The Effect of the Internal Audit Structure of the Enterprises on the Corporate Governance Process

Abstract

The achievement of the targeted efficiency from the activities carried out by the enterprises is directly related to the operability of the order they have established. Since the established order covers all financial and non-financial parts of the business, disruptions that may occur directly affect the business, and in some cases, the level of this effect can be devastating, and it can even lead businesses into bankruptcy. The effects of the Enron and Worldcom accounting and auditing scandals on a global scale, especially in the late 90s and early 2000s, are some of the concrete examples of this situation. Supervision of the organization established in enterprises is under the responsibility of the internal audit department. Internal auditing is an independent valuation and auditing function established within the business to examine and evaluate its activities in order to serve the business. The scope of internal audit includes both financial and non-financial. The most important purpose of internal audit is to prevent and detect fraudulent or erroneous transactions by employees in the enterprise. transactions. As a result of an effective internal audit, the enterprise's corporate governance practices can be implemented in a healthy way. Corporate governance is a process that aims to carry out the management and activities of enterprises in line with the principles of openness, fairness, responsibility and accountability and creates the related transactions. The purpose of corporate governance is to make the listed principles operational based on the measurement and development of the performance of the enterprise by associating them with each other to form a whole.