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Interaction between internal auditors and senior management: A qualitative analysis of expectations and perceptions

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  • G. SARENS
  • I. DE BEELDE

Abstract

This study, based on six case studies within a Belgian context, provides a qualitative assessment of the interaction between internal auditors and senior management (CEOs and CFOs) by analysing their expectations and perceptions. Moreover, this analysis is completed with suggestions to further improve the interaction. CEOs and CFOs want the internal auditors to compensate their loss of control that results from an increased organisational complexity. They expect the internal auditors to fulfil an active management supporting role with a strong focus on continuous improvement in risk management, internal controls, organisational processes and strategic important projects. Thereby, internal auditors are expected to create a sufficient level of risk and control awareness within the organisation. Although CEOs and CFOs are generally satisfied about their interaction with the internal auditors, we found that the expression of findings and suggestions in more quantitative terms and regular informal contacts can still improve this interaction.

Suggested Citation

  • G. Sarens & I. De Beelde, 2006. "Interaction between internal auditors and senior management: A qualitative analysis of expectations and perceptions," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/358, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:06/358
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    References listed on IDEAS

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    1. G. Sarens & I. De Beelde, 2004. "Contemporary internal auditing practices : (new) roles and influencing variables. Evidence from extended case studies," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/273, Ghent University, Faculty of Economics and Business Administration.
    2. Laura Spira, 1999. "Ceremonies of Governance: Perspectives on the Role of the Audit Committee," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 3(3), pages 231-260, September.
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    Cited by:

    1. Obal Usang & Basariah Salim, 2016. "Dimensions of Internal Audit Quality and Performance of Local Governments in Nigeria," Asian Social Science, Canadian Center of Science and Education, vol. 12(4), pages 1-28, April.
    2. Sarens, Gerrit & De Beelde, Ignace & Everaert, Patricia, 2009. "Internal audit: A comfort provider to the audit committee," The British Accounting Review, Elsevier, vol. 41(2), pages 90-106.
    3. Steinbart, Paul John & Raschke, Robyn L. & Gal, Graham & Dilla, William N., 2018. "The influence of a good relationship between the internal audit and information security functions on information security outcomes," Accounting, Organizations and Society, Elsevier, vol. 71(C), pages 15-29.
    4. Abdolmohammadi, Mohammad J. & DeSimone, Steven M. & Hsieh, Tien-Shih & Wang, Zhihong, 2017. "Factors associated with internal audit function involvement with XBRL implementation in public companies: An international study," International Journal of Accounting Information Systems, Elsevier, vol. 25(C), pages 45-56.
    5. Vikash Kumar Sinha & Marika Arena, 2020. "Manifold Conceptions of the Internal Auditing of Risk Culture in the Financial Sector," Journal of Business Ethics, Springer, vol. 162(1), pages 81-102, February.
    6. Laura Sierra‐García & Ana Zorio‐Grima & María A. García‐Benau, 2015. "Stakeholder Engagement, Corporate Social Responsibility and Integrated Reporting: An Exploratory Study," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(5), pages 286-304, September.
    7. Wan-Hussin, Wan Nordin & Fitri, Hadiati & Salim, Basariah, 2021. "Audit committee chair overlap, chair expertise, and internal auditing practices: Evidence from Malaysia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 44(C).
    8. Stefano Azzali & Tatiana Mazza, 2018. "The Internal Audit Effectiveness Evaluated with an Organizational, Process and Relationship Perspective," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(6), pages 238-238, April.
    9. Juraj Misun & Ivana Misunova Hudakova, 2019. "New Tools, Methods, Procedures in Control(-ling)," Eurasian Journal of Business and Management, Eurasian Publications, vol. 7(2), pages 23-37.

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    Keywords

    internal audit; audit committee; interaction; corporate govern;
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