Developing an Effective Internal Auditing Model with an Organizational Antifragility Approach

Abstract

This study aimed to develop an effective internal auditing model from an organizational antifragility perspective and to explain its causal, contextual, intervening, strategic, and consequential dimensions. This applied and exploratory study employed a qualitative systematic grounded theory design based on the Strauss and Corbin approach. Participants consisted of academic and professional experts in internal auditing, external auditing, internal control, risk management, corporate governance, and financial management. Participants were initially selected through purposive sampling and subsequently through theoretical sampling based on emerging concepts. A total of 28 experts participated in the study. Theoretical saturation was achieved after the twenty-fifth interview, and three additional interviews were conducted to confirm conceptual adequacy and category stability. Data were collected through in-depth semi-structured interviews. After transcription, the interviews were organized and managed using MAXQDA. Data analysis followed the constant comparative method and was conducted through open, axial, and selective coding. The analysis generated 151 initial codes, which were reduced to 63 concepts, 10 subcategories, and eight main categories after removing overlaps and merging similar codes. The core category was identified as “establishment of an integrated effective internal auditing system.” The causal conditions included increasing risk complexity, limitations of traditional auditing approaches, growing stakeholder expectations, and the need to prevent disruption and failure. Contextual conditions included management support, audit committee authority, and risk-management maturity, while professional competence, technological infrastructure, and structural barriers emerged as major intervening conditions. The principal strategies involved continuous auditing, forward-looking analysis, timely reporting, expansion of the advisory role, continuous learning, and data analytics. The consequences included early risk detection, reduced vulnerability, stronger resilience, improved governance, enhanced organizational learning, and movement toward organizational antifragility. Effective internal auditing can strengthen organizational antifragility when it is institutionalized as an integrated, independent, forward-looking, data-driven, and risk-based system embedded within governance, control, risk management, and organizational learning processes.