The Impact of Regulation on the Internal Audit Function

14 Pages Posted: 18 Sep 2013

See all articles by Kevin Jones

Kevin Jones

Georgia State University

Richard Baskerville

Georgia State University

Ram S. Sriram

Georgia State University

Balasubramaniam Ramesh

Georgia State University - J. Mack Robinson College of Business

Date Written: September 20, 2013

Abstract

The intent of this research is to determine if the IAF can add value to the organization in other ways besides corporate governance. The proposed project will demonstrate through an interpretive process study using case study research how the internal audit function can be a strategic business partner by highlighting its contribution ability in a dynamic, ever-changing, regulatory laden environment. This paper uses Punctuated Equilibrium Theory to explain the organizational transformation of the internal audit function from a professional bureaucracy to an adhocracy as an unintended consequence of corporate governance legislation over time. The study contributes to the literature by explaining the evolutionary change in the internal audit function from scorekeeper-and-watchdog to business-partner-and-change agent. This study analyzes how senior management benefits from utilizing the internal auditors’ experience as an organizational tool to address threats and opportunities.

Keywords: Corporate Governance, Internal Audit Function

Suggested Citation

Jones, Kevin and Baskerville, Richard and Sriram, Ram S. and Ramesh, Balasubramaniam, The Impact of Regulation on the Internal Audit Function (September 20, 2013). Third Annual International Conference on Engaged Management Scholarship, Atlanta, Georgia. September 19-22, 2013. Paper 8.1. Available at SSRN: https://ssrn.com/abstract=2327853 or http://dx.doi.org/10.2139/ssrn.2327853

Kevin Jones (Contact Author)

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

Richard Baskerville

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

Ram S. Sriram

Georgia State University ( email )

P.O. Box 4050
Atlanta, GA 30302-4050
United States
404-651-4464 (Phone)
404-651-1033 (Fax)

Balasubramaniam Ramesh

Georgia State University - J. Mack Robinson College of Business ( email )

No Address Available

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