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risk owners, and internal audit, all working together Learnings:
to achieve organisational objectives while effectively • The different mechanisms (internal
managing risks. and external) that influence a company’s

Why Corporate Governance is behaviour and decision-making.
Important: • The roles and responsibilities of various
stakeholders involved in corporate governance
• Reduced Risk and Increased Transparency: Good (board, management, shareholders, internal
governance helps identify and manage potential audit).
risks derailing company goals. It also ensures clear • How to identify and manage risks through
communication between different parties (board, effective risk management strategies.
management, shareholders) about these risks and • The importance of internal controls and
how they are addressed. clear communication in ensuring smooth
• Ethical Operation and Public Trust: Effective operations.
corporate governance promotes ethical behaviour • How a well-functioning governance system
within the company. This fosters trust with the public fosters a culture of ethics and compliance.
and other stakeholders, essential for a company’s
long-term success. Understanding these corporate governance
• Achieving Goals and Objectives: By setting a aspects equips you to evaluate companies
clear direction and holding everyone accountable, and their long-term prospects better. It
good governance helps organisations achieve their also helps you grasp the inner workings
strategic objectives. of organisations and how different parties
collaborate to achieve success.

Mapping Internal Auditing’s Impact on Governance

Here is a table summarising the roles, responsibilities, and strategic importance of internal auditing in
governance.

Area Description

Role and Functions Acts as an independent advisor, providing objective assessments to
improve the organisation’s functioning. Evaluates and strengthens risk
management, internal controls, and governance processes.

Standards and Adheres to the International Standards for the Professional Practice of
Frameworks Internal Auditing and the broader International Professional Practices
Framework (IPPF). Provides a framework for a range of internal audit
services and establishes criteria for performance evaluation.

Key Standards Internal Audit Performance Standard 2110 emphasises the role in
strengthening governance, enhancing strategic and operational decision-
making, overseeing risk management, and fostering ethical conduct.
Evaluates IT governance alignment with organisational strategies.

Ethical Conduct Governed by the Institute of Internal Auditors (IIA) Code of Ethics,
focusing on principles of integrity, objectivity, confidentiality, and
competency. Ensures internal auditors navigate ethical dilemmas and
uphold professional standards.

Governance Adapts to the governance framework based on organisation type (public,
Structure private, non profit, government), size, complexity, and regulatory
environment. Assesses the design and effectiveness of the organisation’s
ethics programmes.

56 | STUDENTS' FORUM INTERNAL AUDIT TODAY