Internalization versus externalization of the internal audit function: an examination of professional and organizational imperatives

Sourcing of internal auditing: An empirical study

“…The debate over the benefits of organizing the internal audit function in-house versus the alternative of outsourcing this function to third party vendors (usually a public accounting firm) is not without partisan interests. Indeed, the debate can be seen as a jurisdictional dispute between the internal auditing and the public accounting professions over the right to control the provision of internal audit services (Rittenberg & Covaleski, 2001;Covaleski, Dirsmith, & Rittenberg, 2003). Public accounting firms have found the provision of internal audit services to be a lucrative market (Petravick, 1997;Rittenberg & Covaleski, 1999).…”

Moderating Role of Corporate Strategy on Relationship Between Technical Competence and Internal Audit Outsourcing:

“…At the same time, it may decide to adopt a corporate strategy to outsource all other activities considered to be a non core activity. It can therefore, be argued that when an organization adopts a strategy to outsource non-core functions, such as security guards, drivers, canteen and payroll, the likelihood of outsourcing non-traditional functions such as the internal audit function, which has traditionally been believed to be a support mechanism for monitoring organizational performance and governance rather than as a core function that creates competitive advantage for the organization (Rittenberg & Covaleski, 2001) increases as well. Therefore, on the basis of aforementioned theory and emperical studies, the following proposition is advanced:…”

Corporate lawyers and their clients: walking the line between law and business

“…Studies of inside counsel (Nelson & Nielsen, 2000;Gunz & Gunz, 2007) and divorce lawyers (Mather et al, 2001;Sarat & Felstiner, 1986) have raised similar concerns. The concern is relevant beyond the legal profession as well, with Hanlon's (1998, p. 50) work on accountants highlighting a similar point about the power of the client, while Rittenberg and Covaleski (2001) refer to the "dark side" of an entrepreneurial profession (public accounting) becoming too closely aligned with the "vested interests of the client, undermining professional neutrality".…”