<p>The problem area was identified due to the fact that research within internal audit is fragmented and insufficient, simultaneously to internal audit becoming more common in the public debate. Crises and scandals in companies such as Enron in the US and Skandia in Sweden have resulted in new regulations regarding how companies should be governed. These regulations have been established in Sarbanes Oxley Act (SOX) in the US, and in Sweden the Swedish code for corporate governance will be implemented in 2005. The regulations imply that companies must provide sound internal control and to accomplish that, companies should have an auditing and consulting internal audit function. The Swedish code for corporate governance denotes that companies can decide to comply or explain why the code is not complied. SOX on the other hand require that the regulation is being followed. The raised question is how internal audit is performed. International research has thrown light upon this question but few studies have been made in a Swedish perspective.</p><p>The purpose with this thesis is to describe the role of internal audit in Swedish companies, to examine if the role is perceived as a watchdog or as a consultant, and to analyze to what extent present regulations affect internal audit.</p><p>The choice of method in the thesis has taken the form of a profound qualitative research in three companies accompanied by a quantitative research to examine if the results from the qualitative study could be confirmed. The qualitative research consisted of interviews with three companies, which all have an established internal audit function. The interviews were followed by a questionnaire presented to all companies listed on the Swedish stock exchange most traded A-list.</p><p>The results show that of the companies listed on the Swedish stock exchange most traded A-list only 32 percent have an internal audit function. This can be perceived as low when previous studies in the area have shown that internationally it is a common function. In the companies where there is an internal audit function, the role has mainly transformed back to a watchdog perspective from previously been heading towards a consulting role. This shift in the role of internal audit mostly derives from the exceeded regulations within corporate governance.</p> / <p>Det identifierade problemområdet tar sin början i att forskning inom internrevision är fragmenterad och ofullständig samtidigt som internrevision har blivit allt vanligare i den allmänna debatten. Kriser och skandaler i företag som till exempel Enron i USA och Skandia i Sverige har lett till nya regleringar hur företag ska styras och förvaltas. Dessa regleringar har tillkommit i form av Sarbanes Oxley Act (SOX) i USA och i Sverige kommer Svensk kod för bolagsstyrning att implementeras under 2005. Regleringarna säger bland annat att företaget måste tillgodose en god intern kontroll och att företagen för att uppnå detta, bör ha en granskande och konsulterande internrevisionsfunktion. Den svenska koden anger dock att företaget kan välja att i stället förklara varför koden inte efterföljs, detta till skillnad från SOX som kräver att regelverket följs. Frågan väcks hur internrevisionen i företag ser ut. Viss internationell forskning har belyst denna fråga, men studier i ett svenskt perspektiv lyser med sin frånvaro.</p><p>Syftet med uppsatsen är att beskriva internrevisionens roll i svenska företag, att undersöka om rollen upplevs som övervägande granskande eller konsulterande, samt att analysera i vilken utsträckning aktuella regelverk påverkar internrevisionen.</p><p>Metodvalet i uppsatsen har tagit sig uttryck i en djupgående kvalitativ undersökning av tre företag, åtföljt av en kvantitativ undersökning för att undersöka om resultaten från den kvalitativa studien bekräftas. Den kvalitativa undersökningen består av intervjuer med tre företag som alla har en väl etablerad internrevisionsfunktion. Efter dessa intervjuer formulerades ett antal frågor som sammanställdes i en enkät. Dessa frågor ställdes till företag på Stockholmsbörsens A-lista, mest omsatta.</p><p>Resultaten som framkom, visar att av företagen på Stockholmsbörsens A-lista, mest omsatta, är det enbart 32 procent som har en internrevisionsfunktion vilket kan anses som lågt då tidigare studier inom området pekar på att det internationellt är en vanlig funktion hos företagen. Där det finns en internrevisionsfunktion har dess roll till övervägande del gått tillbaka till att bli alltmer granskande, från att tidigare ha varit på väg mot en konsulterande roll. Detta skift i internrevisionens roll har framförallt sin grund i den ökade regleringen inom corporate governance.</p>

