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THIS DOI METADATA WAS LAST UPDATED: 2026-09-22 13:03
Cite as
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Full Title
MANAGEMENT CONTROL
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Publisher
FrancoAngeli
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ISSN
2239-0391 (Printed Journal)
2239-4397 (Online Journal)
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Journal Issue Number
2
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Journal Issue Designation
2
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Journal Issue Date
2026
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Full Title
Internal auditors' recognition of conflict of interest situations: A vignette-based analysis
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By (author)
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First Page
169
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Last Page
187
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Language of text
English
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Publication Date
2026/09
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Copyright
2026 FrancoAngeli srl
Main description
This study investigates whether internal auditors' recognition of managerial conflicts of interest (CoI) varies across organisational decision-making scenarios. The analysis is based on a questionnaire administered to 88 internal auditors employed by a large Italian listed company. Since all respondents belong to a single organisation, the study examines the individual characteristics and contextual factors associated with auditors' recognition of managerial CoI and their responses to such situations. Respondents evaluated four vignette-based scenarios characterised by different levels of ambiguity and normative clarity. Two logistic regression models tested whether demographic characteristics (age, gender, educational background, and professional experience) and vignette-based response patterns are associated with CoI recognition. The findings suggest that CoI recognition is context-dependent. Responses are relatively homogeneous in scenarios with clear normative expectations, whereas greater heterogeneity emerges when ethical boundaries and decision-making responsibilities are less clearly defined. Vignette-based response patterns are associated with CoI recognition only in more ambiguous contexts. These findings contribute to the behavioural governance and internal auditing literature by highlighting the role of contextual framing in ethical judgement and suggesting that governance mechanisms, ethical codes, and internal control systems may reduce interpretative variability in ambiguous organisational settings.
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