Abstract
ABSTRACT This study focuses on the relationship between the internal audit reporting line to the audit committee, the implementation of internal audit recommendations, and the amelioration of internal control weaknesses. It also concentrates on whether adequate monitoring processes are put in place to address weaknesses in internal control. A total of 338 UK listed companies comprised the sample with data being obtained from their chief internal auditors and annual reports. The findings indicate that weaknesses in internal control are indeed conditioned by whether the internal audit reporting line is primarily to the audit committee or to management, and whether recommendations made by internal audit are implemented. Additionally, a relationship is found between the absence of official monitoring/follow-up procedures and reporting weaknesses in internal control. After being subject to further analysis, these results are confirmed as robust.
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Schedule a callMore From: Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad
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