CORPORATE GOVERNANCE AS OBJECT OF INTERNAL AUDIT

The determination of governance as object of internal audit stems from the nature of the internal audit, the current requirements, the challenges and expectations to it. Governance and internal audit are in an interesting interrelation. On the one hand, the internal audit is part of the governance, and in particular it is part of its control function. On the other hand, it is expected that internal audit, having an evaluating function, will apply "a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes" [1]. Following the crises in recent years the statutory and regulatory requirements to the corporate governance and the establishment and the effective functioning of the control systems, internal audit, including, have increased. Public expectations are also associated with the implementation of stronger control in the organizations. The determination of governance as object of internal audit and its inclusion in the scope of the audit universe is undoubtedly up-to-date necessity. However, studies show that audits addressing the governance are not among the most commonly practiced. The reasons for this may relate both to the potential of the internal auditors, and the dependence on the organization's management and the overall impact of the control environment on the internal audit.