Main Coordinates of Internal Audit Practices in the Context of Corporate Governance at European Level

Abstract

The dynamic of economic changes that influenced the entities has determined a spectacular evolution of internal audit practices, this aspect being also remarked by European specialists. Internal auditor need to face a wider range of challenges especially in the context of corporate governance requirements. The aim of this paper is to make an analysis of internal audit practices in European space, in order to identify internal audit practices in the context of corporate governance. The paper’s methodological construction of scientific research is divided in two main parts. In the first part is analyzed the evolution of internal audit practices through literature review method, by combining the documenting research technique with observation method. In the second part, it will be developed an empirical study through to be identified the main coordinates that characterized internal audit practices in the context of corporate governance at European level. This study includes an analysis of internal audit practices from significant entities listed at European markets, based on a methodology developed as a result of a literature review. The main results of our research activity show that internal audit become one of the most important key elements of the corporate governance process, being a valuable support for management. The attention of both the internal auditors, but also the audited is focused more and more over the value added furnished by internal audit in different areas like corporate governance, risk management, its interaction with other stakeholders being also a significant element. The value of the paper is argued by the analysis developed at European level, from both theoretical and empirical perspectives, which could determine strong implications for both academics and practitioners in the field. The results of the study allow making useful proposals for enhancing internal audit practices in the context of corporate governance at European level.