We identify several dimensions of the internal audit function (IAF) as a composite measure of IAF maturity by using a Principal Components Analysis (PCA). Our data is from the Common Body of Knowledge in Internal Auditing (CBOK) (2015) dataset. We find confirmation for our four hypotheses, where the support the IAF receives from the board, diversified training programs, the use of the IAF as a management training ground (MTG), and the maturity of the risk management (RM) system are significantly related to IAF maturity. Our hypotheses are verified both at a global and a regional level. Regarding control variables, IAF age, chief audit executive (CAE) tenure, CAE certifications, and unlisted companies are also significant at a global level. We discuss implications of these findings for future practice and research.
Research Article| June 12 2020
Factors that Influence the Internal Audit Function's Maturity
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Giuseppe D'onza, Gerrit Sarens, Steven De Simone; Factors that Influence the Internal Audit Function's Maturity. Accounting Horizons doi: https://doi.org/10.2308/HORIZONS-18-127
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