Corporate Governance and Internal Audit in the Modern Downsizedd Enterprise: The Case of Greece

Abstract

The current financial crisis is affecting the entire operations of the modern enterprise. The main objective of this study is to identify and evaluate whether the current trend of downsizing impacts Internal Controls, Internal Auditors and Internal Audit departments. We will evaluate whether ‘downsizing’ may lead to less compliance with corporate governance best practices, as well as laws and regulations or excessive risk-taking.Also, Internal Audit departments have a multiple role to play in today’s downsized organizational environment. Moreover, “reengineered via downsizing” Internal Audit Departments are often tasked with special projects in which they may play a role that requires extensive application of consulting skills and competences. Internal Auditors direction towards economy, effectiveness and efficiency is a valuable input for every company that adopts change management. After analyzing the relevant literature review, we are forming a questionnaire that will be used in our case studies interviews regarding the impact of downsizing on Corporate Governance practices, Internal Controls, Internal Auditors and Internal Audit departments. The potential impact of downsizing will be critically discussed with selected members of the top management (executive and non executive), as well as Chief Audit Executives. Specifically, our research will be based on a case study analysis of five publicly listed enterprises. Three of them are traded in the high capitalization index of the Athens Stock Exchange, while the remaining two are traded in the medium – low capitalization index.