The Role of Internal Audit Department in Corporate Governance Performance of Public Entities. A Case of Verify Engineering Limited

Abstract

This study represents a comprehensive investigation into the pivotal role played by the internal audit department in the corporate governance performance of Verify Engineering Limited, a state-owned enterprise. Employing a mixed-methods approach, the research combines quantitative analysis, interviews, and documentary analysis to provide a thorough exploration of how internal audit practices impact governance outcomes. The study unfolds systematically across various chapters, commencing with an introduction that delineates key research areas, establishes the background, and articulates the significance of the study. A detailed literature review follows, synthesizing existing knowledge on the role of internal audit in corporate governance, thus positioning the current research within the broader academic discourse. Subsequently, the methodology section outlines the chosen data collection methods, justifying the use of a mixed-methods approach and detailing the systematic process followed. The analysis of data obtained from Verify Engineering Limited reveals noteworthy findings. Positive stakeholder perceptions regarding internal audit practices align with a statistically significant correlation between these practices and corporate governance performance. The internal audit department is recognized for its well-defined structure, which includes a clear hierarchy with designated roles and responsibilities. However, the study brings attention to the imperative for continuous training, essential to keeping the internal audit team abreast of evolving industry standards. In identifying hurdles faced by the internal audit department, the study highlights resource constraints, limited access to operational areas, and challenges in departmental integration. These challenges are not presented as insurmountable obstacles but rather as strategic touchpoints for improvement. The research then provides practical recommendations aimed at enhancing the internal audit function. These include increased investment in training programs, fostering enhanced collaboration with other organizational units, and leveraging technology for more efficient audit processes. The study concludes by emphasizing the crucial role of effective internal audit practices in elevating corporate governance performance. It provides specific recommendations tailored for Verify Engineering Limited and practitioners in the field, while also suggesting promising areas for further research. Overall, the findings contribute significantly to the discourse on corporate governance furnishing organizations with a roadmap to refine internal audit functions and navigate contemporary challenges effectively.