Dear Antipas,

Internal audit is one of the mechanisms, internal mechanisms, of corporate governance. Hence, agency theory would probably be your main theory to target the effectiveness of internal audit.

Dear Antipas,

You should use agency theory in this study because represent  the center of debate in this topic 

I agree the comment of Prof Ahmed 

Thanks for your constructive suggestions.I will decide between the two, institutional theory and Agency theory to use in my research.

I agree with Charbel Chedrawi, about topic The agency theory, also you can find topic, corporate governance and you relationship with stakeholders and related parts.

I believe that all three theories are valid and appropriate to explain and interpret the traditional and new function of the internal audit department. The Institutional theory would help to emphasize the function of the internal audit in the company and its importance for effective and efficient operations and activities of the business. Agency theory could be used to analyze the role of the internal audit department to protect the company's funds on behalf of the owners as well as the management of the company. The role theory could interpret the new development in the responsibilities and function of the internal audit in terms of providing value for money services and consulting to the business. All three are important to understand and better develop the function of the internal audit.

Dear Antipas,

It depend on the focus of your study. In case you want to analyse effectiveness of internal audit in addressing principal-agent problems, your should refer to agency theory. However, your research may benefit from institutional theory in case you want to investigate the nature and the function of internal audit and its relationship with other constituencies of a company. 

Paul

Thanks for your valuable contributions.I concur with all of you that the context determines which theory is more relevant to a study. All of the theories are relevant but which is more appropriate to my situation is a problem. I will share with you which theory among the three theories i will use after agreeing with my supervisor.

Thanks for your time.

The selection of  theory(ies) depends on the objectives of your research. You will know that after discussing the topic fully with your supervisor.

Hello Antipas,

I agree with Ahmed Mohsen, It depends on your objectives.

Actually Institutional theory will highlight/explain how it practices are shaped by these intitutional pressures which emerged from institutional field. It can be consider aspects related with culture, society, politics and economics (for instance).

Dear Antipas,

We are looking forward to hear from you after your meeting with your supervisor.

Paul

I agree with other researchers, although the CG is at infancy stage, as you write, the most logical theory is the agency theory for control and monitoring of opportunistic behavior.

Best,

Fabrizio

That's right, the agency theory is still the main theory as regards corporate governance. However, the research objectives do determine the proper theory(ies) to be used.

According to me in general perspectives the for that issues is New Growth Theory, which can check everything either issues related to public and private issues of internal and external audit.

For particular issues you can check through any theory of auditing which many people using the latest one now days (i., e Principle -Agent Relationship) in term of trust and transparent.

E

Contingency theory is another important theory you may consider, as the effectiveness of internal audit to a large extent depends on organization's complexity.

Dear  Antipas 

I consider that the institutional theory, is mor effecty for your research, because this theory considers: rules, norms, routines and aspects about the gobernance corporative, as well Different components of institutional theory explain how these elements are created, diffused, adopted, and adapted over space and time; and how they fall into decline and disuse. All ideas are very important to make auditting

Thanking you so much for your valuable contributions.Because i am doing a  PhD research, we agreed with my supervisors to use three theories in combination.The theories are Agency theory to show how effective internal audit function aid in reducing monitoring costs,Institutional theory to show how internal audit contribute to organizational behaviour change to positive side to conform to society requirements and other stakeholders requirements and lastly,Communication theory to show how internal audit function help organization in disclosure of pertinent information in financial statements to meet varied stakeholders needs. I appreciate for your valuable time you use to make the contributions  to me.