scholarly journals Developing early career professional auditors at work

2017 ◽  
Vol 25 (3) ◽  
pp. 368-390 ◽  
Author(s):  
Kato Plant ◽  
Karin Barac ◽  
Herman De Jager
Keyword(s):  
South Africa ◽  
Workplace Learning ◽  
Professional Competence ◽  
Internal Audit ◽  
Early Career ◽  
Learning Theories ◽  
Management Support ◽  
Content Type ◽  
Internal Auditors ◽  
Learning Success

Purpose The purpose of this paper is to identify the determinants of internal audit workplace learning success for developing early career internal audit professionals in South Africa. Design/methodology/approach A qualitative research design was used to collect data through focus group discussions and semi-structured interviews from 65 internal audit stakeholders including internal audit employers’ early career; internal auditors’ workplace learning assessors; and presenters and members of the education and training committee of the professional body in South Africa on their experiences of the determinants of workplace learning success for internal auditors. Findings In line with workplace learning theories, it was found that there are five determinants of internal audit workplace success: the learning environment, management support, the early career internal auditors’ commitment (attitude and motivation to learn) and a relevant, structured and effective formal workplace learning programme. Practical implications Internal audit employers, early career internal auditors, workplace learning assessors and presenters as well as the Institute of Internal Auditors globally and in South Africa can use the results of this study as a benchmark for their internal audit workplace learning practices. Originality/value This paper provides insight into the determinants of workplace learning success for internal auditors and contributes to the limited body of knowledge in auditing on developing professional competence in the workplace.

Soft skills development in entry-level internal auditors: perspectives from practising internal auditors, students and facilitators in South Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Johannes Cornelius Steyn
Keyword(s):  
South Africa ◽  
Soft Skills ◽  
Internal Audit ◽  
Skills Development ◽  
Content Type ◽  
Internal Auditors ◽  
Entry Level ◽  
Alternative Teaching ◽  
Interview Survey ◽  
Teaching Learning

Purposeliterature and research internationally indicate a lack of sufficient facilitation of soft skills development in entry-level internal auditors (internal audit graduates upon entering the workplace), although it is essential for entry-level internal auditors to be able to apply soft skills effectively. The purpose of this paper is to determine the extent to which these international views and findings on soft skills development are evident in South Africa according to practising internal auditors, students and facilitators. Comparisons are also drawn between the perceptions of practising internal auditors, students and facilitators.Design/methodology/approachPurposive sampling was used, and data were collected using a structured questionnaire and an interview survey with quantitative analysis.FindingsIn general, the results concur with the literature in terms of the lack of sufficient facilitation and the importance of soft skills development in entry-level internal auditors in South Africa for all three groups. Significant differences were also found between some of the perceptions of practising internal auditors, students and facilitators.Practical implicationsThis study benefits internal audit employers, students and facilitators because soft skills are an in-demand graduate attribute and the application of alternative teaching–learning activities to develop students' soft skills also promotes deep learning through student engagement.Originality/valueThe identification of the 21 soft skills categories from the literature, which should be developed in entry-level internal auditors, has not been researched before as well as the perspectives of students and facilitators in South Africa on soft skills development.

The growth of the internal audit profession is more than just numbers

2015 ◽  
Vol 30 (6/7) ◽  
pp. 514-538 ◽  
Author(s):  
Philna Coetzee ◽  
Houdini Fourie ◽  
Pricilla A Burnaby
Keyword(s):  
South Africa ◽  
Quality Indicators ◽  
Audit Quality ◽  
Internal Audit ◽  
Chi Square ◽  
Content Type ◽  
Internal Auditors ◽  
Body Of Knowledge ◽  
Chi Square Test ◽  
Key Indicators

