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First class dissertation writing by cheap dissertation writing services

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First class dissertation writing as recommended by cheap dissertation writing services needs you to utilize all the available sources for conducting research. You can attend labs, workshops and refer to your class lectures for accumulating the information you need to write in your dissertation. All these sources should be relevant to your field or area of research. Cheap dissertation writing services provide best and relevant sources for writing your dissertation.


cheap dissertation writing services


If the topic of your dissertation is relevant to your past undergraduate dissertations then read them at least once. If possible and you are available a computer which is connected to an internet network then locate specific websites which offer scholarly articles and other contents with sources. Cheap dissertation writing services is the best website to find articles and guides about writing your dissertations.

In this guide there are written some major steps which are vital as tips in first class cheap dissertation writing services. These steps are written below:

Be Innovative

Best first class dissertation is that which is demonstrative, creative, and thoughtful. You have to show your original thinking to the examiner in the dissertation because this is the first step of your practical education. In case of any confusion in writing any section of your dissertation you can refer to cheap dissertation writing services. You can introduce your own new ideas about the selected field of study. These ideas will be considered as innovative ideas.

Be Critical

First class dissertation contains high degree of critical thinking which makes it more interesting. It demonstrates the critical aspects of the selected research field with explanation. Students have to show their ability of thinking beyond the common knowledge and conclude all the thoughts on some specific points. For getting help in developing critical writing skill you can approach to cheap dissertation writing services. Analytically view all the major ideas and points for writing their review with critical and innovative thoughts.

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It is a complex skill which the students develop gradually by reading extensive books and journals. You can find all the journals and articles about all the dissertation topics on cheap dissertation writing services. This ability can also be enhanced by writing and discussing the ideas in seminars and conferences.

Use Obscure Source Material

You have to use relatively unknown sources for writing your dissertation to impress your reader. This will make your dissertation perfect first class dissertation. This will change your primary sources from familiar to unfamiliar. Using these sources for collecting the material for writing your dissertation will show your dedication to your research.

All the sources with references can be found on cheap dissertation writing services. The examiner will judge your ability of searching and using sources by this step. He will also judge whether the sources of your research are relevant and authentic or not.

Include Tables, Figures and Appendices

First class dissertation includes relevant tables, figures, and data sets which are necessary for explanation. These are all vital in supporting your main argument with interesting information. For more guidelines on structuring and drafting of your dissertation you can search on cheap dissertation writing services.

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The best place of listing tables, figures, and data sets is in the appendix. The appendix will be written at the end of your dissertation.

Write several drafts of your first class dissertation

Ultimately, make it sure to write more than one drafts for its easy revision. First draft will be plan and second will be the trial. Then write third draft which will be perfectly structured and written. Send your first draft to your tutor and get his feedback on it.

If he gives you any instructions about any editing or revision then do pay attention to these instructions. Cheap dissertation writings services provide free revisions of your dissertations if you get your dissertation from this service. After revising you have to proofread whole document carefully before submission.

you may also want to read dissertation literature review example

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Writing literature review chapter of the Master dissertation help uk

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master dissertation help uk

master dissertation help uk


This guide is written about the topic “writing literature review chapter of the Master dissertation” by master dissertation help UK.

master dissertation help UK recommends that writing a dissertation you are expected to provide an analytical overview of the significant literature which is previously published on the topic which you have selected for your research work. writing literature review chapter is very critical step. Check what the level of awareness of the audience is about this topic. If your audience is well-aware of this topic then your purpose is to demonstrate the familiarities expertise and intelligence with the topic. But if the audience is less aware of the topic then your purpose is instructional and informative.

This guide will provide you complete guidelines about writing the literature review of your dissertation. Master dissertation help UK offers more guides on the different chapters of the dissertation.

you can learn more from dissertation writing services UK about writing literature review.



