Home / Current Issue / Paper 1706421
Integrating Internal Auditing and Legal Compliance: A Strategic Approach to Risk Management
Subject area: Science,Engineering and Technology · Area of research: Risk Management and Compliance
Abstract
This article explores the strategic benefits of integrating internal auditing and legal compliance functions to enhance organizational risk management. Risk management has evolved into a proactive process of identifying and mitigating threats to business objectives. Internal auditing now aligns processes with ethical standards and goals, while legal compliance fosters a culture of integrity beyond mere regulatory adherence. Integrating these functions provides a holistic risk profile, leading to more efficient management and improved governance. Collaboration enhances transparency and accountability by sharing information on potential risks and regulatory changes. This synergy also strengthens fraud detection and prevention by identifying control weaknesses and ensuring adherence to anti-fraud policies. Strategies for effective integration include organizational alignment, clear communication channels, and joint risk assessments and audits. Leadership support is vital in fostering a collaborative culture. Technological tools like audit management software and data analytics systems facilitate real-time collaboration and improve risk detection. Adherence to compliance standards such as ISO 31000 and ISO 37301 offers a structured framework for integrating risk management and compliance processes. Hence, integrating internal auditing and legal compliance is a proactive approach to navigating complex regulations and evolving risks. This integrated strategy enhances the effectiveness of risk mitigation and contributes to an organization's long-term competitiveness and sustainability by building resilience and fostering growth in an increasingly complex business environment.
References
[1] Ackermann, C. and Marx, B., 2016. Internal Audit Risk Management in Metropolitan Municipalities. Risk Governance & Control: Financial Markets & Institutions, 6(3), pp. 71-84. Available at: https://dx.doi.org/10.22495/RCGV6I3ART7 [Accessed 17 October 2024].
[2] Agana, J., Alon, A., and Zamore, S., 2023. Self-regulation versus government oversight: audit fees research. Journal of Auditing and Accountability, [online] Available at: https://dx.doi.org/10.1108/jal-12-2021-0017 [Accessed 15 October 2024].
[3] Alao, O.S. and Timilehin, A., 2021. Risk Assessment and Auditors’ Responsibilities: An Assessment of COVID-19 Era. The International Journal of Business and Management, [online] Available at: https://dx.doi.org/10.24940/theijbm/2021/v9/i1/bm2012-058 [Accessed 15 October 2024].
[4] Al-Khaled, A., 2016. How Great Leaders Drive Results via Employees’ Engagement. SSRN, [online] Available at: https://dx.doi.org/10.2139/ssrn.2810048 [Accessed 15 October 2024].
[5] Allan, D., Caswell, T., Campbell, S. and Rakitin, M., 2019. Bluesky's Ahead: A Multi-Facility Collaboration for an a la Carte Software Project for Data Acquisition and Management. Synchrotron Radiation News, [online] Available at: https://dx.doi.org/10.1080/08940886.2019.1608121 [Accessed 15 October 2024].
[6] Alvarado, Y., Chicaiza, G. and Estrada, J., 2016. Auditoría forense como herramienta de investigación en la detección de fraudes. [online] Available at: https://dialnet.unirioja.es/servlet/articulo?codigo=7903445 [Accessed 17 October 2024].
[7] Andini, T.D. and Magriasti, L., 2023. Literature Study: The Influence of Success Deep Work Team Development Intervention Organizational Development. Journal of Organizational Development, [online] Available at: https://dx.doi.org/10.37058/jem.v9i1.5848 [Accessed 15 October 2024].
[8] Arbatauskas, A., 2016. An Evaluation of the Management Training Programme. Journal of Education Research, [online] Available at: https://dx.doi.org/ [Accessed 15 October 2024].
[9] Ashfaq, T., Khalid, R., Yahaya, A.S., Aslam, S., Azar, A., Alsafari, S. and Hameed, I., 2022. A Machine Learning and Blockchain Based Efficient Fraud Detection Mechanism. Sensors, [online] Available at: https://dx.doi.org/10.3390/s22197162 [Accessed 15 October 2024].
