Determining the effect of internal audit on employee performance: A research on manufacturing enterprises

Studies on the efficiency dimensions and attributes of internal auditing from the viewpoints of managers, internal auditors, and employees in the manufacturing sector, as well as the organizational and individual outcomes, are few in the subject of internal auditing. By investigating the impact of internal auditing on employee performance (task performance and contextual performance) inside manufacturing firms, this study seeks to fill a vacuum in the literature. Employees from manufacturing enterprises in the Central Anatolia region that have internal audit units make up the study's sample (n = 286). The effectiveness of internal auditing scale developed by Onay (2021) and Alzeban & Gwilliam (2014), as well as employee performance scales developed by Van Scotter & Motowidlo (1996), Goodman & Svyantek (1999), and Pradhan & Jena (2017), were all included in the survey that was used to gather the data. In order to create a measurement model and assess the validity and reliability of the scales, confirmatory factor analysis was used. Based on this measurement model, the research hypotheses were then tested using Structural Equation Modeling. The study's conclusions show that task performance is positively and significantly impacted by general effectiveness, management support for internal auditing, and independence of internal auditing, among other effectiveness characteristics of internal auditing. Similarly, only management support for internal auditing has a favorable and significant impact on contextual performance among the effectiveness aspects. Finally, the study draws attention to a few limitations and offers insights based on the research findings, making recommendations for future research paths and suggestions on how internal auditing techniques might improve employee performance in manufacturing firms.