Study on Internal Audit Effectiveness for Ensuring Governance

Abstract

newlineCorporate Governance is an important subject being talked about since few decades newlineconsequent to fallout of large corporate organization worldwide like Enron, Baring newlineBank, World com etc. In the recent past Indian sub-continent is facing huge crisis of newlinetrust due to fallout/issues with ILFS, DHFL, Yes Bank, Jet Airways, Zee, Reliance newlineADAG etc. in a very short span of time. It was never expected that these companies can newlinefall. We did see the financial rating downgrade in very short span for these companies newlinequestioning the reliability of credit rating process and rating agencies also. This implies newlinethat ensuring governance still remain a challenge as also the effectiveness of Internal newlineAudit Function (IAF) in ensuring governance. Several research papers have been newlinepublished in last few decades on the subject and they tried to address various issues, newlineconcern and solution. These papers did study the impact of Internal Audit (IA) newlineeffectiveness and relation with Corporate Governance and found that challenges remain newlinemainly related to upgradation of Internal Audit Function skill set and an effective newlineEnterprise Risk Management (ERM) process and reporting. Both these elements are newlinekey gaps in effectiveness of Internal Audit Function for ensuring effective governance