In 2004, the Institute of Internal Auditors (IIA) issued a paper that defined internal auditors’ role in Enterprise Risk Management (ERM) as a role that relates to measuring and monitoring performance. The present study examines how high internal audit involvement in ERM-related activities and a strong relationship between internal auditors and senior management influence internal auditors’ objectivity and independence. The present study replicates the experimental design used by de Zwaan, Stewart and Subramaniam (2011) with the manipulation of the variables of (i) internal audit’s involvement in ERM and (ii) the strength of the relationship between internal audit and senior management. Similarly to de Zwaan et al. (2011), objectivity and independence are measured by examining internal audit’s willingness to report a breakdown in risk procedures to the audit committee. The results show that internal auditors are somewhat influenced by a high involvement in ERM-related activities when reporting a breakdown in risk procedures and that internal auditors consider the guidelines issued by the IIA important to follow. Further, the results do not indicate that a strong relationship between internal auditors and senior management influences internal audit’s willingness to report a breakdown in risk procedures.

Introduktion Den interna revisorn antas ha bättre insyn i företaget än den externa. Enligt agentteori maximerar internrevisorn sin egen nytta, vilket ifrågasätter dennes oberoende. Dagens forskning är delad i två perspektiv där den interna revisionen och de externa revisionskostnaderna har ett positivt eller negativt samband. Den rådande trenden med ökad intern revision och kontroll i samband med den nya kontext som skapats genom de under 2000-talet införda regelverken motiverar och aktualiserar studien. Syfte Syftet med denna studie är att förklara hur den interna revisionen påverkar kostnaden för den externa revisionen i svenska noterade bolag. Metod Studien har en kvantitativ forskningsstrategi och en deduktiv forskningsansats. Genom dokumentstudier har data för svenska noterade företag samlats in och med hjälp av en regressionsmodell analyserats. Operationalisering har skett i enlighet med tidigare forskning och internrevisionens förekomst har mätts med en dummyvariabel. Slutsats Studiens resultat visar att internrevisionens förekomst har ett starkt signifikant positivt samband med kostnaden för den externa revisionen. Studien finner att företag med internrevision får högre revisionskostnader, men att de bakomliggande orsakerna kan vara krav på ökade kontroller. Tidigare forskning bekräftar resonemanget och att efterfrågan på ökad kontroll leder till ökade investeringar i både den interna och externa revisionen. Studiens resultat implicerar att internrevisionen används av företagsledningen för att signalera förtroende till ägarna. / Introduction The internal auditor is assumed to have a greater insight in the firm than the external auditor. Agency theory tells us that the internal auditor maximizes his own utility, which questions his independence. The current research is divided into two perspectives where the internal audit and the cost of the external audit has a positive or a negative relationship. The prevailing trend of increased internal audit and control together with the new context created in the 21th century with introduced regulations motivates and actualizes this study. Purpose The purpose of this study is to explain how the internal audit impacts the cost of the external audit in swedish listed firms. Method This study has a quantitative research strategy and a deductive research approach. Data from swedish listed firms has been collected through studies of documents and analyzed with a linear regression. Operationalization has been made in accordance with previous research and the presence of internal audit has been measured with a dummy variable. Conclusion The result of this study shows that the presence of internal audit has a strongly significant positive relationship with the cost of the external audit. The study finds that firms with internal audit increase their audit costs, but that underlying reasons might be demand for greater control. Previous research confirms the argument and that demand for greater control leads to greater investments in both internal and external audit. The result of this study implies that internal audit is used by management to signal trust to the shareholders.

