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Value‐added role of internal audit: an Ethiopian case study

Value‐added role of internal audit: an Ethiopian case study Purpose – The purpose of this paper is to draw inferences – from the results of an Ethiopian public sector corporation (for‐profit) case study – on how the attributes of a value‐adding internal audit department would vary among organisations. Design/methodology/approach – The case study strategy is employed. The internal audit function of a public sector corporation was examined using an analytical framework derived from the literature. Research evidence was gathered distributing questionnaires to managers and internal auditors, conducting a semi‐structured interview with the internal audit department manager, and reviewing documents. Findings – The results highlight that traditional/compliance audit is dominant in the organisation studied as contrasted with value‐added auditing. The paper concludes that goals and strategies pursued and the level of risk faced by organisations to which internal audit provides service, appear to shape the attributes of a value‐adding internal audit department. The study also demonstrates that the quality of strategic planning for, and marketing of, internal audit would influence the extent to which an appropriate value‐added profile is attained in a particular context. Research limitations/implications – Since a single unit of analysis is examined, universal generalisability of the findings cannot be claimed. Also, the research design assumed that the unit of analysis investigated falls within the scope of internal audit departments considered in the literature that served as a basis to develop the analytical framework and data collection instruments. Originality/value – The paper is expected to inspire conclusive follow‐on research on the role of internal audit in Ethiopia, or other countries with similar settings. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Auditing Journal Emerald Publishing

Value‐added role of internal audit: an Ethiopian case study

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Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
0268-6902
DOI
10.1108/02686900810882110
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to draw inferences – from the results of an Ethiopian public sector corporation (for‐profit) case study – on how the attributes of a value‐adding internal audit department would vary among organisations. Design/methodology/approach – The case study strategy is employed. The internal audit function of a public sector corporation was examined using an analytical framework derived from the literature. Research evidence was gathered distributing questionnaires to managers and internal auditors, conducting a semi‐structured interview with the internal audit department manager, and reviewing documents. Findings – The results highlight that traditional/compliance audit is dominant in the organisation studied as contrasted with value‐added auditing. The paper concludes that goals and strategies pursued and the level of risk faced by organisations to which internal audit provides service, appear to shape the attributes of a value‐adding internal audit department. The study also demonstrates that the quality of strategic planning for, and marketing of, internal audit would influence the extent to which an appropriate value‐added profile is attained in a particular context. Research limitations/implications – Since a single unit of analysis is examined, universal generalisability of the findings cannot be claimed. Also, the research design assumed that the unit of analysis investigated falls within the scope of internal audit departments considered in the literature that served as a basis to develop the analytical framework and data collection instruments. Originality/value – The paper is expected to inspire conclusive follow‐on research on the role of internal audit in Ethiopia, or other countries with similar settings.

Journal

Managerial Auditing JournalEmerald Publishing

Published: Jun 27, 2008

Keywords: Internal auditing; Value added; Ethiopia

References