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Correlates of Internal Audit Function Maturity

Author

Listed:
  • Steven DeSimone

    (Department of Economics and Accounting, College of the Holy Cross)

  • Giuseppe D’Onza

    (University of Pisa)

  • Gerrit Sarens

    (Louvain School of Management, Université Catholique de Louvain)

Abstract

We identify several dimensions of the Internal Audit Function (IAF) as a composite measure of IAF maturity by using Principal Components Analysis (PCA) Our data is from the Common Body of Knowledge in Internal Auditing (CBOK) (2015) dataset. We find confirmation for our four hypotheses, where the support the IAF receives from the board, diversified training programs, the use of the IAF as a management training ground, and the maturity of the risk management system are significantly related to IAF maturity. Our hypotheses are verified both at a global and regional level. Regarding control variables, IAF age, CAE tenure, CAE certifications, and non-listed companies are also significant at a global level but not at regional level. We discuss implications of these findings for future practice and research.

Suggested Citation

  • Steven DeSimone & Giuseppe D’Onza & Gerrit Sarens, 2019. "Correlates of Internal Audit Function Maturity," Working Papers 1905, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:1905
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    References listed on IDEAS

    as
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    10. Mélanie Roussy & Alexandre Perron, 2018. "New Perspectives in Internal Audit Research: A Structured Literature Review," Accounting Perspectives, John Wiley & Sons, vol. 17(3), pages 345-385, September.
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    Keywords

    Internal audit maturity; leading audit technology; risk management maturity;
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