Changing internal auditing from a compliance-based to a conduct- focused approach

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Electronic data

InternalAudit_CR_RPREA_FinalVersionSubmittedJan8_2023
Rights statement: Embargo until epub
Accepted author manuscript, 1.83 MB, PDF document
Embargo ends: 1/01/50
Available under license: CC BY: Creative Commons Attribution 4.0 International License

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Forthcoming

Standard

Changing internal auditing from a compliance-based to a conduct- focused approach. / Rigg, Clare; Soh, Woon Gan; Antonacopoulou, Elena et al.
In: Research on Professional Responsibility and Ethics in Accounting, 08.01.2023.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Rigg, C, Soh, WG, Antonacopoulou, E, Bento, R & White, L 2023, 'Changing internal auditing from a compliance-based to a conduct- focused approach', Research on Professional Responsibility and Ethics in Accounting.

APA

Rigg, C., Soh, W. G., Antonacopoulou, E., Bento, R., & White, L. (in press). Changing internal auditing from a compliance-based to a conduct- focused approach. Research on Professional Responsibility and Ethics in Accounting.

Vancouver

Rigg C, Soh WG, Antonacopoulou E, Bento R, White L. Changing internal auditing from a compliance-based to a conduct- focused approach. Research on Professional Responsibility and Ethics in Accounting. 2023 Jan 8.

Author

Rigg, Clare ; Soh, Woon Gan ; Antonacopoulou, Elena et al. / Changing internal auditing from a compliance-based to a conduct- focused approach. In: Research on Professional Responsibility and Ethics in Accounting. 2023.

Bibtex

@article{d2952292c9fc4f5ea23865d9bc770a08,

title = "Changing internal auditing from a compliance-based to a conduct- focused approach",

abstract = "Amidst public acknowledgment of recurring ethical violations in the volatile financial services industry, Internal Auditing professionals (IA) do not seem to have done enough to perform their professional responsibility as a line of defence for their employing organizations. This paper explores whether changes in IA approach can effectively enable IA as a practice to fulfil its governance role in managing {\textquoteleft}conduct risk,{\textquoteright} i.e., any behaviour in a firm that could cause problems to consumer protection, market integrity or competition. We examine the ethical implications of the existing compliance-based IA approach and explain its ineffectiveness in auditing conduct risk within a turbulent environment. Using action research, we explain the germane changes necessary to define a new conduct-focused IA approach capable of predicting and preventing ethical wrongdoing. A conduct-focused approach launches auditors into unfamiliar but strategically critical areas to not only identify material risks but also add value to their organizations. We further examine how a change in the auditor{\textquoteright}s mindset and other factors promote the effectiveness of the new IA approach in a sustainable way. Based on our literature review, this is the first paper to use action research as a way of introducing impactful change to IA, from a compliance-based to a conduct-focused approach.",

author = "Clare Rigg and Soh, {Woon Gan} and Elena Antonacopoulou and Regina Bento and Lourdes White",

year = "2023",

month = jan,

day = "8",

language = "English",

journal = "Research on Professional Responsibility and Ethics in Accounting",

}

RIS

TY - JOUR

T1 - Changing internal auditing from a compliance-based to a conduct- focused approach

AU - Rigg, Clare

AU - Soh, Woon Gan

AU - Antonacopoulou, Elena

AU - Bento, Regina

AU - White, Lourdes

PY - 2023/1/8

Y1 - 2023/1/8

N2 - Amidst public acknowledgment of recurring ethical violations in the volatile financial services industry, Internal Auditing professionals (IA) do not seem to have done enough to perform their professional responsibility as a line of defence for their employing organizations. This paper explores whether changes in IA approach can effectively enable IA as a practice to fulfil its governance role in managing ‘conduct risk,’ i.e., any behaviour in a firm that could cause problems to consumer protection, market integrity or competition. We examine the ethical implications of the existing compliance-based IA approach and explain its ineffectiveness in auditing conduct risk within a turbulent environment. Using action research, we explain the germane changes necessary to define a new conduct-focused IA approach capable of predicting and preventing ethical wrongdoing. A conduct-focused approach launches auditors into unfamiliar but strategically critical areas to not only identify material risks but also add value to their organizations. We further examine how a change in the auditor’s mindset and other factors promote the effectiveness of the new IA approach in a sustainable way. Based on our literature review, this is the first paper to use action research as a way of introducing impactful change to IA, from a compliance-based to a conduct-focused approach.

AB - Amidst public acknowledgment of recurring ethical violations in the volatile financial services industry, Internal Auditing professionals (IA) do not seem to have done enough to perform their professional responsibility as a line of defence for their employing organizations. This paper explores whether changes in IA approach can effectively enable IA as a practice to fulfil its governance role in managing ‘conduct risk,’ i.e., any behaviour in a firm that could cause problems to consumer protection, market integrity or competition. We examine the ethical implications of the existing compliance-based IA approach and explain its ineffectiveness in auditing conduct risk within a turbulent environment. Using action research, we explain the germane changes necessary to define a new conduct-focused IA approach capable of predicting and preventing ethical wrongdoing. A conduct-focused approach launches auditors into unfamiliar but strategically critical areas to not only identify material risks but also add value to their organizations. We further examine how a change in the auditor’s mindset and other factors promote the effectiveness of the new IA approach in a sustainable way. Based on our literature review, this is the first paper to use action research as a way of introducing impactful change to IA, from a compliance-based to a conduct-focused approach.

M3 - Journal article

JO - Research on Professional Responsibility and Ethics in Accounting

JF - Research on Professional Responsibility and Ethics in Accounting

ER -

Research

Electronic data