TITLE:
Thriving through Crisis: Unraveling Internal Auditing’s Role in Value Creation
AUTHORS:
Georgios L. Thanasas, Spyridon Lampropoulos
KEYWORDS:
Internal Audit, Creation of Value, Added Value, Literature Review
JOURNAL NAME:
Theoretical Economics Letters,
Vol.13 No.5,
October
30,
2023
ABSTRACT: As a result of the relentless competition in
the current economic environment, internal audit is often called upon by
organizations to assess and control risks. There have been numerous papers
discussing the importance of internal auditing (IA). It is intended to add
value to an organization through independent, objective assurance and advisory
services related to internal control systems, risk management, and governance.
The purpose of this paper is to analyze and present: 1) the ways that internal
auditing can be regarded as a value-adding lever for the organizations and 2)
the known ways of measurement of the additional created corporate value. Our
systematic literature review and critical analysis of how internal audit
contributes to value creation allowed us to present all the research streams
and measures of value creation that are available. Following this literature
review a subsequent econometric analysis of the relationship between internal
audit characteristics and added value in the context of a panel of companies
will be conducted.