Internal Audit: Friend or Foe of Innovation in an Organization: Case of Czech Banking Sector

Vladimír Petrík

2024

Abstract

Internal audit should provide objective assurance services regarding the fulfilment of the bank’s objectives and its management and administration, based, among other things, on risk assessment. The aim is to identify, describe and analyze the current state of application of innovation audit performed by the internal audit department in banks operating in the Czech Republic. Methods of qualitative research, analysis of bank documents and interviews with internal audit managers are used. The result of the research is the identification and description of the current state of tasks and the role of internal audit in relation to innovation management in banks. Banks in innovation management have been found to face various barriers based on legacy of unconnected information systems, low innovation appetite (non-perception of competitive threats), unexposed innovation processes and low decision-making flexibility. It was found that banks do not identify innovation risk as part of their risk assessment and do not apply specific control processes to it. These facts have practical implications following the recommendation to systematize the innovation process in banks, to include innovation risk in the bank’s risk assessment and to use the possibilities of the bank’s internal audit department to eliminate this risk and assess related processes.

Paper Citation

in Harvard Style

Petrík V. (2024). Internal Audit: Friend or Foe of Innovation in an Organization: Case of Czech Banking Sector. In Proceedings of the 6th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB; ISBN 978-989-758-695-8, SciTePress, pages 42-53. DOI: 10.5220/0012564000003717

in Bibtex Style

@conference{femib24,
author={Vladimír Petrík},
title={Internal Audit: Friend or Foe of Innovation in an Organization: Case of Czech Banking Sector},
booktitle={Proceedings of the 6th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB},
year={2024},
pages={42-53},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012564000003717},
isbn={978-989-758-695-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 6th International Conference on Finance, Economics, Management and IT Business - Volume 1: FEMIB
TI - Internal Audit: Friend or Foe of Innovation in an Organization: Case of Czech Banking Sector
SN - 978-989-758-695-8
AU - Petrík V.
PY - 2024
SP - 42
EP - 53
DO - 10.5220/0012564000003717
PB - SciTePress