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

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  • 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
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    References listed on IDEAS

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    10. 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.
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    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.

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    Keywords

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