Evidence on Internal Audit Quality from Transitioning to Remote Audits because of COVID-19

Abstract

ABSTRACTAs in-person audits were banned by governments and by company policies due to the COVID-19 pandemic, internal auditors had to transition to remote audits to perform their work. Based on survey responses of internal auditors who have conducted both remote and in-person audits, we find that internal auditors perceive no difference in the efficiency and effectiveness of and stakeholders' reliance on results from remote and in-person audits when considering all responses. However, we also find that perceived efficiency and effectiveness increase the more experience internal auditors have with remote audits. Supplemental analyses show that support from the auditee, but not management or the audit committee, is a central determinant of perceived remote audit success. It is important for internal auditors to consider this later finding in the design of remote audits as it indicates the importance of building support with the auditee to have a successful remote auditing experience.Data Availability: Please contact the authors.JEL Classifications: M40; M42; G3; G34.