What Happens When Internal Auditors Experience that Managers Turn a Deaf Ear in IT Projects?

Abstract

Information systems projects often go awry and when they do internal auditors are often in a position to bring the problems to management’s attention. However, managers are not always receptive to risk warnings, even when internal auditors who are role prescribed to carry out this function deliver such warnings. This phenomenon is known as the deaf effect. In this paper, we examine: (1) the actions that internal auditors take in order to resolve the deaf effect and (2) how these actions affect the auditor-manager relationship. Based on a multiple case study approach, we conducted in-depth interviews with auditors and examined ten cases of the deaf effect from the auditor’s perspective. Our findings revealed twelve unique actions that auditors took as a reaction to the deaf effect and their immediate consequences for the auditor- manager relationship. Further, by analyzing the sequence of actions taken by the auditor in each case, we identified three distinct patterns that capture the nature of the auditor...