AN INVESTIGATION INTO MANAGEMENT’S RELUCTANCE IN IMPLEMENTING AUDIT RECOMMENDATIONS AND ITS EFFECTS TO RISK

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Newman Wadesango, Charity Mhaka, Tendai Chinamasa, Ongayi Vongai Wadesango

DOI:10.22495/cbv13i2art7

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Abstract

The purpose of this study was to identify the causes of non-implementation of audit recommendations, with the aim of coming up with strategies and best practices for the effective implementation of audit recommendations. The literature review showed that organizations face high levels of risk. The high level of risk is usually as a result of non-implementation of audit recommendations. It is therefore imperative to identify challenges faced by management in implementing audit recommendations. The research study used a mixed research approach. The research population was drawn from the management and employees of a Zimbabwean based parastatal. A judgmental sampling technique was used. Closed ended questionnaires and interviews were used to collect data. The research findings showed that non-implementation of audit recommendations exposed the organisation to risks such as credit risk, fraud risk, and reputational risk. This research adds to the current body of knowledge by highlighting some of the problems encountered by companies who outsource their business functions. While this research focused on the case study of a single firm, further research can look into the current trends regarding the implementation of audit recommendations in the same developing country.

Keywords: Risk, Audits, Management, Auditor General, Audit Recommendations

Received: 19.06.2017

Accepted: 29.08.2017

How to cite this paper: Wadesango, N., Mhaka, C., Chinamasa, T., & Wadesango, O. V. (2017). An investigation into management’s reluctance in implementing audit recommendations and its effects to risk. Corporate Board: role, duties and composition, 13(2), 61-70. http://doi.org/10.22495/cbv13i2art7