INSTITUTIONAL INTERNAL AUDITING

The Significance of Institutional Internal Auditing

The Significance of Institutional Internal Auditing

Introduction

As a outcome of alterations in organizational needs, expertise and complexity of organisations' undertakings and schemes, the nature of the services searched from the internal auditors has been changing over the years from an focus on traditional/compliance review where independence has been the centre paradigm, to a value-adding function where partnering with management is accorded larger significance is furthermore focusing on this developing role, which is advised of paramount importance to achievement of organizational goals (Hass et al., 2006; Roth, 2003). Despite showing that value-adding interior review agencies need to possess varying attributes founded on the situational context (Roth, 2002), the publications is as yet not entire sufficient to response the questions of if, how, and why these attributes are associated with a pattern of organisational contexts and/or situations. Utilizing an analytical structure from the extant publications, this paper examines the role of interior review in a large Ethiopian public enterprise functioning as a sole telecommunication service provider. The study aims to draw inferences considering how the attributes of value-adding interior review agencies would alter as contexts and/or positions do change.

Research Question

Q1. How do the attributes of a value-adding internal review function associate with varying contexts and situations?

Q2. Do organisational goals leverage the needed attributes of a value-adding interior audit?

Q3. Does the kind of scheme pursued by an administration determine the needed attributes of a value-adding interior audit?

Literature Review

The publications reveals the significance of the function that internal review performances in organisations. Research utilising bureau idea (Xiangdong, 1997; Adams, 1994) and transaction cost idea (Spraakman, 1997) demonstrate interior audit's function in the administration and governance of organisations. The publications (Dittenhofer, 2001) furthermore talks about internal review effectiveness and recognises rudimentary tenets for its achievement. awyer (1995) and van Gansberghe (2005) focus the significance of enhancing interior review value to achieve review effectiveness. Similarly, Ziegenfus (2000) points out that review effectiveness could be accomplished through interior audit's evaluation of its presentation and continual enhancement of its services. The concept of internal review effectiveness possesses direct relevance to value-added interior audit, because the previous serves as a measure of the last mentioned (Roth, 2002).

Internal review is undergoing a paradigm move from traditional/compliance review to value-added internal review (Stern, 1994; Naggy and Cenker, 2002; Gramling et al., 2004; Cooper et al., 2006; Bou-Raad, 2000; Roth, 2002; Yee et al., 2007). tern (1994) best features that the value-added review paradigm is gaining in significance and identified 15 ways to attain a value-adding interior review department[2]. Similarly, Roth (2000) evolved a profile of a value-adding internal review function founded on a review of best practices of world-class internal review departments[3]. oth (2000, 2002, 2003) explains that although every association is different, all value-adding audit departments are inclined to share similar characteristics. Likewise, Gupta (2001) recognised eight factors[4] that help make up a value-adding interior review function. In sum, from the publications hitherto, one can observe that adding worth desires to be the focal issue ...