Evidence on Internal Audit Effectiveness from Transitioning to Remote Audits Because of COVID-19

24 Pages Posted: 1 Feb 2021

See all articles by Marc Eulerich

Marc Eulerich

University of Duisburg-Essen, Mercator School of Management

Martin Wagener

University of Duisburg-Essen

David A. Wood

Brigham Young University - School of Accountancy

Date Written: January 27, 2021

Abstract

As in-person audits were banned by governments and company policies due to COVID-19, internal auditors had to transition to remote audits to perform their work. Based on survey responses of 271 German internal auditors who have conducted both remote and traditional audits, we find that internal auditors perceive no difference in the efficiency and effectiveness of and stakeholders’ reliance on results from remote and traditional audits when considering all responses. However, we also find that perceptions of efficiency and effectiveness increase the more experience internal auditors have with remote audits. Additional analyses show that support from the auditee, but not management or the audit committee, is an important determinant of perceived remote audit success. This later finding is important for internal auditors to consider when designing remote audits as it indicates the importance of building support with the auditee to have a successful remote auditing experience.

Keywords: Remote Audit, Internal Auditing, COVID-19

JEL Classification: M40, M42, G3, G34

Suggested Citation

Eulerich, Marc and Wagener, Martin and Wood, David A., Evidence on Internal Audit Effectiveness from Transitioning to Remote Audits Because of COVID-19 (January 27, 2021). Available at SSRN: https://ssrn.com/abstract=3774050 or http://dx.doi.org/10.2139/ssrn.3774050

Marc Eulerich (Contact Author)

University of Duisburg-Essen, Mercator School of Management ( email )

Lotharstrasse 65
Duisburg, 47057
Germany
00492033792600 (Phone)

HOME PAGE: http://www.msm.uni-due.de/ircg

Martin Wagener

University of Duisburg-Essen ( email )

Lotharstrasse 1
Duisburg, 47048
Germany

David A. Wood

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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