The internal audit function in italian listed companies: state of the art and future perspective, results of an empirical research

The importance of the Internal audit function in the general value creation process is highly recognised in the economic literature. It can contribute to improve the realiability of informations, to enhance transparency and accountability in the corporate governance processes and also help in the maximization of the effectiveness and efficiency of processes. Recent surveys have outlined the main features of the internal audit function in the Italian context, pointing out its objectives, its structure and its activity. The aim of this study is an up-to-date monitoring of the internal audit function in Italian listed companies, understanding, furthermore, how it regards itself inside the organization, at present time and in perspective. After an analysis of the structure, a first issue to be investigated is how it works and how internal auditing contributes to create value in the organization. Role and relations of internal auditing in the corporate governance are then considered. Afterwards, further topics that will be analysed concern the help in risk mapping, the coordination with other bodies and the use of audit tools. Finally the research looks at the future, trying to understand the evolution of the activity, the economic relevance, and the way to add value to the organization by the internal auditing process. The study, after a review of the literature, is based on an empirical research with questionnaires addressed to the chief internal auditor of the Italian listed companies. In particular, the survey targets all Italian listed companies (not only S&P/MIB index companies, which are selected both for quantitative and qualitative profiles, such as capitalization, floatation and industry representativeness). In short, the main objective is to offer an updated overview of internal auditing processes and structures, diffused in the Italian companies, and also to consider possible paths of development and new tasks of internal auditing for the near future.