Examines the role of the internal auditor within a firm in the changing business world.
Written in 2002; 2,428 words; 18 sources; APA; $ 74.95
Paper Summary:
Many organizations manage their internal audit process through a hierarchical structure, whereby those at the top level are the only persons authorized to make decisions on behalf of the organization. Since the business arena has transformed itself within a complex global environment, hierarchical organizations no longer possess the ability to accommodate the demands of business needs and competitive pressures. As a result, firms must evaluate and reorganize their management structures to satisfy customer and market needs. This paper provides a discussion of the consultant's role in identifying potential opportunities for internal audit departments in order to meet ever-changing environmental, economic and market needs.
The paper also demonstrates that a significant body of research exists that provides relevance and support to the consultancy theory of internal auditing. The paper also includes illustrations.
From the Paper:
"Historically, internal auditors have typically been engaged in oversight roles that require comprehensive reviews of internal documents and accounting figures to validate the effectiveness of current business practices. However, such practices becoming less effective as businesses are required to improve their strategies to sustain a competitive advantage. Therefore, internal audit department responsibilities are shifting from traditional compliance roles into consultancy models that add value to organizations in light of economic turmoil and technological advancements. As a result, the organizational environment and management orientation have been altered accordingly. Furthermore, internal auditors are gaining additional responsibilities in their managerial roles. Research by leading experts indicates that internal auditors are a significant factor in facilitating organizational change."
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