Economic crisis impact on corporate governance & internal audit: the case of Greece

Abstract

The purpose of this paper, is to record the current situation regarding the mode of interaction of the economic crisis in corporate governance and risk management. This is achieved by conducting research which underpins the distribution of structured questionnaires in Greeks professionals. In this way, it is presented a substantial imprinting of Greek views on a number of issues arising from the investigation of the above relation. In order to gather as much as possible essential information, it is performed a comparison of these global positions, by surveys carried out by the IIA, which had almost the same content. The conclusion is that the current economic conditions require a more effective form of corporate governance, while the three main weaknesses mentioned above are the areas that more focus should be given. Additionally, the most important factor that could highlight all risks in time is to perform audits on liquidity, capital and balance sheet consolidation. Still, there is a view that the ERM failed to recognize timely the danger of imminent economic crisis. Finally, budgets on internal audit have increased significantly, both in national and international level, while in the future the internal audit itself should have as a priority to consult the board, in order to identify, manage and monitor the key risks.