The developing trend and prospects of internal auditing

Internal auditing has been the focus of much attention in recent years. This study examines factors associated with U.S. public companies' investment in internal auditing. Data from a survey administered to Chief Audit Executives of midsized U.S. public companies were supplemented with publicly available data. Based on data from 217 companies, the results indicate that total internal audit budgets (inhouse plus outsourced portions) are related to several factors associated with company risk, ability to pay for monitoring, and auditing characteristics. Specifically, we find evidence that internal audit budgets are positively related to company size, leverage, financial, service, and utility industries, relative amount of inventory, operating cash flows, and audit committee review of the internal audit budget. Total internal audit budgets are negatively related to the percentage of internal auditing that is outsourced. This study contributes to our understanding of internal audit services, and it allows companies to benchmark their investment in internal auditing.

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Are Internal Audits Associated with Reductions in Perceived Risk?

Auditing A Journal of Practice & Theory ◽

10.2308/ajpt-19-036 ◽

2020 ◽

Vol 39 (3) ◽

pp. 55-73 ◽

Cited By ~ 4

Author(s):

Joseph V. Carcello ◽

Marc Eulerich ◽

Adi Masli ◽

David A. Wood

Keyword(s):

Risk Reduction ◽

Perceived Risk ◽

Internal Audit ◽

Management Training ◽

Internal Auditing ◽

Business Units ◽

Time Period ◽

Increase Risk ◽

Overall Performance ◽

Changes In Risk

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.

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Depicting developing trend and core knowledge of hip fracture research: a bibliometric and visualised analysis

Journal of Orthopaedic Surgery and Research ◽

10.1186/s13018-021-02292-x ◽

2021 ◽

Vol 16 (1) ◽

Author(s):

Guanrong Peng ◽

Zhenhua Guan ◽

Yunfei Hou ◽

Jiaxiang Gao ◽

Wenqun Rao ◽

...

Keyword(s):

Hip Fracture ◽

Disease Burden ◽

Perioperative Management ◽

Web Of Science ◽

High Morbidity ◽

Core Knowledge ◽

H Index ◽

Cooperative Relationships ◽

Developing Trend ◽

Number Of Citations

Abstract Background Hip fracture is common and carries high morbidity and mortality; thus, it has become a vital concern. We aim to analyse the present status, worldwide trends in hip fracture and state of clinical research. Methods Publications from 2000 to 2019 were retrieved from the Web of Science database and analysed using a bibliometric methodology. VOSviewer software was utilised for analysis. Results In total, 6139 publications were included, and publications increased annually from 152 in 2000 to 592 in 2019. U.S. researchers have produced the most publications, the highest H-index and the greatest number of citations. Osteoporosis International has published the most papers on the topic. Leading researchers, contributing institutions, their cooperative relationships and scientific masterpieces have been identified. The publications can be divided into five clusters: ‘mortality’, ‘surgical management’, ‘rehabilitation’, ‘osteoporosis’ and ‘epidemiology’. A clear developing trend was described, which began with fracture epidemiology and prevention, transitioned to perioperative management, orthogeriatric care and patient safety and then to functional recovery, disease burden and national audits in recent times. Conclusions Hip fractures result in conditions that extend far beyond orthopaedics concerning epidemiology and preventive medicine, internal medicine and endocrinology, as well as critical care and gerontology. Interest, research and publications are on the rise.

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Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on IIA’s Exposure Draft of 2010 International Standards for the Professional Practice of Internal Auditing

Current Issues in Auditing ◽

10.2308/ciia.2010.4.2.c1 ◽

2010 ◽

Vol 4 (2) ◽

pp. C1-C4 ◽

Cited By ~ 1

Author(s):

James Bierstaker ◽

Lawrence Abbott ◽

Susan Parker

Keyword(s):

Professional Practice ◽

Internal Audit ◽

Exposure Period ◽

International Standards ◽

Internal Auditing ◽

Comprehensive Review ◽

Auditing Standards ◽

Audit Standards

SUMMARY: Recently, the Institute of Internal Auditor’s (IIA) Internal Audit Standards Board (IASB) conducted a comprehensive review of the International Standards for the Professional Practice of Internal Auditing (Standards). The IIA proposed changes to some of the Standards and also recommended new Standards. The IIA provided for a 90-day exposure period (from February 15, 2010, to May 14, 2010) for interested parties to examine and provide comments on the proposed changes and new Standards. The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below to the IIA on the 2010 International Standards for the Professional Practice of Internal Auditing exposure draft.

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New perspective on the black box of internal auditing and organisational change

Managerial Auditing Journal ◽

10.1108/maj-07-2015-1220 ◽

2016 ◽

Vol 31 (8/9) ◽

pp. 804-820 ◽

Cited By ~ 5

Author(s):

Aviv Kidron ◽

Yuval Ofek ◽

Herztel Cohen

Keyword(s):

Public Sector ◽

Quantitative Methods ◽

Internal Audit ◽

Organisational Change ◽

Internal Auditing ◽

Content Type ◽

Internal Auditors ◽

The Public ◽

Innovative Model ◽

Audit Information

Purpose The shift from the traditional audit towards performance audit implies that internal auditors in the public sector function as change agents who underpin the fundamental change process. This paper aims to propose a model that identifies the determinants of organisational change in the public sector that result from internal auditing and the way internal auditors facilitate it. Design/methodology/approach The conceptual discussion of this paper is based on a review of relevant literature, both practical and academic. Findings This paper develops an innovative model that describes the factors leading to auditees’ change readiness after undergoing internal audit processes. The independent variable is audit information quality and the dependent variable, organisational change. Auditees’ perceptions is the mediator variable, and accessibility to audit information is the moderator variable. Practical implications The proposed model suggests the advantages that can be gained by audit-related services, which in turn will add value to the organisation. The relationships between the variables inform practitioners on how to support effective audits as a means of increasing performance and influencing organisational change. Originality/value As the paper offers an innovative model, it may open up new research areas in internal auditing that can be studied by using both qualitative and quantitative methods.

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Nature's Sunshine Products: Anatomy of an FCPA Failure

Issues in Accounting Education ◽

10.2308/iace-50470 ◽

2013 ◽

Vol 28 (3) ◽

pp. 599-610 ◽

Cited By ~ 1

Author(s):

Heather M. Hermanson ◽

Audrey A. Gramling

Keyword(s):

International Business ◽

Real World ◽

Stock Price ◽

Internal Auditing ◽

Red Flags ◽

Foreign Corrupt Practices Act ◽

Internal Auditors ◽

Instructional Resource ◽

Large Corporations ◽

Real World Problems

ABSTRACT: Recently, Walmart and several other large corporations have faced allegations of Foreign Corrupt Practices Act (FCPA) violations, subjecting the companies to large fines and stock price declines. This instructional assignment introduces students to the FCPA and provides an illustration of FCPA compliance problems at Nature's Sunshine Products (Nature's). Students will (1) discuss the development, requirements, and importance of the FCPA; and (2) identify red flags at Nature's suggestive of FCPA noncompliance. This instructional assignment also includes a supplemental requirement whereby students are asked to identify ways that internal auditors could have assisted Nature's in achieving FCPA compliance. This instructional resource, which could be used in undergraduate or graduate external or internal auditing courses or in managerial or forensics courses, provides instructors with a resource for integrating real-world problems involving international business issues into the course curriculum.

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