Development of internal auditing in Fiji: An institutional theory approach

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Abstract

The significant area of research is internal audit (IA) and the characteristics of the functions in Fijian organizations. This paper examines how institutional norms determine attributes of IA practices. The authors employed qualitative and quantitative research approaches based on interview evidence, questionnaires, and archival sources. This study theorizes the development of IA practices from an institutional change perspective. Nath et al. (2021) studied the dynamics of the Office of the Auditor General (OAG) of Fiji and their findings show that OAG maintained stabilty. The findings indicate that regulation-based institutional norms explain the adoption of IA and the function’s characteristics in Fijian organizations. This research contributes to understanding key drivers of institutional change that initiate new institutional norms that foster the development of IA by introducing and diffusing new audit practices as old ones deinstitutionalize.

Keywords: Internal Auditing, Corporate Governance, Institutional Theory, Regulation

Authors’ individual contribution: Conceptualization — V.H.P.; Methodology — V.H.P.; Investigation — V.H.P., N.L.S., and S.P.; Resources — V.H.P.; Writing — Original Draft — V.H.P., N.L.S., and S.P.; Writing — Review & Editing — V.H.P., N.L.S., and S.P.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M4, M41, M42

Received: 24.10.2023
Accepted: 23.07.2024
Published online: 25.07.2024

How to cite this paper: Prasad, V. H., Sharma, N. L., & Prakash, S. (2024). Development of internal auditing in Fiji: An institutional theory approach. Corporate Ownership & Control, 21(3), 138–149. https://doi.org/10.22495/cocv21i3art12