Contribution to the study of internal determinants influencing the effectiveness of the internal audit function: Literature review

Abstract

In a context of transparency and generalized accountability, internal auditing is becoming the mechanism of choice for public institutions and companies, particularly in terms of preventing, advising on and detecting financial abuse. With this in mind, the present article proposes a review of the main determining factors internal to the audit entity, likely to influence the achievement of the objectives of the internal audit function, and also to clarify this often-ambiguous concept and answer the following question: what are the determining factors essential to the effectiveness of internal audit, and how can their existence contribute to reinforcing it? This non-exhaustive review of academic and professional literature, covering the period 1987-2024, highlights the key determinants likely to influence the effectiveness of the internal audit function. Five key determinants were identified, all of which are linked by the fact that they are internal to the internal audit entity: competence, the leadership of the head of the internal audit entity, the size of the internal audit entity, compliance with applicable standards and the interaction between internal audit/external audit.