Purpose – The purpose of this paper is to investigate whether the internal audit quality was maintained in relation to the rapid growth in Institute of Internal Auditors (IIA) membership in South Africa. As The IIA in South Africa (SA) has seen more than double the membership growth (59 per cent) than the IIA (25 per cent) over the period 2006 to 2010, the change in internal audit quality indicators for these two are compared. Design/methodology/approach – The responses from SA respondents and all “Other” respondents are analysed from the 2006 and 2010 Common Body of Knowledge studies on specific questions addressing internal audit quality, to determine whether there is a growth in quality-related indicators and whether the growth is in relation to the membership growth. The chi-square test is used to look for change in response frequencies. Findings – The paper finds that the SA respondents have a greater increase of internal audit quality indicators than “Other” respondents, suggesting that the increase in membership could also result in improved internal audit quality. Originality/value – This study links the increase in membership with improved internal audit quality. This could assist the IIA in determining the feasibility of developing key indicators of internal audit quality. The IIA-SA will obtain an understanding whether the exceptional growth in membership is in line with the internal audit excellence as prescribed by SA guidance and legislation. Last, individual internal audit activities could benchmark their growth statistics against the SA and “Other” respondents’ growth pattern – both in numbers and quality indicators.

scholarly journals DETERMINAN EFEKTIVITAS AUDITOR INTERNAL PEMERINTAH (Studi Pada Kantor Inspektorat Provinsi Maluku Utara)

2018 ◽  
Vol 14 (1) ◽  
pp. 55
Author(s):  
Irfan Zamzam ◽  
Suriana AR Mahdi
Keyword(s):  
Career Path ◽  
Internal Audit ◽  
Top Management ◽  
Management Support ◽  
Professional Expertise ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Top Management Support ◽  
Quality Of Work

This study examines the determinants of the effectiveness of internal auditors at the Office of the Inspectorate of North Maluku. Specifically, this study tests; influence of professional expertise, quality of work, independence, perceived career path and top management influence of internal auditor on the effectiveness of internal audit. Analysis was conducted by using multiple regression analysis from 43 respondents. The results showed that; Professional expertise, quality of work, independence and career path affect the effectiveness of internal audit while top management support does not influence the effectiveness of internal audit.

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

2016 ◽  
Vol 31 (8/9) ◽  
pp. 804-820 ◽  
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.

Internal auditing and assurance of corporate social responsibility reports and disclosures: perspectives of some internal auditors in Ghana

2016 ◽  
Vol 12 (4) ◽  
pp. 706-718 ◽  
Author(s):  
Samuel Nana Yaw Simpson ◽  
Francis Aboagye-Otchere ◽  
Ruby Lovi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Internal Audit ◽  
Structured Interview ◽  
Research Approach ◽  
Limited Information ◽  
Content Type ◽  
Internal Auditors ◽  
Changing Roles ◽  
Corporate Social

Purpose This study aims to examine the nature and extent of internal auditors’ (IAs) involvement in corporate social responsibility (CSR) assurance. It also ascertains the capacity building requirements to legitimise the role of IAs as a credible form of providing CSR assurance. Design/methodology/approach A qualitative research approach was adopted, where data were collected through semi-structured interview of IAs of companies in Ghana that produce CSR reports. Findings Findings suggest that companies appreciate the fact that the internal audit function could provide independent assurance on CSR reports. However, there is limited information on the nature and scope of the assurance procedures. Moreover, most IAs seem to lack the requisite knowledge and skills needed to effectively carry out CSR assurance engagements. These evidences suggest a relatively low level of reliance being placed on CSR assurance services provided internally. Research limitations/implications Findings are purely based on the perceptions of IAs. Future studies may include the views of those who appoint IAs (i.e. management). Practical implications Findings engender discussions on the need for IAs and regulators of IAs (e.g. the Institute of Internal Auditors), particularly those in developing countries to begin to conscientise practitioners on the changing roles of the IA in the areas of CSR and CSR assurance. Originality/value This study is one of the very few studies on CSR assurance from the perspective of IAs and it also based on evidence from an African context. Also, the study provides evidence on the need for a deliberate effort to equip internal audit practitioners to provide at least some minimal assurance on CSR disclosures and reports.

