Internal audit assurance or consulting services rendered on governance: How does one decide?

Wilkinson, Naomi; Coetzee, Philna

doi:10.22495/jgr_v4_i1_c2_p3

Cited by 10 publications

(5 citation statements)

References 16 publications

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“…The implementation of RBIA as a modern methodology in the field of auditing effectively achieves the interconnection of internal audit and risk management – functions previously considered independent (Coetzee and Lubbe, 2014; Hafizah, 2017; Van Peursem, 2004; Wilkinson and Coetzee, 2015). This study empirically analyzes the variables associated with the implementation of RBIA in organizations in Greece.…”

Section: Discussionmentioning

confidence: 99%

“…At the same time, changes in regulatory frameworks and the introduction of new standards of internal audit, risk management and corporate governance required the interdependence of internal audit and risk management through the use of a systematic and structured audit methodology, i.e. risk-based internal audit (RBIA) (Chapman and Anderson, 2002; Jankensgård, 2019; Van Peursem, 2004; Wilkinson and Coetzee, 2015).…”

Section: Introductionmentioning

confidence: 99%

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Risk-based internal audit: factors related to its implementation

Lois

Drogalas

Nerantzidis

et al. 2021

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Purpose This study aims to investigate the factors associated with the implementation of risk-based internal audit (RBIA). Design/methodology/approach As a first step, a literature review of the relevant literature is performed and five potential factors related to the implementation of RBIA are identified. Based on that, this paper constructs a questionnaire survey sent out to 185 internal auditors, executives and accountants in Greece to receive 90 responses during the period of November 2019–January 2020. Multiple regression analysis is conducted to identify the factors related to the implementation of RBIA. Findings This paper shows that there is a statistically significant positive relationship between the implementation of RBIA and: the provision of risk management training, an active audit committee role and the establishment of a formalized risk management system. Practical implications The results have important implications for internal auditors, chief executive officers and accountants who wish to enhance internal audit effectiveness and the accuracy and quality of financial information. Originality/value Empirical studies on the factors related to the implementation of RBIA are rare. This is the first study to create empirical variables based on a thorough review of the relevant literature to empirically investigate the factors that are related to the implementation of RBIA in an emerging economy. By focusing on the Greek context, this study also sheds light to other countries with similar corporate governance systems, thus providing insights to settings where the Type II agency problem exists (La Porta et al., 1999).

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Risk-based internal audit: factors related to its implementation

Lois

Drogalas

Nerantzidis

et al. 2021

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“…Prior research primarily focused on key success factors related to risk assessment during the audit planning phase (Allegrini and D'onza 2003;Benli and Celayir 2014;Castanheira et al 2009;Drogalas and Siopi 2017;Koutoupis and Tsamis 2009). In contrast, as proposed by other scholars (Abidin 2017;Coetzee and Lubbe 2014;Lois et al 2021;Wilkinson and Coetzee 2015), this study empirically examines the factors linked to RBIA implementation processes throughout all activities of internal auditing, incorporating planning, implementation, and reporting.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

“…Simultaneously, modifications in regulatory frameworks and the implementation of new standards in risk management, internal audit, and organizational governance mean that there is now an interplay between internal audit and risk management. This has been made possible by a systematic and structured audit methodology known as RBIA (Jankensgård 2019;Wilkinson and Coetzee 2015). RBIA involves evaluating the whole organization's risk management framework to examine how well management identifies, evaluates, manages, and monitors risks so that risk-based control plans can be established (Coetzee and Lubbe 2014;Kabuye et al 2017;Raiborn et al 2017;Abidin 2017).…”

Section: Introductionmentioning

confidence: 99%

Factors Affecting the Implementation of Risk-Based Internal Auditing

Mujalli

2024

JRFM

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This paper aims to investigate the factors affecting risk-based internal audit (RBIA) implementation in public sector organizations in Saudi Arabia. This paper utilized 234 usable answered questionnaires from internal audit managers, internal auditors, accountants, and executives working in Saudi public sector agencies. The gathered data were analyzed by applying partial least squares–structural equation modeling (PLS-SEM). Results show that management support, internal auditor role, risk management system, and training in risk management all positively and significantly influence the RBIA. Improved internal auditing procedures and an efficient internal monitoring system will significantly curtail any risks impeding the organization’s goals, diminish the temptation to fabricate financial data or statistics, and enhance the accuracy of financial reporting/statements. Moreover, this study’s results have crucial implications for managers of public sector organizations, heads of internal audit departments, internal auditors, and accountants seeking to improve the reliability of internal audits and other aspects of financial information. Published research on what variables are influencing RBIA implementation is scarce. This study adds to the nascent literature by focusing on Saudi Arabian public sector organizations, establishing empirical variables based on an in-depth review of the relevant research and conducting an empirical investigation of the factors associated with RBIA implementation in the Saudi economy. By concentrating on public sector organizations in Saudi Arabia, this paper sheds light on other nations with comparable systems for governance policies and processes in their government-run entities.

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“…Conclusions: Economic Consequence, Costs and Benefits of the Reregulation of the Financial Sector. The Macro and Micro effects of the Reregulation and Reorganization of the Financial Sector, that we resume in "Regulation for the Supervision of the Financial Firms and Markets more efficient", "Allocation of Resources for putting Supervisors in a position to detect better the Risks of the International Financial Market" and "Reorganization of the Financial Firms for prevent Moral Hazard and Agency Problems' behaviors by the Owners", are different and heterogeneous (Wilkinson, N., & Coetzee, P. (2015). Primary, the Regulation for the Supervision has economic consequences defined in major control of the Financial activities to the services of the shareholders with the object of the Shareholders Wealth Maximization, more transparency, and guarantee of shareholder's rights.…”

Section: First Part: International Financial Markets Risks and The Nementioning

confidence: 99%

What are the Costs and Benefits of a International Corporate Governance Reregulation?

Tommaso¹

2018

FMIR

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This work is a research that applies the organizational model of the business organization of Corporate Governance, to a process of changing in the organizational structure. This Paper defines the various organizational solutions and the various levels of complexity that the Corporate Governance structure, through its reference context, the load of available information and objectives, must support by choosing the optimal organizational solution. Before 2005 Enron under the management of American Government with a logic of mass production not very attentive to the different needs of customers. Today the optimal organizational solution adopted is the "perfect integration with its distributors" throughout the peninsula, maximizing the quality of service to the customer and the knowledge of the various areas of expertise making the company more flexible and more competitive. The growing generalized attention (businesses, investors, academic circles) towards of the Internal Control system is part of a complex evolutionary process characterized from: greater competition / boost to efficiency; emphasis on information transparency; innovative regulatory evolution. The importance of the theme of Corporate Governance in the world is further increased thanks to the drafting of the international Corporate Governance Code for listed companies, which aims to reassure the community of international investors on the existence, in listed companies, of an organizational model which provides for adequate allocation of responsibilities and powers, and a correct one balance between management and control.

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Internal audit assurance or consulting services rendered on governance: How does one decide?

Cited by 10 publications

References 16 publications

Risk-based internal audit: factors related to its implementation

Risk-based internal audit: factors related to its implementation

Factors Affecting the Implementation of Risk-Based Internal Auditing

What are the Costs and Benefits of a International Corporate Governance Reregulation?

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