A conceptual framework for internal auditing : an empirical examination of the perception and practice of internal auditing : Egypt as a field of study
The need for a conceptual framework for auditing to guide the development of auditing standards and practice on a consistent and theoretically sound basis has been recognised by many practitioners and academicians. This need seems to be even stronger in the case of internal auditing. Thus, one major objective of the research is to take a step towards developing a widely accepted conceptual model that encompass the different concepts, identify the main objectives, define the functions, and explain the different interrelationships that exist within internal auditing. This follows a rigorous review of literature and theoretical background to set the research terms. It is imperative that the attempt to develop the model should be accompanied by empirical study concerned with its applicability. Thus, the model is then used to examine how internal auditors working in developing countries perceive internal auditing. As well as, examining the standard of practice of internal auditing in developing countries. Two questionnaires are developed and used as the research instruments. The first questionnaire is used to collect data on the perception of internal auditing, and the second is used to collect data on the practice of internal auditing. Factor analysis is then applied to data collected to explore the relationship between the different statements included in the questionnaires. The empirical chapters consider: significant perceptual differences between different levels of internal auditors; significant perceptual differences between internal auditors working in the public and private sectors; significant differences in the practice of internal auditing between public and private sectors. Main findings indicate that: the perception of internal auditing is significantly influenced by the level and experience of internal auditors; the perception of internal auditing is significantly influenced by the sector in which internal auditors work; the practice of internal auditing varies significantly between the public and private sectors; generally positive perception among all respondents of what is promoted by the conceptual framework; the practice of internal auaiting in developing countries still lags behind what is promoted by the conceptual framework.