A Descriptive Study of Factors Associated with the Internal Audit Function Having an Impact: Comparisons between Organizations in a Developed and an Emerging Economy

Turkish Studies. 14 (3): 581-606.

30 Pages Posted: 22 Oct 2011 Last revised: 5 Feb 2015

See all articles by Audrey A. Gramling

Audrey A. Gramling

Oklahoma State University - Stillwater - School of Accounting

Irem Nuhoglu

Bogazici University

David A. Wood

Brigham Young University - School of Accountancy

Date Written: 2013

Abstract

An internal audit function (IAF) should positively impact financial reporting and governance, and add value to its organization. We provide evidence on IAF factors (i.e., characteristics, activities, work areas) associated with these types of impact and whether these factors, and their influence on various impacts, differ between a developed and an emerging economy (i.e., US, Turkey). Factors positively associated with financial reporting in the US are assurance activities, control work, and competence; in Turkey, significant factors are governance work and competence. For governance, we find that the factors positively associated with it in the US include assurance activities, governance work, and competence; in Turkey the significant factors are governance work and competence. In the US, assurance activities are negatively associated with adding value, while consulting activities, risk work, and control work are positively associated with this measure. In Turkey, only risk work and control work are positively associated with adding value. Finally, several measures of IAF objectivity are not associated with any of our impact measures.

Keywords: Adding Value, Assurance, Competence, Consulting, Financial Reporting, Governance, Internal Audit, Objectivity

JEL Classification: M4, M40, M41, M49, G3, G34

Suggested Citation

Gramling, Audrey A. and Nuhoglu, Irem and Wood, David A., A Descriptive Study of Factors Associated with the Internal Audit Function Having an Impact: Comparisons between Organizations in a Developed and an Emerging Economy (2013). Turkish Studies. 14 (3): 581-606.. Available at SSRN: https://ssrn.com/abstract=1947393 or http://dx.doi.org/10.2139/ssrn.1947393

Audrey A. Gramling

Oklahoma State University - Stillwater - School of Accounting ( email )

College of Business Administration
345 Business Building
Stillwater, OK 74078
United States

Irem Nuhoglu

Bogazici University ( email )

Bebek, İstanbul 34342
Turkey

David A. Wood (Contact Author)

Brigham Young University - School of Accountancy ( email )

518 TNRB
Brigham Young University
Provo, UT 84602
United States
801-422-8642 (Phone)
801-422-0621 (Fax)

HOME PAGE: http://marriottschool.byu.edu/employee/employee.cfm?emp=daw44

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