Contribution to the study of determinants external to the internal audit entity that influence the effectiveness of the internal audit function: Literature review

Abstract

Faced with growing demands for transparency from citizens and supervisory bodies, as well as the adoption of the principle of the responsibility of those involved in governance, internal audit is positioning itself as the preferred tool of public establishments and companies, particularly in the prevention, advice and detection of financial abuse. This article first presents a literature review of the main factors external to the audit entity that can have an impact on the effectiveness of the internal audit function. It then aims to clarify this often-ambiguous concept and to answer the following question: what are the determinants of the effectiveness of the internal audit function and how can their existence help to strengthen it? This non-exhaustive review of the academic and professional literature, covering the period 1987-2024, highlights the key determinants that influence the effectiveness of the internal audit function. Six determinants were identified, all of which are external to the internal audit entity: the independence of the internal audit function, information and communication, the organizational framework, management support, the existence of a monitoring process and a favourable control environment.