The development of internal auditing in Ethiopia: the role of institutional norms

Mihret, Dessalegn Getie and Mula, Joseph M. and James, Kieran (2012) The development of internal auditing in Ethiopia: the role of institutional norms. Journal of Financial Reporting and Accounting, 10 (2). pp. 153-170. ISSN 1985-2517


Purpose – The purpose of this paper is to examine the extent to which institutional norms determine
attributes of internal audit practices and how institutional changes explain the development of these
Design/methodology/approach – The authors employed a qualitative research approach based on
archival analysis and interview evidence.
Findings – Findings indicate that regulation-based institutional norms explain the adoption of
internal audit and the function’s characteristics in Ethiopian organizations. Furthermore, innovative
introduction of internal audit practices originate within individual organizations and eventually
get institutionalized through diffusion. Such innovations are associated with organizational size, top
management characteristics, internal audit advancement in technology, and exogenous input from the
external environment. Widely accepted internal audit practices, as institutional norms, are not always
taken-for-granted at the level of individual organizations. The institutional change perspective enables
explaining how new internal audit approaches are introduced to supplant old ones.
Originality/value – This study theorizes the development of internal audit practices from an
institutional change perspective. Being the first study to do so, it contributes to the understanding of key
drivers of institutional change that initiate newinstitutional norms that foster the development of internal
audit through introduction and diffusion of new audit practices as old ones are deinstitutionalized.

Statistics for USQ ePrint 21848
Statistics for this ePrint Item
Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published Version restricted in accordance with the copyright policy of the publisher (Emerald).
Faculty/School / Institute/Centre: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 11 Jan 2013 10:24
Last Modified: 22 Jul 2014 01:51
Uncontrolled Keywords: Ethiopia, Corporate governance, Internal auditing, Institutional change, Institutional theory, Regulation
Fields of Research : 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150199 Accounting, Auditing and Accountability not elsewhere classified
Identification Number or DOI: 10.1108/19852511211273705

Actions (login required)

View Item Archive Repository Staff Only