The Role of the Tripartite Audit Function in Securing Corporate Accountability

Porter, Brenda

doi:10.2139/ssrn.2046347

Cited by 3 publications

(2 citation statements)

References 12 publications

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“…Similarly, Porter (2008) discusses the importance of internal audit along with the external audit and the audit committee, as tripartite audit functions to ensure corporate accountability.…”

Section: Institute Of Internalmentioning

confidence: 99%

Internal Audit Activities as a Support to Governance Processes

Tušek¹,

Barišić²

2016

JCGIRM

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Lately, the role of internal audit is viewed with great importance in the context of the supervisory mechanisms of corporate governance, which is a direct result of requests for more effective corporate governance and the need for control. Corporate governance foundation may be considered through the four cornerstones: Audit Committee, Executive Management, Internal Auditors and External Auditors. Internal audit contributes to corporate governance effectiveness through relations and communication with other cornerstones. It is believed that by providing assurance on the effectiveness of risk management, control and governance processes, internal audit is becoming a "key cornerstone" underlying the effective management. This paper analyzes how internal audit contributes to strengthening the governance processes through its relation with the primary beneficiaries, managers and the Audit Committee. The Audit Committee, focused on oversight of financial reporting, controls and risk management, relies on internal audit to assist in carrying out its responsibilities. Also, internal audit provides advice to managers at all levels and information related to the effectiveness of the internal control and risk management processes as well as other important services. It may be concluded that internal audit activities, through its impact on other participants in governance, affect the quality of corporate governance. Internal audit is an important factor in achieving effective governance and is considered as an "integral part of corporate governance mosaic".

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Section: Institute Of Internalmentioning

confidence: 99%

Internal Audit Activities as a Support to Governance Processes

Tušek¹,

Barišić²

2016

JCGIRM

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“…Audit committees responsibilities of securing the soundness of financial statements stem from their power of nominating, supervising and coordinating the work of both internal and external auditors. The "audit trinity" or the "tripartite audit function", which comprises of audit committees, external and internal auditors, have a major role in securing sufficient discharge of corporate accountability (Porter, 2008;2009). Principles of corporate governance are greatly strengthened when the audit trinity collaborates in their roles in an effective manner.…”

Section: Introductionmentioning

confidence: 99%

The Need for Audit Trinity Report to Reinforce Financial Reporting Integrity

Shbeilat¹

2018

AFR

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Investors’ reliability on financial statements decreases due to continuing corporate scandals. Many of these rogue listed companies have had dominant shareholders who have circumvented internal controls for personal gain or have hidden poor management using misleading reporting. This has led to calls for restructuring the annual financial report and to fill the gap of corporate governance constituents. This study aims to highlight the importance of combining the efforts of the audit trinity (those are: the audit committee, the external auditor and the internal auditor) in securing the financial reporting system and corporate governance. This literature-based study suggests coordinating and integrating the efforts of the audit trinity and the issue a joint report addressing all matters related to (1) safeguarding company’s assets and accounts (2) ensuring that financial statements and the annual report are fair, balanced and reliable, and (3) ensure the entity’s compliance with applicable laws, corporate governance code, and accounting and auditing standards. The proposed joint report is to be signed by the audit trinity and certified by the chairperson of the board. The development of this report went through two stages, the first one, reviewing related literature, internationally recognized frameworks and corporate governance best practices, and related international standards on auditing; the second stage was sending the draft of the proposed report to 20 expert referees requesting their comments on the structure and the appropriateness of the proposed report. The proposed report helps by clarifying the communication mechanism, responsibilities and powers of the audit trinity that enable them to adequately discharge their duty of maintaining corporate accountability and securing the financial reporting system. It also addressed the need to have informed and stringent control over the quality of financial ‎reporting and avoidance of conflicts of interest‎.

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Corporate Social Responsibility Seen Through Codes of Conduct in Czech Companies

Kacetl

Semrádová

2016

Business Challenges in the Changing Economic Landscape - Vol. 1

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The Role of the Tripartite Audit Function in Securing Corporate Accountability

Cited by 3 publications

References 12 publications

Internal Audit Activities as a Support to Governance Processes

Internal Audit Activities as a Support to Governance Processes

The Need for Audit Trinity Report to Reinforce Financial Reporting Integrity

Corporate Social Responsibility Seen Through Codes of Conduct in Czech Companies

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