[10] Atherton, S.C., Blodgett, M.S. and Atherton, C.A., 2011. Fiduciary principles: Corporate responsibilities to stakeholders. Journal of Religion and Business Ethics, 2(2), p.5.
[11] Badurek, T., 2018. School Garden Support: Success Stories and Lessons Learned. Journal of Agricultural Extension, [online] Available at: https://dx.doi.org/ [Accessed 15 October 2024].
[12] Balakin, V.V., 2023. Implementation of an integrated approach of the compliance system for the socio-economic development of the company. Journal of Organizational Development, [online] Available at: https://dx.doi.org/10.33920/pro-01-2301-04 [Accessed 15 October 2024].
[13] Banks, E., 2013. Overview of Risk Management. Financial Risk Management Handbook, [online] Available at: https://dx.doi.org/10.1002/9781118673270.CH1 [Accessed 15 October 2024].
[14] Barafort, B., Mesquida, A. and Mas, A., 2018. ISO 31000-based integrated risk management process assessment model for IT organizations. Software: Practice and Experience, [online] Available at: https://dx.doi.org/10.1002/smr.1984 [Accessed 15 October 2024].
[15] Bedrinets, M.D., Lisnichuk, O.A. and Ananieva, Y.V., 2020. The Formation of the Risk Controlling System in the Enterprise. Global Economy Insights, [online] Available at: https://dx.doi.org/10.51249/gei.v1i01.78 [Accessed 15 October 2024].
[16] Berhanir, I., 2023. The Role of Internal Audit in the Enterprise Management System. Modern Economics, [online] Available at: https://dx.doi.org/10.31521/modecon.v37(2023)-02 [Accessed 15 October 2024].
[17] Bezrodnyi, M. and Shevchuk, G., 2022. Evaluation and minimization of risks associated with the certification bodies activities by using measurable indicators. Journal of Risk Management, [online] Available at: https://dx.doi.org/10.33868/0365-8392-2022-2-270-34-39 [Accessed 15 October 2024].
[18] Bischoff, H., Sinay, J. and Vargová, S., 2014. Integrated Risk Management in Industries from the Standpoint of Safety and Security. Journal of Industrial Risk Management, [online] Available at: https://dx.doi.org/10.2478/tvsbses-2014-0005 [Accessed 15 October 2024].
[19] Bisel, R.S. and Rush, K., 2021. Communication in organizations. Oxford Research Encyclopedia of Communication. Available at: https://dx.doi.org/10.1093/acrefore/9780190236557.013.866 [Accessed 17 October 2024].
[20] Breaux, T., Antón, A., Boucher, K. and Dorfman, M., 2009. IT Compliance: Aligning Legal and Product Requirements. IEEE IT Professional, [online] Available at: https://dx.doi.org/10.1109/MITP.2009.101 [Accessed 15 October 2024].
[21] Brulhart, F., 2005. Experience du Partenariat, Experience du Partenaire, Connivence Interpersonnelle : Quel Impact sur la Reussite du Partenariat Vertical? Management & Avenir, [online] Available at: https://dx.doi.org/10.3917/MANA.084.0167 [Accessed 15 October 2024].
[22] Çağlar, G. and Demirbilek, M., 2022. Krom Cevher Üretimi ve Hazırlık Galerisi Yapım İşleri Risk Değerlendirmesi. OHS Academy, [online] Available at: https://dx.doi.org/10.38213/ohsacademy.1128841 [Accessed 15 October 2024].
[23] Caus, L., 2023. The Importance of Internal Audit in Ensuring the Competitiveness of the Entity. CIKE, [online] Available at: https://dx.doi.org/10.53486/cike2022.29 [Accessed 15 October 2024].
[24] Coetzee, P. and Lubbe, D., 2014. Improving the efficiency and effectiveness of risk‐based internal audit engagements. International Journal of Auditing, 18(2), pp.115-125.
[25] Cook, K., 2012. Corporate compliance programs—Who needs them? Aerospace Conference, [online] Available at: https://dx.doi.org/10.1109/AERO.2012.6187420 [Accessed 15 October 2024].