You have to some specific things in writing your literature review. These things are written below:

  • Interpretation of the major issues related to your topic
  • Writing the any other writer’s view in the existing context
  • Description of how your work is related to the others work in this field.
  • Categorize the new ways of interpretation with highlighting on previous research gaps
  • Give solutions of previous study conflicts
  • Find out which literature makes considerable contribution in understanding of the topic
  • Suggest some other ways for further research work on this topic

Content of the Literature Review

Structure your literature review in an organized structure in which all your ideas must flow logically and smoothly from beginning till the end. Make it sure that the sources and references you used are up to date and relevant. Check whether these sources and references are cited properly or not. You have to present the terminology and view points on the topic in neutral vision. Comprehensive explanation is vital if you can provide. Master dissertation help UK suggest that this chapter needs more attention and time than other chapters. Reason of this is you have to search relevant literature to the topic and then analyze it properly. After analyzing and assessing you have to write review about this literature concisely. Firstly, you have to assess what type of literature is best fitting in your master dissertation. Master dissertation help UK recommend that this assessment needs to check following three things:





Qualification includes the author’s credentials to make the judgments. Check what type of judgment he mad?

Neutrality consists on the perspective of the author whether it is even-handed or biased?

Credibility tells the reader whether the author’s thesis is convincing or not? If the answer is yes then write why it is convincing.

Worth shows the contribution of the author’s work in the selected field. This tells the reader whether author’s conclusion adds some valuable information to your topic or not?



Writers attitude towards the work which you are presenting either supportive or opposing to your topic must be shown clearly. It will convey the message of the writer to your reader about your aims and ideas whether these are accepting or not. Master dissertation help UK guides the students about how to express and convey the main idea or message to the reader. You can use reporting verbs to indicate positive assessment, neutral assessment, tentative assessment, or critical assessment. Master dissertation help is always available for you in writing each section of your literature review. These all should be mentioned clearly with relevant verbs to explain the comprehensive meaning of the other writer’s work. Yet if you are unclear about writing your literature review then immediately refer to the master dissertation help UK.

 you may also be interested in five mandatory steps write best dissertation.

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Five mandatory steps to write the best dissertation

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Writing a best dissertation at university level is an extensive piece of written work at the end of academic career. It is an ample type of academic writing which is a compulsory part of getting a degree at Master’s level. Students are supposed to write a dissertation for getting the higher grades in their academics. So, it is compulsory for every student to write dissertation at the end of the degree and submit it to the discipline committee. It can greatly affect the grades of the students and the students can enjoy the leisure of success with distinction. That’s the reason why every student wants to complete his dissertation within the given deadline and by using good contents. For better results, the students can also take help from cheap dissertation writing services .

best dissertation
But the problem is that many students don’t know properly how to write the best dissertation. These students are much worried about their dissertation and feel them helpless. They commit serious mistakes in this nervousness. They try to hire online dissertation writing services for the completion of their dissertation. These services are not only expensive but useless also. Most of the online dissertation writing services on internet provides poor-contents on remarkable prices. So, it is better to write your dissertation by yourself. This will save your degree as well as your money and time.
This article is based on the topic, “five mandatory steps to write the best dissertation”. By reading this article conspicuously, the students can better be able to writer their dissertations timely and perfectly.

Think about the Selected Topic:

The students should start thinking about the topic of their dissertation as soon as possible. Think about what you would like to write about. Consult with your supervisor, discuss with friends, and read some dissertations of previous students. Help can also be taken by the students from best dissertation writing services uk to secure better grades for their bright academic future.

Planning and research to write the best dissertation:

Work out a timetable for writing your dissertation and be stick to it. Do some research on the topic and accumulate data. Make notes of the collected information for further use.

Structure of the best dissertation:

For the structure of your dissertation, you have to visit your department to check the requirements. You can also consult with your advisor about the structure.
A basic framework of the dissertation is as follows:
•    Title page: it consist of your name, course name, date, and name of the supervisor.
•    Abstract: write one paragraph as a summary of the full dissertation.
•    Acknowledgments: Here you have to thank those people who helped you in writing your dissertation.
•    Table of contents: It comprises on chapters, sections, and sub-sections with page numbers.
•    Introduction: Here you state the thesis question.
•    Literature review: This section comprises of the literature related to the topic.
•    Methodology: This section describes the methods to be used to collect data and information.
•    Discussion: Facts, evidences, evaluations and discussions are written here.
•    Conclusion/findings: Here you state the answer of the thesis question and give some findings of the research work.
•    Bibliography: Here you have to write a proper list of references.
•    Appendices: In this section, you can write any extra information which could not be written in the main body.

Content and style:

You have to write your dissertation in simple and easy wording. There is no need to use complex words or phrases. Don’t use long, over-formal vocabulary to impress the reader. Your aim is to write clear and concise information about the given thesis statement. The students should also be well aware of the methods about how to write the best assignments at college level.


