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The Role of Internal Audit from New Enterprise Risk Management Frameworks Perspective: Research in Turkey

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  • Ahmet Onay

    (Vocational School of Transportation, Department of Management and Organization, Eskisehir, Turkey., Eskişehir Teknik Üniversitesi, Eskisehir, Turkey)

Abstract

Enterprise Risk Management (ERM) has emerged as a paradigm aimed at enabling organizations to respond to ever-changing risk factors. Since the publication of the COSO Risk Management Framework and IIA report in 2004, internal audit functions have assumed a variety of roles in organizations' ERM operations. The main purpose of this study is to determine the extent to which internal auditors' activities have changed over time in relation to ERM activities and to what extent these tasks are undertaken in practice. In the first part, literature and new risk frameworks related to the role of internal audit in ERM are examined. In the study, data collected from 245 internal auditors working in organizations operating in Turkey were analyzed by t-test and analysis of variance (ANOVA). From the findings, it was determined that the opinions of internal auditors regarding ideal situations in terms of ERM tasks assumed under certain conditions differed from those in practice. The analyses showed that some of the internal auditors' opinions differed statistically according to demographic variables. It has been determined that the opinions of internal auditors differ according to age, professional experience and enterprise sector in which they worked. The results were compared with studies on different samples. Thus, internal auditors' opinions and the current situation in Turkey, can be compared to different regions. In our study, different results were obtained from the results of studies conducted in different countries.

Suggested Citation

  • Ahmet Onay, 2020. "The Role of Internal Audit from New Enterprise Risk Management Frameworks Perspective: Research in Turkey," Istanbul Business Research, Istanbul University Business School, vol. 49(2), pages 177-200, November.
    • Handle: RePEc:ist:ibsibr:v:49:y:2020:i:2:p:177-200
    DOI: 10.26650/ibr.2020.49.0032
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    References listed on IDEAS

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    4. Jeffrey Cohen & Ganesh Krishnamoorthy & Arnold Wright, 2017. "Enterprise Risk Management and the Financial Reporting Process: The Experiences of Audit Committee Members, CFOs, and External Auditors," Contemporary Accounting Research, John Wiley & Sons, vol. 34(2), pages 1178-1209, June.
    5. Ian Fraser & William Henry, 2007. "Embedding risk management: structures and approaches," Managerial Auditing Journal, Emerald Group Publishing, vol. 22(4), pages 392-409, April.
    6. Laura de Zwaan & Jenny Stewart & Nava Subramaniam, 2011. "Internal audit involvement in enterprise risk management," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(7), pages 586-604, July.
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