Title: Internal auditors' selection for sustainable competitive advantage

Authors: Azleen Ilias; Nasrudin Baidi; Erlane K. Ghani

Addresses: College of Business and Administration, Universiti Tenaga Nasional, 26700, Pahang, Malaysia ' College of Business and Administration, Universiti Tenaga Nasional, 26700, Pahang, Malaysia ' Faculty of Accountancy, Universiti Teknologi MARA, 42300 Bandar Puncak Alam, Selangor, Malaysia

Abstract: This study aimed to investigate the factors in selecting internal auditors in public listed companies (PLCs) and non-public listed companies (Non-PLCs) and the role of internal auditors. Specifically, it aimed to look at the perceptions of specific coursework and topics, students' experiential activities, and student credentials and certifications in selecting university graduates as internal auditors. In addition, this study examined the benefits of the certified internal auditor (CIA) designation for future internal auditors and the soft skills needed for the early-career of internal auditors. It found that the important factors in the selection include the course of internal audit, internship, and internal auditing experience. These factors together demonstrated communication and leadership skills. Additionally, practising internal auditors viewed the importance of the internal audit function (IAF) and foresee that the benefits of the CIA qualification would provide career advantages between PLCs and Non-PLCs and the position of internal auditors. This study could help the Institute of Internal Auditors Malaysia (IIAM) develop competent internal auditors to ensure a sustainable competitive advantage.

Keywords: internal auditing; selection decision; early-career internal auditors; certification; skill development.

DOI: 10.1504/IJAAPE.2023.130531

International Journal of Accounting, Auditing and Performance Evaluation, 2023 Vol.19 No.1, pp.71 - 100

Received: 14 Sep 2021
Received in revised form: 08 Jun 2022
Accepted: 12 Aug 2022
Published online: 26 Apr 2023 *