Writing the references of all the sources you used in your research work is much important to prove the authenticity of your work. In case, if you not provide references, your paper is considered to be as plagiarized. This can badly affect your grades and the attainment of degree as well.

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How to write a college assignment?

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At the college level, teachers assign some written work to the students. This written work encloses some specific information and knowledge on any given topic during or at the end of each semester. This assigned written work at college level from the teachers to the students is known as assignments. Assignment is the type of academic writings which is intermediate in length between essays and dissertations (i.e. shorter than dissertation and longer than essay). To be able to write their college assignment perfectly, the students can take help from cheap assignment writing services uk.

Teachers are well-known in assigning the difficult and unknown topics to the students. The students having well developed skills of writings don’t get bothered by these assignments. They undertake this task as a challenge and complete it to enhance their writing abilities. Other students are just fed up of the assigned tasks as they don’t possess perfect research and writing skills. These are the students who are negligent to the writing process. They had not written anything at their school level.

college assignment

These students when assigned the written work get worried and disturbed. They feel it a huge burden on them which they cannot bear. But when they come to know the fact that without submitting the assignments they will not be able to get their degrees, they do some struggle. They search any assistance from online assignment writing services to write their assignments as well as buying full written assignments. There is only one solution of this grieve problem which lies in learning the writing skills by their own. For this purpose, the present article provides some guidelines about “how to write a college assignment”. By reading this guide considerately, the students will learn how to write a college assignment perfectly and timely. These guidelines are as follows:

Understand the topic well:

First step in writing a college assignment is to understand the given topic well. This will clear your mind about the topic and you will become able to think on it clearly. You can discuss this topic with your teachers and class fellows for further help. Understanding of the topic is very necessary to write a good college assignment. UK assignment writers is the best service provider in the online market to ensure the success of the students with distinction.

Conduct preliminary research on the topic:

When you have understood the topic of your assignment very well, you should start your research work. This research will help you in collecting the data and information to be written into the assignment.

Brainstorm ideas:

You have to brainstorm your own ideas also. This will make your assignment more authentic and original. Your own ideas will provide pure understanding to the reader.

Make an outline:

After accumulating the required data and information, you should make an outline. This outline will save a plenty of your time. Outline will help you to write a concise college assignment.

Introduce central argument:

Start your actual assignment by introducing the central argument. Present the central ideas in an impressive way to attract the reader’s attention.

Divide Assignment body into short paragraphs:

Assignment body should be divided into short paragraphs to present every idea or main point separately. This will make your assignment worth-seeing. Readers will understand all the ideas more conveniently by this method. To view assignment samples, the students may have a look at: internal audit role in corporate governance.


Conclusion is the last and the most important section of the college assignment. This section comprises some exact inferences. You can also re-write the central argument here.

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Internal Audit Role in Corporate Governance

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Introduction of internal audit

This sample essay is published by a student on the topic of internal audit role in corporate governance. If you have concerned about its publication please let us know.

Financial ratio analysis is a management tool that pulls together information from a government’s budgets and financial reports. Presently, there are three major comprehensive sets of financial indicators commonly used for assessing a city’s financial condition: (i) Financial trend monitoring system (FTMS) as advanced by Groves and Valente (1994); (ii) Ten-point test as advanced by K. Brown (1993); and (iii) Comprehensive financial ratios as developed by Kloha, Weissert, and Kleine (2005a) and Wang, Dennis, and Tu (2007). All of these methods are in the same accounting vein in that they involve measuring financial positions, fund balances, liquidities, debt burdens, and budget solvency, and that they mainly use multiple financial ratios as a basis for analysis. The data are mainly derived from the city’s financial reports (balance sheets, statement of revenue/expenditures, and the like).

internal audit

The uncertainty faced by the public regarding internal audit is costly to local governments because the public demand a premium to bear the risks associated with the uncertainty. Local governments often attempt to reduce this risk by providing informative disclosures.

