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The Internal Audit Function: A Prerequisite for Good Governance
Author(s) -
Raiborn Cecily,
Butler Janet B.,
Martin, Kasey,
Pizzini Mina
Publication year - 2016
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22246
Subject(s) - internal audit , accounting , business , corporate governance , audit , audit committee , external auditor , function (biology) , control environment , information technology audit , internal control , joint audit , process management , finance , evolutionary biology , biology
In 2013, the NASDAQ Stock Market LLC (NASDAQ) establish and maintain an internal audit (IA) function. Comment letters received on the proposal were overwhelmingly negative. The top three reasons against the proposal were cost of implementation, time commitments required of organizational employees, and redundancy of IA to a firm's external audit process. This article delineates differences between internal and external audit responsibilities, identifies the benefits of internal auditing, highlights the role that internal auditors play in corporate governance and risk management, demonstrates how IA assurance and consulting activities add organizational value, and discusses cost‐effective options for implementing an IA function. © 2017 Wiley Periodicals, Inc.