AGILE AUDIT AND VALUE-ADDED LEADERSHIP CHARACTERISTICS OF INTERNAL AUDITORS

Abstract

Purpose- The purpose of this study is to explain the importance of the agile approach in the internal audit process and emphasize the relation between the value-added leadership characteristic of internal auditors. Because applying efficient and effective risk management procedures hes become a critical subject for the businesses along with rapidly changing conditions in our age. The requirements of internal and externel information users are changing speedly and speed is becoming a vital factor in risk management processes. Besides it is required to adopt proactive approaches with all of this changing environment. Therefore it is aimed to make a contribution to extending of applications of agile approaches both in transactions of businesses and internal audit processes by emphasizing the requirement of the application of agile approach and explaining the changing role of internal auditors and the relation between them with their value-added leadership characteristics. Methodology- The study employs a literature review to analyze the status of the improvement of the agile audit. Conceptional improvements can enhance the adopting agile approaches in internal audit processes. Therefore, in this study conceptional framework of agile auditis is examined. Findings- The examination of the literature reveals that there are not many studies directly on this subject. In general, studies are concentrated on the agile approach in business processes about adopting organizational agility. A few academic articles have been issued and also Big-Four have issued some studies which guide both internal and external audit practices directly related to the agile audit. Thus the development of literature by explaining the importance of agile audit and its relation of it with the value-added leadership characteristic of internal auditors is important. Conclusion- Based upon the findings it is exhibited that the importance of agile audit is increasing. The studies related to the conceptual framework of agile audit should be generalized and also the effects of value-added leadership characteristics of internal audit should be emphasized. Because the role of internal auditors in businesses related to governance, control, and risk management is changing. In a rapidly changing auditing environment, the importance of consulting engagement activities for internal auditors is increasing. As it is known, thanks to the assurance engagement activities, an effective internal audit helps organizations to accomplish their objectives, evaluating and improving the effectiveness of risk management, control, and governance. Besides, internal auditors should also provide insight related to all these processes to add value and improve the operations with a proactive perspective in advisory engagement activities. With developed leadership characteristics and a visionary approach of internal auditors, they can benefit from the agile audit approach to provide insight, take the necessary actions simultaneously, provide some advice before related events occur, and implement continuous auditing by carrying out preventive actions that required to be improved in the changing environment Keywords: Internal audit, value-added, agile audit, leadership JEL Codes: M42, M10, M40