Although the financial ratio analysis is very attractive to public managers due to its simplicity, it has some weaknesses. First, the use of financial ratios often ignores key socioeconomic variables that are fundamental to the determination of taxing capacity and spending need10. Furthermore, each of the distinct indicators is separately evaluated from the others and does not allow a meaningful comparison among them. Thus, the result is often inconclusive and does not provide a comprehensive picture of the financial condition (Hendrick et al. 2006; Kloha, Weissert, and Kleine 2005a). Additionally, Hendrick et al. (2006) argue that the ten-point test is not sensitive enough to meaningfully distinguish a city’s financial condition since its use of quartile rankings is too broad and the assigned scores of -1, 0, 1, and 2 to each of the quartile ranks are made arbitrarily. Moreover, the ten-point test is not readily available for use in all circumstances due to its restricted database (Honadle and Lloyd-Jones 1998).

One factor that affects the perceived credibility of management disclosures is the level of assurance associated with the disclosure (e.g., Kinney 2000; Mercer 2004). Kinney (2000) notes that assurance services are useful to decision makers because they help mitigate the effects of measurement error and bias in financial information. While the extant literature includes studies on the effects of external assurance on perceived disclosure credibility (e.g., Libby 1979; Leftwich 1983; Blackwell et al. 1998; Hodge 2001), one potentially valuable within-firm source of assurance comes from a firm’s internal audit function (e.g., Kinney 2000; Mercer 2004).

lnternet security systems

Despite internal audit’s role as a cornerstone of corporate governance (IIA 2007a; Gramling et al. 2004), external stakeholders typically have no information about the composition, responsibilities, or activities of the function (Mercer 2004). This information is important given the heterogeneity that is found across internal audit functions which makes it difficult for stakeholders to make informed decisions related to the role of this key component in a firm’s overall governance structure (Gramling et al. 2004).2 Mercer (2004, 190) notes that: Internal auditors often serve as the first line of defense against disclosure errors, ferreting out unintentional errors caused by weaknesses in a company’s internal controls and intentional errors due to fraud.

Recent literature (e.g., Lapides et al. 2007; Archambeault et al. 2008; Holt and DeZoort 2009; Mercer 2004) has begun to investigate the need for greater internal audit transparency. For example, Holt and DeZoort (2009) provide initial evidence that a Internal Audit Report describing the composition, activities, and responsibilities of internal audit positively affects investor judgment and decision-making. The current study extends the internal audit disclosure literature by examining the effects of two internal audit function characteristics (i.e., role and reporting relationship) on perceived disclosure credibility.

The first characteristic tested is internal auditor role (i.e., primarily assurance-related vs. primarily consulting-related). With the passage of SOX, many internal audit functions shifted their focus away from traditional assurance services (e.g., compliance and financial audits) towards consulting services (e.g., Krell 2005; Proviti 2007). However, this shift creates a conflict between the collaborative consulting work supplied by internal auditors to management and the need for objectivity in providing assurance work (e.g., Galloway 1995; Pickett 1997; DeZoort et al. 2001; Krell 2005; Reding et al. 2007). Additionally, an internal audit department whose work is primarily consulting-related may be perceived as having less capability to detect errors and fraud than a department whose work is primarily assurance-related given a relative lack of evidence gathering. Furthermore, the study predicts that the relation between internal audit role and perceived financial reporting credibility is attributable to the mediating effect of the perceived level of assurance offered by internal audit.

Computer Technology in Education

The second characteristic tested is internal auditor reporting relationships (i.e., report strategically to the audit committee and administratively to the Chief Executive Officer vs. strategically and administratively to the Chief Financial Officer). Objectivity is an essential component of assurance services (e.g., Mautz and Sharaf 1961; Kinney 2000). Assurance services are of little value to public if public can place little trust in the auditor’s willingness to report material departures from measurement criteria. The IIA’s Organizational Independence standard states that a company’s Chief Audit Executive should report to a level that ensures the function can complete its duties (IIA 2007a). An appropriate reporting relationship is essential to ensuring that internal audit activities are not unduly influenced by management. Kinney (2000) notes that objectivity impairments due to inappropriate reporting relationships may undermine the monitoring benefits that internal auditors provide to stockholders.

Internal Audit’s Role in Corporate Governance

The four primary cornerstones of corporate governance include the audit committee, management, external audit, and internal audit (Bailey et al. 2003; Gramling et al. 2004). Over the past several years, the role of the internal audit function as a major component of corporate governance has become increasingly important as a result of corporate scandals and increased legislation (Carcello et al. 2005; Jackson 2007). Deloitte (2006) notes that there would likely have been a significantly higher number of material weaknesses during SOX implementation if not for the work of internal auditors.

