Corporate Governance in the Aftermath of the Global Financial Crisis, Volume III

CHAPTER 2

Internal Audit Function

Introduction

Internal auditing has evolved from a traditional appraisal activity to becoming an integral components of corporate governance in providing an objective, assurance, and consulting activity in the areas of internal control, risk assessment, and corporate governance. Internal auditing is viewed as a value-added service that improves the organization’s operations, risk management, internal controls, and financial reporting. Internal auditors’ roles have changed from merely providing input and objective feedback to management, to directly participating in corporate governance, and thus, in the decision-making function. Recent corporate governance reforms encourage and enable public companies to establish ...