Critical Analysis of Internal Audit Independence: International Literature
Journal of Research in Business, Economics and Management
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Title |
Critical Analysis of Internal Audit Independence: International Literature
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Creator |
Sourour, Hazami Ammar
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Description |
This article provides an analysis of internal auditor independence framework by proposing and comparing the thesis of independence as a social construct and its antithesis as a myth. Extensive reviews of empirical research allow us to evaluate the key levers of audit committees, and the conditions of effectiveness of these bodies. Independence of the internal auditor is described as essential to sit his assessments. However, his position as an employee, with a subordination agreement with an employer, may affect his own judgment. Such a conflict threatens the independence of the internal auditor through its programming independence, investigation and / or reports. An "optimal" level of independence is built. It is clear that an independent audit committee, accessible and / or competent often contributes to the preservation of the independence of the internal auditor. The ambiguity of roles between assurance and consulting, not recognized as such by internal auditors may impair independence. The limitations and possible extensions of this line of research are discussed.This article provides an analysis of internal auditor independence framework by proposing and comparing the thesis of independence as a social construct and its antithesis as a myth. Extensive reviews of empirical research allow us to evaluate the key levers of audit committees, and the conditions of effectiveness of these bodies. Independence of the internal auditor is described as essential to sit his assessments. However, his position as an employee, with a subordination agreement with an employer, may affect his own judgment. Such a conflict threatens the independence of the internal auditor through its programming independence, investigation and / or reports. An "optimal" level of independence is built. It is clear that an independent audit committee, accessible and / or competent often contributes to the preservation of the independence of the internal auditor. The ambiguity of roles between assurance and consulting, not recognized as such by internal auditors may impair independence. The limitations and possible extensions of this line of research are discussed.
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Publisher |
Scitech Research Organisation
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Date |
2015-07-29
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://www.scitecresearch.com/journals/index.php/jrbem/article/view/284
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Source |
Journal of Research in Business, Economics and Management; Vol 3 No 3: JRBEM; 214-222
2395-2210 |
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Language |
eng
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Relation |
http://www.scitecresearch.com/journals/index.php/jrbem/article/view/284/230
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Rights |
Copyright (c) 2015 Journal of Research in Business, Economics and Management
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