Organizational identity, professional identity salience and internal auditors’ assessments of the severity of internal control concerns

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ian Burt ◽  
Theresa Libby
Keyword(s):  
Professional Identity ◽  
Internal Control ◽  
Organizational Identity ◽  
Internal Audit ◽  
Identity Salience ◽  
Content Type ◽  
Internal Auditors ◽  
Internal Control Weaknesses ◽  
The Impact ◽  
Benefits And Costs

Purpose This paper aims to examine whether increasing the salience of the internal auditor’s professional identity, defined by the expectations of their professional group, increases internal auditors’ judgments of the severity of internal control concerns when their organizational identity is high. Design/methodology/approach This paper tests the hypothesis using a laboratory experiment with internal auditors as participants. Findings The results support the hypothesis that professional identity salience moderates the relation between organizational identity and the assessed severity of identified internal control weaknesses. Increasing the salience of professional identity results in a more severe assessment of identified internal control weaknesses when organizational identity is high than when it is low. Originality/value Prior research in the lab and in the field provides mixed results about the impact of organizational identity on internal auditors’ judgments of the severity of identified internal control concerns. This paper contributes to the discussion on this issue. In addition, the results have implications for the debate about the benefits and costs of in-house versus out-sourced internal audit functions.

Could perverse incentives encourage financial services compliance and internal audit staff to ignore or engage in illegal behaviour?

2018 ◽  
Vol 33 (1) ◽  
pp. 64-89 ◽  
Author(s):  
Bryane Michael ◽  
Mark Williams
Keyword(s):  
Financial Services ◽  
Internal Audit ◽  
Economic Incentives ◽  
Financial Industry ◽  
Self Assessment ◽  
Content Type ◽  
Internal Auditors ◽  
Financial Firms ◽  
Perverse Incentives ◽  
Using Data

Purpose The purpose of this paper is to understand why managers, internal auditors and compliance staff (in financial firms specifically and using Malaysia as a concrete example) can want to ignore compliance-related legislation (a law on anticompetitive behaviour in this case). Design/methodology/approach The authors review, discuss and critique the literature on compliance and institutions in the light of existing data from Malaysia’s financial industry (literally confronting theory with data). Findings Legislative design can actually encourage managers and their auditors disobey/ignore the law for reasons which previous theories cannot explain. Research limitations/implications This research does not use the regression techniques in vogue now. The findings, nevertheless, imply that attempts to explain phenomenon in management auditing should start with the laws governing managerial activity. Practical implications Auditors may use the methods used in this study to assess the extent to which financial services firms’ managers have incentives to comply with laws. Similarly, this research can quantify the extent to which internal auditors in these firms have incentives to find untoward conduct. Social implications Poorly designed laws affecting managerial auditing derive from pre-existing social relationships, as well as help shape them (as shown using data). Identifying areas of non-compliance may actually signal deeper problems in the way businessmen and lawmakers make and enforce laws requiring compliance and self-assessment. Originality/value The authors know of no study looking at the economic incentives driving internal auditors’ behaviour – particularly in the area of antitrust. They show how law shapes management and auditors’ incentives, quantify these incentives and show how/why previous research fails to explain these incentives.

Understanding the internal audit function in a digitalised business environment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathanaël Betti ◽  
Gerrit Sarens
Keyword(s):  
Data Analytics ◽  
New Technologies ◽  
Internal Audit ◽  
Business Environment ◽  
Future Research ◽  
The European Union ◽  
Content Type ◽  
Internal Auditors ◽  
Internal Audit Function ◽  
The Impact

Purpose This paper aims to gain an in-depth understanding of how the internal audit function evolves in an increasingly digitalised business environment. Design/methodology/approach This paper is based on 29 semi-structured interviews with members of management committees and internal auditors based in Belgium. Findings The analysis reveals that a digitalised business environment affects the internal audit function in three respects. First, it impacts its scope. The agility of the internal audit planning and the required digital knowledge are expected to increase and information technology (IT) risks gain importance, especially cybersecurity threats. Second, the demand for consulting activities performed by internal auditors is higher and third, digitalisation modifies the working practices of internal auditors in their day-to-day tasks. New technologies such as data analytics tools are being implemented progressively in internal audit departments and digital skills are considered a critical asset. Research limitations/implications This research was conducted in the European Union and gathers opinions of members of management committees and internal auditors. Future research could focus on other internal auditing stakeholders in other legal contexts. Practical implications The internal audit function needs to integrate IT and data analytics skills. In addition, the internal audit function should develop consulting activities to help organisations deal with the digitalisation of the business environment. Originality/value The impact of digitalisation on the internal audit function and its effect on internal audit practices is an underexplored area.

