Keywords

internal audit, occupational stigma, dirty work

Abstract

Prior research finds that the internal audit function (IAF) plays a critical role in organizations, yet there is still a stigma toward the profession. We examine how this stigma affects internal audit outcomes, using three different data sources: survey results from parts of Europe and the United States and an experiment. We find that when practicing internal auditors in parts of Europe and the U.S. believe there is a negative stigma about internal auditing, they report negative work outcomes, including less ability to add value, less influence in the organization, more resistance to implementing their recommendations, and more pressure to change audit findings. Our experimental results confirm the survey findings and provide further evidence that negative stigma causes participants to perceive less value in internal audit reports and that internal audit recommendations are less influential in decision-making. Taken together, the results suggest that negative perceptions of internal audit have a significant impact on the profession.

Original Publication Citation

Eulerich, M., J. Kremin, K. K. Saunders, and D. A. Wood. 2021. Internal audit stigma awareness and internal audit outcomes. Corporate Ownership and Control,19 (1):257-271. DOI: 10.22495/cocv19i1siart4.

Document Type

Peer-Reviewed Article

Publication Date

2021

Publisher

Corporate Ownership and Control

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

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Accounting Commons

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