The Role of Governance Structures in Supporting Effective Internal Audit Practices in Large Corporations

Posted: May 25, 2017

• Ryder Jacobs
• Talia Simmons
• Easton Bell

Abstract

This research investigates the complex interplay between corporate governance structures and internal audit effectiveness in large multinational corporations, proposing a novel framework that integrates quantum-inspired decision-making principles with traditional governance mechanisms. Unlike conventional studies that examine governance and internal audit in isolation, this paper introduces the concept of 'governance entanglement'—where board composition, audit committee characteristics, and organizational culture create interdependent relationships that either amplify or diminish internal audit effectiveness. Through a mixed-methods approach combining computational modeling of governance networks with empirical analysis of 150 Fortune 500 companies, we demonstrate that traditional binary assessments of governance quality fail to capture the emergent properties of effective oversight systems. Our findings reveal three previously unidentified governance archetypes—resonant, dissonant, and quantum-coherent structures—that predict internal audit effectiveness with 87