Alternative Work Arrangements and Organizational Actions: Internal Auditor Behavioral Responses and Organizational Outcomes

SUMMARY This study delves into the perceptions of remote work among internal auditors. We examine the impact of an organization’s policies and procedures related to alternative work arrangements (AWAs) and its socialization tactics on auditors’ work behaviors. Using a phenomenological approach, our analysis is based on semistructured interviews with 13 highly experienced internal audit leaders across various industries. Using Social Exchange Theory (SET) as a theoretical lens, we identify positive and negative behavioral responses to company AWA policies and the socialization tactics used by internal audit functions (IAFs). These responses encompass variations in employee satisfaction with work and the work environment, identification with the IAF, turnover intentions, and professional development. We contribute to SET theory by highlighting contextual factors influencing worker responses to their employer’s actions regarding AWAs. Regarding practical implications, our findings offer insights into how organizations can potentially retain internal audit talent. Data Availability: Data not publicly available; contact the authors. JEL Classifications: M42; M51; M53.