Probing into the Power of Independence and Standards Usage as Value-Added Attributes and Implementation of Recommendations

Abstract

This study investigates the perspectives of internal auditors and their stakeholders on whether independence, objectivity, and standard usage will lead to value-added and implementation of the recommendations of internal audit function (IAF). Using a survey, we collected data from 142 Institute of Internal Auditors (IIA) members in Ghana and 139 stakeholders. We used PLS SEM to test the hypothesis. The findings suggest that independence, objectivity, and compliance with standards would add value, as perceived by both internal auditors and their stakeholders. The results from stakeholders suggest that independence and objectivity, compliance with standards, and value-added will lead to the implementation of recommendations. However, internal auditors perceive that compliance with standards and value-added will not automatically result in the implementation of recommendations. This study represents the first effort to investigate the impact of independence and objectivity, compliance with standards on value-added, and the implementation of recommendations.

Keywords

• independence and objectivity
• compliance with standards
• value-added
• implementation of recommendations
• internal auditing