Examining the Synergy Between Enterprise Risk Management and Internal Audit Functions

Ms Anjali Suresh Nair (), Priya Nair () and Anurag Agrawal ()
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Ms Anjali Suresh Nair: Global Risk Management Institute
Priya Nair: Global Risk Management Institute
Anurag Agrawal: Global Risk Management Institute

New Challenges in Accounting and Finance, 2024, vol. 12, 1-13

Abstract: This study examines the symbiotic relationship between Internal Auditing (IA) and Enterprise Risk Management (ERM), demonstrating how the efficiency of one function enhances the other. Specifically, it analyzes the influence of ERM on the IA function and investigates the role of internal auditors in the ERM implementation process, assessing how their involvement may optimize this process. Additionally, the study explores the potential repercussions of auditors' engagement in ERM on their independence and objectivity. Data for this research was gathered through questionnaires distributed to professionals in the field, with conclusions drawn based on the majority of responses. The findings reveal that an established ERM framework significantly boosts the efficiency of the IA process. Internal auditors can leverage ERM's comprehensive data to prioritize their auditing activities more effectively. Furthermore, the study concludes that the involvement of internal auditors in ERM, when confined to advisory capacities, does not compromise their independence or objectivity. This controlled participation ensures that auditors maintain their critical oversight capabilities while contributing to the management of enterprise-wide risks.

Keywords: ERM; Internal Audit; Enterprise Risk Management; IA; Interdependence of ERM and IA; Auditor Independence (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bco:ncafaa::v:12:y:2024:p:1-13

DOI: 10.32038/NCAF.2024.12.01

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