Internal Audit - Role in Corporate Governance

Role in Corporate Governance

Internal auditing activity as it relates to corporate governance is generally informal, accomplished primarily through participation in meetings and discussions with members of the Board of Directors. Corporate governance is a combination of processes and organizational structures implemented by the Board of Directors to inform, direct, manage, and monitor the organization's resources, strategies and policies towards the achievement of the organizations objectives. The internal auditor is often considered one of the "four pillars" of corporate governance, the other pillars being the Board of Directors, management, and the external auditor.

A primary focus area of internal auditing as it relates to corporate governance is helping the Audit Committee of the Board of Directors (or equivalent) perform its responsibilities effectively. This may include reporting critical internal control problems, informing the Committee privately on the capabilities of key managers, suggesting questions or topics for the Audit Committee's meeting agendas, and coordinating carefully with the external auditor and management to ensure the Committee receives effective information.

Read more about this topic:  Internal Audit

Famous quotes containing the words role in, governance, role and/or corporate:

    So successful has been the camera’s role in beautifying the world that photographs, rather than the world, have become the standard of the beautiful.
    Susan Sontag (b. 1933)

    He yaf me al the bridel in myn hand,
    To han the governance of hous and land,
    And of his tonge and his hand also;
    Geoffrey Chaucer (1340?–1400)

    Scholars who become politicians are usually assigned the comic role of having to be the good conscience of state policy.
    Friedrich Nietzsche (1844–1900)

    The generation of women before us who rushed to fill the corporate ranks altered our expectations of what working motherhood could be, tempered our ambition, and exploded the supermom myth many of us held dear.
    Melinda M. Marshall (20th century)