Embedding a ‘Reflexive Mindset : Lessons from Reconfiguring the Internal Auditing Function

Soh, Woon Gan and Antonacopoulou, Elena and Rigg, Clare and Bento, Regina (2021) Embedding a ‘Reflexive Mindset : Lessons from Reconfiguring the Internal Auditing Function. Academy of Management Annual Meeting Proceedings, 2021 (1). pp. 88-111. ISSN 2151-6561

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Abstract

Traditional audit training has produced auditors with a conformance mindset who focus on compliance with policies and procedures and are typically perceived as the organization's 'internal policemen'. This may hinder effectiveness in auditing 'conduct risk' - i.e., behaviors that would cause problems to consumer protection, market integrity or competition. Drawn from an action research inquiry designed to reconfigure the Internal Auditing Function of a branch of a financial institution, this paper shows how cultivating a 'reflexive mindset' becomes a critical catalyst in developing a different internal auditing approach that leads to the identification of misconduct and potential conduct risk.