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The Moderating Effect of Internal Audit in Strategic Planning Implementation Success

Yıl 2020, Sayı: 88, 57 - 84, 30.06.2020
https://doi.org/10.26650/imj.2020.88.0003

Öz

The objective of this study is to measure the moderating role of internal audits in the strategic planning implementation success. An internal audit is the primary function for all organizations to measure the effectiveness of the internal controls, risk management and governance processes. On the other hand, strategic planning is one of the most important resource allocation and strategic management instruments for an organization. The question is, how does the internal audit affect the strategic planning implementation success? How do these two strategic management instruments affect each other? In order to answer these questions, an empirical approach is being followed in this study. The conceptual framework of the study is being set up based on internal audits and strategic planning literature, previously validated measures to evaluate the effectiveness of the variables are used to test the hypothesis. Turkey’s biggest 1000 firms are chosen as the target group, and a survey is conducted with 299 samples selected from this target group. The results indicate that the effectiveness of internal audits increases the strategic planning implementation success. Internal audits moderate the relationship between risk management and strategic planning implementation success. Internal audits moderate the relationship between governance and strategic planning implementation success. No empirical evidence is found on the moderating effect of internal audits on the relationship between internal controls and strategic planning implementation success. The primary contribution of this study to the internal audit literature is presenting the relationship between internal audits and strategic planning in a holistic approach with the help of empirical data. 

Destekleyen Kurum

The authors declared that this study has received no financial support.

