Title: The interference of the organisational culture with the internal audit function

Authors: Joshua Onome Imoniana; Sergio Ricardo Leandro Dias

Addresses: University of São Paulo, Ave Prof. Luciano Gualberto 908, FEA 3 Building Room 238, ZIP Code 05508-010, São Paulo – SP, Brazil ' Center of Applied Social Sciences CCSA, Presbyterian Mackenzie University, Rua da Consolação 930, São Paulo – SP Brazil, ZIP Code 01302-907, Brazil

Abstract: The purpose of this paper is to investigate the interference of the organisational culture with the internal audit function (IAF) of financial institutions in Brazil. Ten internal auditors from ten different banks based in Sao Paulo answered a cultural diagnostic questionnaire and were interviewed about how they perceived cultural interference with their functions. Data were analysed with the support of NVivo application and electronic spreadsheets. We found that the interference of the organisational culture with internal auditor's work takes place mainly through an 'image', a symbolic representation which contains the values and the expectations the organisation has concerning the way internal auditors must act. Moreover, organisations culture mainly affects the IAF in its planning process, when audit objects are chosen, and in its effectiveness, that is, the implementation of audit recommendations.

Keywords: Brazil; internal audit; organisational culture; competing values; banking industry; cultural interference; internal auditors; auditing; audit planning; audit recommendations; banks.

DOI: 10.1504/IJAAPE.2017.10003437

International Journal of Accounting, Auditing and Performance Evaluation, 2017 Vol.13 No.2, pp.150 - 186

Accepted: 15 Feb 2016
Published online: 02 Mar 2017 *

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