Final DBA Dissertation Defense - Patrice Achu
INTERNAL AUDIT FUNCTION EFFECTIVENESS:
INVESTIGATING ANTECEDENTS AND AFTEREFFECTS
PATRICE M. ACHU
Dr. Jodi Gissel, Dissertation Chair
ABSTRACT
This dissertation includes two related essays. First, I synthesized the current literature on internal audit function (IAF) effectiveness to develop a comprehensive model based on the Institute of Internal Auditors (IIA) Standards to measure indicators (antecedents) and IAF effectiveness. This model can guide future research on how IAFs may better contribute to organizations and help practice better implement effective IAFs. I then empirically test that model and leverage the IAF effectiveness measure to investigate the impacts of IAF effectiveness and a quality assurance and improvement program (QAIP) reviews on the probability that management pressures IAFs to omit or suppress significant audit findings.
I used data from the Common Body of Knowledge in Internal Auditing 2015 dataset (CBOK 2015) for my analyses in the second essay. In the empirical test of my proposed model, I expected and found compliance with IIA Attribute Standards related positively to IAF effectiveness. In investigating aftereffects of IAF effectiveness, I expected effectiveness and QAIP reviews would each negatively impact the likelihood that management pressures IAFs to suppress significant audit findings in order to conceal damaging information, such as fraudulent activities or significant financial misstatements. My findings provided some evidence that effective IAFs are less likely to face suppression requests. However, my findings did not provide sufficient support that IAFs subject to QAIP will be less likely to face the pressures to suppress findings from reports. In both essays, I discuss opportunities for future research and the practical implications of my research for academia and the internal audit profession.
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