Auditor and auditee perceptions of internal auditing practices in a company in the energy sector

Abstract

Internal auditing activities have experienced a great deal of expansion and appreciation in recent years. The objective of this study was to evaluate the perceptions of internal auditors and auditees regarding the internal auditing practices of a Brazilian company in the energy sector. The study, conducted as a case study with the use of primary sources, analyzed different aspects of internal auditing activities, including auditor training and the characteristics associated with good auditing work. Internal auditors and auditees indicated the level of preparation of the auditor, the quality of the auditing recommendations, and risk orientation as the factors with the greatest influence on the quality of internal auditing services, supporting findings in the literature. The studied groups also had positive perceptions regarding the contribution of internal auditing to improvements in process performance, internal control structures, and the company's management of risk, which are relevant indicators in the evaluation of the quality of internal auditing services. The study revealed that auditors and auditees had different perceptions of the evaluation of auditee behavior. The perceptions of auditors and auditees regarding the use of good internal auditing practices are, in most cases, coherent with the quality attributes cited in the literature, indicating the presence of these attributes in the evaluation of internal auditing service quality.