INTERNAL AUDIT RISK ASSESSMENT AND LEGAL RISK: FIRST EVIDENCE IN THE ITALIAN EXPERIENCE

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Abstract

The objective of this article is to analyze how Italian Firms comply with the Internal Audit rules regarding the administrative liability of entities and to explain what the effect on the organizational structure was. In particular we collected data from 21 companies listed on the S&P/MIB index by sending a questionnaire to each Internal Audit Director. We show the features of internal audit system required by the 231 Italian Decree and how risk assessment and internal audit could serve as Corporate Governance Instruments. The 231 Italian Decree, like the Sarbanes-Oxley Act enhances and extends companies’ accountability, transparency and integrity especially in business conduct. The innovativeness of this work is due to the idea of considering these elements as influential for the risk management optimization. As a consequence, a risk reduction can be achieved by improving the organizational and management models. Thought is commonly accepted that the risk optimization leads to a reduction of the cost of capital for the enterprise, there is a difficulty in estimating how much the value provided could be.

Keywords: Internal Audit, Risk Assessment, Legal Risk

How to cite this paper: Miglietta, A., Anaclerio, M., & Bettinelli, C. (2007). Internal audit risk assessment and legal risk: First evidence in the Italian experience. [Special Issue]. Corporate Ownership & Control, 4(4-4), 59-77. https://doi.org/10.22495/cocv4i4c4p5