaction surveys.

Originality/value

The study contributes to the literature by applying service quality principles to internal auditing. A holistic framework that can be used for the evaluation of the value added by internal audit functions based on stakeholder perceptions is proposed. The framework juxtaposes attributes of value-adding internal auditing with recognised service quality performance measures. The notion of value added is investigated to better understand the concept in the context of internal auditing services.

Details

Meditari Accountancy Research, vol. 28 no. 3
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 5 January 2015

Rainer Lenz and Ulrich Hahn

The purpose of this paper is to provide a synopsis of what academic literature says about internal audit (IA) effectiveness ten years after Bailey et al. (2003) presented research…

7259

Abstract

Purpose

The purpose of this paper is to provide a synopsis of what academic literature says about internal audit (IA) effectiveness ten years after Bailey et al. (2003) presented research opportunities in IA. A new set of research questions that may help to bring the best out of IA is proposed.

Design/methodology/approach

Empirical studies based on internal auditors’ self-assessments (“inside-out”) and empirical studies based on other stakeholders’ perspectives (“outside-in”) are reviewed through an “effectiveness lens”. The “outside-in” perspective is regarded as particularly valuable.

Findings

First, common themes in the empirical literature are identified. Second, the main threads into a model comprising macro and micro factors that influence IA effectiveness are synthesized. Third, promising future research paths that may enhance IA's value proposition were derived.

Practical implications

The “outside-in” perspective indicates a disposition to stakeholders’ disappointment in IA: IA is either running a risk of marginalization (IIA, 2013; PWC, 2013) or has to embrace the challenge to emerge as a recognized and stronger profession. The suggested research agenda identifies empirical research threads that can help IA practitioners to make a difference for their organization, be recognized, respected and trusted and help the IA profession in its pursuit of creating a unique identity. This paper wishes to motivate researchers to explore innovative research strategies and probe new theories, as well as benefit from cross-fertilization with other research streams.

Originality/value

This paper summarizes the state of research on IA effectiveness and proposes a guide for future IA research. It provides pointed questions that may further advance the understanding of what constitutes IA and how IA can enhance its value proposition.

Details

Managerial Auditing Journal, vol. 30 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 11 April 2023

Amir Ghorbaniyan, Mohammadreza Abdoli, Hasan Valiyan and Hasan Boudlaie

In recent years, Corporate Citizenship has continued to grow in importance and significance. It has been the subject of considerable debate and commentary among researchers…

Abstract

Purpose

In recent years, Corporate Citizenship has continued to grow in importance and significance. It has been the subject of considerable debate and commentary among researchers, corporate leaders and public institutions like NGOs and even capital market companies. The development of this concept in internal audit functions can improve the level of responsibility of companies. The purpose of this study is to design an internal audit model of a corporate citizen in Iranian capital market companies.

Design/methodology/approach

This research is methodologically in the category of developmental and combined research. In this study, two meta-synthesis and Delphi analyzes in the qualitative part and systematic representation analysis were used to determine the systematic relationships of the Internal Audit Corporate Citizen Components to strengthen environmental sustainability. Because of the mix of the data collection method in both qualitative and quantitative parts, the research participants in the qualitative part were 13 university experts in the field of accounting and 19 internal auditors of Iranian capital market companies who had specialized experience participated in the quantitative part.

Findings

The results in the qualitative section indicate the existence of 14 confirmed studies and the determination of 8 main components of the internal audit of the corporate citizen, during two stages of Delphi analysis, the level of reliability of the components was confirmed with the concept of internal audit of the corporate citizen. Based on the results of system representation model in quantitative part, it was determined that Environmental training to human resources is the primary stimulus for the system’s internal audit system representation to monitor the financial performance of the company to achieve environmental sustainability.

Originality/value

To the best of the authors’ knowledge, this is the first study to exemplify environmental sustainability by focusing on the concept of corporate citizen internal auditing. An area that, although of research importance in terms of developing theoretical literature and practical basis in reducing the financial reporting gap with an independent auditor, However, less research has been done on this issue and conducting this research and expanding it to the level of internal auditing profession can enhance the institutional and educational capacities on it at the international level and help to integrate the development of theoretical literature.

Details

Journal of Facilities Management , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 6 July 2015

Wahid Omar Abuazza, Dessalegn Getie Mihret, Kieran James and Peter Best

– The aim of this exploratory study is to examine the perceptions of stakeholders regarding the scope of internal audit (IA) work in Libyan state-owned enterprises.

1949

Abstract

Purpose

The aim of this exploratory study is to examine the perceptions of stakeholders regarding the scope of internal audit (IA) work in Libyan state-owned enterprises.

Design/methodology/approach

Data were gathered through semi-structured interviews with chief executive officers, IA directors, administrative affairs managers, financial affairs managers and external auditors, which were supplemented with a review of relevant documentary evidence.

Findings

The results of the study show that the scope of IA in Libyan organizations may not be sufficiently wide ranging to be considered as a value-adding service. The scope of the IA function may need to be expanded to cover a broader range of organizational functions if internal auditors are to offer value-adding services to their stakeholders.

Practical implications

The IA profession has received scant attention in the literature, especially in the context of developing countries such as Libya. Therefore, such settings offer the potential to enhance the understanding of IA practices. As a study on a developing economy, it enhances understanding of the IA profession’s global configuration beyond the predominantly market-driven, industrialized Western economies.

