Internal Auditors' Perception About Their Role in Risk Management Audit in Egyptian Banking Sector

Abstract:     
The purpose of this paper is to constitute a comprehensive framework of risk management and to explore the role played by internal auditors in the audit of risk management. The paper also, attempts to collect internal auditors’ opinion regarding other factors on risk-management auditing, where it uses surveys from internal auditors working in banks to test its predictions.

The results indicate that there is a strong association between the type of bank ownership and the quality of the risk-based audit procedures. The results show that this relationship is in favor of private and joint-venture banks, hence suggesting that internal auditors see themselves capable of playing a larger role in the audit of risk management framework rather than outsourcing experts such as consulting certified public accountants (CPA). A majority of internal auditors recommend that risk management audit might be carried out, as a second option, by an independent risk management consulting firm.

Keywords: Risk-based audit, risk management, internal auditors, external auditors, audit committee, bank’ supervisor

JEL Classification: G38, K22, L21, M41, N25

Accepted Paper Series