Corporate Governance and Internal Audit Synopsis Developing relationships between internal audit and the audit committee in the Netherlands and Europe will drive both closer together creating reporting issues in some organizations and creating cutting edge internal auditing opportunities. This will increase the need for internal auditing to emphasize its quality systems and measures. There is also some convergence between internal auditing and external auditing rules and professional standards worldwide:
this will strengthen cooperation between both and each other’s positions in the governance processes.
Contributed with permission from Professor Leen Paape, PhD RA RO CIA, Program Director Internal/Operational Auditing, Erasmus School of Accounting & Assurance and Executive Director, Protiviti Independent Risk Consulting.
After Reading the Case Study Consider:
1. Is your audit committee and internal auditing being ‘    driven closer together    ’ in your organization’s corporate governance structure and processes?
2. Has your organization’s implementation of corporate governance principles affected
‘    its relationship with the external auditor and scope of services’?
3. Has corporate governance increased the need‘    to emphasise quality systems within IA and comparable measures’?
4. How has the international growth and status of professional internal auditing impacted the status of internal auditing in your organization?
5. Are the COSO 1992 and 2003 internal control and enterprise risk ‘models’ recognized,
as the ‘    global standard for risk and control    ’ in your organization?