The Relationship Between Internal Audit And Senior Management

1703 Words Feb 8th, 2016 7 Pages
From the global financial scandals to corporate financial fraud, there has been increasingly focuses and recognition on the significant role of corporate governance in ensuring sound financial policies and fraud prevention. This research aims to identify the relationship between internal audit and senior management, and specifically focuses on the gap of perceptions and expectations of the value of internal audit function in monitoring of fraud prevention with respect to each other in New Zealand context.

1.0 Literature / Past Research Review

As Norwani et al (2011) mentioned, corporate governance is one of the most important elements in identifying company’s strengths and functions. There are four key mechanisms of corporate governance, as mentioned by Gramling et al. (2004), boards of directors, management, internal audit functions and external audit. From the previous studies, there are large numbers of researches have been done on external audit in the context of auditing’s objectivity and audit independence. Internal audit, on the other hand, as another key element of governance mechanism, the angles of previous studies were relatively narrow, numerous previous studies are mainly focused on the effectiveness in terms of independence and objectivity of internal audit committee and the process of audit committee, which includes Cohen et al. (2002), Turley & Zaman (2007), Salleh & Stewart (2012) and Cohen et al. (2013). Because of the unique nature of internal audit,…

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