Global Economic Crisis: Could Internal Audit Have Helped in the Prevention of this Crisis?

Author:University Prof. PhD Atanasiu POP, Assistant Prof. PhD Cristina BOŢA-AVRAM

JEL:

DOI:

Keywords:internal audit, internal auditors, global economic crisis, management risk, internal audit standards

Abstract:
In the most recent international speciality literature, the deficiences of risk management are included in the category of the main factors that caused the current economic crisis. Given to the increasing responsibility that internal audit has or it should have to streamline the risk management, this article aims to examine which was the role of internal audit activity in triggering the current economic crisis and the extent to which internal audit could help to prevent it. As a result of the research, it becomes obviously the role of internal audit in risk management should become strategic, more and more directed to the strategic and operational risks. The near future will bring for the internal audit an increasing of expectations of the management and audit committees regarding the added value provided by internal audit. In order to meet these challenges successfully, it requires the development of reference framework regarding the internal audit’s involvement and responsibility in the assessment and reporting of the risk management’s efficiency.

---