Study on the Positioning of Internal Audit Function Under Corporate Governance

Yushen Ma

doi:doi:10.11648/j.ijber.20211006.18

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Study on the Positioning of Internal Audit Function Under Corporate Governance

Yushen Ma

Published in International Journal of Business and Economics Research (Volume 10, Issue 6)

Received: 25 November 2021 Accepted: 8 December 2021 Published: 25 December 2021

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Abstract

Corporate governance mechanism is the core of a modern enterprise system and its effectiveness or otherwise is an important factor affecting corporate performance. A reasonable and effective internal audit is a basic requirement for good corporate governance, and it forms one of the four cornerstones of corporate governance, together with the board of directors, senior management and external audit. The internal audit function is not limited to being accountable to the company's management but also assumes a fiduciary responsibility to shareholders and stakeholders as well as to the external community. In fact, internal audit is an independent monitoring and control mechanism on whether the fiduciary party is effectively fulfilling its economic responsibilities. With the development of the market economy and the progress of enterprise economic management, the object of internal audit is not only limited to the financial aspect but also extends more to the management field. With the rapid development of information technology and the accelerating globalisation of the economy, the function of internal audit has also changed significantly and the function of internal audit must be expanded and extended to suit the modern corporate governance environment. The four traditional functions of internal audit include the supervisory function, control function, evaluation function and advisory function. The objectives of internal audit are gradually being aligned with those of corporate governance as modern enterprises continue to strengthen their corporate governance. The main objective of modern corporate governance is to increase the value of the company. To be consistent with the company's objectives, internal audit must be targeted at adding value to the business. So the core function of internal audit based on corporate governance should undoubtedly be to add value.

Published in	International Journal of Business and Economics Research (Volume 10, Issue 6)
DOI	10.11648/j.ijber.20211006.18
Page(s)	277-283
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Corporate Governance, Internal Audit, Functional Positioning, Value Added Features

References

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[2]	Sun Lihui. (2019). Research on the Economic Value-Added Effect of Internal Audit Joint Internal Control [J]. Frontiers of International Accounting, 8 (3): 100-106.
[3]	Yushen Ma. (2021). Full Coverage of Internal Audit Based on Value Chain Analysis [J]. Journal of Finance and Accounting, 9 (6): 230-235.
[4]	Dan Wang and Yajun Guo. (2009). Study on the Internal Audit for Listed Companies Based on Value-added View [J]. International Journal of Business and Management, 4 (7): 52-55.
[5]	Razimah Abdullah and Zubaidah Ismail and Malcolm Smith. (2018). Audit Committees' Involvement and the Effects of Quality in the Internal Audit Function on Corporate Governance [J]. International Journal of Auditing, 22 (3): 385-403.
[6]	Georgios Kontogeorgis. (2018). The Role of Internal Audit Function on Corporate Governance and Management [J]. International Journal of Accounting and Financial Reporting, 8 (4): 100-114.
[7]	Fedaa Abd Almajid Sabbar et al. (2018). The Importance of Adopting Principles of Corporate Governance for the Quality of Internal Audit [J]. Proceedings of the International Conference on Business Excellence, 12 (1): 1089-1101.
[8]	Hassan Sabbar Mohammed and Eltyaf Abdalamer Safa. (2018). Value Engineering for the Role of Internal Audit Quality in Activating the Principles of Corporate Governance: A Case of Non-financial Firms on Iraqi Stock Exchange [J]. International Journal of Engineering & Technology, 7 (4.7): 145-145.
[9]	Taiwo Asaolu and Samuel Adedokun and James Monday. (2016). Promoting Good Governance through Internal Audit Function (IAF): The Nigerian Experience [J]. International Business Research, 9 (5): 196.
[10]	Abdul-Nasser El-Kassar and Walid Elgammal and Mirna M. Bayoud. (2014). Effect of Internal Audit Function on Corporate Governance Quality: Evidence from Lebanon [J]. Int. J. of Corporate Governance, 5 (1/2): 103-117.
[11]	Xiaolong Qu and Bin Liang and Hsing Hung Chen. (2020). Research on the Value-added Role of Internal Audit [J]. International Journal of Higher Education Teaching Theory, 1 (4): 211-213.
[12]	Ying Chen et al. (2020). Can Internal Audit Functions Improve Firm Operational Efficiency? Evidence from China [J]. Managerial Auditing Journal, 35 (8): 1167-1188.
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[15]	George Drogalas and Konstantinos Arampatzis and Evgenia Anagnostopoulou. (2016). The Relationship Between Corporate Governance, Internal Audit and Audit Committee: Empirical Evidence from Greece [J]. Corporate Ownership & Control, 14 (1-4): 569-577.
[16]	Mauricio De La Torre Lascano. (2018). Management of Organizational Fraud Risk and Internal Audit Role [J]. Contabilidad y Negocios: Revista del Departamento Académico de Ciencias Administrativas, 13 (25): 57-69.
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APA Style

