External audits and official controls – what’s the difference in their usefulness and credibility?

• Authors: Piotr Rogala , Piotr Kafel , Inga Lapina

Abstracts

EN

Purpose – The study aims to determine whether audited organizations experience differences between external audits and official controls. Design/methodology/approach – A survey among 100 organic food producers was conducted to explore differences regarding the usability of external audits and official controls. The survey was conducted in 2020 using the computer-assisted telephone interview (CATI) method supplemented by the computer-assisted web interview (CAWI) method. Organizations processing organic farming products in Poland were chosen for the study. Findings – Three primary benefits associated with external audits and official controls were identified, i.e. (1) enabling and initiating activities related to the improvement of the organization, (2) improving the financial performance of the organization and (3) enhancing credibility. For most organizations, the assessment of these features was at the same level for both external audits and official control. However, if these assessments differed, commercial audits were assessed at a higher level than official controls. Research limitations/implications – The study is limited to only one specific type of manufacturing organization and one European country. Originality/value – The literature review shows some conceptual differences between audits and official controls, but the results of this study show that the business environment does not perceive these differences as significant. Thus, the value of the study is reflected in the conclusion that both external audits and official controls are considered useful and credible approaches to monitoring the quality within the organization, which allows us to state that external evaluation is generally seen as an opportunity to improve the performance of the organization.

Keywords

EN

External audit; Official control; Management system; Food industry; Organic food

• Publisher: Akademia Leona Koźmińskiego
• Journal: Central European Management Journal
• Year: 2024
• Volume: 32
• Issue: 2
• Pages: 284-300