Kaynakça

  • Andersen, T., (2009), Effective Risk Management Outcomes: Exploring Effects Of Innovation And Capital Structure, Journal of Strategy and Management, 352-379.
  • Aras, G., Crowther, D., (2008), Governance And Sustainability: An Investigation Into The Relationship Between Corporate Governance And Corporate Sustainability,Management Decision Vol. 46.
  • Balkaran, L., (2016), The Importance of Auditing Your Company’s Strategic Plan, The EDP Audit, Control, and Security Newsletter , 1-10.
  • Beasley, M., Pagach, D., Warr, R., (2008),The Information Conveyed in Hiring Announcements of Senior Executives Overseeing Enterprise-Wide Risk Management Processes, Journal of Accounting, Auditing and Finance 23 (3), 311-332.
  • Beasley, M. S., Frigo, M. L., (2011), ERM and Its Role in Strategic Planning and Strategy Execution, J. R. Fraser & B. J. Simkins, Enterprise Risk Management (s. 31-50), John Wiley & Sons.
  • Beasley, M., (2015), An Analysis Of The Maturity And Strategic Impact Of Investments In ERM, Accounting and Public Policy 34 , 219–243.
  • Boyd, K., Elliott, E., (1998), A Measurement Model of Strategic Planning, Strategic Management Journal, Vol. 19, No. 2 , 181-192.
  • Brickley, J.A., Zimmerman, J., (2010), Corporate Governance Myths: Comments On Armstrong, Guay and Weber, Journal of Accounting and Economics, 235-245.
  • Carpenter, N. J., (2013), A Case Study Of Issues Of Strategy Implementation In Internationalization Of Higher Education, International Journal of Educational Management, Vol. 27 , 4-18.
  • Čater, T., Pučko, D., (2010), Factors Of Effective Strategy Implementation: Empirical Evidence From Slovenian Business Practice, Journal of East European
  • Cohen, A., Sayag, G., (2010), The Effectiveness of Internal Auditing: An Emprical Examination of Its Detarminants In Israili Organizations, Australian Accounting Review, 296-307.
  • COSO, (2004), ERM-COSO Application Techniques, Committee of Sponsoring Organizations of the Treadway Commission (COSO), Boston.
  • COSO. (2013). Internal Control—Integrated Framework, Comitte of Sponsoring Organizations (COSO).
  • Çokluk, O., Şekercioğlu, G., Büyüköztürk, G., (2012), Sosyal Bilimler İçin Çok Değişkenli SPSS ve Lisrel Uygulamaları, Ankara: Pegem Akademi Yayıncılık.
  • Elbanna, S., Andrews, R., Pollanen, R., (2015), Strategic Planning and Implementation Success in Public Service Organizations: Evidence from Canada, Public Management Review, 18:7 , 1017-1042.
  • Ferrell, O. C., Fraedrich, J., Ferrell, L., (2000), Business Ethics, 4th edn. Boston: Houghton Mifflin.
  • Finney, S., DiStefano, C., (2006), Non-Normal And Categorical Data In Structural Equation Modeling, In G. R. Hancock, & R. D. Mueller (Eds.), Structural Equation Modeling: A second course. Charlotte: Information Age.
  • Fungston, R., (2004), Avoiding the Value Killers, Treasury and Risk Management, April.
  • Grambling, A., Maletta, M., Schneider, A., Church, B. (2004), The Role Of The Internal Audit Function In Corporate Governance: A Synthesis Of The Extant Internal Auditing Literature And Directions For Future Research. Journal of Accounting Literature Vol. 23 No. 1 , 194‐244.
  • Gürbüz, S.,Şahin, F., (2016), Sosyal Bilimlerde Araştırma Yöntemleri, Ankara: Seçkin Yayıncılık.
  • Hoyt, R.E., Liebenberg, A., (2011), The Value of Enterprise Risk Management, Journal of Risk and Insurance, 78(4) , 795-822.
  • IIA, (2013), International Professional Practices Framework, Altamonte Springs, FL: (IPPF) The Instıtute of Internal Auditors.