Yushen Ma. (2021). Study on the Positioning of Internal Audit Function Under Corporate Governance. International Journal of Business and Economics Research, 10(6), 277-283. https://doi.org/10.11648/j.ijber.20211006.18

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Yushen Ma. Study on the Positioning of Internal Audit Function Under Corporate Governance. Int. J. Bus. Econ. Res. 2021, 10(6), 277-283. doi: 10.11648/j.ijber.20211006.18

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AMA Style

Yushen Ma. Study on the Positioning of Internal Audit Function Under Corporate Governance. Int J Bus Econ Res. 2021;10(6):277-283. doi: 10.11648/j.ijber.20211006.18

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@article{10.11648/j.ijber.20211006.18,
  author = {Yushen Ma},
  title = {Study on the Positioning of Internal Audit Function Under Corporate Governance},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {6},
  pages = {277-283},
  doi = {10.11648/j.ijber.20211006.18},
  url = {https://doi.org/10.11648/j.ijber.20211006.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211006.18},
  abstract = {Corporate governance mechanism is the core of a modern enterprise system and its effectiveness or otherwise is an important factor affecting corporate performance. A reasonable and effective internal audit is a basic requirement for good corporate governance, and it forms one of the four cornerstones of corporate governance, together with the board of directors, senior management and external audit. The internal audit function is not limited to being accountable to the company's management but also assumes a fiduciary responsibility to shareholders and stakeholders as well as to the external community. In fact, internal audit is an independent monitoring and control mechanism on whether the fiduciary party is effectively fulfilling its economic responsibilities. With the development of the market economy and the progress of enterprise economic management, the object of internal audit is not only limited to the financial aspect but also extends more to the management field. With the rapid development of information technology and the accelerating globalisation of the economy, the function of internal audit has also changed significantly and the function of internal audit must be expanded and extended to suit the modern corporate governance environment. The four traditional functions of internal audit include the supervisory function, control function, evaluation function and advisory function. The objectives of internal audit are gradually being aligned with those of corporate governance as modern enterprises continue to strengthen their corporate governance. The main objective of modern corporate governance is to increase the value of the company. To be consistent with the company's objectives, internal audit must be targeted at adding value to the business. So the core function of internal audit based on corporate governance should undoubtedly be to add value.},
 year = {2021}
}

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TY  - JOUR
T1  - Study on the Positioning of Internal Audit Function Under Corporate Governance
AU  - Yushen Ma
Y1  - 2021/12/25
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211006.18
DO  - 10.11648/j.ijber.20211006.18
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 277
EP  - 283
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211006.18
AB  - Corporate governance mechanism is the core of a modern enterprise system and its effectiveness or otherwise is an important factor affecting corporate performance. A reasonable and effective internal audit is a basic requirement for good corporate governance, and it forms one of the four cornerstones of corporate governance, together with the board of directors, senior management and external audit. The internal audit function is not limited to being accountable to the company's management but also assumes a fiduciary responsibility to shareholders and stakeholders as well as to the external community. In fact, internal audit is an independent monitoring and control mechanism on whether the fiduciary party is effectively fulfilling its economic responsibilities. With the development of the market economy and the progress of enterprise economic management, the object of internal audit is not only limited to the financial aspect but also extends more to the management field. With the rapid development of information technology and the accelerating globalisation of the economy, the function of internal audit has also changed significantly and the function of internal audit must be expanded and extended to suit the modern corporate governance environment. The four traditional functions of internal audit include the supervisory function, control function, evaluation function and advisory function. The objectives of internal audit are gradually being aligned with those of corporate governance as modern enterprises continue to strengthen their corporate governance. The main objective of modern corporate governance is to increase the value of the company. To be consistent with the company's objectives, internal audit must be targeted at adding value to the business. So the core function of internal audit based on corporate governance should undoubtedly be to add value.
VL  - 10
IS  - 6
ER  -

