<abstract xmlns="http://www.w3.org/1999/xhtml">

Purpose – This study aims to examine the current state-of-the-art foundation, organization, role, processes, and functioning of internal audit (IA) within Croatian hotel companies in order to suggest improvements.
Design/Methodology –qualitative research was conducted using a questionnaire distributed to Croatian hotel companies that quote their stocks on the capital markets, noted destinations, and internationally renowned hotel companies that operate in Croatia from March to May 2023. Based on the responses received, semi-structured interviews were conducted with internal auditors who are or have been employed by hotel companies in order to obtain more detailed information about the organization and performance of the internal audit function (IAF).
Findings – The results showed that not many hotel companies in Croatia have organized IAF because it is not a legal obligation for the hospitality industry. The current stage of IAF in these companies is infrastructural or integrated, which shows possibilities for its improvement. The role of internal audit is not recognized because it is seen as a time-consuming activity and an additional expense for the hotel company, without awareness of its real purpose, opportunities to improve the efficiency and effectiveness of hotel operations, and other benefits of this function.
Research limitations – the small sample of hotel companies that have IAF organized within and also a limited number of internal auditors that have experience, knowledge, and qualifications to work in the hospitality industry.
The originality of the research – the first study regarding the organization of IAF in the hospitality industry.
</abstract>

Purpose – This study aims to examine the current state-of-the-art foundation, organization, role, processes, and functioning of internal audit (IA) within Croatian hotel companies in order to suggest improvements.
Design/Methodology –qualitative research was conducted using a questionnaire distributed to Croatian hotel companies that quote their stocks on the capital markets, noted destinations, and internationally renowned hotel companies that operate in Croatia from March to May 2023. Based on the responses received, semi-structured interviews were conducted with internal auditors who are or have been employed by hotel companies in order to obtain more detailed information about the organization and performance of the internal audit function (IAF).
Findings – The results showed that not many hotel companies in Croatia have organized IAF because it is not a legal obligation for the hospitality industry. The current stage of IAF in these companies is infrastructural or integrated, which shows possibilities for its improvement. The role of internal audit is not recognized because it is seen as a time-consuming activity and an additional expense for the hotel company, without awareness of its real purpose, opportunities to improve the efficiency and effectiveness of hotel operations, and other benefits of this function.
Research limitations – the small sample of hotel companies that have IAF organized within and also a limited number of internal auditors that have experience, knowledge, and qualifications to work in the hospitality industry.
The originality of the research – the first study regarding the organization of IAF in the hospitality industry.

Internal audit function in the Croatian hospitality industry

WSB Journal of Business and Finance

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Internal audit function in the Croatian hospitality industry"}

Purpose – This study aims to examine the current state-of-the-art foundation, organization, role, processes, and functioning of internal audit (IA) within...

Internal audit function in the Croatian hospitality industry

Published Online: Nov 09, 2023

Page range: 53 - 65

DOI: https://doi.org/10.2478/wsbjbf-2023-0007

Keywords
internal auditing, internal auditor, internal audit function, hospitality industry, hotel companies

© 2023 Dubravka Vlašić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Internal audit function in the Croatian hospitality industry

Published Online: Nov 09, 2023

Page range: 53 - 65

DOI: https://doi.org/10.2478/wsbjbf-2023-0007

Keywordsinternal auditing, internal auditor, internal audit function, hospitality industry, hotel companies

© 2023 Dubravka Vlašić et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
internal auditing, internal auditor, internal audit function, hospitality industry, hotel companies