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The Relationship between Internal Audit and Senior Management: A Qualitative Analysis of Expectations and Perceptions
Author(s) -
Sarens Gerrit,
De Beelde Ignace
Publication year - 2006
Publication title -
international journal of auditing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.583
H-Index - 21
eISSN - 1099-1123
pISSN - 1090-6738
DOI - 10.1111/j.1099-1123.2006.00351.x
Subject(s) - internal audit , senior management , control environment , information technology audit , accounting , business , audit , joint audit , audit plan , chief audit executive , control (management) , perception , internal control , process management , public relations , psychology , management , political science , economics , neuroscience
This study, based upon Belgian case studies, provides a qualitative assessment of the relationship between internal audit and senior management, analysing the expectations and perceptions of both parties. We found that senior management's expectations have a significant influence on internal audit and that internal audit, generally, is able to meet most of these expectations. Senior management wants internal audit to compensate for the loss of control they experience resulting from increased organisational complexity. Senior management expects internal audit to fulfil a supporting role in the monitoring and improvement of risk management and internal control, and wants them to monitor the corporate culture. Furthermore, they expect internal audit to be a training ground for future managers. On the other hand, internal audit expects senior management to take the first steps in the formalisation of the risk management system. They are looking for senior management support, as this benefits their overall acceptance.