Corporates bancruptcy across the world have led to an intense focus on corporate governance, effective oversight and sound internal controls. Internal auditor may enhance the effectiveness of corporate governance by providing information, assurance, advice and expertise as well as recommendation over internal control system as a critical component of corporate governance. This report will specifically focus on the role of internal auditing in enhancing governance and its weakness of this control mechanism in practice with reference to corporate collapses across countries. The investigation of several corporates’ scandals was employed to identify the weakness of corporate governance such as Board of Director, Management, External Auditor, and Internal Auditor and come up with the role of internal auditor in preventing such failures. The study revealed that most of the corporate failures was due to scandals committed by key players being as the pillars of corporate governance. It is suggested that to be effective in undertaking internal audit process, there should be support from management in terms of staffing, financial budget, and appropriate training. Additionally, it is important to have and maintain an independent, adequately resourced, and competently staffed internal audit function to provide management and the audit committee with ongoing assessments of the organization’s risk management processes and the accompanying system of internal control.
Volume 12 | Issue 1
Pages: 359-368
DOI: 10.5373/JARDCS/V12I1/20201915