Entity-Level Controls: The Internal Auditor's Assessment of Management Tone at the Top
Current Issues in Auditing, Vol. 3, No. 1, pp. 1-13, 2009
23 Pages Posted: 9 Nov 2008 Last revised: 10 Feb 2010
Date Written: November 7, 2008
Abstract
The internal audit function's (IAF) regular interaction with management and continual presence within the organization place it in a unique position to monitor the organization. Although the IAF has significant potential to evaluate and improve corporate governance, research has yet to explore how internal auditors assess an important component of corporate governance - management tone at the top. This paper reports survey evidence of 578 practicing internal auditors related to (1) current internal auditing practices regarding assessing management's tone, (2) internal auditor's current assessments of management's tone, and (3) potential future practices internal auditor's could perform to improve management's tone. In addition, we examine whether tone at the top is higher in organizations where internal auditors perform tone at the top assessments and if assessments differ based on what level of internal audit professional performs tone at the top assessments.
Keywords: Internal Audit, Entity-Level Controls, Tone at the Top, Corporate Governance
JEL Classification: M41, M49, G34, G38
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
A New Measure of Accounting Quality*
By Paul Hribar, Todd D. Kravet, ...
-
Do the SEC’s Enforcement Preferences Affect Corporate Misconduct?
By Simi Kedia and Shivaram Rajgopal
-
Do the SEC’s Enforcement Preferences Affect Corporate Misconduct?
By Simi Kedia and Shivaram Rajgopal
-
Internal Audit Quality and Earnings Management
By Douglas F. Prawitt, Jason L. Smith, ...
-
The Impact of Religion on Financial Reporting Irregularities
By Sean T. Mcguire, Thomas C. Omer, ...
-
Religious Social Norms and Corporate Financial Reporting
By Scott Dyreng, William J. Mayew, ...
-
By Richard A. Price, Nathan Y. Sharp, ...
-
By Douglas F. Prawitt, Nathan Y. Sharp, ...