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Journal of Finance and Accounting. 2019, 7(1), 1-5
DOI: 10.12691/jfa-7-1-1
Open AccessLiterature Review

The Role of Internal Audit in Corporate Governance and Contribution to Determine Audit Fees for External Audits

IrwanAdimas Ganda Saputra1, and Achmad Yusuf2

1Faculty of Economics and Business, University of Airlangga, Surabaya, Indonesia

2English Teacher, Senior High School, 17 Agustus 1945, Surabaya, Indonesia

Pub. Date: January 25, 2019

Cite this paper:
IrwanAdimas Ganda Saputra and Achmad Yusuf. The Role of Internal Audit in Corporate Governance and Contribution to Determine Audit Fees for External Audits. Journal of Finance and Accounting. 2019; 7(1):1-5. doi: 10.12691/jfa-7-1-1


This study aims to determine the role of the internal audit function in good corporate governance and to know the contribution of the internal audit function to the implementation of external audit and the determination of audit fees. The method used is in-depth and critical review literature. The results of our analysis show that the role of internal audit in corporate governance is to assess the fairness of financial statements, to compliance with applicable standards and rules, and to provide creative advice for the effectiveness and operational efficiency of the company. Effectiveness and efficiency of the implementation of external audits is influenced by the availability of internal audits, knowledge and experience of internal auditors internal audit quality, level of coordination between internal auditors and external auditors, level of risk in the audit environment, external auditor work style, and inherent risk the amount of fee that must be given to the external auditor. So, it can be concluded that the internal audit function has a very important role in corporate governance. Moreover, a quality internal audit function can affect the effectiveness and efficiency of the implementation of external audits and can influence the determination of fees for external auditors.

audit fee external audit internal audit corporate governance

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