Originality/value

In contrast to most previous studies, this study covers a broad range of IA stakeholders’ views on the role of internal auditors. This coverage enabled an in-depth investigation of the factors affecting IA scope and understanding of stakeholder perceptions on the IA function.

Details

Managerial Auditing Journal, vol. 30 no. 6/7
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 9 May 2016

Philna Coetzee

There is a widening gap between the expectations of internal audit stakeholders and the value the function brings to the table, for example, in the management of the risks…

4237

Abstract

Purpose

There is a widening gap between the expectations of internal audit stakeholders and the value the function brings to the table, for example, in the management of the risks threatening an organisation. The purpose of this paper is to investigate the views of chief audit executives (CAEs), the chairs of audit committees and senior management on the contribution of the internal audit functions to risk management in the South African public sector. This contribution is considered in the context of existing risk management structures and the level of coordination between these structures and internal auditing.

Design/methodology/approach

The views of heads of internal auditing, chairpersons of the audit committee and the Accounting Officer (similar to the CEO of private sector organisations) of national, provincial and local government organisations were obtained and statistically analysed.

Findings

The results indicate that the CAEs have noticeably different views from the other two parties, and that the existence of risk management structures has a minor effect on how the contribution of internal auditing to risk management is perceived.

Research limitations/implications

It was decided to not include the views of heads of risk management functions owing to the immaturity of risk management in this sector with in the South African public sector.

Practical implications

The results of the study provide internal auditing with information on narrowing the possible gap between the perceptions of senior management and their own perceptions. Senior management could streamline the efforts of these two parties in mitigating the key risk of the organisation. The audit committee, as the independent overseer of internal auditing, will obtain information on whether internal auditing contributes to risk management, and if not, how to address these issues, taking into account the existence (or a lack thereof) of risk management structures. The legislator and regulator of public sector could be influenced to provide clearer guidance or rules in this regard in order to enhance the efficiency and effectiveness of risk management policies and practices.

Originality/value

Limited studies have been conducted regarding the coordination of internal auditing and risk management in mitigating the key risks; especially within the public sector domain whether the existence of risk management structures would affect this coordination. Also the views of senior management, as the key stakeholder of internal auditing, on this matter have not yet been solicited.

Details

International Journal of Public Sector Management, vol. 29 no. 4
Type: Research Article
ISSN: 0951-3558

Keywords

Article
Publication date: 22 June 2012

Rainer Lenz and Gerrit Sarens

The purpose of this paper is to investigate and discuss potential reasons why the internal auditing (IA) profession has been marginalized in the governance debate on solutions…

3865

Abstract

Purpose

The purpose of this paper is to investigate and discuss potential reasons why the internal auditing (IA) profession has been marginalized in the governance debate on solutions after the financial crisis that started in 2007, also noting recent studies questioning the value of IA's work. The key aim of this paper is to make readers aware of ambiguities concerning the ultimate customer of IA and its core business, and to stimulate critical reflection thereon.

Design/methodology/approach

The conceptual discussion of this paper is based on an objective review of relevant literature, both practitioner and academic.

Findings

Positioning IA as agent to the board/audit committee and, at the same time, as partner to management is challenging in practice. The IA function should clarify the customer dimension in its organizational context. Furthermore, this paper argues for a consolidation of internal audit around its core function of providing assurance when seeking to establish IA as a profession.

Practical implications

Practitioners will benefit as this paper demands fundamental questions to be addressed in the organizational context, about the ultimate customer and the core business of the IA service rendered. The Institute of Internal Auditors will benefit from this paper and subsequent discussions in academia and practice, supporting its pursuit to gain universal recognition for IA as a profession.

Originality/value

This paper may open a new research area in IA that addresses a more critical way of evaluating IA practices.

Details

Managerial Auditing Journal, vol. 27 no. 6
Type: Research Article
ISSN: 0268-6902

Keywords

Open Access
Article
Publication date: 10 March 2021

Twaha Kigongo Kaawaase, Catherine Nairuba, Brendah Akankunda and Juma Bananuka

The purpose of this study is to establish the relationship between corporate governance attributes (board expertise, board independence and board role performance), internal audit

20643

Abstract

Purpose

The purpose of this study is to establish the relationship between corporate governance attributes (board expertise, board independence and board role performance), internal audit quality and financial reporting quality using evidence from Uganda's financial institutions.

Design/methodology/approach

This study research design is cross sectional and correlational. The study used a questionnaire survey of Chief Finance Officers, Senior Accountants and Internal audit managers of financial institutions in Uganda. Data were analyzed with the help of Statistical Package for Social Sciences.

Findings

Results indicate that board expertise and board role performance are significantly associated with financial reporting quality. Also, internal audit quality is significantly associated with financial reporting quality. Board independence is not a significant predictor of financial reporting quality.

Originality/value

This paper provides insights of what matters for financial reporting quality in Uganda's financial reporting quality. It uses the qualitative characteristics of financial statements to measure financial reporting quality. This paper focuses mainly on the conceptual framework developed by the International Accounting Standards Board.

Details

Asian Journal of Accounting Research, vol. 6 no. 3
Type: Research Article
ISSN: 2443-4175

Keywords

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