Integration Of Internal Audit And Risk Management, Corporate Governance, As The Goal

Corporate governance has always been connected with the improvement of corporation performance and the value adding. With the application of risk management (RM) in operation, people pay more and more attention on the relationship between risk management and corporate governance. Managers would like to consider risk management as the core of corporate governance form strategic perspective.Though it is an internal function of a corporation, internal auditing (IA) couldn't work as it should have been. Now, risk management performs an important role in business. The integration of RM and IA will greatly help both the promotion of IA and application of RM and will finally facilitate the corporate governance to a more perfect situation. This paper adopts normative approach and the following part will give it a detailed explanation.The preface gives an introduction to the related concepts and theory in this paper. Chapter one is a summary of the related articles read before and during the graduation paper and some comments are given for the necessary articles. The main points lies from chapter two to chapter five. Chapter two focus on the relationship between corporate governance and IA, while the relationship between corporate governance and RM is in chapter three; as to the importance of integration, it will be presented in chapter four and ways to integrate will follow it closely. In chapterfive, the status quota of integration is specified and the advice can be seen in this chapter. The last part is a summary to this paper. Though this paper tries to cover every aspect of integration of RM and IA and the application of them, the environment is so complicated that the advice given by this paper might not be so practical, which is the weakness of this paper and the direct to endeavor.