A critical analysis of the independence of the interal audit function: evidence from Australia
Purpose – This study aims to critically analyse the independence of the internal audit function through its relationship with management and the audit committee. Design/methodology/approach – Results are based on a critical comparison of responses from questionnaires sent out to Australian chief aud...
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| Format: | Journal Article |
| Published: |
Emerald
2009
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| Online Access: | http://hdl.handle.net/20.500.11937/45593 |
| _version_ | 1848757329430839296 |
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| author | Christopher, Joseph Sarens, G. Leung, P. |
| author_facet | Christopher, Joseph Sarens, G. Leung, P. |
| author_sort | Christopher, Joseph |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Purpose – This study aims to critically analyse the independence of the internal audit function through its relationship with management and the audit committee. Design/methodology/approach – Results are based on a critical comparison of responses from questionnaires sent out to Australian chief audit executives (CAEs) versus existing literature and best practice guidelines. Findings – With respect to the internal audit function's relationship with management, threats identified include: using the internal audit function as a stepping stone to other positions; having the chief executive officer (CEO) or chief finance officer (CFO) approve the internal audit function's budget and provide input for the internal audit plan; and considering the internal auditor to be a “partner”, especially when combined with other indirect threats. With respect to the relationship with the audit committee, significant threats identified include CAEs not reporting functionally to the audit committee; the audit committee not having sole responsibility for appointing, dismissing and evaluating the CAE; and not having all audit committee members or at least one member qualified in accounting. Originality/value – This study introduces independence threat scores, thereby generating analysis of the internal audit function's independence taking into account a combination of threats. |
| first_indexed | 2025-11-14T09:26:22Z |
| format | Journal Article |
| id | curtin-20.500.11937-45593 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:26:22Z |
| publishDate | 2009 |
| publisher | Emerald |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-455932017-09-13T15:59:40Z A critical analysis of the independence of the interal audit function: evidence from Australia Christopher, Joseph Sarens, G. Leung, P. Corporate governance Managers Audit committees Internal auditing Australia Purpose – This study aims to critically analyse the independence of the internal audit function through its relationship with management and the audit committee. Design/methodology/approach – Results are based on a critical comparison of responses from questionnaires sent out to Australian chief audit executives (CAEs) versus existing literature and best practice guidelines. Findings – With respect to the internal audit function's relationship with management, threats identified include: using the internal audit function as a stepping stone to other positions; having the chief executive officer (CEO) or chief finance officer (CFO) approve the internal audit function's budget and provide input for the internal audit plan; and considering the internal auditor to be a “partner”, especially when combined with other indirect threats. With respect to the relationship with the audit committee, significant threats identified include CAEs not reporting functionally to the audit committee; the audit committee not having sole responsibility for appointing, dismissing and evaluating the CAE; and not having all audit committee members or at least one member qualified in accounting. Originality/value – This study introduces independence threat scores, thereby generating analysis of the internal audit function's independence taking into account a combination of threats. 2009 Journal Article http://hdl.handle.net/20.500.11937/45593 10.1108/09513570910933942 Emerald restricted |
| spellingShingle | Corporate governance Managers Audit committees Internal auditing Australia Christopher, Joseph Sarens, G. Leung, P. A critical analysis of the independence of the interal audit function: evidence from Australia |
| title | A critical analysis of the independence of the interal audit function: evidence from Australia |
| title_full | A critical analysis of the independence of the interal audit function: evidence from Australia |
| title_fullStr | A critical analysis of the independence of the interal audit function: evidence from Australia |
| title_full_unstemmed | A critical analysis of the independence of the interal audit function: evidence from Australia |
| title_short | A critical analysis of the independence of the interal audit function: evidence from Australia |
| title_sort | critical analysis of the independence of the interal audit function: evidence from australia |
| topic | Corporate governance Managers Audit committees Internal auditing Australia |
| url | http://hdl.handle.net/20.500.11937/45593 |