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1、 外文文献及原稿外文文献及原稿原原 稿稿IntroductionInternal audit effectiveness, the extent to which an internal audit office meets its raison dtre, is arguably a result of the interplay among four factors: internal audit quality; management support; organizational setting; and attributes of the auditor. An internal a
2、udit functions capability to provide useful audit findings and recommendations would help raise managements interest in its recommendations. The management support with resources and commitment to implement the internal audit recommendations is essential in attaining audit effectiveness. Also, the o
3、rganizational setting in which internal audit operates, i.e. the organizational status of the office, its internal organization and the policies and procedures applying to each auditor, should enable smooth audits that lead to reaching useful audit findings. Further, the capability, attitudes and le
4、vel of cooperation of the auditor impact on the effectiveness of audits.Therefore, internal audit effectiveness should be viewed as a dynamic process that is continuously shaped by the interactions among the four factors mentioned above. This study examined, using case study analysis, the internal a
5、udit service of a large public sector organization. The paper is structured as follows. The next section presents a review of the related literature; introduces a model for analyzing audit effectiveness; and provides the research question. The third section presents the research methodology; fourth
6、section provides empirical analysis based on a case study; and fifth section presents a summary of the findings. The paper then summarizes the conclusions, noting limitations of the study and suggesting avenues for future research.Internal audit effectivenessThe Institute of Internal Auditors (IIA,
7、1999a) defined internal auditing as: an independent, objective assurance and consulting activity designed to add value and improve an organizations operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness
8、of risk management, control, and governance processes.This definition signifies that internal audit has undergone a paradigm shift from an emphasis on accountability about the past to improving future outcomes to help auditors operate more effectively and efficiently (Nagy and Canker, 2002; Stern, 1
9、994; Goodwin, 2004). Since, the definition equally serves both the private and the public sectors (Goodwin, 2004), it is used in this study as a basis to analyze public sector internal audit effectiveness.Internal audit is effective if it meets the intended outcome it is supposed to bring about. Saw
10、yer (1995) states, “ internal auditors job is not done until defects are corrected and remain corrected.” Van Hansberger (2005) explains that internal audit effectiveness in the public sector should be evaluated by the extent to which it contributes to the demonstration of effective and efficient se
11、rvice delivery, as this drives the demand for improved internal audit services. Based on the results of a consultative forum that focused on improving public sector internal audit 1, Van Hansberger (2005) identified perceptions and ownership; organization and governance framework; legislation; impro
12、ved professionalism; conceptual framework; and also resources as factors influencing internal audit effectiveness. Effective internal audit undertakes an independent evaluation of financial and operating information and of systems and procedures, to provide useful recommendations for improvements as
13、 necessary.The effectiveness of internal audit greatly contributes to the effectiveness of each auditor in particular and the organization at large (Dittenhofer, 2001). Dittenhofer (2001) has also observed that if internal audit quality is maintained, it will contribute to the appropriateness of pro
14、cedures and operations of the auditor, and thereby internal audit contributes to effectiveness of the auditor and the organization as a whole. Using agency theory, Dingdong (1997) explained the role that internal audit plays in an economy and points out that internal audit has an advantage over exte
15、rnal audit in obtaining information quickly and finding problems at an earlier stage; and Sparkman (1997), applying the theory of transaction cost economics, demonstrated how internal audit recommendations are important to the management of government organizations.Prior literature relating to inter
16、nal audit effectiveness has either focused on the internal audits ability to plan, execute and objectively communicate useful findings (Dingdong, 1997 Sparkman, 1997;Dittenhofer, 2001); or taken a broader view and included factors that transcend the boundary of a single organization (Van Hansberger, 2005). This paper attempts to introduce a new perspective for evaluation of internal audit effectiveness by identifying factors within an organization that impact on audit effectiveness