Melbourne Accounting Research Seminar - David Wood

Professor David Wood from Brigham Young University will present a MARS seminar.

Topic: Internal Auditors’ Role in Organizational Innovation: A Social Network Perspective

Abstract: We interview and survey internal auditors about how they respond to technological innovations in their companies. Based on social network theory, we find that the embeddedness of the internal auditors with management, but not the embeddedness with the audit committee, is important for internal auditors being prepared for and effectively responding to innovation. Furthermore, we find that internal audit functions (IAFs) that are involved in preparing for innovations are more likely to increase staff and improve the mix of staff skill mix to effectively respond to innovation. Also, companies that outsource their IAF are less prepared for, but more effective at responding to innovations. These findings shed light on what social network factors are important for internal auditors to develop embeddedness and to be prepared for and effective in responding to technological innovations in their organizations.

This seminar will be conducted remotely via Zoom. Register for this seminar

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