Rotational internal audit programs and financial reporting quality: Do compensating controls help?

Christ, Margaret H.; Masli, Adi; Sharp, Nathan Y.; Wood, David А.

doi:10.1016/j.aos.2015.05.004

Cited by 98 publications

(75 citation statements)

References 66 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…For example, Sarens and Lamboglia (2014) suggest varying competence and knowledge requirements for internal auditors in different domains. In this regard, some scholars suggest the rotation of employees to enrichen the knowledge of internal auditors (Burton et al 2015;Christ et al 2015). While rotation might improve the quality of reporting (Christ et al 2015), it could discourage employees and newcomers from joining IA teams by pointing to the general nature of the IA work (Bartlett et al 2016).…”

Section: Ia Expansions To New Domainsmentioning

confidence: 99%

“…In this regard, some scholars suggest the rotation of employees to enrichen the knowledge of internal auditors (Burton et al 2015;Christ et al 2015). While rotation might improve the quality of reporting (Christ et al 2015), it could discourage employees and newcomers from joining IA teams by pointing to the general nature of the IA work (Bartlett et al 2016). In a similar vein, studies exploring outsourcing of IA to third parties suggest that outsourcing improves the independence and objectivity of IA, but discourages auditee managers from sharing information, resulting in lower audit quality (Abdolmohammadi 2013;Caplan et al 2000;Prawitt et al 2012;Speklé et al 2007).…”

Section: Ia Expansions To New Domainsmentioning

confidence: 99%

See 1 more Smart Citation

Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

Sinha

Arena

2018

J Bus Ethics

View full text Add to dashboard Cite

This exploratory study investigates the manifold conceptions of the internal auditing (IA) of risk culture prevalent among four influential actors of the financial sector-regulators, normalizers, consultants, and implementers. By inductive analysis of 20 interviews and 295 documents, we illustrate a two-step interpretive scheme utilized by the four actors in their IA approaches of risk culture: defining broad goals and designing visibility schemes. The visibility schemes were tied to the demarcation, measurement, as well as the IA data collection techniques of risk culture. Our results indicate two dichotomous interpretations among the four actors concerning the IA of risk culture. The first interpretation, prevalent among regulators and implementers, promotes the control of risk culture primarily through verification. The second interpretation, adopted by consultants and normalizers, promotes the control of risk culture by IA along with the empowerment of employees through training programs. Our results not only contribute to understanding IA expansions, specifically to non-tangible domains such as risk culture but also enrich the literature exploring the mechanisms different stakeholders utilize to shape weakly professionalized IA practices.

show abstract

Section: Ia Expansions To New Domainsmentioning

confidence: 99%

Section: Ia Expansions To New Domainsmentioning

confidence: 99%

Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

Sinha

Arena

2018

J Bus Ethics

View full text Add to dashboard Cite

show abstract

“…Many commentators consider these factors to be crucial for an IAF's ability to add value for operating managers (Chambers & McDonald, 2013;Christ et al, 2015;IIA, 2013) influence relational commitment, because the auditees spend energy to maintain and promote relationships with IAs because they know that they are building a future together and that auditors may in future become senior managers. Many commentators consider these factors to be crucial for an IAF's ability to add value for operating managers (Chambers & McDonald, 2013;Christ et al, 2015;IIA, 2013) influence relational commitment, because the auditees spend energy to maintain and promote relationships with IAs because they know that they are building a future together and that auditors may in future become senior managers.…”

Section: Discussionmentioning

confidence: 99%

Factors that enhance the quality of the relationships between internal auditors and auditees: Evidence from Italian companies

D’Onza

Sarens

2017

Int J Auditing

View full text Add to dashboard Cite

This study examines the relationships between internal auditors and auditees in an attempt to identify the factors that influence the abilities of internal auditors (IAs) to build high-quality relationships with auditees. The analysis is based on the responses of 78 Italian Chief Audit Executives who took part in a survey in 2014. The results indicate two factors that are positively and significantly associated with high-quality IA–auditee relationships: (1) the integration of senior management's inputs in the setting up of audit plans; and (2) the use of the internal auditing function (IAF) as a management training ground. The results also show a positive but marginally significant relationship between the regular revision of audit methodologies and high-quality IA–auditee relationships. Surprisingly, the results indicate a negative and significant association between the diversification of an IAF's activities and an IAF's ability to create positive collaboration with auditees

show abstract

“…Audit committee characteristics and investBlijkbaar leidt de wetenschap dat extern gerapporteerd gaat worden tot voorzichtigheid wat tot uitdrukking komt in een hogere risico-inschatting. Christ et al (2015) Tenslotte stelt de nieuwe code dat de raad van commissarissen beoordeelt of adequate alternatieve maatregelen zijn getroffen en beziet of behoefte bestaat om een interne auditdienst in te richten in het geval dat geen interne auditdienst is ingericht (1.3.6). Naar onze mening zou, evenals op de NYSE, geen ruimte mogen bestaan om af te wijken van de bepaling om een dergelijke functie in te richten, gegeven de onmisbare monitorfunctie op het vlak van interne risicobeheersing en interne controle.…”

Section: Noten Literatuurunclassified

De interne auditfunctie als onderdeel van de internal governance van een organisatie

Wallage¹,

Leeuwen²

2017

MAB

View full text Add to dashboard Cite

Dit artikel beschrijft de ontwikkeling en positionering van de internal audit-functie (IAF) van een organisatie, waarbij wij onder meer stil staan bij het zogeheten three lines of defence-model en de bevindingen van enkele recente onderzoeken naar de relatie tussen de rol van de IAF en het functioneren van de internal governance van een organisatie. Uit onderzoek blijkt dat een onafhankelijke positie van de IAF en goede communicatie met de auditcommissie van groot belang zijn. Belangrijk is hierbij dat de auditcommissie zich buigt over het al dan niet outsourcen van activiteiten aan de externe accountant en over de vraag of interne auditors zouden moeten roteren in het kader van een management development programma.

show abstract

Rotational internal audit programs and financial reporting quality: Do compensating controls help?

Cited by 98 publications

References 66 publications

Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

Factors that enhance the quality of the relationships between internal auditors and auditees: Evidence from Italian companies

De interne auditfunctie als onderdeel van de internal governance van een organisatie

Contact Info

Product

Resources

About