  • IIA, KPMG, (2015), Strategy-Related Auditing, Discussion Paper. 1-32.
  • Jeffrey, C., (2008), How Internal Audit Adds Strategic Value, Financial Executive. December 19 .
  • Jiang, N., Carpenter, V., (2011), A Case Study of Issues of Strategy Implementation in Internationalization of Higher Education, International Journal of Educational , 4-18.
  • Kaplan, R. S., Mikes, A., (2012), Managing Risks: A New Framework, Harvard Business Review, June.
  • Korkmaz, G. (2019) As a Strategic Control Instrument, The Role of Internal Audit in Strategic Planning Implementation Success, PhD Thesis, Ankara University.
  • Lambert, R., Leuz, C., Verrecchia, R., (2007), Accounting Information, Disclosure and Cost of Capital, journal of Accounting Research 45 , 385-420.
  • Lipton, M., Lorsch, J. W. (1992), A Modest Proposal for Improved Corporate Governance, The Business Lawyer, Vol. 48, No. 1 , 59-77.
  • Marville, R., (2003), The Contribution Internal Auditors Make to Strategic Management, International Journal of Auditing , 209-222.
  • McKinsey, (2009), Quarterly Summary Strategic Planning In A Crisis, Toronto Canada: Association for Strategic Planning.
  • Monda, B., Giorgino, M., (2013), An ERM Maturity Model, Presented at the: 2013 Enterprise Risk Management Symposium April 22-24, Chicago.
  • NACD, (1997), Corporate Governance Survey, Washington: National Association of Corporate Directors (NACD). 19.
  • O'Reagen, P., O’Donnell, D., Kennedy, T., Bontis, N., Cleary, P.,(2004),Board Composition, Non-Executive Directors And Governance Cultures In Irish Ict Firms: A CFO Perspective. Corporate Governance Vol.4 No.4 , 47-51.
  • Palermo, T. (2011),Managing Organizational Culture for Effective Internal Control From Practice Management, Managerial Auditing Journal, Vol. 21 No. 1 , 63-80.
  • Ramamoorti, S., Siegfried, A.N., (2015), Promoting and Supporting Effective Organizational Governance, The Global Internal Audit Common Body of Knowledge IIA Research Foundation.
  • RIMS, (2017), 2017 Enterprise Risk Management Benchmark Survey, The Risk Management Society (RIMS).
  • RIMS, (2011), An Overview of Widely Used Risk Management Standards and Guidelines, A Joint Report of RIMS Standards and Practices Committee and RIMS ERM Committee.
  • Sawyer, L., Vinten, G. (1996), The Manager and the Internal Auditor, New York, NY: Wiley.
  • Siciliano, J.I., (2002), Governance and strategy implementation: Expanding the Board’s Involvement, Business Horizons / November-December , 33-38.
  • Smithson, C., Simkins, B., (2005), Does Risk Management Add Value? A Survey of the Evidence, Journal of Applied Corporate Finance , 8-18.
  • Sobel, P. J., (2005), Auditor’s Risk Management Guide Integrating Auditing and ERM, CCH Incorporated, USA.
  • Standard & Poor’s, (2008), To Apply Enterprise Risk Analysis to Corporate Ratings, New York.
  • Stringer, C., Carey, P. (2002), Internal Control Re-design: an Exploratory Study of Australian Organizations, Accounting, Accountability & Performance, Vol. 8 No. 2 , 61-86.The IIA, (2009), Internal Audit Capability Model, Florida: The Institute of Internal Auditors Research Foundation.
  • Vijayakumar, A. ve Nagaraja, N., (2012), Internal Control Systems: Effectiveness of Internal Audit in Risk Management at Public Sector Enterprises, BVIMR Management Edge, Vol. 5, No. 1 , 1-8.
  • Wilkinson, N. (2014), A Framework For Organisational Governance Maturity: An Internal Audit Perspective. University of Pretoria .
Yıl 2020, Sayı: 88, 57 - 84, 30.06.2020
https://doi.org/10.26650/imj.2020.88.0003