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Author Information

Yushen Ma

Department of Accounting, Business School, Shandong University of Technology, Zibo, China

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Plain Text BibTeX RIS

APA Style

Yushen Ma. (2021). Study on the Positioning of Internal Audit Function Under Corporate Governance. International Journal of Business and Economics Research, 10(6), 277-283. https://doi.org/10.11648/j.ijber.20211006.18

Copy | Download

ACS Style

Yushen Ma. Study on the Positioning of Internal Audit Function Under Corporate Governance. Int. J. Bus. Econ. Res. 2021, 10(6), 277-283. doi: 10.11648/j.ijber.20211006.18

Copy | Download

AMA Style

Yushen Ma. Study on the Positioning of Internal Audit Function Under Corporate Governance. Int J Bus Econ Res. 2021;10(6):277-283. doi: 10.11648/j.ijber.20211006.18

Copy | Download

@article{10.11648/j.ijber.20211006.18,
  author = {Yushen Ma},
  title = {Study on the Positioning of Internal Audit Function Under Corporate Governance},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {6},
  pages = {277-283},
  doi = {10.11648/j.ijber.20211006.18},
  url = {https://doi.org/10.11648/j.ijber.20211006.18},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211006.18},
  abstract = {Corporate governance mechanism is the core of a modern enterprise system and its effectiveness or otherwise is an important factor affecting corporate performance. A reasonable and effective internal audit is a basic requirement for good corporate governance, and it forms one of the four cornerstones of corporate governance, together with the board of directors, senior management and external audit. The internal audit function is not limited to being accountable to the company's management but also assumes a fiduciary responsibility to shareholders and stakeholders as well as to the external community. In fact, internal audit is an independent monitoring and control mechanism on whether the fiduciary party is effectively fulfilling its economic responsibilities. With the development of the market economy and the progress of enterprise economic management, the object of internal audit is not only limited to the financial aspect but also extends more to the management field. With the rapid development of information technology and the accelerating globalisation of the economy, the function of internal audit has also changed significantly and the function of internal audit must be expanded and extended to suit the modern corporate governance environment. The four traditional functions of internal audit include the supervisory function, control function, evaluation function and advisory function. The objectives of internal audit are gradually being aligned with those of corporate governance as modern enterprises continue to strengthen their corporate governance. The main objective of modern corporate governance is to increase the value of the company. To be consistent with the company's objectives, internal audit must be targeted at adding value to the business. So the core function of internal audit based on corporate governance should undoubtedly be to add value.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Study on the Positioning of Internal Audit Function Under Corporate Governance
AU  - Yushen Ma
Y1  - 2021/12/25
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211006.18
DO  - 10.11648/j.ijber.20211006.18
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 277
EP  - 283
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211006.18
AB  - Corporate governance mechanism is the core of a modern enterprise system and its effectiveness or otherwise is an important factor affecting corporate performance. A reasonable and effective internal audit is a basic requirement for good corporate governance, and it forms one of the four cornerstones of corporate governance, together with the board of directors, senior management and external audit. The internal audit function is not limited to being accountable to the company's management but also assumes a fiduciary responsibility to shareholders and stakeholders as well as to the external community. In fact, internal audit is an independent monitoring and control mechanism on whether the fiduciary party is effectively fulfilling its economic responsibilities. With the development of the market economy and the progress of enterprise economic management, the object of internal audit is not only limited to the financial aspect but also extends more to the management field. With the rapid development of information technology and the accelerating globalisation of the economy, the function of internal audit has also changed significantly and the function of internal audit must be expanded and extended to suit the modern corporate governance environment. The four traditional functions of internal audit include the supervisory function, control function, evaluation function and advisory function. The objectives of internal audit are gradually being aligned with those of corporate governance as modern enterprises continue to strengthen their corporate governance. The main objective of modern corporate governance is to increase the value of the company. To be consistent with the company's objectives, internal audit must be targeted at adding value to the business. So the core function of internal audit based on corporate governance should undoubtedly be to add value.
VL  - 10
IS  - 6
ER  -

Copy | Download