Dates

published

2024

Contributors

author

Piotr Rogala

• Wroclaw University of Economics and Business, Wroclaw, Poland

author

Piotr Kafel

• Cracow University of Economics, Krakow, Poland

author

Inga Lapina

• Riga Technical University, Riga, Latvia

References

• Abuazza, O. A., Labib, A., & Savage, B. M. (2019). Development of a conceptual auditing framework by integrating ISO 9001 principles within auditing. International Journal of Quality and Reliability Management, 37(3), 411–427. doi: 10.1108/IJQRM-06-2018-0154.
• Ahearn, M. C., Liang, K., & Goetz, S. (2018). Farm business financial performance in local foods value chains. Agricultural Finance Review, 78(4), 470–488. doi: 10.1108/AFR-08-2017-0071.
• Algabry, L., Alhabshi, S. M., Soualhi, Y., & Alaeddin, O. (2020). Conceptual framework of internal Sharıʿah audit effectiveness factors in Islamic banks. ISRA International Journal of Islamic Finance, 12(2), 171–193. doi: 10.1108/IJIF-09-2018-0097.
• Alic, M., & Rusjan, B. (2011). Managerial relevance of internal audit. TQM Journal, 23(3), 284–300. doi: 10.1108/17542731111124343.
• Al-Twaijry, A. A. M., Brierley, J. A., & Gwilliam, D. R. (2004). An examination of the relationship between internal and external audit in the Saudi Arabian corporate sector. Managerial Auditing Journal, 19(7), 929–944. doi: 10.1108/02686900410549448.
• Asif, M., Searcy, C., Zutshi, A., & Ahmad, N. (2011). An integrated management systems approach to corporate sustainability. European Business Review, 23(4), 353–367. doi: 10.1108/ 09555341111145744.
• Azam, M. S., & Shaheen, M. (2019). Decisional factors driving farmers to adopt organic farming in India: A cross-sectional study. International Journal of Social Economics, 46(4), 562–580. doi: 10. 1108/IJSE-05-2018-0282.
• Baker, A. (2007). Occam’s razor in science: A case study from biogeography. Biology and Philosophy, 22(2), 193–215. doi: 10.1007/s10539-006-9027-9.
• Balan, C. (2006). CATI: Telephone interviewing technique. Management and Marketing, 1(1), 81–92.
• Beckmerhagen, I. A., Berg, H. P., Karapetrovic, S. V., & Willborn, W. O. (2004). On the effectiveness of quality management system audits. TQM Magazine, 16(1), 14–25. doi: 10.1108/ 09544780410511443.
• Bernardo, M., Casadesus, M., Karapetrovic, S., & Heras, I. (2011). Relationships between the integration of audits and management systems. The TQM Journal, 23(6), 659–672. doi: 10.1108/ 17542731111175266.
• Biazzo, S. (2005). The New ISO 9001 and the problem of ceremonial conformity: How have audit methods evolved?. Total Quality Management and Business Excellence, 16(3), 381–399. doi: 10. 1080/14783360500054145.
• Bryła, P. (2017). Creating and delivering value for consumers of healthy food – a case study of organic Farma Zdrowia S.A. Journal of Management and Business Administration. Central Europe, 25(4), 55–74. doi: 10.7206/jmba.ce.2450-7814.207.
• Bugdol, M. (2010). Zaufanie jako element systemu wartości organizacyjnych. Współczesne Zarządzanie, 2, 11–25.
• Bugdol, M., & Jedynak, P. (2015). Integrated management systems. Cham: Springer International Publishing. doi: 10.1007/978-3-319-10028-9.
• Castka, P., Zhao, X., Bremer, P., Wood, L. C., & Mirosa, M. (2021). Supplier audits during COVID-19: A process perspective on their transformation and implications for the future. The International Journal of Logistics Management, 33(4), 1294–1314. doi: 10.1108/IJLM-05- 2021-0302.
• Chiarini, A., Castellani, P., Rossato, C., & Cobelli, N. (2020). Quality management internal auditing in small and medium-sized companies: An exploratory study on factors for significantly improving quality performance. Total Quality Management and Business Excellence, 32(15-16), 1–21. doi: 10.1080/14783363.2020.1776101.
• Codex Alimentarius (1999). Guidelines for the production, processing, labelling and marketing of organically produced foods. Cac/Gl, 1–52. Geneva: FAO/WHO. Available from: https://www.fao. org/fao-who-codexalimentarius/codex-texts/codes-of-practice/tr/
• Daniel, J., Hoetzer, K., McCombie, G., & Grob, K. (2019). Conclusions from a Swiss official control of the safety assessment for food contact polyolefins through the compliance documentation of the producers. Food Additives and Contaminants: Part A, 36(1), 186–193. doi: 10.1080/19440049. 2018.1556405.
• Dekhili, S., & Akli Achabou, M. (2014). Eco-labelling brand strategy. European Business Review, 26(4), 305–329. doi: 10.1108/EBR-06-2013-0090.
• Dobija, D. (2019). Institutionalizing corporate governance reforms in Poland: External auditors’ perspective. Central European Management Journal, 27(3), 28–54. doi: 10.7206/cemj.2658-0845.2.
• Domingues, J. P., Mufato Reis, A., Fonseca, L. M., Avila, P., & Putnik, G. (2019). The added value of the ISO 9001:2015 InternationalStandard from an auditors’ perspective: A CB-SEM based evaluation. International Journal for Quality Research, 13(4), 967–986. doi: 10.24874/IJQR13.04-15.
