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This paper aims to use theoretical literature to develop propositions and suggest a research agenda on the implications of internal audit (IA) on corporate governance (CG). The paper uses institutional theory and Marx’s theory of the circuit of industrial capital to develop theoretical and justifiable propositions and highlight influential research agenda. The key variables are identified and operationalization issues are discussed. To demonstrate the relationship between CG and IA, researchers used theories such as institutional theory, agency theory, stewardship theory, and resource dependence theory (Tripathi, 2019; Činčalová & Hedija, 2020). The existing literature does not offer norms for IA effectiveness. We claim that a positive relationship between IA compliance with standards and CG could be used to assess IA performance. It is high time that the IA should be given consideration as a service to the board, and the IA should be made independent of the top management. Studies in settings where IA is well-developed and in different contexts, similar to Fiji, where IA is relatively at an early stage of development, could provide valuable insights.

This paper examines principle-based corporate governance (CG) and the economic performance of the Fijian economy. A comprehensive study for three public cooperations, namely the National Bank of Fiji (NBF), Fiji Sugar Cooperation (FSC), and Fiji National Provident Fund (FNPF), is undertaken. The economic assessment of the Fijian economy exists from the period 2017 to 2021, and immense discussion related to the GDP growth rate and export markets has been conducted. The research paper adopts a case study method, and reference has been made to company reports and existing literature to conclude on the compliance of CG virtues. The findings reveal that FNPF, NBF, and FSC experienced corporate collapse due to deficiencies, deception, and improper CG practice. The failure of NBF was a major blow on the Fijian economy, while large losses from FSC imposed risk on the stakeholders of the sugar industry. FNPF had also managed to overcome the write-off of 2010 with the help of good CG, but the wrong decisions by the relevant authorities had created fear among the retirement savers. The selected cooperations reveal important lessons for other Fijian companies. Although the research does not determine the CG index or compare the practice of CG between public and private firms, the achieved results point out the need to make companies follow the principles of CG and train personnel to instil ethical behaviours, transparency, and accountability