Keywords

internal audit, entity-level controls, tone at the top, corporate governance

Abstract

The internal audit function’s (IAF) regular interaction with management and continual presence within the organization place it in a unique position to monitor the organization. Although the IAF has significant potential to evaluate and improve corporate governance, research has yet to explore how internal auditors assess an important component of corporate governance— management tone at the top. This paper reports survey evidence of 578 practicing internal auditors related to (1) current internal auditing practices regarding assessing management’s tone, (2) internal auditor’s current assessments of management’s tone, and (3) potential future practices internal auditor’s could perform to improve management’s tone. In addition, we examine whether tone at the top is higher in organizations where internal auditors perform tone at the top assessments and if assessments differ based on what level of internal audit professional performs tone at the top assessments. Electronic

Original Publication Citation

Hansen, J., N. M. Stephens, and D. A. Wood. 2009. Entity-level controls: The internal auditor’s assessment of management tone at the top. Current Issues in Auditing, 3 (1): 1-13. DOI: 10.2308/ciia.2009.3.1.A1.

Document Type

Peer-Reviewed Article

Publication Date

2010

Publisher

Current Issues in Auditing

Language

English

College

Marriott School of Business

Department

Accountancy

University Standing at Time of Publication

Full Professor

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