Internal audit, as a monitoring tool in the organization, provides the opportunity for better management of activities for decision-makers within the organization. Considering that internal auditors are responsible for monitoring operations and controlling management activities; they play an important role in the corporate governance system. Corporate governance is the organization's guidance and control mechanism that provides an appropriate balance between management freedom, compliance with the rights of stakeholders, and accountability.
Internal audit helps decision-making in critical situations and provides reasonable assurance about the accuracy of risk management in the organization. Therefore, some analysts recognize weak internal audit as a sign of the risk of corporate governance failure (Nazari, Ghanad, 2017).
The scope of internal audit includes not only compliance auditing, evaluating internal controls, handling fraud, and reviewing operational processes, but also advising senior management and participating in risk management (Mousavi, Tavakolnia, Shakeri, 2013).