• EU (2007). Council Regulation (EC) 834/2007 of 28 June 2007 on organic production and labelling of organic products and repealing Regulation (EEC) No 2092/91. Official Journal of the European Communities, (No. L 189).
• EU (2018). Regulation 2018/848 of the European Parliament and af the Council of 30 May 2018 on organic production and labelling of organic products and repealing Council Regulation (EC) No 834/2007. Official Journal of the European Union, L 150.
• Funnell, W., Wade, M., & Jupe, R. (2016). Stakeholder perceptions of performance audit credibility. Accounting and Business Research, 46(6), 601–619. doi: 10.1080/00014788.2016.1157680.
• Gacon, T. (2013). The professionalization of internal auditing. Management and Business Administration. Central Europe, 21(4), 55–68. doi: 10.7206/mba.ce.2084-3356.80.
• Heras-Saizarbitoria, I., & Boiral, O. (2019). Faking ISO 9001 in China: An exploratory study. Business Horizons, 62(1), 55–64. doi: 10.1016/j.bushor.2018.08.008.
• Hovland, C. I., Janis, I. L., & Kelley, H. (1953). Communication and persuasion; psychological studies of opinion change. New Haven: Yale University Press.
• IJHARiS (2021). Data on organic farming - 31.12.2020, Warsaw: Agricultural and Food Quality Inspection (IJHARiS). Available from: https:\\www.gov.pl/web/ijhars/dane-o-rolnictwie- ekologicznym
• ISO 19011 (2018). Guidelines for auditing management systems. Geneva: International Organization for Standardization.
• Jensen, J. D., Christensen, T., Denver, S., Ditlevsen, K., Lassen, J., & Teuber, R. (2019). Heterogeneity in consumers’ perceptions and demand for local (organic) food products. Food Quality and Preference, 73, 255–265. doi: 10.1016/j.foodqual.2018.11.002y.
• Johnson, A. C., Almanza, B. A., & Nelson, D. C. (2014). Factors that influence whether health inspectors write down violations on inspection reports. Food Protection Trends, 34(4), 226–236.
• Kafel, P., & Rogala, P. (2021). Auditing management systems in digital transformation era. International Journal for Quality Research, 16(1), 193–206. doi: 10.24874/IJQR16.01-13.
• Karapetrovic, S., & Willborn, W. (2001). Audit system: Concepts and practices. Total Quality Management, 12(1), 13–28. doi: 10.1080/09544120020010066.
• Karapetrovic, S., & Willborn, W. (2002). Self-audit of process performance. International Journal of Quality and Reliability Management, 19(1), 24–45. doi: 10.1108/02656710210413435.
• Kettunen, J. (2012). External and internal quality audits in higher education. TQM Journal, 24(6), 518–528. doi: 10.1108/17542731211270089.
• Kettunen, K., Lunden, J., L€aikk€o-Roto, T., & Nevas, M. (2017). Towards more consistent and effective food control: Learning from the views of food business operators. International Journal of Environmental Health Research, 27(3), 215–229. doi: 10.1080/09603123.2017.1332351.
• Kettunen, K., Pesonen, S., Lunden, J., & Nevas, M. (2018). Consistency and risk-basis of using administrative enforcement measures in local food control. Food Control, 85, 99–211. doi:10. 1016/j.foodcont.2017.09.023.
• Khanal, A. R., Mishra, S. K., & Honey, U. (2018). Certified organic food production, financial performance, and farm size: An unconditional quantile regression approach. Land Use Policy, 78, 367–376. doi: 10.1016/j.landusepol.2018.07.012.
• Kleboth, J., Luning, P. A., & Fogliano, V. (2016). Risk-based integrity audits in the food chain – a framework for complex systems. Trends in Food Science and Technology, 56, 167–174. doi: 10.1016/j.tifs.2016.07.010
• Kononets, Y., & Treiblmaier, H. (2021). The potential of bio certification to strengthen the market position of food producers. Modern Supply Chain Research and Applications, 3(1), 41–55. doi: 10. 1108/MSCRA-05-2020-0013.
• Lenning, J., & Gremyr, I. (2017). Making internal audits business-relevant. Total Quality Management and Business Excellence, 28(9-10), 1106–1121. doi: 10.1080/14783363.2017.1303891.
• Lim, S. A. H., Priyono, A., & Ming, C. H. (2020). An exploratory study of integrated management system on food safety and organic certifications. International Journal of Academic Research in Business and Social Sciences, 10(3). doi: 10.6007/IJARBSS/v10-i3/7111.
• Lueckl, J., Weyermair, K., Matt, M., Manner, K., & Fuchs, K. (2019). Results of official food control in Austria 2010–2016. Food Control, 99, 190–201. doi: 10.1016/j.foodcont.2018.12.016.
• Manning, L. (2018). Triangulation. Worldwide Hospitality and Tourism Themes, 10(3), 297–312. doi: 10.1108/WHATT-02-2018-0009.
