Keywords

adding value, assurance, competence, consulting, financial reporting, governance, internal audit, objectivity

Abstract

An internal audit function (IAF) should positively impact financial reporting and governance, and add value to its organization. We provide evidence on IAF factors (i.e., characteristics, activities, work areas) associated with these types of impact and whether these factors, and their influence on various impacts, differ between a developed and an emerging economy (i.e., US, Turkey). Factors positively associated with financial reporting in the US are assurance activities, control work, and competence; in Turkey, significant factors are governance work and competence. For governance, we find that the factors positively associated with it in the US include assurance activities, governance work, and competence; in Turkey the significant factors are governance work and competence. In the US, assurance activities are negatively associated with adding value, while consulting activities, risk work, and control work are positively associated with this measure. In Turkey, only risk work and control work are positively associated with adding value. Finally, several measures of IAF objectivity are not associated with any of our impact measures.

Original Publication Citation

Gramling, A. A., I. Nuhoglu, and D. A. Wood. 2013. A descriptive study of factors associated with the internal audit function having an impact: Comparisons between organizations in a developed and an emerging economy. Turkish Studies,14 (3): 581-606. DOI: 10.1080/14683849.2013.833019.

Document Type

Peer-Reviewed Article

Publication Date

2013

Publisher

Turkish Studies

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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