Various regulatory bodies have highlighted the importance of internal audit to corporate governance. The Public Company Accounting Oversight Board (2004) stated that the absence of a properly functioning internal audit function might be grounds for a material weakness in internal controls over financial reporting for mature or complex companies. Additionally, SEC officials (e.g., Herdman 2002; Richards 2002; Gadziala 2005) have repeatedly highlighted the critical role that internal audit plays in maintaining an effective control structure within an organization. For example, SEC Associate Director of the Office of Compliance Inspections and Examinations Gadziala (2005) stated that she considers internal audit departments to be critical governance components in the prevention of abuses within a company. Furthermore, the major stock exchanges have begun to recognize the importance of a company’s internal audit function. Accounting research also has reflected on the importance of internal audit to corporate governance. Collectively, the existing accounting literature emphasizes that an effective internal audit function plays a critical role in governance through its effect on corporate risk management and control processes.

Richard A. Musgrave was the first to note the independent relationship between provision and production: “provision for public wants … does not require public production management (1959, p. 15). ” Ostrom, Tiebout and Warren’s 1961 work was one of the first specifications of the relationship between the modes of provision, production and the attributes of collective and individual goods and services. Ronald Oakerson (1987) advocates the distinction of provision side from production side, anticipating that each side will engage in distinctive activities. Oakerson’s idea on the public provision refers to “decisions that determine what public goods and services will be made available to a community.” And production refers to “how those goods and services will be made available (1987, p. 1).”

The provision decision by local government consists of wide range of institutional arrangement for delivering service. Local government can serve as a direct producer or supervisor of service production. A government service does not have to be produced by public employees or use public equipments. Although municipal governments use many types of provision of services and goods, contracting is the most popular privatization mode in purchasing public services from either other government units or private and nonprofit organizations (Warner and Hedbon, 2001, Savas, 2005).

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Information Asymmetry and Governance Transparency

Jensen and Meckling (1976) model an agency relationship between the managers of local government and the shareholders of the local government. There are inherent problems (e.g., moral hazard and information asymmetry) in this contractual relationship because the managers of the local government have inside information and may not always make decisions that are most advantageous for the local government shareholders. As a result, shareholders and rule-making bodies implement corporate governance mechanisms to monitor firm activities to ensure that the managers of a firm are acting as proper stewards of firm assets. These accounting and auditing governance mechanisms are a critical part of the capital market system (Imhoff 2003).

The extant accounting literature documents the benefits of decreased information uncertainty that results from such disclosures. For example, several studies (e.g., Botosan 1997; Lang and Lundholm 2000; Botosan and Plumlee 2002) find that increased disclosure is associated with lowered cost of equity. Additionally, decreased levels of information uncertainty are associated with lowered cost of debt (e.g., Sengupta 1998), improved market liquidity (e.g., Heflin et al. 2005; Lambert et al. 2006), lowered IPO underpricing (e.g., Schrand and Verrecchia 2005), and increased stock prices (e.g., Bloomfield and Wilks 2000). Furthermore, Field et al. (2005) find that increased disclosure may even decrease litigation risk.

Governance transparency refers to the availability and extent of disclosures related to corporate governance (Bushman et al. 2004). Given the critical role that corporate governance plays in meeting local governments’ organizational objectives, disclosures about companies’ governance mechanisms are likely to be useful to shareholders. Accounting research has begun to provide evidence on the benefits of increased governance transparency. Farber (2005) finds that improved governance transparency increased analysts’ following. He also finds that these governance improvements were associated with better stock performance after controlling for earnings effects. Furthermore, Bhat et al. (2006) find a positive relation between the accuracy of analysts’ forecasts and the level of governance transparency even after controlling for financial transparency.

Mercer (2004) provides a framework for assessing investor perceptions of disclosure credibility. She notes that one key factor that affects perceptions of disclosure credibility is the degree of external and internal assurance. While much of the extant literature (e.g., Libby 1979; Leftwich 1983; Blackwell et al. 1998; Hodge 2001) focuses on assurance added by the external auditor, the internal audit function is a potential source of information that may lend disclosure credibility. Internal auditors often serve as the first-line of defense in preventing errors and detecting fraud (Mercer 2004). An adequately structured internal audit function has the capacity to discover and correct problems before they grow large. However, there is little empirical evidence linking internal audit strength and disclosure credibility due to lack of information available about local governments’ internal audit functions.

