Value-added Internal Audit from the Perspective of Corporate Governance

Yushen Ma

doi:doi:10.11648/j.ijafrm.20210604.14

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Value-added Internal Audit from the Perspective of Corporate Governance

Yushen Ma

Published in International Journal of Accounting, Finance and Risk Management (Volume 6, Issue 4)

Received: 19 November 2021 Accepted: 6 December 2021 Published: 11 December 2021

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Abstract

In an increasingly competitive market, internal audit, an integral part of corporate governance, has become increasingly important. Traditional internal auditing no longer fully responds to the current complex scope of internal auditing and the governance objectives of adding value to companies. With the continuous strengthening of corporate governance by modern enterprises, the goal of internal audit is gradually consistent with that of corporate governance: to increase the overall value of the company. This makes internal audit function, audit content and audit scope change accordingly, and value-added internal audit emerges as the times require. With the continuous development of international economic globalization, value-added internal audit is the inevitable trend of internal audit transformation from the perspective of corporate governance. Modern internal audit plays a very important role in improving the governance structure and internal control, and can bring value added to enterprises. The functions and responsibilities of internal audit are positioned to promote the achievement of corporate governance objectives, with increasing emphasis on improving governance and adding value. This means that the functional scope of internal audit has changed from simple financial audit at the beginning to a series of activities such as review and evaluation, control and risk management that run through all aspects of corporate governance. Internal audit is not only a part of corporate governance, but also evaluates and improves the effectiveness of corporate governance procedures. The benign interaction of the two contributes to the improvement of the management procedure and the increase of the overall value of the company. Internal audit can make use of its unique independence to control the risk of the company, improve the efficiency of corporate governance and improve the process of corporate governance by performing a comprehensive evaluation function, so as to enhance the comprehensive quality and economic benefits of the company and realize the overall value of the company.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 6, Issue 4)
DOI	10.11648/j.ijafrm.20210604.14
Page(s)	121-127
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, Value Added, Internal Audit

References

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[3]	Lise Muriel Botha and Naomi Wilkinson. (2019). A Framework for the Evaluation of the Perceived Value Added by Internal Auditing [J]. Meditari Accountancy Research, 28 (3): 413-434.
[4]	Audrey A. Gramling and Nur Irem Nuhoglu and David A. Wood. A (2013). Descriptive Study of Factors Associated with the Internal Audit Function Policies Having an Impact: Comparisons Between Organizations in a Developed and an Emerging Economy [J]. Turkish Studies, 14 (3): 581-606.
[5]	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.
[6]	Lourens Erasmus and Philna Coetzee. (2018). Drivers of Stakeholders' View of Internal Audit Effectiveness: Management Versus Audit Committee [J]. Managerial Auditing Journal, 33 (1): 90-114.
[7]	Cecily Raiborn, Janet B. Butler, Kasey Martin, Mina Pizzini. (2017). The Internal Audit Function: A Prerequisite for Good Governance [J]. Journal of Corporate Accounting & Finance, 28 (2): 10-21.
[8]	Dessalegn Getie Mihret and Getachew Zemenu Woldeyohannis. (2008). Value-added Role of Internal Audit: an Ethiopian Case Study [J]. Managerial Auditing Journal, 23 (6): 567-595.
[9]	Zhao Baozhu. (2019). Audit Model Study of Professional Research Institutions in Power Grid Enterprise [J]. Journal of Finance and Accounting, 7 (5): 161-167.
[10]	DaleL. Flesher and Jeffrey S. Zanzig. (2000). Management Accountants Express a Desire for Change in the Functioning of Internal Auditing [J]. Managerial Auditing Journal, 15 (7): 331-337.
[11]	Wadesango Newman and Makerevi Comfort. (2018). Investigating the Value Creation of Internal Audit and Its Impact on Company Performance [J]. Academy of Entrepreneurship Journal, 24 (3): 1-21.
[12]	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.
[13]	Kenneth D' and Silva and Jeffrey Ridley. (2007). Internal Auditing's International Contribution to Governance [J]. Int. J. of Business Governance and Ethics, 3 (2): 113-126.
[14]	Kennedy Sakaya Barasa. (2015). Statistical Analysis of the Roleof Internal Auditin Promoting Good Governance in Public Institutions in Kenya [J]. Journal of Investment and Management, 4 (1): 38-46.
[15]	Imbrescu Carmen Mihaela and Peţa Crina. (2017). Internal Audit: 'A Necessary Evil' or A Creator of Added Value? [J]. Ovidius University Annals: Economic Sciences Series, 2017, 17 (2): 571-575.

