Article2006

Internal auditors' perception about their role in risk management

202 citations0/0 files storedManagerial Auditing Journal

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Risk Management in Financial Firms Corporate Governance and Financial Management

Abstract

Purpose The purpose of this paper is to describe and compare in a qualitative way how internal auditors perceive their current role in risk management within US and Belgian companies. Design/methodology/approach In order to get adequate data, Chief audit executives from 10 different companies were interviewed and relevant documents were analyzed. Findings In the Belgian cases, internal auditors' focus on acute shortcomings in the risk management system creates opportunities to demonstrate their value. Internal auditors are playing a pioneering role in the creation of a higher level of risk and control awareness and a more formalized risk management system. In the US cases, internal auditors' objective evaluations and opinions are a valuable input for the new internal control review and disclosure requirements mentioned in the Sarbanes Oxley Act. Research limitations/implications Given the qualitative nature of this study, generalization to all Belgian and US companies is not possible. The time specific character of the subject is an opportunity for future longitudinal research. Practical implications In Belgium, the internal auditing profession is actually in a kind of “transition phase”. In order to survive this transition phase, internal auditors need to assume a “teaching role” vis‐à‐vis the different management levels to make them aware of their responsibilities in risk management. After this transition period, internal auditors will be able to focus more on their core activities. Originality/value In addition to a number of quantitative studies, this paper extends in a qualitative and comparative way the understanding of the specific role of internal auditors in risk management within US and Belgian companies.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 202 citations exist upstream.

References

2008Qualitative Data Analysis 1996Qualitative data analysis (2nd ed)2003Risk management: The reinvention of internal control and the changing role of internal audit

Cited by

2020Nonfinancial reporting regulation and challenges in sustainability disclosure and corporate governance practices 2010Monitoring Effects of the Internal Audit Function: Agency Theory versus other Explanatory Variables 2011The Effect of Using the Internal Audit Function as a Management Training Ground on the External Auditor's Reliance Decision 2012Internal Audit Outsourcing and the Risk of Misleading or Fraudulent Financial Reporting: Did Sarbanes‐Oxley Get It Wrong?*2011Internal audit involvement in enterprise risk management 2020Mapping of internal audit research: a post-Enron structured literature review 2009Internal Auditing Research: Where are we going? Editorial 2006The European literature review on internal auditing

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.