Internal audit and internal control reporting systems

Abstract

With stiff penalties accompanying internal control reporting systems, introduced after the March 2009 reporting period, managers were moved to seek immunity and concerns were raised about the side effects of these systems on corporate behavior. Hence, the original role of internal auditors (i.e., investigate and identify problem areas, inform management of large-scale risks, and make recommendations and suggestions) is explored through concepts such as internal auditing, internal controls, and internal control reporting systems.