A synthesis of empirical internal audit effectiveness literature pointing to new research opportunities

Rainer Lenz and Ulrich Hahn

Managerial Auditing Journal, 2015, vol. 30, issue 1, 5-33

Abstract: Purpose - – The purpose of this paper is to provide a synopsis of what academic literature says about internal audit (IA) effectiveness ten years after Baileyet al.(2003) presented research opportunities in IA. A new set of research questions that may help to bring the best out of IA is proposed. Design/methodology/approach - – Empirical studies based on internal auditors’ self-assessments (“inside-out”) and empirical studies based on other stakeholders’ perspectives (“outside-in”) are reviewed through an “effectiveness lens”. The “outside-in” perspective is regarded as particularly valuable. Findings - – First, common themes in the empirical literature are identified. Second, the main threads into a model comprising macro and micro factors that influence IA effectiveness are synthesized. Third, promising future research paths that may enhance IA's value proposition were derived. Practical implications - – The “outside-in” perspective indicates a disposition to stakeholders’ disappointment in IA: IA is either running a risk of marginalization (IIA, 2013; PWC, 2013) or has to embrace the challenge to emerge as a recognized and stronger profession. The suggested research agenda identifies empirical research threads that can help IA practitioners to make a difference for their organization, be recognized, respected and trusted and help the IA profession in its pursuit of creating a unique identity. This paper wishes to motivate researchers to explore innovative research strategies and probe new theories, as well as benefit from cross-fertilization with other research streams. Originality/value - – This paper summarizes the state of research on IA effectiveness and proposes a guide for future IA research. It provides pointed questions that may further advance the understanding of what constitutes IA and how IA can enhance its value proposition.

Keywords: Effectiveness; Relationship; Relevance; Internal audit; Stakeholder; Profession; New research opportunities; M4 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:majpps:maj-08-2014-1072

DOI: 10.1108/MAJ-08-2014-1072

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