Evidence on Internal Audit Effectiveness from Transitioning to Remote Audits Because of COVID-19
24 Pages Posted: 1 Feb 2021
Date Written: January 27, 2021
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: Suggested Citation