The Effect of Internal Auditors’ Information Technology Knowledge on Integrated Internal Audits

David L. Henderson, Joshua M. Davis, Michael S. Lapke

Abstract


While the relationship between Information Technology (IT) knowledge and integrated internal auditing has been acknowledged, there is a limited understanding of the process by which IT knowledge enables the integrated approach. Furthermore, research has not yet identified which specific types of IT knowledge are most salient for facilitating the integrated approach. Addressing these issues, the purpose of this article is to investigate the effect of internal auditors’ IT knowledge on integrated internal audits. The data used to test the research model were acquired from the Institute of Internal Auditors (IIA), through their Global Audit Information Network (GAIN) Annual Benchmarking Study (ABS) database for the years 2007 through 2009. Results suggest that knowledge of key IT risks and application controls have a significant impact on the level of integrated internal audits. Based on these results, internal audit managers should allocate training budgets toward increasing knowledge of IT risks and application controls. From a theoretical perspective, the results extend the generalizability of shared mental models theory to the internal auditing domain.

Full Text: PDF DOI: 10.5539/ibr.v6n4p147

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Business Research  ISSN 1913-9004 (Print), ISSN 1913-9012 (Online)

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