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Internal Auditing (internal + auditing)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	100%

Selected Abstracts

Factors Associated with the Use of and Compliance with the IIA Standards: A Study of Anglo-culture CAEs

INTERNATIONAL JOURNAL OF AUDITING, Issue 1 2009
Mohammad J. Abdolmohammadi
Chief audit executives (CAEs) are required to use and comply with The International Standards for the Professional Practice of Internal Auditing (Standards). However, this study finds that 13.5 percent of CAEs in Anglo-culture countries do not use the Standards. Furthermore, of those who use the Standards a significant number fail to comply with specific standards. Multivariate tests of data from CAEs in this study show that ,Length of IIA membership' and ,Internal auditing certification' are positively associated with use. Other significant variables are ,Superseded by local/government regulations or standards,',Not perceived as value added by management/board' and ,Compliance not expected in the country' that are inversely related to use. The length of training is also positively associated with compliance, while other significant variables are internal audit certification, ,Standards are too costly,',Not perceived as value added by management/board' and ,Inadequate internal audit staff' that are negatively associated with compliance. The paper ends with a discussion of the implications of these results for practice and research. [source]

Internal Auditing and Risk Assessment in Large Italian Companies: an Empirical Survey

INTERNATIONAL JOURNAL OF AUDITING, Issue 3 2003
Marco Allegrini
This paper aims at achieving an overall view regarding the state of the art of internal auditing in large Italian companies. Mainly, it is focused on risk assessment practices and on the execution of a risk-based approach in the audit process. The research is based on a survey carried out on the ,Top100' companies listed at the Italian Stock Exchange. Survey results reveal that practices vary significantly among three different models: 1A few companies (25%) carry out mainly traditional compliance activities and they generally follow an audit-cycle approach for the annual audit planning; 2In most companies (67%), internal auditors adopt the COSO model and perform mainly operational auditing. Risk-based approach is applied predominantly at macro level. 3Finally, it is possible to identify a very few large companies (8%), in which auditors are applying a risk-based approach both at macro and micro level. [source]

The Effectiveness of Internal Auditing: An Empirical Examination of its Determinants in Israeli Organisations

AUSTRALIAN ACCOUNTING REVIEW, Issue 3 2010
Aaron Cohen
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. [source]

Identifying Organizational Drivers of Internal Audit Effectiveness

INTERNATIONAL JOURNAL OF AUDITING, Issue 1 2009
Marika Arena
This study attempts to understand the organizational drivers of internal audit effectiveness in the light of recent changes in the ,mission' of internal auditing and its central role in corporate governance. On the basis of data from 153 Italian companies, our survey shows that the effectiveness of internal auditing is influenced by: (1) the characteristics of the internal audit team, (2) the audit processes and activities, and (3) the organizational links. Internal audit effectiveness increases in particular when the ratio between the number of internal auditors and employees grows, the Chief Audit Executive is affiliated to the Institute of Internal Auditors, the company adopts control risk self-assessment techniques, and the audit committee is involved in the activities of the internal auditors. [source]

Evidence on the Impact of Internal Control and Corporate Governance on Audit Fees

INTERNATIONAL JOURNAL OF AUDITING, Issue 1 2008
David Hay
Previous studies generally suggest that internal control and external auditing can substitute for each other, so that better internal control will be associated with lower audit fees. However, their empirical results do not support this view. In contrast, previous studies of the interaction between corporate governance and external audit services often assume that they are complementary, and that improved governance is associated with higher audit fees, although the evidence about this issue is also mixed. We examine whether the ,substitution' or ,complementary controls' views apply. We find that measures of internal auditing, corporate governance, and concentration of ownership are all positively related to audit fees, consistent with the explanation that controls are complementary. The study makes a contribution by assisting regulators in understanding the effects of regulation of corporate governance, and by showing auditors and auditing standard setters that the view that internal controls can substitute for external auditing may not be helpful. We also find that these relationships hold only in a relatively less-regulated environment. [source]

Internal Audit Departments: Adoption and Characteristics in Italian Companies

INTERNATIONAL JOURNAL OF AUDITING, Issue 2 2007
Marika Arena
This article analyses the adoption and characteristics of internal audit departments in Italian companies, in the light of recent changes in the economic and political environment following the big financial scandals which occurred both in Italy and abroad. The research framework is informed by new institutional theory, driving the definition of a conceptual model. The research approach comprises two steps: first, a preliminary in-depth case study to support the research design (assessment of relevant variables and questionnaire's construction); second, an extensive survey involving 364 Italian companies, with a response rate of 63%. The article highlights an actual diffusion of internal audit structures among Italian companies. Data collected show increasing attention towards internal audit activities, resources and competencies and highlight the relevance of isomorphic pressures in influencing companies' support of internal auditing. [source]