In light of the growing importance of internal audit functions (IAF) and the limited archival evidence on internal audit quality, we examine an interactive model of IAF quality (comprised of ...competence and independence) to better understand the determinants of IAF effectiveness as a financial reporting monitor. Our tests support the hypothesis that the joint presence of competence and independence is a necessary antecedent to effective IAF financial reporting monitoring. In sum, our results show that, the answer to "what is the effect of internal audit competence (independence) on financial reporting quality?" is "it depends on the independence (competence) of the internal auditor." Our study extends the understanding of IAF quality determinants in the realm of financial reporting as it relates to ongoing discussions by researchers, standard setters, regulators, and practitioners.
Internal auditing (IA) has become an indispensable control mechanism in both public and private organisations. Yet very few academic studies have been conducted on the effectiveness of IA. The ...current exploratory study aims to build a conceptual understanding of the effectiveness of IA in organisations. Towards this end it develops a scale to measure the effectiveness of IA and a model of its determinants. One hundred and eight Israeli organisations that employ IA participated in the study (a 37% response rate). Data on the effectiveness of IA were collected from the organisations’ general managers and data on the determinants from their internal auditors. The findings reveal good psychometric properties for the scale developed in this study. The correlation and regression analyses show support from top management to be the main determinant of IA effectiveness, with some effect also found for the organisational independence of IA. The effect of the predictors was consistent between the public and private sectors. The research model explained a large amount of variance of IA effectiveness. The findings are discussed in terms of how they can help guide and encourage the continuation of research on this issue.
Over the years, many organisations adopted several types of Three Lines models for optimising risk management coordination and control. According to these models, first line risk ownership is ...required for routinely applying risk management in all of the organisation’s activities, which seems highly underdeveloped. From an exploratory and development research, which builds on conventional risk management approaches, three pragmatic suggestions are derived: (1) simplifying risk management by asking three specific OUD-questions about Objectives, Uncertainties and what to Do, (2) clarification of objectives at all organisational levels, and (3) connecting responsibility for objectives to risk responsibility. Routinely applying these suggestions by second line controllers and third line internal auditors may support first line risk ownership.
Šiuo tyrimu siekiama pateikti išsamią vidaus audito funkcijos charakteristikų ir vietos valdžios institucijų administravimo veiklos Indonezijoje analizę. Tyrime naudoti oficialūs antriniai duomenys ...iš Indonezijos valstybinių reguliavimo institucijų, kuriose generuojami nesubalansuoti duomenys su 5038 stebėjimais, analizuotais taikant duomenų regresijos metodą. Analizė atskleidė, kad Indonezijoje nuo 2015 m. daugumoje regionų buvo pasiekta aukšto lygio administravimo rezultatų, o kai kuriuose regionuose (vietos savivaldos lygmeniu, taikant veiklos auditą) Javoje ir Balyje tie rezultatai buvo aukštesni, palyginti su Borneo, Sumatros, Sulavesio ir Rytų Indonezijos regionais. Taip pat darbe atskleidžiama, kad vidaus audito funkcijų pajėgumai, branda ir kompetencija teigiamai veikia vietos valdžios institucijų administravimo veiklą Indonezijoje. Tinkamos vidaus audito charakteristikos yra būtinos optimizuojant vietos valdymo priežiūrą, siekiant geresnio administravimo. Taip pat siūloma už vidaus audito įgyvendinimo plėtrą atsakingai Indonezijos Finansų ir plėtros priežiūros agentūrai (BPKP) tinkamai įgyvendinti nuolatinės plėtros programas. Tinkamas žmogiškųjų išteklių paskirstymas ir technologijų naudojimas yra būtini, kad administravimo priežiūra būtų kokybiškesnė ir užtikrintų viešąją atskaitomybę.
SUMMARY
The auditing landscape has changed dramatically in the last 20 years due to new standards, improved technology, internal shared services centers, and more. These institutional advances have ...altered the responsibilities of novice auditors. However, our knowledge of novice auditor task responsibilities and experiences has not been systematically updated in the 21st century. This study provides empirical evidence on the tasks and experiences of novice auditors by reporting survey responses from 104 audit interns, more than 30 intern supervisors, and 89 staff auditors. Our results shed light on the evolution of the roles of novice auditors by documenting the significant number and variety of tasks that they perform, as well as the interpersonal interactions, formal training, and other activities they commonly experience.
