Proceedings of the 6th International Conference on New Trends in Management, Business and Economics
Year: 2024
DOI:
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The Role of Internal Audit in Improving Corporate Governance Systems
Panagiota Kottara, and Panagiotis Tzavaras
ABSTRACT:
Internal audit and corporate governance are essential elements for the efficient operation of organizations. Internal audit involves processes within an organization that focus on risk management and ensuring the achievement of strategic objectives. In contrast, corporate governance is concerned with the frameworks, relationships, and practices that define how an organization is controlled and directed. This analysis explores the dynamic relationship between internal audit and corporate governance, highlighting the ways in which internal audit strengthens governance structures. It shows that internal audit significantly enhances transparency, accountability, and the overall effectiveness of organizations, while also boosting the trust and confidence of shareholders and stakeholders. Moreover, it is evident that strong collaboration between internal audit committees and boards of directors positively impacts corporate governance practices. The discussion concludes with suggestions for future research and offers practical strategies to improve the integration and cooperation between internal audit functions and governance frameworks, further reinforcing the stability and resilience of organizations.
keywords: corporate governance, internal audit, management information systems, statistics