Nevertheless, the majority of empirical studies examining the relationship between internal audit function and accountability have relied on data obtained from Australia, Hong Kong, Malaysia and New Zealand Leung and Cooper, 2011; Cooper et al. The aim of the auditing is to provide transfer of experience between units and the development of best practice while supporting organizational learning in offshore and onshore environments. The deductive process is connected to the detailed explicitation of mental model; this process is realized by the development of the conceptual framework based on the identification of the propositions logical relationships between concepts. You also consider the business environment and identify and analyze its accompanying risks. The main objective of this paper is to identify the relationship between the roles of the internal auditors and authority. A literature review must be defined by a guiding concept and should not be a list of all the material that you can find Porter, S.
An internal auditor ranked social pressure threat, economic interest, and personal relationship as the top three threats that could threaten objectivity. The comparison provides useful insights into the internal audit profession in Australia, Malaysia and Hong Kong. We also discuss the roles of corporate counsel and internal auditors in assisting with monitoring. In this context, internal auditing, in both its assurance and its consulting roles, contributes to the management of risk in a variety of ways Karagiorgos et al. Empirical evidence was collected by means of a mailed survey. From a practical standpoint, internal auditors may re-evaluate their actual roles, and from the various roles that they have undertaken, clarify the confusion that might have occurred concerning their roles. The study also shows that management of internal audit department, performance of audit work, audit program and audit reporting significantly influences the risk assessment aspect of the internal control system.
The answer to deciding if a topic is right for a literature review or research study lies with your chosen topic question. The results should prove informative to practitioners, internal audit professional organizations, and business professionals concerned with high-quality corporate governance. Literature Review If you believe everything you read, better not read. Findings — The literature indicates a paradigm shift in the activities performed by internal auditors. In this study, internal auditors are asked to come to a view on whether functions they perform in connection with internal audit engagements are essential, and to what degree. This involves a more sophisticated internal audit approach. The economic context during these three years was consistently characterized by the Swiss and international financial crises, which ensures that our findings remain comparable over this time period.
The internal audit function plays a key role in assisting the board to discharge its governance responsibilities. They are looking for senior management support, as this benefits their overall acceptance. A factor analysis identifies converging issues, and t-tests isolate responses by employment status, disciplinary background, experience, and audit charter existence. The presence of assurance and consulting in the definition of internal audit means that internal audit is becoming a proactive, consumer-focused activity concerned with the important issues of control, risk management, and governance Hass et al. The analysis is based on the responses of 78 Italian Chief Audit Executives who took part in a survey in 2014. There is currently considerable interest in the topic of internal audit and its contribution to the organization goals.
The lack of a sound internal control system is considered one of the major causes of corporate failure Lewington, 1996 , and corporate governance codes worldwide now explicitly require companies to disclose information about the effectiveness of their internal control systems Hass et al. In this study we tried to explore the idea of the independence of internal audit committee, independence of finance and accounting departments and the corporate charter followed by the board of directors of an organization and how they protect existing and prospective investors. We provide support for profession, agency and institutional theories. The study also hopes to motivate further research in this region. A multiple regression analysis and analysis of covariance ancova 2X2 have been used to analyze the data by using the R i386 2.
Amongst the root causes that contribute to the flaws in internal audit judgment is the objectivity issue. Recent changes in The Institute of Internal Auditors Professional Standards, introduction of new technology, and the expanding complexity of business operations require new knowledge and skills for internal auditors. Key words: internal audit; information technology; management support. The data collected was subjected to multiple regression analysis so as to test hypotheses and make conclusions on internal audit independence and its motivators in Kenya. The findings of the study can be valuable to internal auditors in other emerging economies as they shed light on possible reasons for non-compliance with the Standards , as well as for internal audit researchers as a basis for further research.
If internal audit function appear incipient in listed firms in this environment, it could be a worthwhile endeavor to establish what it is like in non-listed firms. Consistent with theory and our expectations, the results indicate that internal audit, internal auditor and added value of internal audit are statistically significantly associated with risk management. The quality and presentation of such reports makes a substantial difference to the value added by internal audit and those performing similar functions. Due to the significant role of the internal audit and information technology in each company, this research investigates the factors that influence the effectiveness of the internal audit through the relationship between the information technology usage, top management and internal audit effectiveness. A number of issues were addressed by the surveys including attitudes and recognition, professionalism, role and scope, career opportunities, education and training and the future role of internal audit.
By applying feature selection, a set of significant keywords, which are used as predictors, is extracted. According to Hass et al. In addition, other features, such as the quality of the internal auditing function or the sensitivity of top management to issues relating to corporate internal controls and risk management, can also be taken into account when formulating a judgment on the quality of corporate governance practices. This study enriches existing research related to the effectiveness of the internal audit and emphasis the importance of internal control systems in local government. However the study found that top management support does not moderate the relationship between information technology usage and internal audit effectiveness. A total of 520 questionnaires were distributed, but only 146 were usable.