Internal audit effectiveness in banks: a systematic review and conceptual model

The purpose of this research is to conduct a systematic review of literature on internal audit effectiveness in commercial banks and to establish an integrative conceptual model that incorporates the main factors discussed in prior studies. Internal audit effectiveness plays a critical role in ensuring effective risk management, corporate governance, and financial reporting quality in banking institutions, particularly in the context of increasing regulatory requirements and digital transformation.

Methodology. This study employs a systematic literature review methodology based on the PRISMA framework. Academic publications were identified through major databases, including Scopus, Web of Science, ScienceDirect, and Google Scholar, using predefined inclusion and exclusion criteria. A total of 30 publications were initially identified, and 21 relevant sources, including academic studies and professional frameworks, were selected for detailed analysis. These studies have been subjected to an analysis based on the research methodology used, determinants studied, and main conclusions derived.

The originality and value of this study lies in providing an exhaustive analysis of fragmented literature on the internal audit effectiveness at commercial banks and the development of an integrative theoretical model explaining inter-relationships between various factors. Unlike prior studies that focus on individual determinants, this study offers a multidimensional perspective and identifies important research gaps, particularly in emerging markets such as Kazakhstan.

Research results. The results reveal that there are some important elements influencing the efficiency of internal auditing in commercial banks, such as management’s attitude, auditor proficiency, independence of internal audit, effectiveness of the audit committee, technology, and audit process quality. These factors contribute to improving internal control systems, risk management, and the overall quality of corporate governance.

The theoretical model can be used for further empirical studies and serve as an instrument for improving internal audit efficiency. This study contributes to the existing literature by integrating empirical and conceptual approaches, as well as identifying research gaps and outlining directions for future studies, particularly in the context of emerging markets, including Kazakhstan.

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