Exploring the Role of Internal Audit Functions in Enhancing Corporate Governance Practices

Posted: Jul 27, 2023

• Maisie Flores
• Caleb Ortiz
• Bella Knight

Abstract

This research investigates the transformative role of internal audit functions in contemporary corporate governance frameworks, proposing a novel paradigm that repositions internal audit from a compliance-focused activity to a strategic governance enabler. Traditional approaches have largely treated internal audit as a regulatory necessity, focusing on financial controls and risk mitigation. Our study introduces the Strategic Governance Integration Model (SGIM), which conceptualizes internal audit as a dynamic, predictive function that actively contributes to organizational strategy and long-term value creation. Through a mixed-methods approach combining quantitative analysis of audit function effectiveness across 150 organizations with qualitative case studies of innovative audit practices, we demonstrate that organizations implementing SGIM principles achieve 42