Conceptual framework for risk-based internal audit. Risk-oriented terminological and visual apparatus

2021 ◽  
pp. 55-68
Author(s):  
E.N. Kalamanova ◽  
N.A. Prodanova
Keyword(s):  
Corporate Governance ◽  
Conceptual Framework ◽  
Professional Practice ◽  
Internal Audit ◽  
Internal Auditing ◽  
Audit Risk ◽  
Corporate Governance Code ◽  
Governance Practices ◽  
Conceptual Foundations ◽  
Visual Apparatus

The article discusses the conceptual foundations of riskbased internal audit, basic terms and definitions. The topic of the article is relevant given the development of corporate governance practices in Russian companies in accordance with the recommendations of the Corporate Governance Code. The International Framework for the Professional Practice of Internal Auditing defines the mission of internal audit as preserving and increasing the value of the organization by conducting objective internal audits based on a risk-based approach, providing advice and sharing knowledge. The material of the article is presented taking into account the current regulatory framework, international auditing standards, the International Foundations for the Professional Practice of Internal Auditing, and expert explanations.

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on IIA’s Exposure Draft of 2010 International Standards for the Professional Practice of Internal Auditing

2010 ◽  
Vol 4 (2) ◽  
pp. C1-C4 ◽  
Author(s):  
James Bierstaker ◽  
Lawrence Abbott ◽  
Susan Parker
Keyword(s):  
Professional Practice ◽  
Internal Audit ◽  
Exposure Period ◽  
International Standards ◽  
Internal Auditing ◽  
Comprehensive Review ◽  
Auditing Standards ◽  
Audit Standards

SUMMARY: Recently, the Institute of Internal Auditor’s (IIA) Internal Audit Standards Board (IASB) conducted a comprehensive review of the International Standards for the Professional Practice of Internal Auditing (Standards). The IIA proposed changes to some of the Standards and also recommended new Standards. The IIA provided for a 90-day exposure period (from February 15, 2010, to May 14, 2010) for interested parties to examine and provide comments on the proposed changes and new Standards. The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below to the IIA on the 2010 International Standards for the Professional Practice of Internal Auditing exposure draft.

scholarly journals The impact of internal audit in the activation of risk management under the governance of banks

2019 ◽  
Vol 5 (4) ◽  
pp. 7
Author(s):  
Afsar Ali Alimoradi ◽  
Chya Kareem Ahmad
Keyword(s):  
Risk Management ◽  
Internal Audit ◽  
Secondary Data ◽  
Internal Auditing ◽  
Audit Risk ◽  
Internal Auditor ◽  
Risk Management Process ◽  
Statistical Program ◽  
Bank Governance ◽  
The Impact

The research aims to measure and evaluate the impact of internal audit on the efficiency of risk management under the principles of the bank governance in a sample of banks. Thus, internal audit is an important function of controlling financial and administrative performance. It has the impact of evaluating and measuring the efficiency of the use of available resources and strengthening the so-called governance as well as contributing to the assessment and management of risks, which enhances the opportunities of economic units and banks in the optimal use of resources.Internal Audit assists senior management and the board in the process of  theidentifying, assessing and responding to risks, by providing various assurance and advisory services during the implementation of the risk management process. In order to achieve the objectives of the study and test its hypotheses, the study was based on primary and secondary data and the questionnaire was designed and the researchers used the Statistical Program (SPSS) to analyze the data. It was concluded during the research that there is a clear impact of the internal audit profession on the risk management by improving its effectiveness and efficiency under the principles of bank governance shows through the internal audit has a prominent position in banks and because it is linked to the highest levels of management as an independent control and advisory tool. The researchers present a set  of recommendations, the most important of which is the need to provide adequate financial and human resources for internal auditing in banks. The study also recommended to strengthen the components of the independence of the internal auditor in order to be able to perform his duties to the fullest. Key words :  Internal Audit , Risk Management , Banking Governance, Internal Auditor.

scholarly journals Performance, corporate governance and new regulation

2017 ◽  
Vol 9 (18) ◽  
Author(s):  
Heriberto García
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Market ◽  
Information Disclosure ◽  
Potential Growth ◽  
Listed Firms ◽  
Risk Return ◽  
Corporate Governance Code ◽  
Governance Practices ◽  
The Relationship

Abstract. After the adoption of the Corporate Governance Code (Code) in Mexico, many companies increased financial performance and the leveraged during the following five years; we investigated the effect of how those firms improved the corporate governance practices and how was translated into better risk return company. We analyzed how and where better corporate governance practices affects performance and what was the relationship with Transparency, New Regulation and Governance Practices. Also we explored the gaps between transparency and information disclosure of Mexican Firms listed in U.S stockexchange and non U.S listed firms our findings were related to the potential growth of the Mexico Financial Market, Law and Finance.Keywords: corporate governance, financial performance, regulationResumen. Después de la adopción del Código de Gobierno Corporativo en México, algunas compañías incrementaron el desempeño financiero y el uso de deuda durante los siguientes cinco anos, nuestra investigación se enfoca en como dichas compañías mejoraron sus prácticas de gobierno corporativo y como estas prácticas se han traducido en un mejor relación de riesgo y rendimiento. En esta investigación exploramos cómo y en dónde mejores prácticas de gobierno corporativo afectan el desempeño y qué relación tiene con laTransparencia, Nuevas Regulaciones y prácticas de Gobierno Corporativo. Con lo anterior también identificamos aquellas compañías que cotizan fuera de México para identificar potenciales diferencias en dichas prácticas.Palabras clave: desempeño financiero, gobierno corporativo, regulación

