Anderson, Urton L. and Christ, Margaret H., Internal Auditing (March 19, 2013, Routledge Companion to Auditing, edited by David Hay, W. Robert Knechel and Marleen Willekens
Posted: 14 Apr 2014
Date Written: March 19, 2013
The internal audit function (IAF) provides assurance and insight regarding governance, risk and control processes within an organization. In this regard, the IAF performs value-added activities for the board, management and external auditors, as well as various other internal and external stakeholders (e.g., investors). In this chapter, we describe the extant literature on the IAFs role in governance, risk and control, much of which focuses on the effects of IAF quality on various financial reporting outcomes and on users’ reliance on the IAF. We also discuss research focusing on operational outcomes and the IAF’s consulting responsibilities. In addition, because of the constantly evolving role of the IAF, and various changes in governance in general, there exist several areas where current understanding is incomplete. We conclude this chapter with a discussion of these knowledge gaps.
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