A Study Regarding the Relevancy of Internal Audit Report’s Publication in Ensuring a Good Corporate Governance

Author:Professor Dumitru MATIŞ, Ph. D., Assistant Cristina BOŢA-AVRAM , Ph. D.

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Keywords:internal audit function, internal audit report, corporate governance, transparency, the stakeholders’ confidence

Abstract:
The purpose of this study is to analyze the need for internal audit’s report disclosure to increase transparency necessary for assuring good corporate governance, taking into account the volatility of the current economic context. The motivation to achieve such a study is determined by the fact that the role of internal audit function is an important one, and the stakeholders criticize non-publication of internal audit report, which they consider that would bring them significant information referring to the entity. More than that, there is an opinion that this “secrecy” of internal audit report would affect the transparency necessary for good corporate governance. To achieve this objective, this study is based on empirical research realized among members of the Chambers of Financial Auditors of Romania. The results of this empirical research shows there are pro and contra arguments for a possible publication of the internal audit report, but it is interesting that a significant proportion of respondents are opting for the disclosure of the internal audit report as an important premise for ensuring transparency. \r\n

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