Managerial relevance of internal audit : Business benefits of using ISO 9000 internal audit as a managerial tool

Purpose – In order to stimulate the interest of company management in the business perspective of internal audit this paper aims to investigate the possibilities of using internal audit as a helpful managerial tool and describes the benefits of such use. Design/methodology/approach – The benefits of IA as a managerial tool are investigated on a review of the relevant literature. Theoretically based findings are tested analytically using evidence from empirical research and empirically by a case study research. Findings – Internal audit outcomes and benefits for management depend on the purpose of internal audit and on managers' support and expectations about it. The paper shows that in order to use internal audit as an effective managerial tool, internal audit has to be appropriately integrated within a strategic management system. The greatest benefits can be achieved by companies that are internally motivated to introduce the QMS which have a mature quality culture and QMS and their quality objectives linked to the business ones. Practical implications – Discussing internal audit benefits from a managerial point of view is not a common approach in the professional literature on this topic. However, covering managers' needs by using quality tools is one of the most important issues companies should understand in order to make these tools attractive and beneficial. Showing the results of a real‐life case can convince managers from other companies that benefits of using IA as a managerial tool are tangible. Originality/value – Internal audit purpose and results have been theoretically integrated within a broader managerial system of the company. This enables identification of possible business benefits resulting from appropriate implementation of internal audit itself and possible business benefits related to QMS and strategic management system of the company that can be affected through appropriate IA implementation.