Since the financial scandals of the 2000s, the business environment has been punctuated by fraud and ethical problems that increase uncertainty and risk in the conduct of business. Researchers and practitioners have analyzed these scandals as the result of the weakness and failure of corporate...

The research question we address in this paper is whether the effort invested by the internal auditor in the firm is associated with better firm performance. Our measure of effort is the number of audit hours invested in the firm, and firm performance is measured by the likelihood of a...