Factors Influencing Recruitment of Non-Accounting Business Professionals into Internal Auditing

Abstract

This paper examines factors affecting non-accounting business professionals' willingness to work in internal auditing. In a 2 × 6 experiment with 502 participants from across the country, we find that, in contrast to prior research examining accountants, business professionals have relatively favorable views of internal audit. Although they hold favorable views, participants were still less likely to apply for a position labeled as internal audit than an identical position with an alternate label. Varying the structure of internal audit, including job responsibilities, career path, and sourcing arrangement, did not affect participants' willingness to apply for an internal audit position. We also find that high academically performing participants are less likely to apply to work in internal audit. Finally, based on an additional survey of 46 business students, we find that lower academically performing students would be more interested in internal audit if it paid more, but higher academically performing students would be more interested if internal audit performed more interesting work, was in a preferred company/field, or if they had more understanding of the profession. Data Availability: Contact the authors.

Improvement of the Model of Using Analytical Procedures at Internal Auditing of a Bank

“…A., Loebbecke J. K. [4], Defliese, Jaenicke, O'Reilly, Hirsch [10], Geoffrey D. Bartlett, Joleen Kremin, K. Kelli Saunders and David A. Wood [6], F. Greg Burton, Scott A. Emett, Chad A. Simon, and David A. Wood [8], David A.…”

“…-Geoffrey D. Bartlett, Joleen Kremin, K. Kelli Saunders and David A. Wood [6] investigated the organizational structure of the internal auditing subdivision for its effective functioning.…”

Non-auditors in the internal audit function: better practices for successful implementation

“…For the nonauditor For the IAF For the organization Exports an appreciation of governance, risks, and controls throughout the organization. X X Acquisition of more in-depth knowledge of the respective business area X Cultivation of better customer relations X X Heightened awareness of organizational sensitivity and business acumen X Improvement of personal and career development X X Infusion of fresh ideas and perspectives, motivation to current internal auditors X X Creates an appreciation of the role of the internal audit function X X Enhancement of specific internal audit skills and competencies X X Evolving view of internal audit as a potential source of talent for the enterprise X X Source: Bond 2011, Bartlett et al (2016), Bartlett et al (2017), Christ et al (2015) and Hansen et al (2013).…”

“…Regarding external non-auditors different dynamics are in play (Mukabo 2019). As they are not employees of the organization, they do not face the same social pressure and economic interest, thereby being more independent than in-house internal auditors (Bartlett et al 2017, Loh et al 2019. Research shows that outsourced internal auditors are less compromised in their objectivity (Loh et al 2019).…”

New Perspectives in Internal Audit Research: A Structured Literature Review

“…Conversely, Munro and Stewart () and Abdolmohammadi () obtained opposite findings based on the fact that internal auditors are more familiar with business processes and risks. In addition, some recent studies show the difficulty of recruiting highly qualified candidates to the IAF given their negative perceptions of this function (Bartlett et al, , ; Burton et al, ). However, Trotman and Duncan () argue that the use of the IAF as a training ground for senior managers is perceived as a positive signal regarding internal auditor competence and that it informs the recruitment of good candidates.…”