Sourcing of internal auditing: An empirical study

Speklé, Roland F.; Elten, Hilco van; Kruis, Anne-Marie

doi:10.1016/j.mar.2006.10.001

Cited by 58 publications

(49 citation statements)

References 27 publications

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“…In other words, SMEs are not capable to generate economies of scale for the non-routine management accounting practices that are recurrent and sizeable, in order that they are less likely to provide such accounting functions inside the firm. Hence, our finding contradict with previous study (Everaert et al, 2010;Kamyabi & Devi, 2011e;Spekle´ et al, 2007;Widener & Selto 1999;Williamson, 1985) which indicated frequency was statistically and negatively related to outsourcing of routine and non-routine accounting tasks.…”

Section: Discussioncontrasting

confidence: 99%

“…The decision to outsource or internalize depends on the comparative transaction cost to avail that service such as the ex-ante negotiation cost and the ex-post performance and feedback (Williamson, 1985). TCE describes frequency, asset specificity and trust in accountant are essential components influencing accounting outsourcing decision (Everaert et al, 2010;Lammirmiaki, 2005;Spekle et al, 2007). Resource based view (RBV) theory has happened to a practical framework to describe why SMEs use external accountant services under competitive pressure (Gooderham et al, 2004).…”

Section: Theoretical Framework and Hypothesismentioning

confidence: 99%

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Factors Influencing Accounting Outsourcing Practices among SMEs in Pakistan Context: Transaction Cost Economics (TCE) and Resource-Based Views (RBV) Prospective

Hafeez

Andersen

2014

IJBM

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The present study was conducted to identify factors that affect Pakistani manufacturing SMEs decisions to outsource management accounting practices in terms of transaction cost economics (TCE) and resource-based view (RBV). A survey of 302 SMEs was carried out using convenience sampling, a personal interview owners/managers/CFOs located in 9 major cities of Pakistan. Our multiple regression analysis revealed that the frequency of non-routine tasks, asset specificity, opportunism, trust in accountant and competition has a significant impact on accounting outsourcing. Furthermore, whilst we include control variables like gender, executive education, experience, firm size and firm age in our linear regression equation, the relationship among five variables and outsourcing intensity was remain statistically significant. The findings imply that SMEs with resource constraint should shift their traditional in-house accounting practices to the external knowledgeable professional accountant. Finally, this study contributes to the body of knowledge with respect to management accounting outsourcing, TCE and RBV in the emerging economics context.

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Section: Discussioncontrasting

confidence: 99%

Section: Theoretical Framework and Hypothesismentioning

confidence: 99%

Factors Influencing Accounting Outsourcing Practices among SMEs in Pakistan Context: Transaction Cost Economics (TCE) and Resource-Based Views (RBV) Prospective

Hafeez

Andersen

2014

IJBM

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“…These categories lack strategic sourcing methodology, environmental services, mailing/distribution, legal services, external manufacturing and infrastructure maintenance. Speklé et al (2007) consider the internal audit sourcing decisions of 66 Dutch companies, and find that where larger firms seek to have an internal auditing department, smaller firms look to the external supply. Furthermore, companies integrate or establish an internal function if company-specific knowledge and intensive collaboration with the management is required.…”

Section: Products and Service Sourcingmentioning

confidence: 99%

“…However, buyers tend to have a long-term sourcing focus (Cox et al, 2005;Speklé et al, 2007) and have to deal with a complex field in services orders. Selviaridis et al (2011) discuss the complexity of services sourcing and changed orders caused by supplier de-pendence or weak capabilities in sourcing.…”

Section: Products and Service Sourcingmentioning

confidence: 99%

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Development of a risk-oriented strategic sourcing (ROSS) framework for the construction and electronics manufacturing industries

Kotula¹,

2014

Supply Management Research

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Strategic sourcing has increased in importance in recent years, and now plays an important role in companies' planning. The current volatility in supply markets means companies face multiple challenges involving lock-in situations, supplier bankruptcies or supply security issues. In addition, their exposure can increase due to natural disasters, as witnessed recently in the form of bird flu, volcanic ash and tsunamis. Therefore, the primary focus of this study is risk management in the context of strategic sourcing.The study presents a literature review on sourcing based on the 15 years from 1998-2012, and considers 131 academic articles. The literature describes strategic sourcing as a strategic, holistic process in managing supplier relationships, with a long-term focus on adding value to the company and realising competitive advantage. Few studies discovered the real risk impact and status of risk management in strategic sourcing, and evaluation across countries and industries was limited, with the construction sector particularly under-researched.This methodology is founded on a qualitative study of twenty cases across Germany and the United Kingdom from the construction sector and electronics manufacturing industries. While considering risk management in the context of strategic sourcing, the thesis takes into account six dimensions that cover trends in strategic sourcing, theoretical and practical sourcing models, risk management, supply and demand management, critical success factors and the strategic supplier evaluation.The study contributes in several ways. First, recent trends are traced and future needs identified across the research dimensions of countries, industries and companies. Second, it evaluates critical success factors in contemporary strategic sourcing. Third, it explores the application of theoretical and practical sourcing models in terms of effectiveness and sustainability. Fourth, based on the case study findings, a risk-oriented strategic sourcing framework and a model for strategic sourcing are developed. These are based on the validation of contemporary requirements and a critical evaluation of the existing situation. It contemplates the empirical findings and leads to a structured process to manage risk in strategic sourcing. The risk-oriented framework considers areas such as trends, corporate and sourcing strategy, critical success factors, strategic supplier selection criteria, risk assessment, reporting, strategy alignment and reporting. The proposed model highlights the essential dimensions in strategic sourcing and guides us to a new definition of strategic sourcing supported by this empirical study.

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Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

Sinha

Arena

2018

J Bus Ethics

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This exploratory study investigates the manifold conceptions of the internal auditing (IA) of risk culture prevalent among four influential actors of the financial sector-regulators, normalizers, consultants, and implementers. By inductive analysis of 20 interviews and 295 documents, we illustrate a two-step interpretive scheme utilized by the four actors in their IA approaches of risk culture: defining broad goals and designing visibility schemes. The visibility schemes were tied to the demarcation, measurement, as well as the IA data collection techniques of risk culture. Our results indicate two dichotomous interpretations among the four actors concerning the IA of risk culture. The first interpretation, prevalent among regulators and implementers, promotes the control of risk culture primarily through verification. The second interpretation, adopted by consultants and normalizers, promotes the control of risk culture by IA along with the empowerment of employees through training programs. Our results not only contribute to understanding IA expansions, specifically to non-tangible domains such as risk culture but also enrich the literature exploring the mechanisms different stakeholders utilize to shape weakly professionalized IA practices.

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Sourcing of internal auditing: An empirical study

Abstract: In recent years, the scope of internal auditing has broadened considerably, increasing the importance of internal auditing as part of the organization's management control structure.

Cited by 58 publications

References 27 publications

Factors Influencing Accounting Outsourcing Practices among SMEs in Pakistan Context: Transaction Cost Economics (TCE) and Resource-Based Views (RBV) Prospective

Factors Influencing Accounting Outsourcing Practices among SMEs in Pakistan Context: Transaction Cost Economics (TCE) and Resource-Based Views (RBV) Prospective

Development of a risk-oriented strategic sourcing (ROSS) framework for the construction and electronics manufacturing industries

Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector

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