ABSTRACTThis study identifies the ethical pathways of chief audit executive reporting lines that describe internal auditing relationships with different authorities in the organization (e.g. the board of directors, audit committee, chief executive officer, and chief financial officer). The literature has placed importance of these lines as determinants for the objectivity and independence of internal auditing. Recent studies have reported inconsistent findings regarding whether reporting to high authority is the optimal reporting line compared to reporting to low authority. For this reason, there is a need for further investigation. Thus, this study harnesses the strengths and weaknesses of three ethical pathways in a decision-making model (described as the Ethical Process Thinking Model). In this way, we provide an explanation of the complex situations of internal audit reporting line in reality. The findings highlight that individuals’ different perceptions and judgments, as well as information signals can lead to different reporting lines (decision choices). The three dominant ethical pathways (i.e. preference-based, rule-based and principle-based) advance the literature by providing a clearer picture for practitioners, researchers and regulators to facilitate independence and objectivity requirements.

ABSTRACTThis paper explores the nature of internal accountability within service organisations. The study adopts a cross-sectional approach, with the three largest service organisations in the world selected along with Round Table International, a popular service organisation in the UK. This paper utilises Roberts’ framework of individualising/hierarchical and socialising/intelligent forms of accountability, with socialising forms of accountability dominating accountable space within service clubs. The presence of a more “intelligent accountability” dynamic at grassroots level is then considered. This paper concludes with avenues for development of more intelligent accountability within service organisations, along with further research opportunities.HIGHLIGHTSSocialising forms of accountability dominate the agenda at the grassroots club level, due to the formation of closely-knit, collective selves within the service club environment.‘District level’ and more senior organisational levels struggle to effectively govern the grassroots ‘club’ level of the organisation via hierarchical accountability.Declining membership within UK service clubs means that a paradox exists between maintaining a ‘strong club’ that satisfies the needs and desires of members, and a grassroots organisational level which is in line with the more corporate objectives set by the overarching service organisation.