Magistro darbo tikslas – pagrįsti vidaus auditoriaus veiklos specifiškumą ir jos vertinimo aspektus ir ištirti vidaus auditoriaus veiklos efektyvumą Lietuvos komercinių bankų sektoriuje. Išanalizavus literatūrą paaiškėjo, kad vidaus auditoriaus veikla laikui bėgant tapo specifiškesnė dėl išsiplėtusių funkcijų ir kompetencijų gausos, nepriklausomybės užtikrinimo ir veiklos vertinimo problematikos. Anketinis tyrimas atskleidė, kad Lietuvos komercinių bankų vidaus auditoriaus veikla vertinama kur kas palankiau, nei kito sektoriaus. Vidaus auditoriaus veikla šiame sektoriuje yra efektyvi, tai ypatingai pasireiškia vidaus kontrolės sistemoje. Sukurta veiklos vertinimo metodika padės atskleisti vidaus auditoriaus veiklos efektyvumą per funkcines sritis ir aplinkos analizę. Efektyvi Lietuvos komercinių bankų vidaus auditoriaus veikla turėtų paskatinti kitas įmones samdyti vidaus auditorius, kaip savo darbuotojus, ir jų pagalba siekti geresnių įmonės rezultatų. Tyrimo duomenys gali būti panaudojami tiriant kito sektoriaus vidaus auditoriaus veiklos efektyvumą. / Master‘s poin of work – to substantiate internal auditor‘s work‘s specification and it‘s estimation of aspects and explore internal auditor‘s work‘s efficiency in Lithuanian commercial bank‘s sector. Literature anglysis discovered that internal auditor‘s work in time became more specifical because of the planty of functions and competencies, independence security and the estimation of the work problem. The form showup that the work of internal auditor‘s is more appreciable then other sector‘s. Internal auditor‘s work is efective in this sector, where more shown in internal control system. Made-up estimated metod of the work let to show the effectiveness of the internal auditor‘s work throught the functional ways and analysis of surrounding. Effective internal auditor‘s work should stimulate other companys to employ internal auditors, as their workers, in order to reach beter company‘s results. Research results can be used to analize other sector‘s interna auditor‘s work efektiveness.

Study object: • Internal audit and changes related with it in primary school. Aim: • To determine the influence of internal audit on alternation processes in primary school. Study tasks: • To analyze pedagogical and psychological literature of monitoring direction. • To clarify the attitude of pedagogues, parents and pupils to internal audit as the main alternation stimulating factor. • To explore internal audit influence on alternation. • To discuss about internal audit as knowledge and perfection condition of ourselves. Study methods: • The research of scientific literature. • Analyze of the documents. • Method of quantitative research. • Statistical treatment of data. The research of activity efficiency in the comprehensive schools was analyzed of very outstanding Lithuanian scientists and other investigators practices. I would like to mention B. Bitinas, P. Jucevičienė, V. Stulpinas, Ž. Jackūnas, V. Targamadzė, R. Želvys, M. Barkauskaitė, A. Bagdonas and others. The first research in branch of internal audit was done by Center of Pedagogues Education (CPE), the internal audit experiments were done in the preschools, in the primary schools and in the comprehensive schools. In nowadays very important to establish the internal audit, because just then schools by themselves could plumb to their done specific activities, would be interested to education politic and standards of quality. In 2002-2003 the internal audit were done in every comprehensive school, but there... [to full text]

