Internal Auditing: A shift in role and scope
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Purpose: Our purpose is to investigate if the documentation of an internalaudit department at banks reflects a shift towards more consultingactivities, and how this potential change in the internal audit doc-umentation can be explained.
Background: Previous research indicates that internal audit has developed fromits traditional assurance activities to include more consulting ac-tivities such as risk management assistance and corporate govern-ance support. Some researches argue that this development canhave a negative impact on internal auditor independence. Howev-er, there is a lack of research in this area using documentation andcontent analysis of internal audit reports.
Method: In this study, we have done qualitative content analysis of internaldocuments collected from the period 2004-2013. These docu-ments are analyzed using a coding scheme based on previous re-search.
Conclusion: By qualitatively analysing the activities reported we find that thedocumentation reflects a shift, over time, towards more activitiesthat we classified as consulting. We argue that this can mainly beexplained by coercive and normative isomorphism; for example,regulatory pressures and influences from the Institute of InternalAuditors. We also argue that internal auditing might benefit froma more consistent view of the role.
Place, publisher, year, edition, pages
2014. , 51 p.
Banks, internal audit functions, documentation, assurance services, consulting services, institutional theory, isomorphism, legitimacy, regulations, independence, objectivity
IdentifiersURN: urn:nbn:se:uu:diva-230197OAI: oai:DiVA.org:uu-230197DiVA: diva2:739121
Master Programme in Accounting, Auditing and Analysis