The Internal Control Systems Integrated into the Various Profiles of Governance, Audit, Risk and Compliance

Abstract

It is necessary to distinguish the internal controls from external ones: the former are the responsibility of the appropriate bodies and business functions belonging to the organization of the companies, while the latter are exercised by subjects who fall outside the company and the functional structure of the company (audit company, Consob, Bank of Italy, etc.). In recent decades there have been several scandals that have hit large enterprises, also Italian ones, which have increased interest in the issue of corporate governance and in the inefficiencies presented in internal corporation controls (Munroa & Stewart 2011). Enhancing the effectiveness of controls, in particular the internal ones, has become a need increasingly felt by international and national legislators. Internal controls are an essential tool to achieve business goals (operating constantly in terms of efficiency and effectiveness), and at the same time to avoid wastage of resources, to safeguard corporate assets, producing accounting information and reliable management, to observe the strategies, the policies and the corporate procedures and, especially, to ensure compliance with laws and regulations. in this work, it will discuss, in the italian context, the role of the board of directors and the board of statutory auditors within the (SCIGR) System of Internal Control and Risk Management (Jaggi, Allini, Manes Rossi, & Caldarelli, 2016). Moreover, the study moves the analysis to other corporate figures well determined and in constant evolution, including the head of internal audit, the activity of compliance, the supervisory body ex D.Lgs.231/2001 and the manager in charge of drafting corporate accounting documents.Keywords: corporate governance, auditing, compliance, risk The System of Internal Control and Risk Management: The Literature ReviewThe organizational structures of a company, of which the adequacy must be taken care of, evaluated and controlled by the organization bodies, are certainly part of the internal control system, understood as the set of directives, procedures and operational practices defined and adopted by the company to reach, through a proper process of identification, measurement, management and monitoring of the main risks, strategic, operational objectives, of reporting and of compliance. (Bertoli & Perotta, 2013). The internal controls in capital companies is one of the fundamental pillars of the structure of corporate governance in the legal systems of advanced industrial countries (Montalenti, 2015). The first models of integrated control were conceived in the American market in the early nineties, with the development of the COSO framework, which had the aim to support the companies in the evaluation and improvement of the system of internal controls. This model was subsequently updated in 2004 by a second framework in the field of Enterprise Risk Management, the so-called COSO Report II, which inserts the internal control system in the context of the more general process of risk management. Subsequentl...

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