The role of internal audit in Bank’s M&As

Abstract

Organizations have encountered rapid changes in economic complexity, expanded regulatory requirements, and technological advancements in recent years. These changes have given the internal audit function a set of expanded opportunities to support management and provide services to other organizational functions (Hass and Burnaby, 2006). Simultaneously, recently numerous mergers have been realized. While academics and practitioners have long discussed both internal audit and bank M&As, the relationship between internal audit and M&As continues to be an elusive concept. For this reason, this study aims to provide some insight on the contribution of internal audit to effective M&As procedure. The empirical results affirm the importance of internal audit on bank’s acquisitions activity.