Internal Auditing : Creating Stepping Stones for the Future

Arena, Marika;Sarens, Gerrit
(2015) International Journal of Auditing — n° 19, p. 131-133 (2015)

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Authors
  • Arena, Marika
    Author
  • Sarens, GerritUCLouvain
    Author
Abstract
Internal auditing (IA) is one of the disciplines in the broader field of accounting and auditing that has evolved most significantly in the past decade. This evolution has led to the progressive enlargement of the areas of interest of internal auditors, ending up with IA configured in many different ways and internal auditors covering different possible roles. Just to name some of them, IA can be viewed as a monitoring and compliance function aimed at helping to ensure reliable accounting information and to safeguard company assets (Morgan, 1979). IA can be viewed as the counterpart of different actors responsible for corporate governance. It can serve as the main ‘investigative arm’ of the audit committee (AC), aiming at reducing the information asymmetries between the AC and management (e.g., Turley & Zaman, 2004; Mat Zain & Subramaniam, 2007). IA can serve as the ‘eyes and ears’ of the board and senior management, providing assurance that the internal control policies, defined by the management, are in place and are operating as intended (Sarens & De Beelde, 2006; Sarens, De Beelde & Everaert, 2009). IA can also support the external auditor who may rely on work already performed by the IA or request direct assistance when doing an audit (e.g., Maletta, 1993; Felix, Gramling & Maletta, 2001). On top of all of these functions, IA can also be viewed as a consultant, challenging management and acting as a catalyst for improvement, using their knowledge of risk and control to enhance business practices (e.g., Arena & Azzone, 2009; Ma’ayan & Carmeli, 2015; Soh & Martinov-Bennie, 2015).
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Arena, M., & Sarens, G. (2015). Internal Auditing : Creating Stepping Stones for the Future. International Journal of Auditing, 19, 131-133. https://doi.org/10.1111/ijau.12053 (Original work published 2015)