INTERNAL AUDIT'S ROLE IN APPLYING THE PRINCIPLES OF CORPORATE GOVERNANCE

• Main Author: Mihai VUŢĂ
• Format: Article
• Language: English
• Published: Bucharest University of Economic Studies 2017-03-01
• Series: Business Excellence and Management
• Subjects: corporate governance; internal audit; corporate governance code; agency theory
• Online Access: http://beman.ase.ro/no71/5.pdf

Corporate governance is a very actual subject. After the financial world has faced during the 2000s several financial scandals, developing principles of corporate governance became necessary at international level. The 2008 financial crisis has highlighted the need for the existence of effective codes of corporate governance, which is why the OECD principles of corporate governance suffer changes, as well as national codes. The paper aims to highlight the application of corporate governance but also the role of internal audit in the company's activity. We appreciate that an effective, high-quality internal audit is the thing that, applying the rules of International Standards on Auditing, manages to detect the risks which may be subjected to the work of the Organization, to take action to reduce them so that the value of the company would not diminish.