The impact of corporate governance mechanisms on earning management: Literature review and proposing framework

2012 ◽  
Vol 2 (1) ◽  
pp. 134
Author(s):  
Ebraheem Saleem Salem Alzoubi ◽  
Mohamad Hisyam Selamat
Keyword(s):  
Corporate Governance ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Audit Committee ◽  
Research Study ◽  
Senior Management ◽  
Earning Management ◽  
Starting Point ◽  
Governance Practices ◽  
The Impact

This research study seeks to come up with a conceptual framework that investigates the different mechanisms of corporate governance and its effects on earning management (EM). This is to help build a conceptual framework of governance practices and its mechanisms, which mainly consists of board of directors and audit committee. To build the conceptual framework, the background of governance practices and EM theory served as a good starting point. The current research study is based on the complete assessment of present literatures, the two mechanisms of governance practices and EM. This paper serves as a guide to senior management, who seeks to improve their company’s financial reporting quality (FRQ) through the execution of governance practices, in which the governance practices support their company’s FRQ efforts. Furthermore, the conceptual framework serves as a benchmark for practitioners to execute their governance practices more effectively and efficiently in their own respective firms. This paper seeks to close the gap on the existing literature, by giving guidance to the senior management of governance practices companies that aspires to discover the competency of EM. By developing a deeper understanding of the relationship between corporate governance practices and EM, senior management can thus focus their efforts on the practices that ensure the firms’ ability to establish a competitive FRQ.

scholarly journals PERANAN AUDITOR INTERNAL DALAM UPAYA PENDETEKSIAN DAN PENCEGAHAN FRAUD TERHADAP PELAKSANAAN GOOD CORPORATE GOVERNANCE

2019 ◽  
Vol 10 (2) ◽  
pp. 129
Author(s):  
Devi Anggriani ◽  
Juniati Gunawan
Keyword(s):  
Corporate Governance ◽  
Research Methodology ◽  
Internal Audit ◽  
Internal Auditing ◽  
Is Research ◽  
Good Corporate Governance ◽  
The World ◽  
World Class ◽  
The Creation

<p class="Style1"><em>Internal auditing serves help management in detection and prevention his that happens at an organization in the implementation of the good corporate governance. </em><em>Principies of good corporate governance is an indicator the achievement of the </em><em>balance interests, so the clash interests that occurs could focus and controlled and not result in losses to each party. According to previous studies, fraud led to the collapse of </em><em>the world class companies. This is because inactive of mechanism good corporate </em><em>governance. The </em><em><sup>-</sup></em><em>role of the auditors internal in an effort to detection and prevention </em><em>his has a strong enough. And the role of the auditors internal also has a very important </em><em>in good corporate governance. Methods used in this research is research methodology </em><em>explanatory research with quantitative survei aims to understand the influence of the </em><em>role of the auditors internal (components expertise, the scope of the work, the </em><em>approach) that was undertaken auditor internal in order to detection and prevention </em><em>his with the implementation of the good corporate governance on a 50 respondents is </em><em>the company open a listing on the Bursa Efek Indonesia through the distribution of the questionnaire. The result has been concluded, the expertise, the scope of the work, the </em><em>approach that was undertaken internal audit influential indirectly on the ,corporate governance through the intervening the detect and prevent offraud. For the company </em><em>public, should be channeled to detect cheating through prevention, prevent is the root </em><em>cause problems cheating that the creation of principles of good corporate go</em><em>v</em><em>ernance </em><em>in the company.</em></p>

Fundamental approaches to the preparation of a risk-based internal audit work plan

2021 ◽  
pp. 61-72
Author(s):  
E.N. Kalamanova ◽  
N.A. Prodanova
Keyword(s):  
Professional Practice ◽  
Internal Control ◽  
Business Processes ◽  
Internal Audit ◽  
Business Environment ◽  
Regulatory Framework ◽  
International Standards ◽  
Internal Audit Function ◽  
Rapid Changes ◽  
Governance Practices

The article discusses the fundamental approaches to planning the work of internal audit based on a risk-based approach, taking into account the requirements of international auditing standards, the updated concept of three lines of defense, recommendations for the organization of risk management and internal control. The problems of the article are relevant in the conditions of rapid changes in the business environment, the emergence of new risks, the increasing complexity of business processes of organizations and the regulatory framework, the development of corporate governance practices, leading to the need for rapid adaptation of the internal audit function to the changes taking place. The material of the article is presented taking into account the current regulatory framework, international standards of auditing, International foundations of professional practice of internal audit.