[26] Cular, M., Slapničar, S. and Vuko, T., 2020. The Effect of Internal Auditors’ Engagement in Risk Management Consulting on External Auditors’ Reliance Decision. SSRN. Available at: https://dx.doi.org/10.2139/ssrn.3524816 [Accessed 17 October 2024].
[27] Dadgar, P., 2021. Risk Assessment and Analysis in Health, Safety, and Environmental (HSE) Hazards of the Bituminous Waterproofing Industry Using HAZID Technique. MJMIE, [online] Available at: https://dx.doi.org/10.33544/MJMIE.V5I1.165 [Accessed 15 October 2024].
[28] Danquah, V.B., 2021. Review of the main sources of organisational resistance and how such resistance could be managed: Critical Analysis of Volta River Authority and Ghana Maritime Authority. SSRN, [online] Available at: https://dx.doi.org/10.2139/ssrn.3878336 [Accessed 15 October 2024].
[29] Davčev, L., Paceskoski, V. and Bezovski, Z., 2012. The Role of Operational Risk in the Risk Management Function. Journal of Operational Risk Management, [online] Available at: https://dx.doi.org/10.3726/b19378 [Accessed 15 October 2024].
[30] Doroshuk, G.A., 2018. Competence-Based Approach in Training Managers for Change Management. Economics and Management Journal, [online] Available at: https://dx.doi.org/10.18524/2413-9998.2018.1(38).135523 [Accessed 15 October 2024].
[31] Edemekong, P.F., Annamaraju, P. and Haydel, M.J., 2018. Health insurance portability and accountability act. Available at: https://europepmc.org/article/NBK/nbk500019
[32] Febriana, D.A., 2017. Penerapan Risk Management untuk Meminimalisir Kerugian Kegiatan Pengiriman. Journal of Business Operations, [online] Available at: https://dx.doi.org/ [Accessed 15 October 2024].
[33] Ferrari, A., Da Cunha, P.R. and Petri, J.T., 2022. Influência do comportamento dos auditores em conflitos organizacionais na confiança e na cooperação entre auditores internos e externos. Revista de Contabilidade e Governança, 16(3), pp. 125-138. Available at: https://dx.doi.org/10.17524/repec.v16i3.3103 [Accessed 17 October 2024].
[34] Fülöp, M. and Szekely, S.V., 2017. The evolution of the internal auditing function in the context of corporate transparency. Audit Financiar, [online] Available at: https://dx.doi.org/10.20869/AUDITF/2017/147/440 [Accessed 15 October 2024].
[35] Furtuna, C. and Ciucioi, A., 2019. Internal Audit in the Era of Continuous Transformation. Survey of Internal Auditors in Romania. Audit Financiar, [online] Available at: https://dx.doi.org/10.20869/auditf/2019/155/016 [Accessed 15 October 2024].
[36] Gaievskyi, V., 2023. Methodological Aspects of the Formation of Quantitative Assessments of Safety of Automated Rail Transport Control Systems Using Risk Management Approaches. Cyber Security Journal, [online] Available at: https://dx.doi.org/10.18664/1994-7852.204.2023.284024 [Accessed 15 October 2024].
[37] Gaikwad, A., 2024. A Collaborative Code Platform with Advanced AI Features and Real-Time Collaboration Tools. International Journal of Research in Applied Science and Engineering Technology, [online] Available at: https://dx.doi.org/10.22214/ijraset.2024.61438 [Accessed 15 October 2024].
[38] Gao, H. and Zhang, J., 2019. SOX Section 404 and corporate innovation. Journal of Financial and Quantitative Analysis, 54(2), pp.759-787.
[39] Garcia, C., Guerrero, A., Zeitsoff, J., Korlakunta, S., Fernández, P. and Fox, A., 2021. Bluejay: A Cross-Tooling Audit Framework for Agile Software Teams. ICSE-SEET, [online] Available at: https://dx.doi.org/10.1109/ICSE-SEET52601.2021.00038 [Accessed 15 October 2024].
