Leveraging Proactivity to Internal Control, Compliance and Audit Practices for Effective Performance Outcomes

Abstract

This study designed a model for guidance on how to deploy proactivity as a tool to promote the professional success of business executives, compliance officers and auditors. The study was motivated by the concerns of regulators, investors, and other stakeholders on the issue of lack of proactivity on the part of business executives, compliance officers and
auditors. Research Methodology: The research first designed and developed the model drawing from the researchers’ practical and professional experiences in the field and backed it with literature and proceeded to demonstrate the guidance the model proffers. Four major independent variables namely, “Risk-Consciousness (RC)”, “Professional Scepticism (PS)”, “Moral-Courage
(MC)” and “Ethical Behaviour (EB)” were conceptualized. The variable ‘Trigger” was used to play a mediating role and ‘Action’ was a dependent variable. The study purposively sampled 56 business professional experts to whom structured questionnaires were self-administered. Results: The mediating variable received an 89% approval rating and the dependent variable (Action) received an 86% strong approval rating. The overall average approval rating by respondents of the model came up to 83% strong approval rating. Meanwhile, the four independent variables RC, PS, MC and PB received 80.3%, 73.2%, 66.1% and 82.1% approval rates, respectively. Conclusion and implications: The study will assist business executives, compliance officers and auditors with internal controls and risk management systems.