Abstract
The purpose of the paper is to examine the research question about the role of internal audit function on management and corporate governance. This paper is updated with the latest theories regarding the role of internal auditing on management and corporate governance. It has been made literature review so as to be revealed the role of internal audit function on management and corporate governance. It is found that internal auditing is an important part of the success of corporate governance. Especially, it is one of the pillars of corporate governance. Furthermore, it is found that internal audit function is a vital tool for the management and for the success of a company. The good operation of internal audit function can be a tool for the improvement of quality of the corporate governance and management. Both corporate governance and management can increase the competiveness of a company.
Highlights
In last years, a growing industry has developed around the need and desire for improved corporate governance: accounting firms offer corporate governance compliance services, business schools offer corporate governance courses and there is a growing public interest in relation with corporate governance matters (Stein, 2008)
Good corporate governance is considered a basic criterion to accept a business in the majority of the Stock Exchange Markets in the world (Al-Baidhani, 2016)
International guidelines suggest that effective implementation of corporate governance and internal auditing improves business‟s performance and it is a tool for the achievement of competitive advantage (Karagiorgos et al, 2010)
Summary
A growing industry has developed around the need and desire for improved corporate governance: accounting firms offer corporate governance compliance services, business schools offer corporate governance courses and there is a growing public interest in relation with corporate governance matters (Stein, 2008). Good corporate governance is considered a basic criterion to accept a business in the majority of the Stock Exchange Markets in the world (Al-Baidhani, 2016). Internal auditing is considered a part of corporate governance. The majority of the corporate governance codes have contexts about the. International guidelines suggest that effective implementation of corporate governance and internal auditing improves business‟s performance and it is a tool for the achievement of competitive advantage (Karagiorgos et al, 2010). The failure of the Enron Corporation in the end of 2001 has as a result the raise of questions about the effectiveness of contemporary accounting, auditing and corporate governance practices (Vinten, 2002)
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