[40] Griffith, S.J., 2019. Agency, Authority, and Compliance. SSRN, [online] Available at: https://dx.doi.org/10.2139/SSRN.3462638 [Accessed 15 October 2024].
[41] Grünbichler, A. and Errath, W., 2007. Enterprise Risk Management: A View from the Insurance Industry. Journal of Risk Management, [online] Available at: https://dx.doi.org/10.3726/b19378 [Accessed 15 October 2024].
[42] Guaragni, F.A., de Oliveira Zagonel, L.R. and Gomes de Souza Luz, P.N.G., 2020. Criminal Compliance: Exploring the Criminal Liability of Compliance Officers. ESG Law Review, [online] Available at: https://dx.doi.org/10.37497/esg.v3issue.1603 [Accessed 15 October 2024].
[43] Gungormus, A.H., 2019. The Effect Of Internal Audit System On Institutional Governance Level In Businesses. Journal of Accounting, Finance & Auditing Studies, 5(3), pp. 96-116. Available at: https://dx.doi.org/10.32602/JAFAS.2019.33 [Accessed 17 October 2024].
[44] Hefaidh, H., Djebabra, M., Lila, S. and Mouna, T., 2019. Contribution to the Evaluation of Safety Barriers Performance. World Journal of Science, Technology and Sustainable Development, [online] Available at: https://dx.doi.org/10.1108/WJSTSD-08-2018-0055 [Accessed 15 October 2024].
[45] Hendra, R., 2021, November. Comparative review of the latest concept in compliance management & the compliance management maturity models. In RSF Conference Series: Business, Management and Social Sciences (Vol. 1, No. 5, pp. 116-124).
[46] Hevlych, L., 2023. Place of the Risk Assessment Procedure in the Audit Process in Ukraine. ISCA Conference Proceedings, [online] Available at: https://dx.doi.org/10.53486/isca2023.25 [Accessed 15 October 2024].
[47] Jiménez, J.M. de L., 2022. Compliance, seguridad jurídica y crecimiento económico en la empresa. Journal of Legal and Business Ethics, [online] Available at: https://dx.doi.org/10.1109/AERO.2012.6187420 [Accessed 15 October 2024].
[48] Johari, R. and Rashid, N., 2018. A Revisited Note on Internal Audit Function and Good Corporate Governance. International Journal of Academic Research in Business and Social Sciences, 8(12), pp. 831-845. Available at: https://dx.doi.org/10.6007/ijarbss/v8-i12/5067 [Accessed 17 October 2024].
[49] Johnson, L. and Sides, M.A., 2004. The Sarbanes-Oxley Act and Fiduciary Duties. Journal of Corporate Law, [online] Available at: https://dx.doi.org/ [Accessed 15 October 2024].
[50] Kafel, P., 2016. Benefits of Management Systems Integration. Scientific Journal of Polish Economic Studies, [online] Available at: https://dx.doi.org/10.18559/SOEP.2016.10.9 [Accessed 15 October 2024].
[51] Kliem, R.L. and Ludin, I.S., 1997. Reducing Project Risk. Journal of Project Management, [online] Available at: https://dx.doi.org/10.1108/ws.2001.07950bae.001 [Accessed 15 October 2024].
[52] Kneller, R. and Manderson, E., 2012. Environmental regulations and innovation activity in UK manufacturing industries. Resource and energy economics, 34(2), pp.211-235.
[53] Krikidis, I., Timotheou, S., Nikolaou, S., Zheng, G., Ng, D.W.K. and Schober, R., 2014. Simultaneous wireless information and power transfer in modern communication systems. IEEE Communications Magazine, 52(11), pp.104-110.
[54] Kumar, V. and Nungonda, A., 2019. Microsoft Teams Approaches to Solve Collaboration Needs. International Journal of Computer Applications, [online] Available at: https://dx.doi.org/10.5120/IJCA2019918561 [Accessed 15 October 2024].
[55] Kuwabara, K., Ohguro, T., Watanabe, T., Itoh, Y. and Maeda, Y., 2002. Connectedness Oriented Communication: Fostering a Sense of Connectedness to Augment Social Relationships. SAINT, [online] Available at: https://dx.doi.org/10.1109/SAINT.2002.994476 [Accessed 15 October 2024].
