Internal audit: from effectiveness to organizational significance
ISSN: 0268-6902
Article publication date: 20 January 2020
Issue publication date: 21 January 2020
Abstract
Purpose
From the perspective of two groups of governance actors, this paper aims to understand how internal audit (IA) achieves and consolidates organizational significance.
Design/methodology/approach
Interviews were conducted with audit committee chairs and chief audit executives from multinational corporations, and the participating corporations’ registration documents were analyzed.
Findings
The data indicate that IA achieves and consolidates organizational significance by activating the IA effectiveness “building blocks” (Lenz et al., 2014) all together so as to generate organizational learning and positive change. New IA effectiveness drivers also emerged from the field.
Research limitations/implications
This research contributes to the IA literature by establishing a connection, through the IA impact on organizational learning, between the constructs of IA effectiveness and organizational significance. It also contributes to the IA literature by identifying new drivers and illustrating the complementarity and interconnections between the IA effectiveness building blocks.
Practical implications
This paper encourages internal auditors to keep their eyes on the prize (i.e. organizational significance) instead of simply being focused on the mean (i.e IA effectiveness), in order to fight stakeholder disappointment.
Originality/value
The paper proposes a conceptual model of IA organizational significance and gives key insights for setting up effective IA to stimulate organizational learning and fostering positive change in the whole organization.
Keywords
Acknowledgements
The authors are particularly grateful to the audit committee chairs and internal auditors who agreed to be interviewed as part of this research. The authors are also thankful to the two anonymous reviewers for their comments and suggestions. Moreover, the authors benefited from the comments on previous drafts by Isabelle Allemand, Claire-France Picard and Michelle Rodrigue.
Citation
Roussy, M., Barbe, O. and Raimbault, S. (2020), "Internal audit: from effectiveness to organizational significance", Managerial Auditing Journal, Vol. 35 No. 2, pp. 322-342. https://doi.org/10.1108/MAJ-01-2019-2162
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited