The impact of chaos and cultural theories on the internal audit environment in a context of cultural change: an international study

The purpose of this study is to examine how cultural dimensions affect the stability and effectiveness of internal audit practices in multinational organizations. This study integrates chaos theory to explore how cultural factors influence the adaptability of audit functions in dynamic environments, addressing gaps in the existing literature. Using IIA survey data from 160 countries and Moody’s stability scale, this study models the impact of cultural dimensions on internal audit practices and compliance with international standards. A structured database is created to evaluate how variations in audit culture influence governance, stability and audit effectiveness. The analysis reveals a strong relationship between cultural dimensions and internal audit practices, demonstrating that variations in cultural traits shape audit processes, adherence to international standards and overall audit effectiveness. This study also highlights significant differences between stable and unstable countries, illustrating how national stability influences the internal audit environment and the role of auditors in corporate governance. By linking cultural dimensions with internal audit practices, this study provides actionable insights for organizations operating in culturally diverse or unstable environments. This study offers strategies for improving audit compliance with international standards, optimizing resource allocation and aligning audit functions with broader organizational objectives. This study advances the understanding of internal auditing by integrating cultural dimensions and chaos theory, offering a novel perspective on the adaptability and resilience of audit practices. This study fills a gap in the literature by demonstrating how cultural factors interact with audit stability, contributing to both academic research and practical applications in multinational organizations.