A contingency theory of interunit relations of the internal audit function.
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| Other Authors: | , , |
| Format: | Thesis Book |
| Language: | English |
| Published: |
1984.
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| Subjects: | |
| Online Access: | Link to OAKTrust Copy Link to ProQuest Copy |
| Abstract: | This study addresses the nature and limits of the accounting paradigm in the internal audit setting. The concern of this study is not the internal audit function and its relationship to the independent auditors; rather, this study concerns itself with the internal audit function as an assessment function confronting a wide range of internal environments. Some of these environments are hypothesized to be more appropriate than others for evaluation through accounting data. Four internal audit departments in the Boston area cooperated in the research. The four firms are well-known, high-technology firms which support extensive production, marketing, and R&D functions. Control is maintained throughout the course of this study for the effects of Firm and Work Unit Type. Work Unit Type is the formal or informal structure within the internal audit function which resulted in the designation of auditors as either Financial/Compliance or Operational. Each respondent firm completed an instrument which required three responses to each item. These responses represented a characteristic of the relationship between internal audit and each of three other units. Analysis of the data adjusted for the multiple responses from each participant. Environmental variables considered in the study include work experience, educational background, and perceived performance assessment methods. Analysis of results indicated that the four firms were homogeneous both by Firm and Work Unit type along the environmental variables. A MANOVA indicated that the effects of Firm and Work Unit Type were of no significance in explaining the levels of the dependent variable in the model. The dependent variable, the Quality of Interunit Relations, was found to be a decreasing function of the type of Other Unit, where Other Unit is composed of the paired relationship between the internal audit function and Production, Marketing, and R&D respectively. This finding is interpreted as supportive of previous studies in demonstrating the nature and limits of accounting measures. It extends the findings of previous studies to a formal group--professional internal auditors. The study has practical significance for internal audit department in terms of structure, performance assessment techniques, and personnel policies. |
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| Item Description: | Typescript (photocopy). Vita. "Major subject: Accounting." |
| Physical Description: | xii, 204 leaves : illustrations ; 29 cm |
| Bibliography: | Includes bibliographical references (leaves 199-203). |