内部审计外文文献翻译.docx

内部审计外文文献翻译.docx

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外文文献及原稿

原 稿

Introduction

Internalauditeffectiveness,theextenttowhichaninternalauditofficemeetsitsraisond'être,isarguablyaresultoftheinterplayamongfourfactors:

internalauditquality;managementsupport;organizationalsetting;andattributesoftheauditor.Aninternalauditfunction'scapabilitytoprovideusefulauditfindingsandrecommendationswouldhelpraisemanagement'sinterestinitsrecommendations.Themanagementsupportwithresourcesandcommitmenttoimplementtheinternalauditrecommendationsisessentialinattainingauditeffectiveness.Also,theorganizationalsettinginwhichinternalauditoperates,i.e.theorganizationalstatusoftheoffice,itsinternalorganizationandthepoliciesandproceduresapplyingtoeachauditor,shouldenablesmoothauditsthatleadtoreachingusefulauditfindings.Further,thecapability,attitudesandlevelofcooperationoftheauditorimpactontheeffectivenessofaudits.

Therefore,internalauditeffectivenessshouldbeviewedasadynamicprocessthatiscontinuouslyshapedbytheinteractionsamongthefourfactorsmentionedabove.Thisstudyexamined,usingcasestudyanalysis,theinternalauditserviceofalargepublicsectororganization.Thepaperisstructuredasfollows.Thenextsectionpresentsareviewoftherelatedliterature;introducesamodelforanalyzingauditeffectiveness;andprovidestheresearchquestion.Thethirdsectionpresentstheresearchmethodology;fourthsectionprovidesempiricalanalysisbasedonacasestudy;andfifthsectionpresentsasummaryofthefindings.Thepaperthensummarizestheconclusions,notinglimitationsofthestudyandsuggestingavenuesforfutureresearch.

Internalauditeffectiveness

TheInstituteofInternalAuditors（IIA,1999a）definedinternalauditingas:

an

independent,objectiveassuranceandconsultingactivitydesignedtoaddvalueandimproveanorganization'soperations.Ithelpsanorganizationaccomplishitsobjectivesbybringingasystematic,disciplinedapproachtoevaluateandimprovetheeffectivenessofriskmanagement,control,andgovernanceprocesses.

Thisdefinitionsignifiesthatinternalaudithasundergoneaparadigmshiftfromanemphasisonaccountabilityaboutthepasttoimprovingfutureoutcomestohelpauditorsoperatemoreeffectivelyandefficiently（NagyandCanker,2002;Stern,1994;Goodwin,2004）.Since,thedefinitionequallyservesboththeprivateandthepublicsectors（Goodwin,2004）,itisusedinthisstudyasabasistoanalyzepublicsectorinternalauditeffectiveness.

Internalauditiseffectiveifitmeetstheintendedoutcomeitissupposedtobringabout.Sawyer（1995）states,“…internalauditor'sjobisnotdoneuntildefectsarecorrectedandremaincorrected.”VanHansberger（2005）explainsthatinternalauditeffectivenessinthepublicsectorshouldbeevaluatedbytheextenttowhichitcontributestothedemonstrationofeffectiveandefficientservicedelivery,asthisdrivesthedemandforimprovedinternalauditservices.Basedontheresultsofaconsultativeforumthatfocusedonimprovingpublicsectorinternalaudit[1],VanHansberger（2005）identifiedperceptionsandownership;organizationandgovernanceframework;legislation;improvedprofessionalism;conceptualframework;andalsoresourcesasfactorsinfluencinginternalauditeffectiveness.Effectiveinternalauditundertakesanindependentevaluationoffinancialandoperatinginformationandofsystemsandprocedures,toprovideusefulrecommendationsforimprovementsasnecessary.

Theeffectivenessofinternalauditgreatlycontributestotheeffectivenessofeachauditorinparticularandtheorganizationatlarge（Dittenhofer,2001）.Dittenhofer（2001）hasalsoobservedthatifinternalauditqualityismaintained,itwillcontributetotheappropriatenessofproceduresandoperationsoftheauditor,andtherebyinternalauditcontributestoeffectivenessoftheauditorandtheorganizationasawhole.Usingagencytheory,Dingdong（1997）explainedtherolethatinternalauditplaysinaneconomyandpointsoutthatinternalaudithasanadvantageoverexternal

auditinobtaininginformationquicklyandfindingproblemsatanearlierstage;and

Sparkman（1997）,applyingthetheoryoftransactioncosteconomics,demonstratedhowinternalauditrecommendationsareimportanttothemanagementofgovernmentorganizations.

