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Title: Risk-based internal audit: factors related to its implementation
Authors: Lois, Petros
Drogalas, George
Nerantzidis, Michail
Georgiou, Ifigenia
Gkampeta, Eleni
Type: Article
Subjects: FRASCATI::Social sciences::Economics and Business::Accounting
FRASCATI::Social sciences::Economics and Business::Business and Management
Keywords: Risk-based internal audit
Internal audit
Risk management
Issue Date: 2021
Source: Corporate Governance: The International Journal of Business in Society
Volume: 21
Issue: 4
First Page: 645
Last Page: 662
Abstract: Purpose This study aims to investigate the factors associated with the implementation of risk-based internal audit (RBIA). Design/methodology/approach As a first step, a literature review of the relevant literature is performed and five potential factors related to the implementation of RBIA are identified. Based on that, this paper constructs a questionnaire survey sent out to 185 internal auditors, executives and accountants in Greece to receive 90 responses during the period of November 2019–January 2020. Multiple regression analysis is conducted to identify the factors related to the implementation of RBIA. Findings This paper shows that there is a statistically significant positive relationship between the implementation of RBIA and: the provision of risk management training, an active audit committee role and the establishment of a formalized risk management system. Practical implications The results have important implications for internal auditors, chief executive officers and accountants who wish to enhance internal audit effectiveness and the accuracy and quality of financial information. Originality/value Empirical studies on the factors related to the implementation of RBIA are rare. This is the first study to create empirical variables based on a thorough review of the relevant literature to empirically investigate the factors that are related to the implementation of RBIA in an emerging economy. By focusing on the Greek context, this study also sheds light to other countries with similar corporate governance systems, thus providing insights to settings where the Type II agency problem exists (La Porta et al., 1999).
ISSN: 1472-0701
Other Identifiers: 10.1108/CG-08-2020-0316
Appears in Collections:Department of Business Administration

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