The Organization of the Internal Audit Function and Its Relationship to other Governance Players

• In Event: Continental Breakfast - Research and Education Forum
  In Roundtable Session: Table 15: Internal Audit Function

Abstract

This study investigates the integration of the internal audit function in the organizational governance structure of the one- and the two-tier system. The research results are based on 26 semi-
structured interviews, which were conducted with Chief Auditing Executives and Internal Auditors of 6 listed companies and 3 organizations from the public/governmental sector. In addition to the
organizational integration, this study also analyzes the relationships and collaborations between the internal audit function and other corporate governance bodies, such as the board of directors, the supervisory board in the two-tier-system, the audit committee, the risk management or the external auditor. Based on the research results best practices regarding potential ways of organizing and integrating the internal audit function within businesses shall be identified. These best practices provide an adequate benchmark and support practitioners as well as scholars in creating and understanding an effectively working internal audit function.

Authors

• Marc Eulerich, Universität Duisburg-Essen

• Jochen C. Theis, Universität Duisburg-Essen