[56] Limbong, R.P., Syah, T., Anindita, R. and Moelyono, 2019. Risk Management for Start-Up Company: A Case Study of Healthy Kitchen Restaurant and Catering. Russian Journal of Agricultural and Socio-Economic Sciences, [online] Available at: https://dx.doi.org/10.18551/rjoas.2019-02.33 [Accessed 15 October 2024].
[57] Lin, D.Y., Wu, J., Fu, Q., Zheng, Z. and Chen, T., 2023. RiskProp: Account Risk Rating on Ethereum via De-anonymous Score and Network Propagation. arXiv, [online] Available at: https://dx.doi.org/10.48550/arXiv.2301.00354 [Accessed 15 October 2024].
[58] Liston-Heyes, C. and Juillet, L., 2023. Does increasing auditors' independence lead to more forceful public auditing? Public Administration, [online] Available at: https://dx.doi.org/10.1111/padm.12964 [Accessed 15 October 2024].
[59] López Chica, J.D., 2022. Modelo de Gestión de Riesgos Organizacionales para un Sistema de Gestión Bajo los Requerimientos de la Norma NTC ISO/IEC 17025:2017. Revista Ciencia y Tecnología para la Innovación, [online] Available at: https://dx.doi.org/10.23850/25007211.5014 [Accessed 15 October 2024].
[60] Lozano, G. and Carina, L., 2014. La importancia de las auditorías internas y externas dentro de las organizaciones. SSRN, [online] Available at: https://dx.doi.org/10.2139/ssrn.2986558 [Accessed 15 October 2024].
[61] Lucić, D., 2015. Strateški Rizik ili Rizik Poslovnog Okruženja. Strategic Risk Management Journal, [online] Available at: https://dx.doi.org/10.3726/b19378 [Accessed 15 October 2024].
[62] Mahmood, M. and Panwar, M.K., 2019. Real Time Data Analytics for Process Safety Governance-Case Study. Society of Petroleum Engineers, [online] Available at: https://dx.doi.org/10.2118/197649-ms [Accessed 15 October 2024].
[63] Mahmoud, A. and Ahmed, O.M., 2018. Managing Risks During Strategy Implementation, Literature Review. Journal of Business Strategy, [online] Available at: https://dx.doi.org/10.33868/0365-8392-2022-2-270-34-39 [Accessed 15 October 2024].
[64] Majerník, M., Daneshjo, N., Malega, P., Drábik, P., Ševčíková, R. and Vravec, J., 2023. Integrated Management of the Environment-Safety Risks in the Thermal Power Station. Polish Journal of Environmental Studies, [online] Available at: https://dx.doi.org/10.15244/pjoes/168290 [Accessed 15 October 2024].
[65] Marais, M., 2004. Quality assurance in internal auditing: An analysis of the standards and guidelines implemented by the Institute of Internal Auditors (IIA). Journal of Accounting and Auditing, [online] Available at: https://dx.doi.org/10.1108/10222529200400017 [Accessed 15 October 2024].
[66] Martinez, V.R., 2018. The Compliance Process. Journal of Legal Compliance, [online] Available at: https://dx.doi.org/10.3726/b19378 [Accessed 15 October 2024].
[67] McNamee, D. and McNamee, T., 1995. The transformation of internal auditing. Managerial Auditing Journal, [online] Available at: https://dx.doi.org/10.1108/02686909510079639 [Accessed 15 October 2024].
[68] Momos, L.J. and Egessa, R., 2020. The Role of Leadership in Managing Teams and Groups in an Organization. Strategic Journal of Business & Change Management, [online] Available at: https://dx.doi.org/10.61426/sjbcm.v7i2.1646 [Accessed 15 October 2024].
[69] Montes-Salazar, C., Sánchez-Mayorga, X., Vallejo-Bonilla, C.A. and Vélez-Ramírez, R., 2021. Prospectiva de una auditoría interna basada en riesgos. Revista Libre Empresa, [online] Available at: https://dx.doi.org/10.18041/1657-2815/libreempresa.2020v17n2.8021 [Accessed 15 October 2024].
