Designing a Characteristics Effectiveness Model for Internal Audit

Identifying factors/latent constructs deemed to influence internal audit effectiveness (IAE), through identifying variables used as measures of and hypothesising which have a statistically significant relationship with IAE was the primary objective. Secondary objectives involved exploring perceptions viewpoints auditing providing general recommendations. To achieve above objectives, questionnaires were remitted auditors (IA) in various countries, receiving 402 final valid responses. Exploratory factor analysis (EFA) carried out identify new latent variables/constructs, confirmatory (CFA) structural equation modelling (SEM) utilised confirm these factors. The EFA process identified 7 factors, 5 being confirmed SEM. These positive 8/16 hypotheses 3/16 having partial confirmation, 4/16 not achieving any evidence 1/16 negative influence. Risk Management, IA size, competency, management support, External Audit (EA) Committee (AC) cooperation, follow-up process, control environment all positively effectiveness. Independence, objectivity, standard adherence achieved confirmation their quality, Big Data, scope limitations public/private organisations no results on influence, while outsourcing negatively