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Implications of internal audit effectiveness on corporate governance: Research agenda
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Vishwa Hamendra Prasad 
, Ruvendra Nandan, Nileshni Lata Sharma
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
This paper aims to use theoretical literature to develop propositions and suggest a research agenda on the implications of internal audit (IA) on corporate governance (CG). The paper uses institutional theory and Marx’s theory of the circuit of industrial capital to develop theoretical and justifiable propositions and highlight influential research agenda. The key variables are identified and operationalization issues are discussed. To demonstrate the relationship between CG and IA, researchers used theories such as institutional theory, agency theory, stewardship theory, and resource dependence theory (Tripathi, 2019; Činčalová & Hedija, 2020). The existing literature does not offer norms for IA effectiveness. We claim that a positive relationship between IA compliance with standards and CG could be used to assess IA performance. It is high time that the IA should be given consideration as a service to the board, and the IA should be made independent of the top management. Studies in settings where IA is well-developed and in different contexts, similar to Fiji, where IA is relatively at an early stage of development, could provide valuable insights.
Keywords: Internal Auditing, Corporate Governance, Organizational Performance
Authors’ individual contribution: Conceptualization — V.H.P.; Methodology — V.H.P.; Investigation — V.H.P. and N.L.S.; Resources — V.H.P.; Writing — Original Draft — V.H.P. and N.L.S.; Writing — Review & Editing — V.H.P., R.N., and N.L.S.
Declaration of conflicting interests: The Authors declare that there is no conflict of interest.
JEL Classification: M4, M41, M42, M48
Received: 23.12.2021
Accepted: 10.06.2022
Published online: 13.06.2022
How to cite this paper: Prasad, V. H., Nandan, R., & Sharma, N. L. (2022). Implications of internal audit effectiveness on corporate governance: Research agenda. Corporate Ownership & Control, 19(3), 182–194. https://doi.org/10.22495/cocv19i3art14