Öz

Kaynakça

  • Andersen, T., (2009), Effective Risk Management Outcomes: Exploring Effects Of Innovation And Capital Structure, Journal of Strategy and Management, 352-379.
  • Aras, G., Crowther, D., (2008), Governance And Sustainability: An Investigation Into The Relationship Between Corporate Governance And Corporate Sustainability,Management Decision Vol. 46.
  • Balkaran, L., (2016), The Importance of Auditing Your Company’s Strategic Plan, The EDP Audit, Control, and Security Newsletter , 1-10.
  • Beasley, M., Pagach, D., Warr, R., (2008),The Information Conveyed in Hiring Announcements of Senior Executives Overseeing Enterprise-Wide Risk Management Processes, Journal of Accounting, Auditing and Finance 23 (3), 311-332.
  • Beasley, M. S., Frigo, M. L., (2011), ERM and Its Role in Strategic Planning and Strategy Execution, J. R. Fraser & B. J. Simkins, Enterprise Risk Management (s. 31-50), John Wiley & Sons.
  • Beasley, M., (2015), An Analysis Of The Maturity And Strategic Impact Of Investments In ERM, Accounting and Public Policy 34 , 219–243.
  • Boyd, K., Elliott, E., (1998), A Measurement Model of Strategic Planning, Strategic Management Journal, Vol. 19, No. 2 , 181-192.
  • Brickley, J.A., Zimmerman, J., (2010), Corporate Governance Myths: Comments On Armstrong, Guay and Weber, Journal of Accounting and Economics, 235-245.
  • Carpenter, N. J., (2013), A Case Study Of Issues Of Strategy Implementation In Internationalization Of Higher Education, International Journal of Educational Management, Vol. 27 , 4-18.
  • Čater, T., Pučko, D., (2010), Factors Of Effective Strategy Implementation: Empirical Evidence From Slovenian Business Practice, Journal of East European
  • Cohen, A., Sayag, G., (2010), The Effectiveness of Internal Auditing: An Emprical Examination of Its Detarminants In Israili Organizations, Australian Accounting Review, 296-307.
  • COSO, (2004), ERM-COSO Application Techniques, Committee of Sponsoring Organizations of the Treadway Commission (COSO), Boston.
  • COSO. (2013). Internal Control—Integrated Framework, Comitte of Sponsoring Organizations (COSO).
  • Çokluk, O., Şekercioğlu, G., Büyüköztürk, G., (2012), Sosyal Bilimler İçin Çok Değişkenli SPSS ve Lisrel Uygulamaları, Ankara: Pegem Akademi Yayıncılık.
  • Elbanna, S., Andrews, R., Pollanen, R., (2015), Strategic Planning and Implementation Success in Public Service Organizations: Evidence from Canada, Public Management Review, 18:7 , 1017-1042.
  • Ferrell, O. C., Fraedrich, J., Ferrell, L., (2000), Business Ethics, 4th edn. Boston: Houghton Mifflin.
  • Finney, S., DiStefano, C., (2006), Non-Normal And Categorical Data In Structural Equation Modeling, In G. R. Hancock, & R. D. Mueller (Eds.), Structural Equation Modeling: A second course. Charlotte: Information Age.
  • Fungston, R., (2004), Avoiding the Value Killers, Treasury and Risk Management, April.
  • Grambling, A., Maletta, M., Schneider, A., Church, B. (2004), The Role Of The Internal Audit Function In Corporate Governance: A Synthesis Of The Extant Internal Auditing Literature And Directions For Future Research. Journal of Accounting Literature Vol. 23 No. 1 , 194‐244.
  • Gürbüz, S.,Şahin, F., (2016), Sosyal Bilimlerde Araştırma Yöntemleri, Ankara: Seçkin Yayıncılık.
  • Hoyt, R.E., Liebenberg, A., (2011), The Value of Enterprise Risk Management, Journal of Risk and Insurance, 78(4) , 795-822.
  • IIA, (2013), International Professional Practices Framework, Altamonte Springs, FL: (IPPF) The Instıtute of Internal Auditors.
  • IIA, KPMG, (2015), Strategy-Related Auditing, Discussion Paper. 1-32.
  • Jeffrey, C., (2008), How Internal Audit Adds Strategic Value, Financial Executive. December 19 .
  • Jiang, N., Carpenter, V., (2011), A Case Study of Issues of Strategy Implementation in Internationalization of Higher Education, International Journal of Educational , 4-18.
  • Kaplan, R. S., Mikes, A., (2012), Managing Risks: A New Framework, Harvard Business Review, June.
  • Korkmaz, G. (2019) As a Strategic Control Instrument, The Role of Internal Audit in Strategic Planning Implementation Success, PhD Thesis, Ankara University.
  • Lambert, R., Leuz, C., Verrecchia, R., (2007), Accounting Information, Disclosure and Cost of Capital, journal of Accounting Research 45 , 385-420.
  • Lipton, M., Lorsch, J. W. (1992), A Modest Proposal for Improved Corporate Governance, The Business Lawyer, Vol. 48, No. 1 , 59-77.
  • Marville, R., (2003), The Contribution Internal Auditors Make to Strategic Management, International Journal of Auditing , 209-222.
  • McKinsey, (2009), Quarterly Summary Strategic Planning In A Crisis, Toronto Canada: Association for Strategic Planning.
  • Monda, B., Giorgino, M., (2013), An ERM Maturity Model, Presented at the: 2013 Enterprise Risk Management Symposium April 22-24, Chicago.
  • NACD, (1997), Corporate Governance Survey, Washington: National Association of Corporate Directors (NACD). 19.
  • O'Reagen, P., O’Donnell, D., Kennedy, T., Bontis, N., Cleary, P.,(2004),Board Composition, Non-Executive Directors And Governance Cultures In Irish Ict Firms: A CFO Perspective. Corporate Governance Vol.4 No.4 , 47-51.
  • Palermo, T. (2011),Managing Organizational Culture for Effective Internal Control From Practice Management, Managerial Auditing Journal, Vol. 21 No. 1 , 63-80.
  • Ramamoorti, S., Siegfried, A.N., (2015), Promoting and Supporting Effective Organizational Governance, The Global Internal Audit Common Body of Knowledge IIA Research Foundation.
  • RIMS, (2017), 2017 Enterprise Risk Management Benchmark Survey, The Risk Management Society (RIMS).
  • RIMS, (2011), An Overview of Widely Used Risk Management Standards and Guidelines, A Joint Report of RIMS Standards and Practices Committee and RIMS ERM Committee.
  • Sawyer, L., Vinten, G. (1996), The Manager and the Internal Auditor, New York, NY: Wiley.
  • Siciliano, J.I., (2002), Governance and strategy implementation: Expanding the Board’s Involvement, Business Horizons / November-December , 33-38.
  • Smithson, C., Simkins, B., (2005), Does Risk Management Add Value? A Survey of the Evidence, Journal of Applied Corporate Finance , 8-18.
  • Sobel, P. J., (2005), Auditor’s Risk Management Guide Integrating Auditing and ERM, CCH Incorporated, USA.
  • Standard & Poor’s, (2008), To Apply Enterprise Risk Analysis to Corporate Ratings, New York.
  • Stringer, C., Carey, P. (2002), Internal Control Re-design: an Exploratory Study of Australian Organizations, Accounting, Accountability & Performance, Vol. 8 No. 2 , 61-86.The IIA, (2009), Internal Audit Capability Model, Florida: The Institute of Internal Auditors Research Foundation.
  • Vijayakumar, A. ve Nagaraja, N., (2012), Internal Control Systems: Effectiveness of Internal Audit in Risk Management at Public Sector Enterprises, BVIMR Management Edge, Vol. 5, No. 1 , 1-8.
  • Wilkinson, N. (2014), A Framework For Organisational Governance Maturity: An Internal Audit Perspective. University of Pretoria .
Toplam 46 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Konular İşletme
Bölüm Makaleler
Yazarlar

