Antecedents and organisational performance implications of internal audit effectiveness: some propositions and research agenda

Mihret, Dessalegn Getie and James, Kieran and Mula, Joseph M. (2010) Antecedents and organisational performance implications of internal audit effectiveness: some propositions and research agenda. Pacific Accounting Review, 22 (3). pp. 224-252. ISSN 0114-0582

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Abstract

Purpose – This paper synthesises relevant theoretical and empirical literature to develop propositions and suggests a research agenda on the antecedents and organisational performance implications of internal audit effectiveness. Design/methodology/approach – The paper employs institutional theory and Karl Marx’s theory of the ‘circuit of industrial capital’ to synthesize relevant internal audit literature to develop theoretically justifiable propositions and highlight an operational research agenda. Findings – Propositions and a research agenda are provided on potential antecedents of internal audit effectiveness and its possible association with company performance measured as rate of return on capital employed. Also, key variables are identified and operationalisation issues discussed. Originality/value – As the extant literature does not provide a canon of internal audit effectiveness, the paper’s originality is its argument that a positive association between compliance with standards for the professional practice of internal auditors and organisational goal achievement could serve as an approach to assess internal audit effectiveness. Furthermore, the use of the two theories in combination provides additional insights into identifying the antecedents of internal audit effectiveness and its measurement.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Accepted Version deposited in accordance with the copyright policy of the publisher.
Depositing User: Dr Kieran James
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 28 Nov 2010 02:17
Last Modified: 03 Jul 2013 00:06
Uncontrolled Keywords: internal audit effectiveness; institutional theory; Marx’s theory of the circuit of industrial capital; organisational performance; corporate governance; Marxist economics; Marxist accounting
Fields of Research (FOR2008): 14 Economics > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation
15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150102 Auditing and Accountability
14 Economics > 1401 Economic Theory > 140104 Microeconomic Theory
Socio-Economic Objective (SEO2008): B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910203 Industrial Organisations
C Society > 93 Education and Training > 9305 Education and Training Systems > 930501 Education and Training Systems Policies and Development
B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910202 Human Capital Issues
B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910204 Industry Costs and Structure
Identification Number or DOI: doi: 10.1108/01140581011091684
URI: http://eprints.usq.edu.au/id/eprint/9008

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