Too much stress? The moderating effect of role-stress on the nexus of internal auditor competence and internal audit effectiveness

Document Type

Article

Source of Publication

International Journal of Ethics and Systems

Publication Date

6-1-2025

Abstract

Purpose: The purpose of this study is to examine the relationship between internal audit (IA) competence and IA effectiveness, particularly with respect to the moderating roles of two role-stress variables, that is, role conflict and role ambiguity, in the context of public sector organizations in Indonesia. Design/methodology/approach: This study focuses on the higher education sector in Indonesia. The data were collected by questionnaires sent to top management and internal auditors of semi-autonomous public sector universities. Findings: The findings of this study suggest that IA competence has a significant and positive effect on IA effectiveness. The results of this paper show that role conflict does not significantly moderate the relationship between IA competence and IA effectiveness. However, role ambiguity negatively moderates the relationship between IA competence and IA effectiveness. Practical implications: The results of this study are of interest to policymakers, top management and internal auditors in the higher education sector, especially in public universities in emerging economies where the IA function is still developing. This study has implications for policymakers and universities’ top management, indicating the need to allocate resources to develop not only core professional competence but also “value add” competence in achieving IA effectiveness. Moreover, this study provides evidence on how internal auditors are dealing with work stress situations, which could provide a better understanding to decision-makers for optimizing the IA function. Originality/value: This study provides empirical evidence of the moderating influence of two role-stress variables on the relationship between IA competence and IA effectiveness. This study is a response to calls for further studies on IA effectiveness and the skills and competencies by which it could be influenced. This study suggests that the auditor’s competence is a critical factor for the audit’s effectiveness. Therefore, governance institutions should spend sufficient resources to enhance not only the hard skills but also the soft skills of auditors. Moreover, this study reflects the view that government auditors are facing conditions similar to those faced in the private sector, namely, highly intense role conflict and lack of role clarity.

ISSN

2514-9369

Publisher

Emerald

Disciplines

Business

Keywords

Auditor’s competence, Internal audit effectiveness, Public sector, Role ambiguity, Role conflict

Scopus ID

105009370639

Indexed in Scopus

yes

Open Access

no

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