Kokią sritį benagrinėtume šiandien, bet kurioje atrasime aktualių klausimų ne tik mums bet ir visuomenei. Kiekvieną veiklą reglamentuoja tam tikri teisės aktai ir normos, skiriasi tik jų tobulumas ir kokybė. Lietuva kaip nepriklausoma valstybė yra dar jauna, o „audito“ sąvoka ir jo teisinės tradicijos Lietuvoje tėra tik „vaikas“. Vidaus auditas Lietuvos viešųjų juridinių asmenų (taip pat ir LR Aplinkos ministerijoje) veikloje tikrai dar neužima jam priklausančios vietos organizacijoje. Kiekviena veikla, kaip ir vidaus auditas viešajame sektoriuje, priklauso nuo to, kokia teisinė bazė ją reglamentuoja. Dėl šios priežasties darbe buvo nagrinėjami Vidaus audito profesinės praktikos standartai, LR Aplinkos ministerijos vidaus audito tarnybos veiklą reglamentuojanti teisinė bazė. Vidaus audito profesinės praktikos standartai ir jų taikymas viešajame sektoriuje yra ne tik nauja ir aktuali tema (nes iki šiol niekas viešai nenagrinėjo) viešojo sektoriaus vidaus auditoriams, bet ir yra pakankamai problematiška. / Any sphere taken to be analyzed today comprises actual questions not only for us but also for the society. Each activity is regulated by certain legal acts and rules; the difference is only in their perfection and quality. Lithuania as an independent country is still very young, therefore the concept of audit and its legal traditions in Lithuania are still ‘children’. Internal audit in the activities of public legal entities (also in the Ministry of Environment of the Republic of Lithuania) do not yet take the right place in an organization. Every activity as the internal audit in public sector depends on which legal base it is regulated. Therefore, this paper deals with the standards of professional practice of internal audit and legal base regulating activities of internal audit of the Ministry of Environment of the Republic of Lithuania. Standards of professional practice of internal audit and their application in the public sector is not only recent and relevant issue (as it was not analysed publicly so far) for the auditors of public sector but also quite topical. One of the claims raised by the European Commission is to run membership funds credibly and effectively - could be implemented via secure system of internal control and audit. In order to implement this aim comprehensive and legal methodological issue – standards of internal audit practice of Lithuania that would sign and correspond to the main requirements for the auditors in the EU are needed. The aim of... [to full text]

Summary Jelena Makara Internal Audit in Lithuanian Enterprises Final work of University magistracy Studies, 76 pages, 13 figures, 7 tables, 61 literature references, 4 appendix, in Lithuanian. KEY words: internal audit, internal control, stage, enterprises, Lithuania. The object of research is the internal audit in enterprises of Lithuania. The aim of the research – to analyse the internal audit condition; to investigate produce methods and reasons of absence of internal audit; to give recommendations for improvement of the state and possibility of distribution of internal audit in enterprises of Lithuania. Objectives: * to formulate the definition of the internal audit, by results of theoretical questions connected with the concept of internal audit, definition; * to make the internal audit and the internal control comparative analysis, to define an influence of the internal audit on system of internal control, and to examine conception of internal auditor independence; * to give a classification of the internal audit by it type, and to examine it functions; * to analyse the history of internal audit appearance in Lithuania, and laws of internal audit; * to discover and to analyse stages of realization of internal audit; * to analyse internal audit condition in enterprises of Lithuania, by results of carried out research, and to give recommendations for improvement of condition of internal audit; * to determine reasons of internal audit absence in enterprises... [to full text]

Purpose: Our purpose is to investigate if the documentation of an internalaudit department at banks reflects a shift towards more consultingactivities, and how this potential change in the internal audit doc-umentation can be explained. Background: Previous research indicates that internal audit has developed fromits traditional assurance activities to include more consulting ac-tivities such as risk management assistance and corporate govern-ance support. Some researches argue that this development canhave a negative impact on internal auditor independence. Howev-er, there is a lack of research in this area using documentation andcontent analysis of internal audit reports. Method: In this study, we have done qualitative content analysis of internaldocuments collected from the period 2004-2013. These docu-ments are analyzed using a coding scheme based on previous re-search. Conclusion: By qualitatively analysing the activities reported we find that thedocumentation reflects a shift, over time, towards more activitiesthat we classified as consulting. We argue that this can mainly beexplained by coercive and normative isomorphism; for example,regulatory pressures and influences from the Institute of InternalAuditors. We also argue that internal auditing might benefit froma more consistent view of the role.

