The relationship of internal audit and risk management: The impact of turbull factors

Abstract

This research aims to find the relationship between internal audit and factors as specified by Turbull, namely, organizational changes, internal control failings, unexplained/unacceptable events, scale, diversity and complexity of activities and risk exposure. In addition, this research also looks at any relationship between internal audit and being public-listed. The results from this research indicates that there is a relationship between having an internal audit function and being public-listed as well as the scale, diversity and complexity of activities. However, this research finds no relationship between internal audit and organizational changes, internal control failings, unexplained/unacceptable events and risk exposure. The reasons why these deviates from corporate governance best practices are then explained. This research used convenience sampling, Chi-Square analysis and nominal data.