[70] Müller, R. and Bont, P., 2018. Der Compliance Officer im Finanzsektor - Bedeutung, Anforderungen, Position und Haftung. Journal of Financial Compliance, [online] Available at: https://dx.doi.org/10.3726/b19378 [Accessed 15 October 2024].
[71] Olguin Macaya, E., Crawford, B. and Soto, R., 2016. Change Management in Technology Projects: Using a Comprehensive Model of Change Management. IEEE, [online] Available at: https://dx.doi.org/10.1109/CISTI.2016.7521458 [Accessed 15 October 2024].
[72] Orina, B.N., 2014. Change Management at International Centre for Tropical Agriculture. Journal of Agricultural Studies, [online] Available at: http://erepository.uonbi.ac.ke/handle/11295/75911 [Accessed 15 October 2024].
[73] Pacheco, S.R., 2022. Gerenciamento da resistência à mudança organizacional. Núcleo do Conhecimento, [online] Available at: https://dx.doi.org/10.32749/nucleodoconhecimento.com.br/administracao/mudanca-organizacional [Accessed 15 October 2024].
[74] Park, H.-G. and Lee, J.-C., 2014. A Study on Compliance Officer System in Korean Financial Institutions. SSRN, [online] Available at: https://dx.doi.org/10.2139/SSRN.3462638 [Accessed 15 October 2024].
[75] Patil, S., 2023. Credit Card Fraud Detection Using Machine Learning and Blockchain. International Journal of Research in Applied Science and Engineering Technology, [online] Available at: https://dx.doi.org/10.22214/ijraset.2023.52214 [Accessed 15 October 2024].
[76] Paula-Alarcón, G.V. and Gallegos-Santillán, D.N., 2019. Metodología para la auditoría integral en la efectividad de la gestión de riesgos. Polo del Conocimiento, [online] Available at: https://dx.doi.org/10.23857/PC.V3I11.931 [Accessed 15 October 2024].
[77] Pinto e Silva, C.M.F. and Coelho, N.M.M.S., 2017. A participação dos trabalhadores na construção dos programas de integridade corporativa. Revista Direito & Desenvolvimento, [online] Available at: https://dx.doi.org/10.4013/RECHTD.2017.92.08 [Accessed 15 October 2024].
[78] Pricillia, N., 2021, November. Comparison of Indonesian Banking Regulation for Integrated Governance, Risk Management, Compliance with its ISO Counterparts. In RSF Conference Series: Business, Management and Social Sciences (Vol. 1, No. 5, pp. 84-96).
[79] Rathnasamy, S. and Mahabeer, V., 2021. The impact on auditors of non-compliance with laws and regulations. Jurnal Akuntansi dan Auditing Indonesia, [online] Available at: https://dx.doi.org/10.20885/jaai.vol25.iss2.art1 [Accessed 15 October 2024].
[80] Repovš, E., Drnovšek, M., and Kaše, R., 2019. Change Ready, Resistant, or Both? Exploring the Concepts of Individual Change Readiness and Resistance to Organizational Change. Journal of Business Research, [online] Available at: https://dx.doi.org/10.15458/85451.82 [Accessed 15 October 2024].
[81] Riazanova, N., 2022. Formation of Risk Management System at Industrial Enterprises. Journal of Risk Management, [online] Available at: https://dx.doi.org/10.32342/2074-5354-2022-1-56-7 [Accessed 15 October 2024].
[82] Rickard, R., 2014. Managing Your Team Through Change. Journal of Leadership and Development, [online] Available at: https://dx.doi.org/10.22233/9781910443699.36.4 [Accessed 15 October 2024].
[83] Ritonga, A.Y., 2023. Peran Audit Internal Dalam Penerapan Manajemen Risiko Perusahaan. Owner: Riset dan Jurnal Akuntansi, 7(3), pp. 145-160. Available at: https://dx.doi.org/10.33395/owner.v7i3.1454 [Accessed 17 October 2024].
