Shishkina, E.Barac, Karin2016-03-112016-03-112015Shishkina, E & Barac, K 2015, 'Structuring internal audit functions in multinational companies',Southern African Journal of Accountability and Auditing Research, vol. 17, no. 2, pp. 33-45.1028-9011http://hdl.handle.net/2263/51783During the last five decades, the world has witnessed a dramatic proliferation of multinational companies (MNCs) that has evoked strong interest amongst academic researchers. Despite the acknowledged need to expand internal auditing activities to cover MNCs’ diversified operations in multiple countries, only limited research has been performed from an internal auditing perspective. Drawing on institutional theory, this paper aims to add to the existing internal auditing literature by reviewing various international business management frameworks, in order to suggest an appropriate approach for the establishment and management of the internal auditing functions of MNCs. The study looks at the evolution of internal auditing functions in MNCs, examines organizational models described in international business management literature, and concludes that a geocentric approach is appropriate when structuring the internal audit function in a MNC. The argument is presented that geocentricity (which implies careful customization to address local context, while operating within established uniform standards) seems to be an appropriate approach for the organization of the internal auditing function of a MNC.enSouthern African Institute of Government AuditorsAuditingInternal auditMultinational companiesGlobalizationGeocentric modelLocal contextsArticle