HOW A RISK BASED INTERNAL AUDITING PROCESS RAISE THE EFFICIENCY OF THE ORGANIZATIONAL CULTURE AUDIT RESULTS IN ROMANIAN COMPANIES

Simona-Alexandra Apostol

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, 2019, vol. 13, issue 1, 816-826

Abstract: The purpose of this paper is to determine the impact of taking into consideration, in all stages, the internal auditing risk factors in order to raise the efficiency of internal auditing process results and to determine the relation between organizational culture audit and risk identification process. The main objectives of this paper are: presenting an overall view of organizational culture auditing process and its impact on organization strategy, analyze risk assessment activities focusing on critical stages of the audit, examine the application of risk based auditing in companies across Romania and developing a risk-oriented organizational culture auditing methodology, based on risk analysis in an organization, designed to help identify and implement the levers and tools of the organizational model chosen in organizational reengineering; Findings are drawn from three perspectives: process analysis, by identifying areas of activity that could affect the results, literature reviewing of the standards and guidance that influence the way internal auditing is managed and its current trends. A questionnaire was also sent to auditors of three international recognized CB’s, in order to gain their feedback on audit effectiveness. In preparing the annual audit program, the adoption of a risk-based approach is becoming a prominent part being taken into consideration by almost all auditors that have been interviewed. In planning each audit step adoption of a risk-based approach is correlated positively with company size and activity sector. There are also variations related to internal auditing approach between private and public companies, and also Romanian ones and the ones which are subsidiaries of international companies. The process owners are focused on demonstrating that they have the process documented, and not so much on measuring its effectiveness. This new approach brings to the process a better understanding of risk-based auditing, along with the added value, both internal and external. The paper reveals specific elements that should be part of the PDCA internal auditing risk methodology, in order to improve the actual approach.

Keywords: audit; culture; improvement; organizational; risk. (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:rom:mancon:v:13:y:2019:i:1:p:816-826

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