THE ROLE OF INTERNAL AUDITORS ON ENTERPRISE RISK MANAGEMENT: ANTECEDENTS AND CONSEQUENCES
Keywords:
Internal Control, Enterprise Risk ManagementAbstract
This academic paper is to present the enterprise risk management roles of internal auditors. The objectives of this paper consist of 1) reviewing literature of factors affecting effectiveness and efficiency of internal auditing and 2) reviewing literature of enterprise risk management benefits that lead to adding value to an organization.
According review, it can be seen that internal auditors participate in managing enterprise risks. Managing enterprise risks can also add business values such as market price increase, incremental profit, reducing earnings fluctuations, reducing audit fees, and reducing organizational fraud. For future research, it can be suggested that a researcher should study factors affecting internal auditing practice, and independence and objectivity of an internal auditor. In addition, the study of relationship amongst internal auditing quality, risk management and organizational performance is needed to investigate. These suggestions may lead to the development of internal auditing quality and actual benefits of an organization.
References
Arena, M. & Azzone, G. (2009). Identifying Organizational Drivers of Internal Audit Effectiveness, International Journal of Auditing. 44, 43-60.
Ball, R. (2009). Market and Political/ Regulatory Perspectives on the Recent Accounting Scandals. Journal of Accounting Research. 47, 277-323.
Beasley, M. S., R. Clune & D. R. Hermanson. (2008). The impact of enterprise risk management on the internal audit function. Journal of Forensic Accounting. 9, 1-20.
Castanheira, N., Rodrigres, L.L. & Craig, R. (2010). Factors associated with the adoption of risk-based internal auditing. Managerial Auditing Journal. 25, 79-98.
Coleman, T.S. (2012). A Practical Guide to Risk Management (a summary). Research Foundation of CFA Institute. Retrieved August 20, 2014, from http://www.cfainstitute.org/learning/products/publications/contributed/Pages/a_practical_guide_to_risk_management__summary_.aspx
Coram, P., Ferguson ,C., & Moroney, R. (2008). Internal audit, alternative internal audit structures and the level of misappropriation of assets fraud, Accounting and Finance. 48, 543-559.
Desender, K. (2007). on The Determinants of Enterprise Risk Management. Retrieved August 20, 2014, from http://ssrn.com/abstract=1155218
Dionne, G. (2013). Risk management: History, definition and critique. Retrieved August 20, 2014, from http://ssrn.com/abstract=2231635 or http://dx.doi.org/10.2139/ssrn.2231635
George-Silviu, C. (2014). Analysis of Internal Audit Practices on FTSE100. Procedia Economics and Finance. 15, 1265–1272.
Hermanson, D. R., Ivancevich, D. M. & Ivancevich, S. H. (2008). Building an Effective Internal Audit Function: Learning from SOX Section 404 Reports. Review of Business. 28, 13-18.
Hoyt, E. R., & Liebenberg P. A. (2011). The Value of Enterprise Risk Management, Journal of Risk and Insurance. 78, 795-822
Munteanu, V. & Zaharia, D. L. (2014). Current Trends in Internal Audit. Procedia - Social and Behavioral Sciences. 116, 2239–2242.
Nocco, B. W., Stulz, & M. (2006). Enterprise risk management: theory and practice, Journal of Applied Corporate Finance. 18, 1-13.
Pagach, D. & Warr, R., (2010). The Effects of Enterprise Risk Management on Firm Performance. Retrieved August 20, 2014, from http://www.garp.orgmedia51855firm%20performance%20and%20the%20implementation%20of%20erm%20-%20
Ramamoorti, S. ( 2003). Chapter 1 Internal Auditing: History, Evolution, and Prospects 1. The Institute of Internal Auditors Research Foundation. Retrieved August 20, 2014, from
Sarens, G. (2009). Internal Auditing Research: Where are we going? Editorial. International Journal of Auditing. 13, 1-7.
Schneider, A. (2010). Analysis of professional standards and research findings to develop decision aids for reliance on internal auditing, Research in Accounting Regulation. 22, 96-106.
Smith, M. L., Michael S. D., & Michael., K. S.( 2009). Pivotal Change in US Public Policy: How the Sarbanes-Oxley Act Affected Internal Auditing and its Relationship to External Auditing. International Journal of Accounting,
Auditing and Performance Evaluation. Retrieved August 20, 2014, from http://ssrn.com/abstract=1455985.
Tamosiuniene, R. & Savcuk, O. (2007). Risk Management in Lithuanian Organizations Relation with Internal Audit and Financial Statement Quality. Theory and Practice. 5, 204-213.
The institute of internal auditors. (2004). The role of auditing in enterprise-wide risk management. Retrieved August 20, 2014, from www.theiia.org,https://na.theiia.orgstandardsguidancePublic%20DocumentsPP%20The%20Role%20of%20Internal%20Auditing%20in%20Enterprise%20Ri.
The Institute of Internal Auditors. (2013). International Standards for the Professional Practice of Internal Auditing The Institute of Internal Auditors. Retrieved August 20, 2014, from https://na.theiia.org/standards-guidance/mandatory-guidance/Pages/Standards.aspx.
Downloads
Published
How to Cite
Issue
Section
License
Content and information of the article published at Suthiparithat Journal are based on the sole opinions and responsibility of author(s) only. Neither the editorial board involve in......
