Internal audit (IA) effectiveness: Resource-based and institutional perspectives

• Main Author: Ahmad, Halimah @ Nasibah
• Format: Article
• Language: English
• Published: AENSI 2015
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/16184/1/90.pdf; http://repo.uum.edu.my/16184/; http://www.ajbasweb.com
• Institution: Universiti Utara Malaysia

Background: IA provides assistance to an organization in achieving its objectives through assessing and improving the effectiveness of risk management, control and governance processes. However, it is not simply the establishment of an IA function that is significant, but most importantly is the quality and its effectiveness. Hence, it is necessary to investigate the antecedents of the IA effectiveness in an attempt to ensure that an IA function is able to assist an organization in achieving its objectives and in improving its operations.For that reason, the main objective of this paper is to propose a theoretical framework that combines the resource-based and institutional theories in investigating the antecedents of the IA effectiveness.The combination of resource based and institutional perspectives is deemed paramount as it highlights on the importance of the internal resources and the external environment of an organization in investigating determinants of the IA effectiveness.