[84] Ruud, F., Kyburz, A., 2012. Das Internal Audit Capability Model : Ein Modell zum Self-Assessment des internen Audits. Journal of Internal Audit, [online] Available at: https://dx.doi.org/10.20869/auditf/2019/155/016 [Accessed 15 October 2024].
[85] Ruzhanskyi, O. and Sivak, I., 2022. Управління Ризиками в Системі ДСНС України. Journal of Emergency Management, [online] Available at: https://dx.doi.org/10.33269/2618-0065-2022-2(12)-322-337 [Accessed 15 October 2024].
[86] Rygalovsky, D.M., 2017. Formirovaniye Mekhanizma Upravleniya Riskami na Osnove Protsessnogo Podkhoda. Journal of Russian Management, [online] Available at: https://dx.doi.org/10.18334/RP.18.8.37798 [Accessed 15 October 2024].
[87] Schneider, A., 2009. The Nature, Impact and Facilitation of External Auditor Reliance on Internal Auditing. SSRN, [online] Available at: https://dx.doi.org/10.2139/ssrn.2986558 [Accessed 15 October 2024].
[88] Siegel, P. and O'Shaughnessy, J., 2010. Does the Sarbanes-Oxley Act Promote Ethics in Corporate Governance? SSRN, [online] Available at: https://dx.doi.org/10.2139/SSRN.1612550 [Accessed 15 October 2024].
[89] Stefanova-Stoyanova, V. and Danov, P., 2022. Comparative Analysis of Specialized Standards and Methods on Increasing the Effectiveness and Role of PDCA for Risk Control in Management Systems. IEEE COMSCI, [online] Available at: https://dx.doi.org/10.1109/COMSCI55378.2022.9912583 [Accessed 15 October 2024].
[90] Stolowy, H., Pujol, E. and Molinari, M., 2003. Audit financier et contrôle interne: L'apport de la loi Sarbanes-Oxley. Revue Française de Gestion, [online] Available at: https://dx.doi.org/10.3166/RFG.147.133-143 [Accessed 15 October 2024].
[91] Stradomska, G., Tolwinska, A.B. and Kegö, W., 2019. Legal Compliance Systems – a Necessary Mechanism in Organizational Risk Management. Journal of Organizational Innovation Management, [online] Available at: https://dx.doi.org/10.2478/joim-2019-0024 [Accessed 15 October 2024].
[92] Susanto, A. and Meiryani, 2018. The Importance of Risk Management in Organizations. Journal of Risk Management, [online] Available at: https://dx.doi.org/10.3726/b19378 [Accessed 15 October 2024].
[93] Szpringer, W., 2016. Regulacja a compliance na rynkach nowych technologii. Annales Universitatis Mariae Curie-Skłodowska, [online] Available at: https://dx.doi.org/10.17951/H.2016.50.2.93 [Accessed 15 October 2024].
[94] Taylor, C.R., 2012. New disclosure requirements under the Dodd-Frank Financial Reform Act: A move towards greater transparency. Eur. Company L., 9, p.64.
[95] Turgay, T. and Ekemen, M.A., 2013. An Empirical Analysis on Organizational Integration and Its Effect on the Internationalization of Exporting Firms in North Cyprus. Journal of Management Research, [online] Available at: https://dx.doi.org/10.5296/JMR.V5I1.2807 [Accessed 15 October 2024].
[96] Van der Voet, J. and Steijn, B., 2020. Team Innovation Through Collaboration: How Visionary Leadership Spurs Innovation via Team Cohesion. Public Management Review, [online] Available at: https://dx.doi.org/10.1080/14719037.2020.1743344 [Accessed 15 October 2024].
[97] Vasile, E. and Mitran, D., 2016. The Future of Knowledge in the Internal Audit. SSRN, [online] Available at: https://dx.doi.org/10.2139/ssrn.2986558 [Accessed 15 October 2024].
[98] Venkatesan, S.P., Sanjay, M., Gopinath, R.V. and Natarajan, M.S., 2023. Development and Implementation of an IoT-Based Safety Compliance Assessment Tool for Industrial Processes. IEEE, [online] Available at: https://dx.doi.org/10.1109/ICPCSN58827.2023.00228 [Accessed 15 October 2024].