Internal Audit Reports

While there are mandatory corporate disclosures about the audit committee, the external auditor, and management, there are currently no mandated disclosures about a company’s internal audit function. The audit committee report may be an indirect source of voluntary disclosures about internal audit. However, Carcello et al. (2002) find that the vast majority of a sample of these disclosures contains no mention of the internal audit function. Former Securities and Exchange Commission chairman Harvey Pitt noted that it is in a company’s best interest to provide governance disclosures beyond those currently mandated (Marshall 2005). Given the critical role of internal audit in corporate governance and benefits of reduced information asymmetry as a result of governance transparency, researchers have begun to explore the benefits of increased internal audit transparency (e.g., Archambeault et al. 2008; Holt and DeZoort 2009; Lapides et al. 2007). For example, Lapides et al. (2007) encourages company consideration of providing an IAR detailing the composition, responsibilities, and activities of the internal audit function to external shareholders.

Internal Audit Role

The role of internal audit has changed over time (Bailey et al. 2003). While the role was traditionally assurance-related in nature, the IIA officially adopted a new definition of internal audit in 1999 in an attempt to focus on a more value-added approach of the function (e.g., Bou-Raad 2000; Krogstad et al. 1999). Under the new definition, the IIA (2007b) describes the internal audit function as “an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.”

Although the work performed by internal audit can encompass a wide variety of activities, those activities can generally be classified as either assurance or consulting services (Bailey et al. 2003). Assurance services provide objective examinations and assessments of risk management, control, or governance processes within a company. Examples of assurance services include financial audits, compliance audits, or system security audits. Consulting services are services that are advisory in nature in which the customer requesting the service agrees upon the scope and nature of the service. Examples of consulting services include training programs, operational advice, or providing counsel (Reding et al. 2007).

After the passage of SOX, many internal audit departments were called upon to shift their role from focusing on traditional assurance services to providing consulting services related to the new compliance regulations (e.g., Krell 2005; Redmond et al. 2008). For example, the internal audit at Chevron refocused its efforts to supply controls documentation and training(Redmond et al. 2008). Six years after the passage of SOX, many internal audit functions are still burdened with the compliance consulting activities related to SOX, and many CAEs are anxious to return to traditional assurance activities (Redmond et al 2008). PricewaterhouseCoopers (Krell 2005, 20) notes:

Simply put, the legislation is diverting internal audit resources from risk-based auditing, creating the potential for dire consequences. That’s because a failure to address key strategic and operational risks as well as compliance risk in an internal audit program undermines the effectiveness of internal audit, diminishes its strategic value to key stakeholders, and exposes the enterprise to greater operational and financial risks in the future.

According to assurance theory (e.g., Mautz and Sharaf 1961; Libby 1979; Libby et al. 2004) individuals perceive audited information to be more credible than unaudited information. This increase in perceived credibility results from a perception that more evidence gathering is required in order to provide the assurance. By its very nature, the shift away from assurance services to consulting services reduces the amount of evidence gathered by internal audit resulting in a lowered level of assurance offered by the function. Additionally, an internal audit function whose activities are primarily consulting-related may be perceived as lacking objectivity. During consulting projects, internal auditors often work closely with management (Breakspear 1998). These working relationships may lead to perceptions of objectivity impairments for the internal auditor as the internal auditors may be hesitant to report adverse findings (Greenspan et al. 1994). Furthermore, internal auditors are often called upon to test their own work performed during SOX compliance implementation.

This situation represents an inherent objectivity impairment (Krell 2005). Source credibility theory (Birnbaum and Stegner 1979) highlights source bias as a critical component ininformation credibility evaluations. Accordingly, individuals perceive information as more credible to the extent that they believe the source is more objective.

Internal Audit Reporting Relationships

The IIA’s Organizational Independence standard states that a company’s CAE should report to a level that ensures the function can complete its duties (IIA 2007a). An appropriate reporting relationship is essential to ensuring that internal audit activities are not unduly influenced by management. However, there has been considerable debate (e.g., SEC 2003c; James 2003; Johnson 2006) about what reporting relationship best achieves the appropriate level of internal audit independence. The SEC (2003b) asked for comments regarding whether the responsibility for personnel decisions and oversight of the internal audit function should be placed directly with or under the supervision of the audit committee. The SEC chose not to act on the matter after receiving mixed comments from a variety of groups.4 The New York State Bar Association’s response to the proposal noted that prior to the passage of the rule, the SEC should conduct research to determine potential problems associated with various reporting relationships (SEC 2003c).

