IDEAS home Printed from https://ideas.repec.org/p/rug/rugwps/07-458.html
   My bibliography  Save this paper

The Agency Model as a Predictor of the Size of the Internal Audit Function in Belgian Companies

Author

Listed:
  • G. SARENS

    ()

Abstract

This study contributes to the literature by using an agency model to explain the size of internal audit functions in a non-Anglo-Saxon environment. Data to test this model were collected from annual reports and a questionnaire sent to Chief Audit Executives. The results show that the agency model has high explanatory power and reveals that the more diffused the ownership structure of the company, the larger the company and the more reporting levels within the company, the larger the internal audit function. The results of this study confirm the growing monitoring role of internal auditing in contemporary corporate governance.

Suggested Citation

  • G. Sarens, 2007. "The Agency Model as a Predictor of the Size of the Internal Audit Function in Belgian Companies," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/458, Ghent University, Faculty of Economics and Business Administration.
  • Handle: RePEc:rug:rugwps:07/458
    as

    Download full text from publisher

    File URL: http://wps-feb.ugent.be/Papers/wp_07_458.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Patrick Bolton & José Scheinkman & Wei Xiong, 2006. "Executive Compensation and Short-Termist Behaviour in Speculative Markets," Review of Economic Studies, Oxford University Press, vol. 73(3), pages 577-610.
    2. repec:bla:joares:v:36:y:1998:i:1:p:57-70 is not listed on IDEAS
    3. JS Armstrong & Terry Overton, 2005. "Estimating Nonresponse Bias in Mail Surveys," General Economics and Teaching 0502044, EconWPA.
    4. Watts, Ross L & Zimmerman, Jerold L, 1983. "Agency Problems, Auditing, and the Theory of the Firm: Some Evidence," Journal of Law and Economics, University of Chicago Press, vol. 26(3), pages 613-633, October.
    5. DeAngelo, Linda Elizabeth, 1981. "Auditor size and audit quality," Journal of Accounting and Economics, Elsevier, vol. 3(3), pages 183-199, December.
    6. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
    7. San Miguel, Joseph G. & Shank, John K. & Govindarajan, Vijayaraghavan, 1977. "Extending corporate accountability: A survey and framework for analysis," Accounting, Organizations and Society, Elsevier, vol. 2(4), pages 333-347, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. G. Sarens, 2007. "A Research Note on the Relationship between the Control Environment and the Size of the Internal Audit Function in Belguim," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 07/441, Ghent University, Faculty of Economics and Business Administration.

    More about this item

    Keywords

    internal auditing; Belgium; agency theory; questionnaire; annual report;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rug:rugwps:07/458. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nathalie Verhaeghe). General contact details of provider: http://edirc.repec.org/data/ferugbe.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.