The Effectiveness of Internal Auditors Based on Role theory and Accountability Perspectives - Case Studies of Group Auditing

• Main Authors: Pei-yao Shih, 施佩瑤
• Other Authors: Chia-Ming Sun
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/05558934499498676445

碩士 === 國立雲林科技大學 === 會計系碩士班 === 100 === As the scales of business groups increase in Taiwan, the supervision and management over subsidiaries is getting more difficult for the complex processes. Internal auditors play the important roles of supervisors or consultants in monitoring business operations. Thus, how to increase the effectiveness of internal auditors and strengthen the supervising mechanisms over business groups have become the critical issues today. In this study, we integrate the views of role theory and accountability perspectives with case studies of group auditing, to explore the factors over the effectiveness of internal auditors. The case selection is based on the different accountabilities, which summarized from literature review: (1) bureaucratic accountability; (2) professional accountability, (3) personal accountability, (4) legal accountability. Then, we used the multiple case study method to conduct the data collection and in-depth interviews. The case data is helpful for us to discover the impact of different accountabilities on audit planning, audit engagement, and performance of internal auditors. The research results indicate that, (1) bureaucratic accountability: when the bureaucratic accountability from management towards internal auditors is clearer, the effectiveness of internal auditors will increase; (2) professional accountability: the previous work experience, experience of job rotation and expertise of internal auditors will affect the characteristics of their professional accountability and work performance; (3) personal accountability: through the enhancement of personal accountability, the internal auditors get the recognition of management and the auditees, and that will increase the effectiveness of audit; (4) legal accountability: when companies have well-developed systems of governance and internal control, the focus areas of bureaucratic accountability, professional accountability, and personal accountability have covered the legal accountability. Then internal auditors will be less dependent of the legal accountability. We also explore the mutual influences of different accountabilities based on the perspectives of role theory. The results show that the interaction of different accountabilities will cause the phenomenon of “role ambiguity”, “role rigidity”, “role extension” and “role consistent”.