Corporate governance and internal audit: an institutional theory perspective

2019 ◽  
Vol 20 (1) ◽  
pp. 175-190 ◽  
Author(s):  
Christina Vadasi ◽  
Michalis Bekiaris ◽  
Andreas Andrikopoulos
Keyword(s):  
Corporate Governance ◽  
Institutional Theory ◽  
Audit Committee ◽  
Internal Audit ◽  
Annual Reports ◽  
Substantial Impact ◽  
Content Type ◽  
Internal Auditors ◽  
The Impact ◽  
Audit Effectiveness

Purpose This paper aims to explore internal audit effectiveness through its contribution to corporate governance. Namely, the authors attempt to investigate the impact of internal audit professionalization on internal audit’s contribution to corporate governance. Design/methodology/approach Using a research framework informed by institutional theory, the authors predict that internal audit’s contribution to corporate governance is associated with factors related to internal audit professionalization. To investigate the arguments, the authors combine data from a survey of 49 listed companies in the Athens Stock Exchange with publicly available information from annual reports. Findings Empirical results indicate that internal audit professionalization affects internal audit effectiveness, as internal audit’s contribution to corporate governance is improved for organizations where internal audit function complies with internal auditing standards and internal auditors hold professional certifications. The findings also suggest that internal audit’s contribution to corporate governance is shaped by some company-specific characteristics, namely, CEO duality and audit committee quality. Practical implications The results have implications for internal auditors who wish to increase the efficiency of their work, corporate governance mechanisms such as the board of directors and the audit committee, which can use the findings of this study to better respond to their responsibilities concerning internal audit and regulators who can also benefit to strengthen areas with substantial impact on internal audit’s contribution to corporate governance. Originality/value This paper contributes to the academic discussion on the role of internal audit in corporate governance and complements the work of other researchers in the field of internal audit professionalization. This study tries to fill a gap in the literature on the effect of internal audit professionalization elements on internal audit’s contribution to corporate governance.

E-business internal audit: the elephant is still in the room!

2014 ◽  
Vol 15 (1) ◽  
pp. 43-63 ◽  
Author(s):  
Amr Kotb ◽  
Alan Sangster ◽  
David Henderson
Keyword(s):  
Resistance To Change ◽  
Internal Audit ◽  
Business Environment ◽  
Content Type ◽  
Internal Auditors ◽  
Internal Audit Function ◽  
The Usa ◽  
The Uk ◽  
It Audit ◽  
The Impact

Purpose – The purpose of this paper is to explore the impact of technological change on the internal audit practices and skills requirements for internal auditors in an e-business environment. Design/methodology/approach – Generalist internal auditors and specialist information technology (IT) internal auditors were surveyed online in ten countries, including the USA and the UK which, together, provided the majority of responses. Findings – The results suggest a need for advanced IT-audit techniques in conducting the internal audit function, thereby increasing IT audit skill demands on generalist internal auditors. However, the results show a low confidence among internal auditors about their IT training and a continuing reliance upon IT audit specialists, rather than their own training/retraining. Research limitations/implications – The responses obtained in this study provide insight into both the status quo of the internal audit function, and to the changes that are needed to prepare generalist internal auditors for work in an e-business environment and, while the scale of the study limits the extent to which the findings may be generalized, they are consistent with the literature concerning the changing business environment and with the literature on resistance to change, suggesting that the issues revealed should be of concern. Practical implications – The results reported in this paper are useful to internal auditing educators and regulators in their consideration of the skills needed by generalist internal auditors in e-business environment. Originality/value – This study sheds light on a significantly growing area which remains relatively unexplored in the auditing-related literature, e-business audit. The study provides empirical evidence on challenges facing internal auditors in an e-business environment, thereby serving as a wake-up call, to both internal auditors and the professional bodies representing them, to defend their jurisdictional space against rival professional groups.

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