[99] Voigt, P. and Von dem Bussche, A., 2017. The eu general data protection regulation (gdpr). A Practical Guide, 1st Ed., Cham: Springer International Publishing, 10(3152676), pp.10-5555.
[100] Xie, W. and Fisher, C., 2018. How Should Leadership Be Structured? Lay Theories of Single and Shared Leadership Structures. Academy of Management Proceedings, [online] Available at: https://dx.doi.org/10.5465/ambpp.2018.16303abstract [Accessed 15 October 2024].
[101] Xu, A., Zhang, Z., Huazhi, Z., Zhang, M., Wang, H., Ma, Y., Wang, Y. and Zheng, G., 2018. Real-Time Online Risk Monitoring and Management Method for Maintenance Optimization in Nuclear Power Plant. ASME, [online] Available at: https://dx.doi.org/10.1115/ICONE26-82472 [Accessed 15 October 2024].
[102] Yurtlu, Ö., 2022. The Effect of the Internal Audit Structure of the Enterprises on the Corporate Governance Process. International Journal of Advanced Research, [online] Available at: https://dx.doi.org/10.56203/iyd.1126972 [Accessed 17 October 2024].
[103] Zakharchuk, O., Kovalyk, O. and Kovtunenko, K., 2021. Preventive Risk Management in the Enterprise. Enterprise Financial Performance Journal, [online] Available at: https://dx.doi.org/10.37634/EFP.2021.5(1).5 [Accessed 15 October 2024].
[104] Zhai, X., 2023. Risk Management Analysis on Microsoft Corporation. Journal of Business Economics and Management, [online] Available at: https://dx.doi.org/10.54097/hbem.v8i.7232 [Accessed 15 October 2024].
[105] Zizzari, L., 2008. Il ruolo del collegio sindacale con particolare riferimento all'audit interno. Italian Journal of Auditing, [online] Available at: https://dx.doi.org/10.2139/ssrn.2986558 [Accessed 15 October 2024].
[106] Zorn, T.E. and Scott, J., 2021. Must We Change? The Dark Side of Change and Change Resistance. Oxford Handbook of Organizational Change, [online] Available at: https://dx.doi.org/10.1093/OXFORDHB/9780198845973.013.28 [Accessed 15 October 2024].
How to cite this paper
@article{1706421,
author = {Khodani Netshifhefhe, Magalane Vivian Netshifhefhe, Munashe Naphtali Mupa, Kudakwashe Artwell Murapa},
title = {Integrating Internal Auditing and Legal Compliance: A Strategic Approach to Risk Management},
journal = {Iconic Research And Engineering Journals},
year = {2024},
volume = {8},
number = {4},
pages = {446-465},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1706421.pdf},
abstract = {This article explores the strategic benefits of integrating internal auditing and legal compliance functions to enhance organizational risk management. Risk management has evolved into a proactive process of identifying and mitigating threats to business objectives. Internal auditing now aligns processes with ethical standards and goals, while legal compliance fosters a culture of integrity beyond mere regulatory adherence. Integrating these functions provides a holistic risk profile, leading to more efficient management and improved governance. Collaboration enhances transparency and accountability by sharing information on potential risks and regulatory changes. This synergy also strengthens fraud detection and prevention by identifying control weaknesses and ensuring adherence to anti-fraud policies. Strategies for effective integration include organizational alignment, clear communication channels, and joint risk assessments and audits. Leadership support is vital in fostering a collaborative culture. Technological tools like audit management software and data analytics systems facilitate real-time collaboration and improve risk detection. Adherence to compliance standards such as ISO 31000 and ISO 37301 offers a structured framework for integrating risk management and compliance processes. Hence, integrating internal auditing and legal compliance is a proactive approach to navigating complex regulations and evolving risks. This integrated strategy enhances the effectiveness of risk mitigation and contributes to an organization's long-term competitiveness and sustainability by building resilience and fostering growth in an increasingly complex business environment.},
month = {October},
}