An Examination of Factors Related to Internal Auditors’ Organizational-Professional Conflict

• In Event: Evaluating the PCAOB, the instructor, the textbook, and the auditor.
  In Dialogue Session: Evaluating the PCAOB, the Instructor, the Textbook, and the Auditor.

Abstract

Using a large data set of survey responses (n = 1,288) from internal auditors, we examine the association of internal auditors’ organizational-professional conflict (OPC) with their organizational and professional identification, along with other individual and organizational factors. We examine individual characteristics of job autonomy, professional designation and organizational tenure, and the effect of organizational policies with respect to functional reporting line, using internal audit function (IAF) as a management training ground (MTG), organizational support for internal audit, and performance based incentives on internal auditors’ OPC. We find that internal auditors’ OPC is negatively related to their identification with the organization, but not with their professional identification. Individual characteristics (perceptions of job autonomy and internal auditor’s tenure with the organization) and organizational characteristics (internal auditors’ reporting line, using internal audit as MTG, and organizational support for internal audit) significantly influence internal auditor’s OPC. The study has implications for research and practice.

Authors

• Venkataraman M Iyer, University of North Carolina-Greensboro

• Ambrose Jones, University of North Carolina-Greensboro