The Role of Financial Audit in the Corporate Governance Process: An In-depth Analysis

Abstract

Fraud presents a substantial risk to the overall financial integrity of the global corporate environment. This empirical study investigates practical approaches for firms to strengthen their defenses against fraud, with a focus on improving internal controls, optimizing internal audits, and implementing effective corporate governance. Fraud, which involves compromising the accuracy of financial information, poses dangers that go beyond financial losses. It also affects stakeholder trust and market confidence. Therefore, it is important for company executives, auditors, and policymakers to proactively identify and mitigate these risks. The combination of internal controls, internal audits, and corporate governance plays a crucial role in combating fraud. Internal controls provide the basic principles of financial practices, internal audits closely examine transactions, and effective company governance promotes ethical behavior, resulting in a strong framework for preventing fraud. Based on an extensive examination of existing literature, this study offers practical observations that enable businesses to identify, tackle, and prohibit fraudulent activities. Practical suggestions can help manage the relationship between internal controls, internal audits, and corporate governance. These suggestions can improve audit procedures, enhance transparency, and strengthen the reliability of financial reporting.

Keywords

• accounting
• corporate governance
• financial audit
• financial information
• fraud