Swedish auditors reinvent their role to stay independent amid workplace pressure
Internal auditors in Swedish public agencies are using teaching and relationship-building tactics to defend their independence and prove their value, rather than relying on formal rules alone. The finding challenges how organizations structure oversight functions and suggests that audit effectiveness depends on constant adaptation to organizational realities.
Originaltitel: Internal auditors' independence tactics: defending the third line in Swedish public sector agencies
Purpose We study how internal auditors manage their role to meet different situational realities, and how and what type of internal audit function emerges from such practice. We contribute to the understanding of the development of internal audit as temporally emergent rather than a consequence of enduring causes. Design/methodology/approach We conducted 29 semi-structured interviews (27 with Chief Audit Executives in Swedish public sector agencies and 2 with senior internal auditors representing the IIA Sweden) and utilised NVivo to analyse the interview transcripts with a theoretical coding inspired by Pickering's framework of temporal emergence through the mangle of practice in the three lines model (TLM). Findings Internal audit emerges as a practice in which practitioners employ modelling, safeguarding and augmenting tactics to address challenges and defend their role as independent assurance providers. In this process, internal audit emerges as a pedagogical function that accommodates resistances to safeguard its independence and educate organisational members about the value of an independent internal audit. Originality/value Our findings contradict prior research, which suggests that internal auditors manage the ambiguity of the role with a bias towards management. We highlight their understanding of independence and its significance in providing assurance and recommendations for the organisation instead, while also providing support from the bottom up. Furthermore, we demonstrate that internal auditors effectively address threats to independence by utilising three tactics within the confines of the TLM.