Strategic reporting of the internal audit function involves the governance activities of the internal audit function such as charter approval, hiring or terminating the CAE, and receiving periodic results of internal audit activities. Administrative reporting involves the day-to-day activities of the internal audit function including human resource administration, budgeting, and administration of internal policies and procedures (IIA 2002). The IIA (2007b) and Moody’s Investor Services (Johnson 2006) recommend that the best practice to ensure internal audit independence is a dual reporting relationship where the CAE reports strategically to the audit committee and administratively to the CEO. In a survey of 379 CAEs in the IIA Global Audit Information Network (GAIN) database, 55% of internal audit respondents note that they report strategically to the audit committee. Furthermore, for administrative reporting, only 10% report to the CEO while 51% report to either the CFO or Controller (IIARF 2003).

James (2003) finds that lenders perceive internal auditors that reported both strategically and administratively to the audit committee are more likely to prevent financial statement fraud than internal auditors that report both strategically and administratively to management. This study examines the effect of reporting relationship on investor perceptions of disclosure credibility. The two reporting relationships examined in this study are an internal audit function that reports strategically to the audit committee and administratively to the CEO and an internal audit function that reports both strategically and administratively to the CFO.

Source credibility theory (e.g. Walster et al. 1966; Birnbaum and Stegner 1979; Eagly and Chaiken 1993) provides a basis for predicting that the level of internal audit independence as proxied by reporting relationships will affect investor perceptions of disclosure credibility.

According to this theory, individuals should place more reliance on information that they perceive as more credible. As previously mentioned, Birnbaum and Stegner (1979) highlight source bias as a critical component in information credibility evaluation, and individuals perceive information as more credible to the extent that they believe the source has more objectivity. Gramling et al. (2004) find that in evaluating an internal auditor’s objectivity, independence is generally the most important criterion.5 Thus, investor perceptions of disclosure credibility should increase as perceptions of the level of internal audit independence increases.

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Archambeault, D., F. T. DeZoort, and T. P. Holt. 2008. Governance transparency and the need for an internal audit report to external stakeholders. Accounting Horizons (December): 375-388.

Blackwell, D., T. Noland, and D. Winters. 1998. The value of auditor assurance: Evidence from loan pricing. Journal of Accounting Research 36 (1): 57-70.

Easley, D and M. O’Hara. 2004. Information and the cost of capital. Journal of Finance 59(4): 1553-1583.

Elliott, R. K. and P. D. Jacobson. 1994. Costs and benefits of business information disclosure. Accounting Horizons 8 (4): 80-96.

Gramling, A., Maletta, M., A. Schneider, and B. Church. 2004. Role of the Internal Audit Function in Corporate Governance: A Synthesis of the Extant Internal Auditing Literature and Directions for Future Research. Journal of Accounting Literature 23: 194- 244.

Hodge, F. D. 2001. Hyperlinking unaudited information to audited financial statements: Effects on investor judgments. The Accounting Review (October): 675-691.

Holt, T. and T. DeZoort. 2009. The effects of internal audit report disclosure on investor confidence and decisions. International Journal of Auditing (March): 61-77.

Institute of Internal Auditors (IIA). 2007a. International Standards for the Professional Practice of Internal Auditing. Altamonte Springs, FL. professional-practices-framework/standards/standards-for-the-professionalpractice- of-internal-auditing/.

Kinney, W. 2000. Information Quality Assurance and Internal Control. Boston, MA: Irwin McGraw-Hill.

Krell, E. 2005. Is Sarbanes-Oxley compromising internal audit? Business Finance (August): 18-24.

Lapides, P. D., M. S. Beasley, J. V. Carcello, F. T. DeZoort, D. R. Hermanson, and T. L. Neal. 2007. 21st Century Governance and Audit Committee Principles. Corporate Governance Center, Kennesaw State University.

Leftwich, R. 1983. Accounting information in private markets: Evidence from private lending agreements. The Accounting Review 58 (1): 23-42.

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Mercer, M. 2004. How do investors assess the credibility of management disclosures? Accounting Horizons (September): 185-196.

Proviti. 2007. Moving Internal Audit Back into Balance. Available at

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