EFFECTIVENESS OF INTERNAL AUDIT AND ITS IMPACT ON BUSINESS OPERATIONS PRODUCTIVITY: A SYSTEMATIC LITERATURE REVIEW
Abstract
The article is devoted to a systematic literature review of internal audit effectiveness and its impact on the operational performance of enterprises across various sectors. The study is conducted using the PRISMA approach and is based on the analysis of 19 peer-reviewed publications published between 2000 and 2025. The findings indicate that internal audit effectiveness is reflected through the quality of internal control evaluation, the ability to identify risks, and the scope of audit coverage. It is established that the implementation of structured audit programs and a high level of professional competence of audit staff significantly enhance the quality of oversight functions and ensure the timely detection of operational and financial risks. Regarding operational performance, the synthesis of research results demonstrates that effective internal audit contributes to improved operational efficiency by eliminating duplication of functions and inefficient processes, strengthening regulatory compliance, enhancing the quality of business processes, and fostering better interdepartmental coordination in line with organizational strategic objectives. The results confirm a positive relationship between internal audit effectiveness and operational performance, highlighting the role of internal audit not only as a control mechanism but also as an essential advisory function supporting management decision-making. Furthermore, the integration of audit results into daily management practices, the assurance of auditor independence, the continuous development of professional competencies, and the provision of adequate resources to audit units collectively contribute to improving overall organizational performance. The study also outlines directions for future research, emphasizing the need for empirical validation of identified relationships in different industry contexts and the development of comprehensive models linking internal audit effectiveness with multidimensional performance indicators.
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Deyganto, B. (2019). Organizational support and internal audit effectiveness: Evidence from Ethiopian firms. International Journal of Energy and Environmental Engineering, 6(4), 23–35.
Malhi, R., Singh, A., & Kaur, P. (2023). Enhancing internal audit competence: Professional development and organizational performance. Multidisciplinary Journal of Economic and Organizational Studies, 2(4), 58–72.
Moher, D., Liberati, A., Tetzlaff, J., & Altman, D. G. (2009). Preferred reporting items for systematic reviews and meta-analyses: The PRISMA statement. PLoS Medicine, 6(7), e1000097. https://doi.org/10.1371/journal.pmed.1000097
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Nasution, A., & Yulisfan (2023). Internal audit independence and its effect on operational compliance: Evidence from public sector organizations. International Journal of Management and Economics Applications, 1(2), 15–28. https://doi.org/10.61306/ijmea.v1i2.22
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Paracha, M., Ali, F., & Qureshi, R. (2025). Internal audit effectiveness and financial performance: Evidence from emerging markets. Journal of Business and Management Research, 5(1), 61–76.
Peters, M. D. J., Godfrey, C. M., Khalil, H., McInerney, P., Parker, D., & Soares, C. B. (2020). Guidance for conducting systematic scoping reviews. International Journal of Evidence-Based Healthcare, 13(3), 141–146. https://doi.org/10.1097/XEB.0000000000000050
Rashid, M., Islam, M., & Akter, S. (2021). Organizational support and internal audit performance: Evidence from Bangladesh. Journal of Management, 8(1), 191–205.
Roba, D., Ahmed, T., & Gebremariam, K. (2023). Auditor competence and internal audit quality in Ethiopian commercial banks. International Journal of Accounting, Finance and Risk Management, 8(2), 13–29.
Turetken, O., Reijers, H., & Eren, P. (2022). Linking internal audit practices to organizational performance: A conceptual framework. Journal of Risk and Financial Management, 16(2), 56. https://doi.org/10.3390/jrfm16020056
Wadesango, N., & Makerevi, K. (2018). The impact of internal audit on organizational performance: Evidence from Zimbabwean public enterprises. Journal of Accounting and Auditing, 9(1), 1–18.
Yeboah, D. (2020). The role of internal auditing in risk identification and compliance across sectors: A review. Journal of Accounting in Emerging Economies, 10(4), 589–611. https://doi.org/10.4236/ojbm.2020.85121
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