Priorliteraturerelatingtointernalauditeffectivenesshaseitherfocusedontheinternalaudit'sabilitytoplan,executeandobjectivelycommunicateusefulfindings（Dingdong,1997Sparkman,1997;Dittenhofer,2001）;ortakenabroaderviewandincludedfactorsthattranscendtheboundaryofasingleorganization（VanHansberger,2005）.Thispaperattemptstointroduceanewperspectiveforevaluationofinternalauditeffectivenessbyidentifyingfactorswithinanorganizationthatimpactonauditeffectiveness.Amodel,whichassumesthatthereisacommoninteresttoachieveorganizationalgoalsforauditormanagement,topmanagementandinternalaudit,isusedforanalysisofthiscasestudy.Since,auditeffectivenessfosterstheachievementofacommongoal;therewouldbeanaturalincentiveinanorganizationtoimproveit.Themodelconsidersfourpotentialfactors–internalauditquality,managementsupport,organizationalsetting,andauditorattributestoexplainauditeffectiveness,andshowshowtheinteractionofthesefactorsimprovesauditeffectiveness.

Internalauditquality,whichisdeterminedbytheinternalauditdepartment'scapabilitytoprovideusefulfindingsandrecommendations,iscentraltoauditeffectiveness.Internalaudithastoprovethatitisofvaluetotheorganizationandearnareputationintheorganization（Sawyer,1995）.Internalaudithastoevaluateitsperformanceandcontinuallyimproveitsservice.auditqualityisafunctionofthelevelofstaffexpertise,thescopeofservicesprovidedandtheextenttowhichauditsareproperlyplanned,executedandcommunicated.

Auditfindingsandrecommendationswouldnotservemuchpurposeunlessmanagementiscommittedtoimplementthem.Adams（1994）usedagencytheorytoexplainthatitisintheinterestofmanagementtomaintainastronginternalauditdepartment.Implementationofauditrecommendationsishighlyrelevanttoauditeffectiveness（VanHansberger,2005）andthemanagementofanorganizationisviewedasthecustomerreceivinginternalauditservices.Asaresult,management'scommitmenttouseauditrecommendationsanditssupportinstrengtheninginternal

auditisvitaltoauditeffectiveness（Sawyer,1995）.

Organizationalsettingreferstotheorganizationalprofile,internalorganizationandbudgetarystatusoftheinternalauditoffice;andalsotheorganizationalpoliciesandproceduresthatguideoperationofauditors.Itprovidesthecontextinwhichinternalauditoperates.Thus,organizationalsettingcanexertinfluenceonthelevelofeffectivenessthatinternalauditcouldachieve.Theauditorattributesrelatetothecapabilityoftheauditortomeetitsintendedobjectives.Auditorattributeswithimplicationsonauditeffectivenessincludetheauditors'proficiencytoefficientlyandeffectivelymeetorganizationalsub-goals;theirattitudetowardsinternalaudit;andthelevelofcooperationprovidedtotheauditor.Since,thefourfactorsdiscussedaboveareintricatelylinked,auditeffectivenessisadynamicprocessthatresultsfromtheeffectofeachfactorandtheinterplayamongall.auditqualityandmanagementsupportstronglyaffectsauditeffectiveness.Betterauditeffectiveness,inturn,hasapositivebearingonthesetwofactors.Ifinternalauditenhancesqualitytotheextentitelicitsmanagement'sinterest,managementsupportwouldbeanaturalquidproquobecausethemanagementwouldrealizethecontributionofinternalaudittotheachievementoforganizationalgoals.Thiswouldpositivelyreflectonauditqualityandenhanceauditeffectiveness.Themanagement'scommitmenttoimplementauditrecommendationsimprovestheoperationoftheauditor,asaresultofwhichtheauditorattributeswouldimprovetothebenefitofauditeffectiveness.Further,managementretainstheauthoritytoimprovetheorganizationalsettingandinfluencetheauditortowardsapositiveeffectonauditeffectiveness,whichinturn,benefitsauditquality.

Concludingcomments

Thisstudyinvestigatedtheinternalauditserviceofalargepublicsectorhighereducationalinstitution,toidentifyfactorsinfluencinginternalauditeffectiveness,usingamodeldevelopedfortheanalysis.Themodelconsistedoffourinterrelatedfactors:

internalauditquality;managementsupport;theorganizationalsetting;andattributesoftheauditors.

Thefindingsofthestudyrevealthattheinternalauditofficeoftheorganizationstudiedneedstoenhancethetechnicalproficiencyoftheinternalauditstaffand

minimizestaffturnoversoastofosterauditeffectiveness.Theorganizationalstatusandinternalorganizationoftheinternalauditofficearefairlyrated,butinternalaudit'slackofauthorityonbudgetsreducesitscontrolofresourceacquisitionandutilization.

Thescopeofinternalauditservicesislimitedtoregularactivities.Extendingthescopeofservicesbywideningtherangeofsystemsandactivitiesaudited,withappropriateriskanalysis,wouldimproveauditeffectiveness.Management'scommitmentinprovidinggreaterattentiontointernalauditrecommendationsandstaffingtheofficewithwell-qualifiedemployeesdeservesattentioninthisstudy.Theinternalauditors,undertheimpressionthattheirreportsarenotsuffic