Exploring the Internal Audit Profession: The Case of Using Internal Audit as a Management Training Ground

Susanto, Djoko (2018) Exploring the Internal Audit Profession: The Case of Using Internal Audit as a Management Training Ground. The Transformation of Asian Economic Institutions: Understanding Local Changes and Global Impacts on Business and Society. p. 104. ISSN ISBN 978-615-5607-40-0

[img] Text
Exploring the Internal Audit Profession The Case of Using Internal Audit as a Management Training Ground.pdf

Download (11MB)
[img] Text
Turnitin Result.pdf

Download (17MB)
[img] Text
Peer Review.pdf

Download (248kB)
Official URL: https://orientalbusiness.uni-bge.hu/Root/Sites/ori...

Abstract

The internal audit function (IAF) plays a vital role in the governance of business organizations. In this article, I focus on a key development within the internal auditing profession: the use of internal auditing as a management training ground (MTG). I discuss the academic research on MTG as well as deliberate on the benefits and costs of this internal audit practice. As discussed in the academic literature, companies can take two different approaches to using the IAF as a MTG: (i) hiring new employees (e.g., university graduates, employees from another company) into internal auditing for a certain period of time and afterwards promoting them into management positions, and (ii) appointing current employees outside of internal audit to work in the internal audit department for a certain period of time and promoting them into management positions outside of internal audit. There is currently a debate among practitioners and academic researchers about whether using internal auditing as an MTG yields a net benefit or net cost for the company. Proponents of the MTG practice suggest that the MTG program gives organizations the ability to train more resourceful and well-informed managers and gives employees the opportunity to develop a comprehensive understanding of the business and improve their business skills. Furthermore, academic researchers have argued that, by using the MTG practice, the company has a greater ability to attract and hire high quality employees. Critics of the MTG practice argue that the MTG program creates conflicts of interest and consequently reduces the independence and objectivity of internal auditors. In addition, because internal auditors in an MTG only stay in internal auditing for relatively short periods of time, this provides less time for internal auditors to develop auditing skills.

Item Type: Article
Uncontrolled Keywords: internal audit, management training, governance of business organization
Divisions: Dosen STIE YKPN > Prosiding
Depositing User: Pustakawan STIE YKPN
Date Deposited: 27 Apr 2020 05:49
Last Modified: 13 Jul 2020 03:42
URI: http://repository.stieykpn.ac.id/id/eprint/839

Actions (login required)

View Item View Item