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    Factors Influencing Recruitment of Non-Accounting Business...
    research summary posted June 22, 2017 by Jennifer M Mueller-Phillips, tagged 13.0 Governance 
    150 Views
    Title:
    Factors Influencing Recruitment of Non-Accounting Business Professionals into Internal Auditing
    Practical Implications:

    Internal audit plays a critical role in maintaining corporate governance. This study examines factors that lead into non-accounting business professionals’ willingness to work in the internal audit function. This is an effort to provide guidance to the internal audit profession on how to better recruit students and non-accounting business professionals into internal audit roles. 

    Citation:

    Bartlett, Geoffrey D., J. Kremin, K. K. Saunders, D. A. Wood.2017. “Factors Influencing Recruitment of Non-Accounting Business Professionals into Internal Auditing”. Behavioral Research in Accounting 29.1 (2017): 119.

     

    Keywords:
    internal audit; hiring decisions; business professionals; outsourcing; management training ground.
    Purpose of the Study:

    An effective component of corporate governance for many entities is a strong internal audit function. According to recent studies stakeholders are generally dissatisfied with their current internal audit division. Additionally, prior research also indicates that companies face difficulties in recruiting for internal audit roles. This study examines the perception of the profession and factors affecting non-accounting business professionals’ willingness to work within internal audit.

    Design/Method/ Approach:

    The research project contains two different studies. The first study had a final sample size of 502 and the participants were undergraduate and graduate non-accounting business students from four different universities. The participants were read job descriptions and their responses were used as data. The second test included 46 students from across the country. They were provided a survey and asked what would make a career in internal audit more appealing to them.

    Findings:

    The authors find the following from the first study:

    • Business professionals have positive perceptions of internal auditing. These perceptions include internal auditors being respected and highly compensated, while performing meaningful work and having abundant career opportunities.
    •  Business professionals believe other business professionals hold negative stereotypes of internal auditing.
    • Business professionals are less willing to apply for positions in internal auditing than similar positions outside of internal audit.
    • Business professionals are not more inclined to work in internal audit even if the structure of their job is varied.

    The authors find the following from the second study:

    • Students with lower academic performance would be more interested in internal auditing if they were paid more.
    • Students with higher academic performance would be more interested in internal auditing if they performed less boring/tedious work, worked in a preferred company, and if they had a better understanding of the profession.
    Category:
    Corporate Matters, Governance
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