Internal auditors’ perceptions of their role as assurance providers: a qualitative study in the Tunisian public sector

Abstract

Purpose The objective of this paper is to provide insights into internal auditors’ perceptions and experiences regarding their role as assurance providers in the Tunisian public sector through the detection, correction and reporting of internal control weaknesses and wrongdoings. Design/methodology/approach A qualitative research is conducted based on organizational role theory and using semi-structured interviews with 13 chief audit executives across 13 Tunisian public-sector organizations. A thematic analysis of the responses of interviews is then performed. Findings The content analysis of internal auditors’ responses shows that ambiguity surrounds the role of Tunisian internal auditors within the public sector because they must serve multiple customers (e.g. informal groups in Tunisian society, managers and audit committees) with conflicting expectations. In addition, the authors find that they adopt a strategy of trade-off between commercial and professional values, tending to prioritize top managers’ interests at the expense of other stakeholders. Responses provided by interviewees reveal that the absence of legal protection of internal auditors is one major obstacle explaining their failure to perform their role as assurance providers. Originality/value This study provides preliminary evidence of the challenges faced by internal auditors working in public-sector organizations in an emerging African setting. The findings of this study also emphasize the need to rethink the concept of independence of the internal auditing function within the Tunisian public sector given the apparent inability of internal auditors to alter their commercial focus. Furthermore, the results may increase the awareness of professional institutions about the necessity of enacting rules reinforcing internal auditors’ protection that may strengthen the role played by internal auditors within public-sector organizations.

Corporate governance and the use of external assurance for integrated reports

“…Coordinating the efforts of internal and external assurors may also be challenging. Both points are often raised in the context of internal audit's role in monitoring internal controls and supporting financial statement audits in developing economies (see, e.g., Coetzee & Lubbe, 2014; Khelil & Khlif, 2021; Mubako & Muzorewa, 2019). Equally possible is that internal auditors do not have the same expertise as do specialized external assurors tasked with testing ESG disclosures.…”

“…Clear reporting lines, access to audit committees, and inadequate support from governing bodies may further undermine the monitoring capabilities of internal audit (see, e.g., Zain & Subramaniam, 2007). It can also be difficult to coordinate the activities of internal and external auditors because of differences in the approach followed by the assurance providers, their respective standing at organizations and the technical hurdles which must be overcome when one assurance provider seeks to place reliance on another (Khelil & Khlif, 2021; Kok & Maroun, 2021; Mubako & Muzorewa, 2019; Roussy & Brivot, 2016). Equally relevant is the fact that professional standards have been developed for external assurance providers to test different parts of ESG reports.…”

The working relationship between internal and external auditors and the moral courage of internal auditors: Tunisian evidence

“…Although the professional and ethical standards of internal auditing functions are designed so that internal auditors act as truth-tellers in organizational contexts; internal auditors still face ethical conflicts (Roussy, 2012) when the disclosure of audit results can have negative effects on their careers (Khelil & Khlif, 2022). Balafoutas et al (2020) recognize the particular importance of objective reporting in the internal audit field due to the conflict of interest.…”

“…managers, informal groups in society and audit committees) with conflicting expectations, puts internal auditors under pressure and urges them to follow a strategy of a trade-off between commercial and professional values. Khelil and Khlif (2022) reveal that the fear from negative consequences is the main reason for the intention of internal auditors to prioritize managers' interests in the favor of other stakeholders. This conclusion emphasizes the significant role of moral courage in breaking the silence of internal auditors and behaving ethically by telling the truth about management fraud.…”

The Interplay Amongst Internal Auditors’ Psychological Capital, Creative Performance and Internal Control Efficiency

“…The early years' world financial scandals of this century have put more pressure on companies to sustain robust internal control that improves financial reporting integrity and transparency (Braithwaite, 2020;Gramling and Schneider, 2018), therefore meeting the interested parties' needs and expectations (Mnif and Znazen, 2020). Internal control is a comprehensive concept that involves the whole range of procedures, methods, and controls established by a company to increase the likelihood of achieving its business goals (Khelil and Khlif, 2021;Canonico et al, 2015;Yin et al, 2020). It also helps ensure a reliable presentation of financial information according to the applicable professional standards and regulations (Oussii and Taktak, 2018).…”