• Martelli, F., Giacomozzi, C., Dragone, R., Boselli, C., Amatiste, S., Brajon, G., . . . Frazzoli, C. (2019). Official control and self-monitoring: Data agreement report in the integrated food safety system of an Italian dairy chain. International Dairy Journal, 97, 185–190. doi: 10.1016/j.idairyj.2019. 05.006.
• Metzger, M. J., & Flanagin, A. J. (2013). Credibility and trust of information in online environments: The use of cognitive heuristics. Journal of Pragmatics, 59, 210–220. doi: 10.1016/j.pragma.2013. 07.012.
• Miszczyk, M., Płonka, M., Stobiecki, T., Kronenbach-Dylong, D., Waleczek, K., & Weber, R. (2018). Official control of plant protection products in Poland: Detection of illegal products. Environmental Science and Pollution Research, 25(32), 31906–31916. doi: 10.1007/s11356-018- 1739-2.
• Misztal, B. (1996). Trust in modern societies: The search for the bases of social order. Choice Reviews Online, 34(2). doi: 10.5860/CHOICE.34-1248.
• Mondelaers, K., Aertsens, J., & Van Huylenbroeck, G. (2009). A meta-analysis of the differences in environmental impacts between organic and conventional farming. British Food Journal, 111(10), 1098–1119. doi: 10.1108/00070700910992925.
• Nagyova, A., Balazikova, M., Markulik, S., Sinay, J., & Pacaiova, H. (2018). Implementation proposal of OH&S management system according to the standard ISO/DIS 45001. In P. Arezes (Ed.), Advances in Safety Management and Human Factors. AHFE 2017. Advances in Intelligent Systems and Computing (Vol. 604). Cham: Springer. doi: 10.1007/978-3-319-60525-8_49.
• Newell, S. J., & Goldsmith, R. E. (2001). The development of a scale to measure perceived corporate credibility. Journal of Business Research, 52(3), 235–247. doi: 10.1016/S0148-2963(99)00104-6.
• Nurcahyo, R., Kristiningrum, E., & Sumaedi, S. (2019). ISO 9001-certified public healthcare center’s efficiency and re-certification. International Journal of Productivity and Performance Management, 69(4), 794–812. doi: 10.1108/IJPPM-11-2018-0406.
• Pivka, M. (2004). ISO 9000 value-added auditing. Total Quality Management and Business Excellence, 15(3), 345–353. doi: 10.1080/1478336042000183406.
• Poksinska, B., Dahlgaard, J. J., & Eklund, J. A. E. (2006). From compliance to value-added auditing - experiences from Swedish ISO 9001:2000 certified organisations. Total Quality Management and Business Excellence, 17(7), 879–892. doi: 10.1080/14783360600595294.
• Puławska, K., Dobija, D., Piotrowska, K., & Kravchenko, G. (2021). Audit committee formation: The case of Poland. Central European Management Journal, 29(2), 169–212. doi: 10.7206/cemj.2658- 0845.50.
• Rodrıguez-Bermudez, R., Miranda, M., Orjales, I., Ginzo-Villamayor, M. J., Al-Soufi, W., & Lopez- Alonso, M. (2020). Consumers’ perception of and attitudes towards organic food in Galicia (Northern Spain). International Journal of Consumer Studies, 44(3), 206–219. doi: 10.1111/ ijcs.12557.
• Rogala, P., & Wawak, S. (2021). Quality of the ISO 9000 series of standards-perceptions of quality management experts. International Journal of Quality and Service Sciences, 13(4), 509–525. doi: 10.1108/IJQSS-04-2020-0065.
• Romano, P. (2002). Impact of supply chain sensitivity to quality certification on quality management practices and performances. Total Quality Management, 13(7), 981–1000. doi: 10.1080/ 0954412022000017067.
• Rostron, K. (2011). Strengthening national food control systems. Worldwide Hospitality and Tourism Themes, 3(5), 402–412. doi: 10.1108/17554211111185773.
• Rotter, J. B. (1980). Interpersonal trust, trustworthiness, and gullibility. American Psychologist, 35(1), 1–7. doi: 10.1037/0003-066X.35.1.1.
• Sharma, D. (2005). The association between ISO 9000 certification and financial performance. The International Journal of Accounting, 40(2), 151–172. doi: 10.1016/j.intacc.2005.01.011.
• Song-Turner, H., & Polonsky, M. (2016). Enviropreneurial marketing in greening corporate activities. European Business Review, 28(5), 506–531. doi: 10.1108/EBR-12-2014-0087.
• Svrcinova, P., & Janout, V. (2018). Comparison of official food safety control systems in member states of the European Union. Central European Journal of Public Health, 26(4), 321–325. doi: 10.21101/ cejph.a4940.
• van der Meulen, B. M. J. (2019). Enforcement of EU agri-food law. ERA Forum, 19(4), 623–641. doi: 10. 1007/s12027-018-0532-5.
• Whelan, T. (2015). Trade and aid: How certification helps improve sustainability. International Trade Forum, 3, 18–19. doi: 10.18356/f8967158-en.
• Wolniak, R. (2021). Internal audit and management review in ISO 9001:2015. Silesian University of Technology Scientific Papers. Organization and Management Series, 151, 711–723. doi: 10. 29119/1641-3466.2021.151.49.
• Zander, K., Padel, S., & Zanoli, R. (2015). EU organic logo and its perception by consumers. British Food Journal, 117(5), 1506–1526. doi: 10.1108/BFJ-08-2014-0298.

Identifiers

DOI

10.1108/CEMJ-04-2022-0055

Biblioteka Nauki

43852826