In the last decade, the research studies have been related with an impact factor on good organizational governance or good corporate governance. This indicates that corporate or organizational governance is a broad concept that has been used by regulators investors, accountants, and boards of directors. As corporate governance are the relationship among various participants in determining the direction and performance of corporations (Monks and Minow, 2001), and also concern about financial reporting, that include goal congruence, incentives, monitoring, and control (Levitt, 1999). All the corporate are concern about good corporate governance both governmental organizational and non-governmental organizational. Enterprise risk management (ERM) is a new paradigm for managing the proportion of risks that face organizations, and policy makers that continue to improve corporate governance and risk management. Although these changes, there is a few research on result that associated with the continuous improvement of ERM. That concern with governance principles and internal audit work.
Internal audit work success is the first order for internal audit quality management needs because it is the critical component in good governance process of the organizations, fulfill the existence and assurance information for the user with the executive confident (Efendioglu and Karabulut, 2010). Stewart and Subramaniam (2010) suggest that internal audit effectiveness and efficiency depend on audit working process. Therefore, if an organization need internal audit to improve their working process with continuous enterprise risk management improvement, it helps an organization achieve its goal by carrying out a dynamic to the higher organization growth and expansion of existing businesses. Nowadays, the growing of economic and the changing of the business environment, research is needed to provide insights as to how the effects of ERM in case of continuous enterprise risk management improvement on the internal audit work in the organizational especially in this research we investigate the institute of higher education.
Internal auditor can thus give both by evaluating the systems' functioning and reliability (assurance services) and supporting the design of these systems by given that specific recommendation (consulting services). The services actually provided by the internal auditor depend on the positioning in the organization. Internal auditor can contribute to effective governance in numerous ways. First, it can assist in the identification of risk factors, the analysis of the consequences, as well as in assisting management in the ranking of risk management and control systems. Internal auditor can add assurance that the risk management processes in fact are functioning as intended. Through consulting services, internal auditor can likewise assist management and the board of director by improving enterprise risk management and control processes.
Thus, this research is a primary work that extends the concept of continuous enterprise risk management improvement of internal audit of the institute of higher education in Thailand. It focuses on continuous enterprise risk management improvement. Dimensions of continuous enterprise risk management improvement are strategic risk, operational risk, financial risk, and compliance risk as the dimension. Additionally, the consequences of continuous enterprise risk management improvement are assurance activity efficiency, consulting practice effectiveness, and internal audit work success. The findings of this research can be used as a guideline to improve and develop internal auditor capabilities that lead to good internal audit performance until survival in internal audit market. Moreover, the findings can serve as an instruction to Thai internal auditing standard setters and regulators to support and develop high internal audit performance.
The purposes of this study are to investigate the relationships among continuous enterprise risk management improvement and are assurance activity efficiency, consulting practice effectiveness, and internal audit work success. The key research question is how continuous enterprise risk management improvement has an impact on assurance activity efficiency, consulting practice effectiveness, and internal audit work success?.
The remainder of this paper is organized as follows. In Section 2, we provide the theoretical framework. Section 3, we provide the relevant literature and develop our hypotheses. Then, we describe our research methodology in section 4. Section 5 is the results and discussion. The contributions respectively and directions for future research and conclusions are presented in Section 5, 6 and 7.
This study employed dynamic capabilities theory to explain human psychosocial functioning in terms of the interaction between behavior, cognitive and other personal factors and environment events. As a construct, dynamic capabilities have been widely studied. It is defined as an individual's "preferred" way of gathering, processing, and evaluating information relating to creativity, problem-solving and decision making. Thus, we use dynamic capabilities theory as a framework to integrate and explain the relationship between the variables in the present study.
Dynamic capabilities are introduced by Teece, Pisano, and Shuen (1997). At the first apply to use this theory they define dynamic capabilities as the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. (Eisenhardt and Martin, 2000). Although firms own resources or capabilities but lack dynamic capabilities, they will be in equilibrium at the same scale and same customer population firms earn a living by producing and selling the same product. Thus, firms are not only competing on their ability to exploit their existing resources and capabilities but also to renew and develop their capabilities (Teece, Pisano and Shuen, 1997). Apparently, firms achieve and sustain competitive advantage by deploying valuable resources with dynamic capability that come from continue improve in the business. However, we use dynamic capabilities as a framework to integrate and explain the relationships between the variables in the present study. This study challenges to understand the Continuous enterprise risk management improvement which considers with four dimensions such strategic risk, operation risk, financial risk, and compliance risk on assurance activity efficiency, and consulting practice effectiveness in the dynamic environments.
RELEVANT LITERATURE AND HYPOTHESIS DEVELOPMENT
Continuous enterprise risk management improvement plays an important role in internal audit work. In this research Continuous enterprise risk management improvement includes strategic risk, operation risk, financial risk, and compliance risk. In addition, assurance activity efficiency, and consulting practice effectiveness are mediating effects of the relationship between continuous enterprise risk management improvement and internal audit work success, as shown in Figure 1. Then, literature reviews of continuous enterprise risk management improvement and the relevant effects of variable are elaborated, and the hypotheses development from the conceptual framework are proposed.
[FIGURE 1 OMITTED]
3.1 Continuous enterprise risk management improvement
Continuous enterprise risk management improvement refers to a process, effected by an entity's board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives (COSO, 2004). The traditional risk...
The effect of continuous enterprise risk management improvement on internal audit work success of the institute of higher education.
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