Goksel Korkmaz 0000-0002-2789-2657

Yayımlanma Tarihi 30 Haziran 2020
Gönderilme Tarihi 26 Ağustos 2019
Yayımlandığı Sayı Yıl 2020 Sayı: 88

Kaynak Göster

APA Korkmaz, G. (2020). The Moderating Effect of Internal Audit in Strategic Planning Implementation Success. Istanbul Management Journal(88), 57-84. https://doi.org/10.26650/imj.2020.88.0003
AMA Korkmaz G. The Moderating Effect of Internal Audit in Strategic Planning Implementation Success. Istanbul Management Journal. Haziran 2020;(88):57-84. doi:10.26650/imj.2020.88.0003
Chicago Korkmaz, Goksel. “The Moderating Effect of Internal Audit in Strategic Planning Implementation Success”. Istanbul Management Journal, sy. 88 (Haziran 2020): 57-84. https://doi.org/10.26650/imj.2020.88.0003.
EndNote Korkmaz G (01 Haziran 2020) The Moderating Effect of Internal Audit in Strategic Planning Implementation Success. Istanbul Management Journal 88 57–84.
IEEE G. Korkmaz, “The Moderating Effect of Internal Audit in Strategic Planning Implementation Success”, Istanbul Management Journal, sy. 88, ss. 57–84, Haziran 2020, doi: 10.26650/imj.2020.88.0003.
ISNAD Korkmaz, Goksel. “The Moderating Effect of Internal Audit in Strategic Planning Implementation Success”. Istanbul Management Journal 88 (Haziran 2020), 57-84. https://doi.org/10.26650/imj.2020.88.0003.
JAMA Korkmaz G. The Moderating Effect of Internal Audit in Strategic Planning Implementation Success. Istanbul Management Journal. 2020;:57–84.
MLA Korkmaz, Goksel. “The Moderating Effect of Internal Audit in Strategic Planning Implementation Success”. Istanbul Management Journal, sy. 88, 2020, ss. 57-84, doi:10.26650/imj.2020.88.0003.
Vancouver Korkmaz G. The Moderating Effect of Internal Audit in Strategic Planning Implementation Success. Istanbul Management Journal. 2020(88):57-84.