A conduct risk perspective to internal auditing an action research inquiry

Abstract

This thesis presents a qualitative action research (AR) study conducted to answer the research question: How can the internal audit (IA) approach contribute to averting recurring misconduct and enhance conduct risk management in global markets activities? This research is conducted on a Southeast Asia-based financial institution that experienced recurring misconduct despite regular IA reviews. This AR contributes to on-going debates on professional misconduct through the development and implementation of a changed IA approach and identification of essential internal auditors’ attributes to address conduct risk, avert misconduct and strengthen conduct risk management. This study establishes that a conduct risk governance focus to internal auditing can stem recurring misconduct in the organization.