Data Availbility: Please contact the authors.
Metodos Se realizo una encuesta de auditoria interna en un hospital de atencion terciaria en Finlandia de 2013 a 2018. Las enfermeras de control de infecciones observaron las practicas de higiene de ...las manos segun la estrategia de la Organizacion Mundial de la Salud para la higiene de las manos. Se estimo que el cumplimiento de la higiene de las manos equivalia a dividir el numero de las observaciones en las que era necesario practicar la higiene de las manos por el numero total de observaciones en las que se requeria la higiene de las manos. Se determino la incidencia de las infecciones relacionadas con la atencion medica mediante un programa semiautomatizado y electronico de vigilancia de la incidencia. Se calculo la correlacion de Pearson (r) para evaluar la relacion entre la incidencia de las infecciones relacionadas con la atencion medica y el cumplimiento de la higiene de las manos. phrase omitted
SUMMARY
We examine whether internal auditing provides value to organizations by reducing risk. We compare the changes in risks between audited business units and matched non-audited units within the ...same company. This design allows us to isolate the importance of an internal audit while holding constant changes in risk due to the organization and time period. Based on ratings from the heads of audited and non-audited units, we find that managers of audited units perceive a greater decline in risk as well as a greater increase in performance compared to managers of non-audited units. We also find that companies that have had a quality assurance review and are used as a management training ground are associated with greater reductions in risk and improved overall performance. Our study contributes to the academic literature by documenting a new facet of internal audit benefits—risk reduction—and internal audit characteristics that increase risk reduction.
У cmammi розглянуто суттсть внутршнього аудиту, po3Kpumi основт завдання та визначет передумови створення служби внутршнього аудиту, розкритi форми оргатзацп внутршнього аудиту та обГрунтовано ...важливкть внутршнього аудиту як тструменту контролю для ефективного функщонування тдприемства.
PurposeThis paper reviews the field of internal auditing (IA) post-Enron to develop insights into how IA research has developed, offer a critique of the research to date and identify ways that future ...research can help to advance IA.Design/methodology/approachA structured literature review (SLR) was used to analyse 471 papers from 64 journals published between 2005 and 2018 based on a number of criteria, namely author, journal type, journal location, year, theme, theory, nature of research, research setting, regional focus, method and citations.FindingsThe IA literature has not significantly contributed to knowledge of the internal audit function (IAF), and one still knows relatively little about the factors that contribute to making the impact of IA practice effective and measurable. The IA literature is US-dominated (authors and journals), focussed on the American context (publicly listed companies), reliant on positivist analyses and largely makes no explicit reference to theory. Central regions (emerging economies) and key organisational settings (private SMEs and not-for-profit organisations) are largely absent in prior IA research. This paper evaluates and identifies avenues through which future research can help to advance IA in order to address emerging challenges in the field.Originality/valueThis is the first comprehensive review to analyse IA research in the post-Enron period (2005–2018). The findings are relevant to researchers who are looking for appropriate research outlets and emerging scholars who wish to identify their own research directions.
The purpose of this study is to investigate how the level of controls testing coordination with the external auditor affects internal auditors' effort. The internal auditor's planned substantive ...testing audit hours are the measure of effort in this study. Regulators and stakeholder organizations have encouraged more collaboration between external and internal auditors to improve audit efficiency. The effect of external auditor coordination on internal auditors' planned audit hours has important implications for audit efficiency and effectiveness. An experiment is conducted with 112 internal auditors to examine the hypothesized effect. The study uses a 2 × 2 between-subjects design and manipulates fraud risk and external auditor coordination. Consistent with my prediction, I find that coordination moderates the relationship between fraud risk and planned audit hours. The results illustrate that although high external auditor controls testing coordination decreases internal auditors' planned substantive testing audit hours, internal auditors are more sensitive to responding to fraud risk when external auditor controls testing coordination is high.
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