Internal Audit of Consolidated Financial Statements of Agricultural Holdings According to the International Standards for the Professional Practice of Internal Auditing

Auditor ◽  
2021 ◽  
Vol 7 (11) ◽  
pp. 16-22
Author(s):  
S. Vardanyan
Keyword(s):  
Professional Practice ◽  
Internal Audit ◽  
Financial Statements ◽  
International Standards ◽  
Internal Auditing ◽  
Consolidated Financial Statements ◽  
Internal Auditor

This paper reveals the issues of methodology of organizing and conducting of an internal audit of the formation of consolidated financial statements of agricultural holdings. The content of each stage of the proposed algorithm for the implementation of internal audit is presented in detail, new forms of working documentation for the internal auditor are proposed.

scholarly journals The role of internal auditing in corporate governance: a Foucauldian analysis

2017 ◽  
Vol 30 (3) ◽  
pp. 699-719 ◽  
Author(s):  
Dessalegn Getie Mihret ◽  
Bligh Grant
Keyword(s):  
Corporate Governance ◽  
Research Agenda ◽  
Internal Auditing ◽  
Economic Activities ◽  
Content Type ◽  
Ex Post ◽  
Foucauldian Analysis ◽  
Conceptual Foundations ◽  
Conceptual Formulation

Purpose The purpose of this paper is to articulate the conceptual foundations of the role of internal auditing in corporate governance by drawing on Michel Foucault’s concept of governmentality. Design/methodology/approach The paper is a literature-based analysis of the role of internal auditing from a Foucauldian perspective. Findings It is argued that Foucault’s notion of governmentality provides conceptual tools for researching internal auditing as a disciplinary mechanism in the corporate governance setting of contemporary organizations. The paper develops an initial conceptual formulation of internal auditing as: ex post assurance about the execution of economic activities within management’s preconceived frameworks and ex ante advisory services to enhance the rationality of economic activities and accompanying controls. Research limitations/implications The paper is expected to initiate debate on the choice of theory and method in internal auditing research. The propositions and research agenda discussed can be used to address research questions of an interpretive nature that could enrich the current understanding of internal auditing. Originality/value This paper extends the Foucauldian analysis of accounting to incorporate internal auditing. It offers original propositions as a research agenda and discusses ontological and epistemic considerations associated with adopting the Foucauldian framework for internal auditing research.

scholarly journals National corporate governance codes and IT governance transparency

2018 ◽  
Vol 16 (1) ◽  
pp. 13-18 ◽  
Author(s):  
Shafi Mohamad
Keyword(s):  
Corporate Governance ◽  
South African ◽  
Financial Services ◽  
It Governance ◽  
The South ◽  
Corporate Governance Code ◽  
Item Level ◽  
Corporate Governance Codes ◽  
Governance Practices ◽  
Governance Transparency

The main purpose of this paper is to explore the influence of national corporate governance codes on IT governance transparency and was carried out by comparing the IT governance disclosure requirements across two jurisdictions Belgium and South Africa using the study by Huygh et al. (2017). The latter focused on these two countries since the South African corporate governance code King III (2009) contains detailed IT governance disclosures, while the Belgian corporate governance code Lippens (2009) does not. Huygh et al. (2017) found that listed South African financial services organizations were more concerned with disclosing their IT governance practices than their listed Belgian counterparts and that this observation held across the board for all four disclosure categories within the IT governance transparency framework. Further analysis at an individual item-level also found that many of the items for which the South African respondents reported frequently could be directly traced to the IT governance principles and recommended practices contained in the King III (2009) corporate governance code. Huygh et al. (2017) attributed the higher IT governance transparency of the South African respondents to the specific reporting requirements of their national corporate governance code King III (2009). Hence the recommendation that IT governance disclosures be proactively encouraged via national corporate governance codes to further enhance transparency.

DEVELOPMENT AND THE CURRENT PROFILE OF INTERNAL AUDITING – THE RESULTS OF THE TWO EMPIRICAL STUDIES IN SLOVENIAN ORGANISATIONS

2006 ◽  
Vol 12 (2) ◽  
pp. 55-69
Author(s):  
Marjan Odar ◽  
Bojana Korošec ◽  
Robert Horvat
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Work Experience ◽  
Empirical Studies ◽  
Internal Audit ◽  
Developed Countries ◽  
Internal Auditing ◽  
Current Profile ◽  
Internal Auditors

Results of (the first) two empirical studies with the aim to reveal the state-of-the-art and development of internal audit in Slovenia are presented in the article. Internal auditing, one of the cornerstones in modern corporate governance, has a relatively short tradition in this new EU member country. Nevertheless, beside the first and mandatory established internal audit units, which were initiated by the corresponding industry’s laws in financial services in the early 90s, there is already evidence of a significant and growing number of non-mandatory, voluntary established internal auditing units in other industries. And a variety of internal audit practices regarding establishment, reporting lines, size and scope of work performed by internal audit units, and professional qualifications of internal auditors characterizes the current profile of internal auditing in Slovenian organisations. It can be concluded that internal auditing in Slovenia is following the trends of practice in developed countries, although, in some cases internal auditors are facing problems, mainly due to their lack of work experience, to (un)professionality of corporate governing bodies, and to top management’s lack of awareness or even misunderstanding of the role of internal auditing in corporate governance.

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