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APA Style

Yushen Ma. (2021). Value-added Internal Audit from the Perspective of Corporate Governance. International Journal of Accounting, Finance and Risk Management, 6(4), 121-127. https://doi.org/10.11648/j.ijafrm.20210604.14

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ACS Style

Yushen Ma. Value-added Internal Audit from the Perspective of Corporate Governance. Int. J. Account. Finance Risk Manag. 2021, 6(4), 121-127. doi: 10.11648/j.ijafrm.20210604.14

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AMA Style

Yushen Ma. Value-added Internal Audit from the Perspective of Corporate Governance. Int J Account Finance Risk Manag. 2021;6(4):121-127. doi: 10.11648/j.ijafrm.20210604.14

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@article{10.11648/j.ijafrm.20210604.14,
  author = {Yushen Ma},
  title = {Value-added Internal Audit from the Perspective of Corporate Governance},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {6},
  number = {4},
  pages = {121-127},
  doi = {10.11648/j.ijafrm.20210604.14},
  url = {https://doi.org/10.11648/j.ijafrm.20210604.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20210604.14},
  abstract = {In an increasingly competitive market, internal audit, an integral part of corporate governance, has become increasingly important. Traditional internal auditing no longer fully responds to the current complex scope of internal auditing and the governance objectives of adding value to companies. With the continuous strengthening of corporate governance by modern enterprises, the goal of internal audit is gradually consistent with that of corporate governance: to increase the overall value of the company. This makes internal audit function, audit content and audit scope change accordingly, and value-added internal audit emerges as the times require. With the continuous development of international economic globalization, value-added internal audit is the inevitable trend of internal audit transformation from the perspective of corporate governance. Modern internal audit plays a very important role in improving the governance structure and internal control, and can bring value added to enterprises. The functions and responsibilities of internal audit are positioned to promote the achievement of corporate governance objectives, with increasing emphasis on improving governance and adding value. This means that the functional scope of internal audit has changed from simple financial audit at the beginning to a series of activities such as review and evaluation, control and risk management that run through all aspects of corporate governance. Internal audit is not only a part of corporate governance, but also evaluates and improves the effectiveness of corporate governance procedures. The benign interaction of the two contributes to the improvement of the management procedure and the increase of the overall value of the company. Internal audit can make use of its unique independence to control the risk of the company, improve the efficiency of corporate governance and improve the process of corporate governance by performing a comprehensive evaluation function, so as to enhance the comprehensive quality and economic benefits of the company and realize the overall value of the company.},
 year = {2021}
}

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TY  - JOUR
T1  - Value-added Internal Audit from the Perspective of Corporate Governance
AU  - Yushen Ma
Y1  - 2021/12/11
PY  - 2021
N1  - https://doi.org/10.11648/j.ijafrm.20210604.14
DO  - 10.11648/j.ijafrm.20210604.14
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 121
EP  - 127
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20210604.14
AB  - In an increasingly competitive market, internal audit, an integral part of corporate governance, has become increasingly important. Traditional internal auditing no longer fully responds to the current complex scope of internal auditing and the governance objectives of adding value to companies. With the continuous strengthening of corporate governance by modern enterprises, the goal of internal audit is gradually consistent with that of corporate governance: to increase the overall value of the company. This makes internal audit function, audit content and audit scope change accordingly, and value-added internal audit emerges as the times require. With the continuous development of international economic globalization, value-added internal audit is the inevitable trend of internal audit transformation from the perspective of corporate governance. Modern internal audit plays a very important role in improving the governance structure and internal control, and can bring value added to enterprises. The functions and responsibilities of internal audit are positioned to promote the achievement of corporate governance objectives, with increasing emphasis on improving governance and adding value. This means that the functional scope of internal audit has changed from simple financial audit at the beginning to a series of activities such as review and evaluation, control and risk management that run through all aspects of corporate governance. Internal audit is not only a part of corporate governance, but also evaluates and improves the effectiveness of corporate governance procedures. The benign interaction of the two contributes to the improvement of the management procedure and the increase of the overall value of the company. Internal audit can make use of its unique independence to control the risk of the company, improve the efficiency of corporate governance and improve the process of corporate governance by performing a comprehensive evaluation function, so as to enhance the comprehensive quality and economic benefits of the company and realize the overall value of the company.
VL  - 6
IS  - 4
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). Value-added Internal Audit from the Perspective of Corporate Governance. International Journal of Accounting, Finance and Risk Management, 6(4), 121-127. https://doi.org/10.11648/j.ijafrm.20210604.14

