An international study of internal audit function quality

Détails

ID Serval
serval:BIB_AC749866FB4A
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
An international study of internal audit function quality
Périodique
Accounting and Business Research
Auteur(s)
Jiang L., André P., Richard C.
ISSN
0001-4788
2159-4260
Statut éditorial
Publié
Date de publication
16/04/2018
Peer-reviewed
Oui
Volume
48
Numéro
3
Pages
264-298
Langue
anglais
Résumé
We investigate organisational and environmental factors that influence firms’ incentives to develop high-quality internal audit functions (IAFs) by using a unique international sample formed by matching proprietary data from a global internal auditor survey with public data obtained from Worldscope. Concerning organisational factors, we find that a positive relationship exists between IAF quality and firm complexity and confirm that complex firms have a higher demand for monitoring and advising and, therefore, a greater need for formal controls. In addition, IAF quality is positively related to board monitoring and audit committee diligence but negatively associated with CEO power, which suggests that IAF quality is influenced by other key players in corporate governance. Regarding environmental factors, we document that IAF quality is positively associated with industry competition, which implies that a firm’s incentive for a high-quality IAF is enhanced when confronted with greater environmental uncertainty. Furthermore, IAF quality has a significantly positive relationship with our self-constructed index of IAF requirements included in national corporate governance codes, which indicates that strong home-country corporate governance codes play a role in fostering IAF development.
Mots-clé
Accounting
Web of science
Création de la notice
19/01/2018 9:54
Dernière modification de la notice
21/08/2019 5:11
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