دانلود رایگان مقاله انگلیسی حسابرسی داخلی در هند و چین: برخی شواهد تجربی و مسائل مربوط به تحقیق - Sage 2018

Abstract

Internal auditing is an important element in the corporate governance framework. Yet, research related to internal auditing, particularly in emerging economies like India and China, is sparse. We use data from responses provided by chief audit executives to provide empirical evidence about the extent of support for internal auditing and the determinants of such support in India and China, and compare the data with those from the United States. We find that such support is negatively related to pressure on internal auditors to suppress or alter their findings. We also provide descriptive evidence about the work and staffing of the internal audit function. We discuss the role of internal auditing in India and identify some possible avenues for future research.

Internal Auditing in India

In India, external auditors were required to report on the quality of the IAF since 1975 until it was dropped in 2015. However, the language was almost always boilerplate—There was hardly any instance of issue or concern expressed by the auditor on this topic. This is in contrast to the United States: For example, a quick search of the Audit Analytics database indicates that there are more than 350 instances of management reports on internal control disclosing inadequate internal auditing as one of the reasons for indicating material weaknesses in internal controls.8 Nevertheless, prior to 2015, there was at least some institutional support for internal auditing thanks to the requirement that external auditors had to evaluate the IAF; removing that requirement appears to be a step backward.

Perhaps the impetus for removing the requirement related to external auditors’ evaluation of the IAF comes from the fact that after the Satyam scandal in 2009, there have been changes in the stock exchange listing regulations and in The Companies Act. As a result, The Companies Act of 2013 now requires the external auditor to report on the adequacy and effectiveness of internal financial controls. The listing regulations have a discretionary requirement that the internal auditor may report directly to the audit committee. The Companies Act of 2013 mandates the appointment of an internal auditor and provides that the findings of the internal auditor may be reported to the board. Clearly, while the IAF reporting to the audit committee is considered a good practice, it is not mandatory to do so.