The lived experiences on Internal Auditors in Frontier Markets: A Hermeneutic Phenomenological Study

Abstract

This study was premised on the existing knowledge and practice gap in terms of internal auditors’ lived experiences in frontier markets. Using semi-structured interviews with fifteen Chief Audit Executives (CAEs) and ten supervisory-level executives (company secretaries, chief operating officers and chief human resources officers), the study explored how corporate governance practices, organizational structures, and cultural dynamics shape the ability of internal auditors to be independent and deliver objective assurance so as to fulfil the Purpose of Internal Auditing. A hermeneutic phenomenological approach enlisted internal auditors and business executives. Data was analyzed using Interpretive Phenomenological and Framework Analysis. The findings revealed a consistent gap between formal provisions for internal audit independence contained in internal audit charters and board policies, and the lived reality of management dominance, weak audit committee oversight, resource dependence, and high-power distance cultures. Internal audit independence was frequently described as “situational” or “negotiated”: stronger after scandals or during external audits but eroded during routine operations. Audit committees were often under-resourced, met infrequently and lacked technical expertise, while budgets, staffing and reporting channels remained under executive control, creating a “dependency trap” that compromised scope and quality. The study also identifies diverse typologies of internal audit functions—centralized in-house units, decentralized embedded auditors, outsourced and hybrid models—each carrying distinct risks to autonomy. Overall, the research concludes that corporate governance in Zambia as an emerging market is a complex and a multifaceted issue that requires careful consideration of local contexts and challenges. The integration of best practices from developed markets must be adapted to fit the unique characteristics of emerging economies. This thesis underscores the importance of strong governance frameworks in supporting internal auditor independence. This case study demonstrates that while challenges abound, successful corporate governance reform is achievable with the right strategies and commitment from both the public and private sectors. Moving forward, LuSE must provide direction for innovation of its firms and ensure that listed firms refine their governance practices, ensuring that they align with global standards.