Suchergebnisse

This paper1 , which is in the light of the last trends in internal auditing, aims to explain the challenges and major issues in establishment of an effective internal audit (IA) function to achieve value-added IA activities as a value-added service center. This paper also discusses the current internal auditing environment in Turkey considered for the needs and expectations of stakeholders and new legislations. In the next five years, five emerging activities for internal auditing may be taken into consideration, namely, the review of corporate governance process, auditing of enterprise risk management (ERM) processes, addressing linkage of strategy and company performance, the ethics audits, and the migration to International Financial Reporting Standards (IFRS), they will be the major focus areas for internal auditing. The qualifications of IA staff, status within the corporation, setting up of the functional and administrative reporting lines, relationship with the audit committee of the board of directors, and the content of IA charter must be sufficient for assurance of the IA function's effectiveness and objectivity. The effective communication channels among management, audit committee, and IA become more important and must be operated in a consistent manner that accurately contributes to preventing potential future financial crisis and the effectiveness of risk management (RM). Ten main imperatives of change for IA can be summarized as emphasizing RM and governance, addressing key stakeholder priorities, and optimizing IA resources. Based on professional practices, international standards of Institute of Internal Auditors (IIA), best practices, and the relevant recommendations have been made by the authors for practitioners and stakeholders.