The Municipal Manager is responsible for the overall financial management of the municipality as requirement of MFMA. However, section 79(1) of the MFMA makes a provision for the municipal manager to delegate the financial management to the senior manager. The legislative requires that all municipalities should appoint a Chief Financial Officer (CFO) who must be a member of the Senior Management of the municipality. The act, furthermore, requires the municipality to establish the budget and treasury office to be headed by the CFO. In 2007, the Minister of Finance released guidelines for the minimum competency requirement regulation of CFOs implemented on the first day of July 2007. According to the literature review, the CFO should move away from being number crunchers to become more visible in strategic and leadership management. Generally, according to the literature review, financial management within local municipalities in Gauteng is not properly managed. This was revealed in the general report on the audit outcomes of local government for the financial year ended 30 June 2003, 2004 and 2005. The summary of these reports shows that the Auditor-General expressed disclaimer of opinion to 50% of the financial statements and 13.1% adverse opinion of the municipalities. The reports further revealed that most of the municipalities do not have effective internal risk management or internal audit departments, late submission of financial statements is rife, and failure to implement newly enacted legislation prevails. Therefore, the municipalities' overall financial management is not well managed. The data gathered from the municipalities by administering questionnaires show that the local municipalities' finances are properly managed and they have effective systems of internal control. The municipalities have internal audit or risk management departments, they have functional audit committees and lastly, they implement recommendations from the Auditor-General's office and internal audit diligently. Information from the Auditor-General's office contradicts the information received from municipalities. The researcher is biased towards accepting the Auditor-General's point of view since the Auditor-General has no reason to paint a good or bad picture about the municipalities. The problem presented is that the municipalities do not have welt-established governance structures in place, in the first place; secondly, the contradiction highlights the perceptions of the people involved with the day-to-day financial management about its effectiveness and the Auditor-General's opinion of it. To overcome the problems, municipalities are advised to include competency assessment in their job selection processes, develop their staff members, establish and implement succession planning, and adhere to the legislation and submission timeframes. It is further recommended that the municipalities should adhere to the policy framework and develop strategies that support enhanced service delivery, as well as to instill energy and thought to overcome loss of skill and expertise due to high staff turnover. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2009.

The Municipal Manager is responsible for the overall financial management of the municipality as requirement of MFMA. However, section 79(1) of the MFMA makes a provision for the municipal manager to delegate the financial management to the senior manager. The legislative requires that all municipalities should appoint a Chief Financial Officer (CFO) who must be a member of the Senior Management of the municipality. The act, furthermore, requires the municipality to establish the budget and treasury office to be headed by the CFO. In 2007, the Minister of Finance released guidelines for the minimum competency requirement regulation of CFOs implemented on the first day of July 2007. According to the literature review, the CFO should move away from being number crunchers to become more visible in strategic and leadership management. Generally, according to the literature review, financial management within local municipalities in Gauteng is not properly managed. This was revealed in the general report on the audit outcomes of local government for the financial year ended 30 June 2003, 2004 and 2005. The summary of these reports shows that the Auditor-General expressed disclaimer of opinion to 50% of the financial statements and 13.1% adverse opinion of the municipalities. The reports further revealed that most of the municipalities do not have effective internal risk management or internal audit departments, late submission of financial statements is rife, and failure to implement newly enacted legislation prevails. Therefore, the municipalities' overall financial management is not well managed. The data gathered from the municipalities by administering questionnaires show that the local municipalities' finances are properly managed and they have effective systems of internal control. The municipalities have internal audit or risk management departments, they have functional audit committees and lastly, they implement recommendations from the Auditor-General's office and internal audit diligently. Information from the Auditor-General's office contradicts the information received from municipalities. The researcher is biased towards accepting the Auditor-General's point of view since the Auditor-General has no reason to paint a good or bad picture about the municipalities. The problem presented is that the municipalities do not have welt-established governance structures in place, in the first place; secondly, the contradiction highlights the perceptions of the people involved with the day-to-day financial management about its effectiveness and the Auditor-General's opinion of it. To overcome the problems, municipalities are advised to include competency assessment in their job selection processes, develop their staff members, establish and implement succession planning, and adhere to the legislation and submission timeframes. It is further recommended that the municipalities should adhere to the policy framework and develop strategies that support enhanced service delivery, as well as to instill energy and thought to overcome loss of skill and expertise due to high staff turnover. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2009.