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The Effects of Using the Internal Audit Function as a Management Training Ground or as a Consulting Services Provider in Enhancing the Recruitment of Internal Auditors

48 Pages Posted: 16 Oct 2012 Last revised: 6 Sep 2014

F. Greg Burton

Brigham Young University - School of Accountancy

Matthew W. Starliper

University of Massachusetts Amherst - Department of Accounting & Information Systems

Scott L. Summers

Brigham Young University - School of Accountancy

David A. Wood

Brigham Young University - School of Accountancy

Date Written: August 2014

Abstract

This paper examines factors that influence job applicants’ willingness to apply for positions in internal auditing. We predict and find evidence that job applicants are dissuaded from applying for internal audit positions. In two separate experiments involving participants at seven universities, we discover that this phenomenon is most prevalent for applicants with business experience. Experienced applicants are 20 and 33 percent less willing to apply for a position if it is labeled as “internal audit” versus “accounting” in the two experiments, respectively. In addition, we find that the only experimental condition that increases interest in applying for an internal audit position for experienced applicants occurs when the position advertises the combination of (1) a short stint in internal auditing and then a move from internal audit into a management position and (2) work primarily related to consulting services rather than assurance services. As a potential explanation for these findings, we find evidence that participants believe other business professionals have negative stereotypes of internal auditing — which likely dissuade potential job applicants from applying to work in internal audit. The results should prove informative to practitioners, internal audit professional organizations, and business professionals concerned with high quality corporate governance.

Keywords: Internal Audit, Hiring Decisions, Management Training Ground, Recruiting, Assurance Services, Consulting Services

JEL Classification: M4, M40, M41, M49, G3, G34, M5, M51, M54

Suggested Citation

Burton, F. Greg and Starliper, Matthew W. and Summers, Scott L. and Wood, David A., The Effects of Using the Internal Audit Function as a Management Training Ground or as a Consulting Services Provider in Enhancing the Recruitment of Internal Auditors (August 2014). Available at SSRN: https://ssrn.com/abstract=2162611 or http://dx.doi.org/10.2139/ssrn.2162611

Fielding Greg Burton

Brigham Young University - School of Accountancy ( email )

Provo, UT 84602
United States

Matthew W. Starliper

University of Massachusetts Amherst - Department of Accounting & Information Systems ( email )

Amherst, MA 01003-4910
United States

Scott L. Summers

Brigham Young University - School of Accountancy ( email )

516 TNRB
Provo, UT 84602
United States
801-422-9790 (Phone)
801-422-0621 (Fax)

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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