engleski

The Relation of Risk Management and Internal Audit Function: The Case of Croatia

Along with the development of companies and business environments the role of internal audit function in the organization has also evolved. In that context, in the last several years the audit literature and practice has pointed out the importance of risk-based approach in internal audit. The main focus of this paper is to determine significance of the internal audit function for the risk management process, and also the implications of the internal audit engagement in the risk management process for the internal audit process model. The following objective is to examine the pre-existing condition of internal audit involvement in the risk management of the Croatian companies with the use of survey method. The results of the conducted survey confirmed that the internal audits involvement in the risk management processes greatly contributes to the quality of the risk management process. It has also been confirmed that the internal audits active involvement in the risk management process has a significant impact on its own quality enhancement that is on the enhancement of the efficiency and the effectiveness of its own professional engagement.

internal auditing; internal audit process; risk management

nije evidentirano