Information Asymmetries and Intra-Company Monitoring: an Empirical Analysis of Nonlinear Relationships Between Company Characteristics and the Size of the Internal Audit Function

Eulerich, Marc; Lohmann, Christian

doi:10.1007/s41471-021-00128-2

Cited by 13 publications

(5 citation statements)

References 60 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

Section: Discussionmentioning

confidence: 99%

“…This may be explained according to agency theory (Jensen and Meckling, 1976). The information exchange between agents (auditor) and principals (senior management) is asymmetric (Eulerich and Lohmann, 2022), influencing access to information (Adams, 1994;Lopes et al, 2023). The agency theory generally assumes that principals (senior managements) may not trust their agents (auditors) due to opportunistic behaviours (Singh et al, 2021).…”

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Internal auditor's interpersonal trust building: the Israeli public sector

Eshet

2023

JPBAFM

View full text Add to dashboard Cite

PurposeThis 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.Design/methodology/approachThe author surveyed 261 senior management from 24 Israel's local authorities (about 30%), representing large, medium and small administrations in Israel's North District.FindingsThe 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.Practical implicationsUnderstanding 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.Originality/valueA 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.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Internal auditor's interpersonal trust building: the Israeli public sector

Eshet

2023

JPBAFM

View full text Add to dashboard Cite

show abstract

“…showed that the investigation of culturally different markets might enhance the understanding of various IA facets. Eulerich and Lohmann (2022) Discussed the reasons for the inconsistency of information and control by investigating the relationship between the characteristics of the company and the size of the IAFs. Using a sample from three countries, Germany, Austria, and Switzerland, the results revealed that there are common characteristics that affect information and control inconsistency, as well as their impact on the size of IAFs.…”

Section: Geographical Distribution Of the Literaturementioning

confidence: 99%

“…It is clear from Table 5, that the questionnaire is the most applied tool that was used in 65 (45.77%) studies. This approach has been used in several studies (i.e., Ježovita et al, 2018;Koutoupis et al, 2018;Alzeban and Sawan, 2015;Eulerich and Lohmann, 2022) as it helps to collect more information that cannot be measured by the secondary data. This is an indication that the results of the studies are realistic to some extent, considering that the use of the questionnaire in administrative and social disciplines is one of the most important ways to obtain reliable and real data (Roopa and Rani, 2012).…”

Section: Research Instrumentsmentioning

confidence: 99%

Mapping the literature of internal auditing in Europe: a systematic review and agenda for future research

Hazaea

Zhu

Khatib

et al. 2022

MEDAR

View full text Add to dashboard Cite

Purpose Although many firms are investing considerable resources in building and designing strong and effective internal auditing (IA) to improve corporate governance and internal control processes, IA literature is still relatively fragmented. Therefore, this paper aims to provide a systematic review of studies on IA in 27 European countries and the UK. Design/methodology/approach Based on the Scopus database, 142 papers published between 1987 and 2022 were analyzed. This study focused on evaluating and analyzing the characteristics of literature and the themes investigated with a focus on four key aspects: governance, the effectiveness of IA, the relationship between internal auditors and other parties and risk management to provide directions for future research. Findings This study found that IA literature did not provide the integrated knowledge of internal audit functions (IAFs) and the factors that could contribute to their implementation as required. The results showed that the UK, Greece and Italy dominate the published literature in terms of the number of studies. There are a few studies that investigate IA in private institutions and nonprofit organizations. Interestingly, a vast majority of studies are not based on theoretical grounds. The results also showed that there is an absence of studies that discuss the impact of cultural and political systems as well as the demographic characteristics of auditors on the implementation of IAFs. Originality/value This study is useful for researchers, organizations and regulators because it contributes to the literature by highlighting the intellectual development of IA in the European countries and the UK, providing several directions for future studies. To the best of the authors’ knowledge, this research is the first study to use a systematic review approach in evaluating the intellectual development of IA research in European countries, identifying areas and elements that received less attention in previous studies and providing a roadmap for future studies.

show abstract

“…The starting point for a value-adding IAF is commonly offered by the three lines model (Bantleon et al, 2021;Eulerich, 2021) pointing out that internal auditing supports governance actors along with monitoring and oversight activities through independent and objective assurance and advice. Thus, internal auditing has gained considerable acceptance as a crucial element of good corporate governance (Carcello et al, 2020;Eulerich & Lohmann, 2022).…”

Section: Involvement Of Internal Auditorsmentioning

confidence: 99%