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ACS Style

Yushen Ma. Value-added Internal Audit from the Perspective of Corporate Governance. Int. J. Account. Finance Risk Manag. 2021, 6(4), 121-127. doi: 10.11648/j.ijafrm.20210604.14

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AMA Style

Yushen Ma. Value-added Internal Audit from the Perspective of Corporate Governance. Int J Account Finance Risk Manag. 2021;6(4):121-127. doi: 10.11648/j.ijafrm.20210604.14

Copy | Download

@article{10.11648/j.ijafrm.20210604.14,
  author = {Yushen Ma},
  title = {Value-added Internal Audit from the Perspective of Corporate Governance},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {6},
  number = {4},
  pages = {121-127},
  doi = {10.11648/j.ijafrm.20210604.14},
  url = {https://doi.org/10.11648/j.ijafrm.20210604.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20210604.14},
  abstract = {In an increasingly competitive market, internal audit, an integral part of corporate governance, has become increasingly important. Traditional internal auditing no longer fully responds to the current complex scope of internal auditing and the governance objectives of adding value to companies. With the continuous strengthening of corporate governance by modern enterprises, the goal of internal audit is gradually consistent with that of corporate governance: to increase the overall value of the company. This makes internal audit function, audit content and audit scope change accordingly, and value-added internal audit emerges as the times require. With the continuous development of international economic globalization, value-added internal audit is the inevitable trend of internal audit transformation from the perspective of corporate governance. Modern internal audit plays a very important role in improving the governance structure and internal control, and can bring value added to enterprises. The functions and responsibilities of internal audit are positioned to promote the achievement of corporate governance objectives, with increasing emphasis on improving governance and adding value. This means that the functional scope of internal audit has changed from simple financial audit at the beginning to a series of activities such as review and evaluation, control and risk management that run through all aspects of corporate governance. Internal audit is not only a part of corporate governance, but also evaluates and improves the effectiveness of corporate governance procedures. The benign interaction of the two contributes to the improvement of the management procedure and the increase of the overall value of the company. Internal audit can make use of its unique independence to control the risk of the company, improve the efficiency of corporate governance and improve the process of corporate governance by performing a comprehensive evaluation function, so as to enhance the comprehensive quality and economic benefits of the company and realize the overall value of the company.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Value-added Internal Audit from the Perspective of Corporate Governance
AU  - Yushen Ma
Y1  - 2021/12/11
PY  - 2021
N1  - https://doi.org/10.11648/j.ijafrm.20210604.14
DO  - 10.11648/j.ijafrm.20210604.14
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 121
EP  - 127
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20210604.14
AB  - In an increasingly competitive market, internal audit, an integral part of corporate governance, has become increasingly important. Traditional internal auditing no longer fully responds to the current complex scope of internal auditing and the governance objectives of adding value to companies. With the continuous strengthening of corporate governance by modern enterprises, the goal of internal audit is gradually consistent with that of corporate governance: to increase the overall value of the company. This makes internal audit function, audit content and audit scope change accordingly, and value-added internal audit emerges as the times require. With the continuous development of international economic globalization, value-added internal audit is the inevitable trend of internal audit transformation from the perspective of corporate governance. Modern internal audit plays a very important role in improving the governance structure and internal control, and can bring value added to enterprises. The functions and responsibilities of internal audit are positioned to promote the achievement of corporate governance objectives, with increasing emphasis on improving governance and adding value. This means that the functional scope of internal audit has changed from simple financial audit at the beginning to a series of activities such as review and evaluation, control and risk management that run through all aspects of corporate governance. Internal audit is not only a part of corporate governance, but also evaluates and improves the effectiveness of corporate governance procedures. The benign interaction of the two contributes to the improvement of the management procedure and the increase of the overall value of the company. Internal audit can make use of its unique independence to control the risk of the company, improve the efficiency of corporate governance and improve the process of corporate governance by performing a comprehensive evaluation function, so as to enhance the comprehensive quality and economic benefits of the company and realize the overall value of the company.
VL  - 6
IS  - 4
ER  -

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