Managerial Auditing Journal

Commitment to independence by internal auditors: the effects of role ambiguity and role conflict : Table of Contents

Zaini Ahmad, Dennis Taylor — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – Taking a cognitive perspective of internal auditor independence, the purpose of this study is to develop measures for the concepts of commitment to independence, role conflict and role ambiguity in the context of the internal auditor's work environment, in order to provide evidence of the effects of role conflict and ambiguity, and their sub-dimensions, on the internal auditor's commitment to independence. Design/methodology/approach – To measure these concepts, scales are developed for a questionnaire by drawing on measures established in the organizational behavior literature and adapting these to the internal auditor's context. The questionnaire is sent to a sample of internal auditors drawn from the database of the Institute of Internal Auditors Malaysia in which listed companies with an in-house internal audit function are extracted. There are 101 useable responses. Findings – The results reveal that both role ambiguity and role conflict are significantly negatively related to commitment to independence. The underlying dimensions found to have the greatest impact on commitment to independence are: first, ambiguity in both the exercise of authority by the internal auditor and time pressure faced by the internal auditor; and second, conflict between the internal auditor's personal values and both management's and their profession's expectations and requirements. Originality/value – The results extend the literature on internal auditor independence and provide insights for auditing standards setters and corporate governance designers.

A summary of the global Common Body of Knowledge 2006 (CBOK) study in internal auditing : Table of Contents

Priscilla Burnaby, Susan Hass — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The 2006 global Common Body of Knowledge (CBOK) study is part of an ongoing research program designed to document how internal auditing is practiced. The purpose of this paper is to summarize responses to three global surveys of internal auditors. Design/methodology/approach – Based on literature reviews and a pre-scope questionnaire, the researchers develop three questionnaires that are answered by internal auditors world wide. Topics in the questionnaires, which are translated from English into 16 languages, include the attributes of an effective internal audit activity (IAA); compliance with The Institute of Internal Auditor (IIA) Standards; internal auditor skills, competencies, and knowledge; internal audit tools and techniques; and emerging roles of the IAA. Findings – The profession of internal auditing is a rich resource for organizations as the IAA monitors the adequacy and effectiveness of management's internal control framework and contributes to the integrity of corporate governance; risk assessment; and financial, operating, and IT systems. Practical implications – The participation of IIA members from 91 countries and 9,366 usable responses provides information about the evolving role of internal auditing as a value-added activity that helps an organization manage its risks and take advantage of opportunities. The CBOK 2006 database can be used to improve the understanding of the current state of internal auditing practices; anticipate the use of new skills, tools, and technologies; and promote the enhancement of standardization and performance of internal auditing world wide. Originality/value – This paper summarizes information in the most comprehensive database ever to capture a current view of the global state of the internal audit profession.

Usage of Internal Auditing Standards and internal auditing activities in South Africa and all respondents : Table of Contents

Marinda Marais, Priscilla A. Burnaby, Susan Hass, Elmarie Sadler, Houdini Fourie — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The purpose of this paper is to compare the responses of South African respondents with all Common Body of Knowledge (CBOK) 2006 respondents in the areas of compliance with the Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal Auditing (Standards) and several areas of the internal audit activity's (IAA) operations. Design/methodology/approach – This paper summarises and discusses the survey results from questionnaires sent to the IIA members as of September 2006. For selected topics, the CBOK 2006 database is compared for South African respondents and non-South African respondents. Findings – The paper finds that South Africans have a higher level of compliance with the Standards than those respondents residing in other parts of the world. Since the internal auditing profession is so young in South Africa, compliance with the Standards gives structure and support to the new IAAs and internal auditors. Originality/value – This is the first study comparing the status of the South African internal auditing profession with the global state of internal auditing, activities performed by internal auditors and the perception of the IAAs in their organizations.

Usage of Internal Auditing Standards by companies in the United States and select European countries : Table of Contents

Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The purpose of this paper is to investigate differences in the degree of usage and compliance with the Institute of Internal Auditors (IIA) International Standards for the Professional Practices of Internal Auditing (Standards) by organizations' internal audit activities (IAA) located in the USA and a sample of European countries which have affiliates with the IIA. This paper shows the differences among Belgium, Italy, The Netherlands, the UK and Ireland, and the USA with respect to the level of use of the Standards and compliance with the Standards by respondents' IAAs. Design/methodology/approach – Survey results from questionnaires sent to IIA members in September 2006 about various topics relating to internal auditing are summarized in the Common Body of Knowledge 2006 database. These results are compared among Belgium, Italy, The Netherlands, the UK and Ireland, and the USA. Findings – This paper shows the differences among Belgium, Italy, The Netherlands, the UK and Ireland, and the USA with respect to the level of use of the Standards and compliance with the Standards by respondents' IAAs. There are significant levels of variation in responses by country. For Standards 1300, Quality Assurance and Improvement Program, and 2600, Resolution of Management's Acceptance of Risks, respondents indicate high levels of non-compliance. Originality/value – This study compares the status of the use of the IIA Standards in five countries to determine if there is any difference in application in different parts of the world.

Internal audit – an Asia-Pacific profile and the level of compliance with Internal Auditing Standards : Table of Contents

Philomena Leung, Barry J. Cooper — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The purpose of this paper is to provide an overview of the profile of internal audit in five Asia-Pacific countries and investigate the usage and compliance with the Institute of Internal Auditors (IIA) International Standards for the Professional Practices of Internal Auditing (Standards) by organizations' internal audit activities (IAAs). This paper shows the differences between Australia, China, Japan, New Zealand and Taiwan. It also discusses part of the results of the Common Body of Knowledge 2006 global study conducted by the IIA. Design/methodology/approach – The paper reports the results of a questionnaire survey sent to the global membership of the IIA in September 2006 on various aspects of internal audit practices. Findings – The profile of internal audit differs amongst the countries with much older organizations exist in Australia, Japan and New Zealand. Respondents in New Zealand, Japan, Chinese Taiwan, China and Australia all report to have a reasonably high level of usage of Standards. However, Australia has the highest number of respondents who report that they are in full compliance of the Standards. Originality/value – This is the first global study of internal auditors' compliance with the IIA Standards.