CAPIC REVIEW

Journal of Accounting, Auditing and Business Management

ISSN 0718-4662

logo revista Capic Review
Vol. 22 (2024): CAPIC REVIEW
Investigation

Internal audit independence: Evidence from chilean corporations

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  • Héctor Nicolás Montero Díaz,
  • Loreto Catalina Tello Muñoz,
  • Felipe Eduardo Arenas Torres ,
  • Valentín Adolfo Santander Ramírez
Héctor Nicolás Montero Díaz
Bio
Loreto Catalina Tello Muñoz
Bio
Felipe Eduardo Arenas Torres
Centro de Investigación y Estudios Contables - Universidad de Talca
Bio
Valentín Adolfo Santander Ramírez
Centro de Investigación y Estudios Contables - Universidad de Talca
Bio
DOI: https://doi.org/10.35928/cr.vol22.2024.205
Categories

Published 2024-06-19

Keywords

  • internal audit,
  • independence,
  • chilean stock market,
  • public limited companies

How to Cite

Montero Díaz, H. N. ., Tello Muñoz, L. C. ., Arenas Torres , F. E. ., & Santander Ramírez, V. A. . (2024). Internal audit independence: Evidence from chilean corporations. CAPIC REVIEW, 22, 1–12. https://doi.org/10.35928/cr.vol22.2024.205

Copyright (c) 2024 Héctor Montero, Loreto Tello, Felipe Arenas, Valentín

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Abstract

This study aims to determine the degree of independence of the internal audit function in publicly traded companies in the Chilean stock market. Utilizing a mixed-methods, descriptive-correlational approach with a non-experimental cross-sectional design, the study looked at 228 companies that reported having an internal audit unit.
The results show that the degree of independence of the internal audit function was 64.1% for the analyzed companies. The criteria of absence of dual functions was 89.5%, reporting line 77.6% and approval of the internal audit plan 71.1%. These were the criteria with the highest degree of adoption in relation to the internal audit function. Additionally, it is concluded that the criterion of approval of the internal audit plan is the most important role that the internal audit function should play for Chilean companies.
In conclusion, this research establishes that the degree of independence of the internal audit function is moderate and that conditions exist in the company processes that favour this level of independence.

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