The Relationship Between CAE Leadership and the IAF’s Involvement in Corporate Governance

Autor:	Giuseppe D'Onza, Pierluigi Martino, Rob Melville
Rok vydání:	2019
Předmět:	050208 finance business.industry Corporate governance 05 social sciences Economics Econometrics and Finance (miscellaneous) Chief audit executive Context (language use) Accounting 050201 accounting Internal audit 0502 economics and business Business Finance
Zdroj:	Journal of Accounting, Auditing & Finance. 36:430-448
ISSN:	2160-4061 0148-558X
DOI:	10.1177/0148558x19867539
Popis:	This article examines the importance of leadership in the context of the internal audit function (IAF). We investigate the influence of the Chief Audit Executive’s (CAE) leadership in enabling the IAF to become a strategic player in corporate governance (CG). Using the responses of 804 CAEs from the Anglosphere countries and South Africa, we find that strong CAE leadership skills and the existence of a leadership training program are significantly and positively associated with IAF involvement in CG processes. This provides support for the argument that CAEs with strong leadership skills help the IAF to move from a behind-the-scenes player to a key actor in the improvement of CG practices, increasing the IAF’s organizational relevance. We also find that the use of a risk-based audit plan, the existence of a quality assurance and improvement program (QAIP), activity type (consulting vs. assurance), and IAF size are also positively associated with IAF involvement in CG. These findings suggest that IAF activity characteristics also have significant implications for this function’s stronger involvement in the CG space.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::37d623d01f410dfa69ebd30388da9c82 https://doi.org/10.1177/0148558x19867539 Zobrazit plný text záznamu