Examining the Relationship Between Whistleblowing Policies and Internal Audit Effectiveness in Corporations

Posted: Dec 01, 2019

• Kelsey Rivera
• Zion Powell
• Jaxson Morgan

Abstract

The contemporary corporate landscape has witnessed increasing attention to internal control mechanisms and ethical compliance frameworks, particularly in the aftermath of significant corporate scandals and regulatory reforms. Within this context, whistleblowing policies and internal audit functions represent two critical components of organizational governance that have traditionally been examined as separate entities. This research bridges this conceptual gap by investigating the intricate relationship between whistleblowing policy frameworks and internal audit effectiveness through an innovative methodological approach that combines computational analysis with traditional audit assessment techniques. Corporate governance literature has extensively documented the importance of both whistleblowing mechanisms and internal audit functions independently, yet the synergistic relationship between these governance elements remains underexplored. Previous research has typically approached these topics from either a legal compliance perspective or an organizational behavior standpoint, neglecting the complex interplay between policy design, implementation fidelity, and audit outcomes. Our research addresses this gap by introducing a comprehensive analytical framework that captures the multi-dimensional nature of whistleblowing policies and their impact on audit effectiveness. The theoretical foundation of this study draws from institutional theory, signaling theory,