A Multi-case Study On Synergy Between Internal Auditing And Compliance Management

In corporate development practice,due to external regulatory requirements,internal auditing guarantees independence and objectivity in the organization on the basis of mandatory compliance.Compliance management is an effective means to protect the safety of corporate assets.The corresponding practice activities mainly focus on the financial and medical industries,and the development of their own functions in the field of management has been more adequate and complete.Although there are many differences between the two,there are many similarities in seeking to improve the operational efficiency of the company.All of these are the goals of improving organizational control.Therefore,the purpose of this paper is to extend the compliance function to general corporate management activities and tend to form a synergy between the two in the organization.First of all,from the current reality of the company,this article elaborates the responsibilities and control points of the internal audit and compliance management functions in the organization.Among them,the differences in the position of defenses,the scope of reporting,and the focus of risk management and control in the overall management system of the company are relatively clearly compared.At the same time,it also explains the core foundation of the cooperation between the two in terms of objectivity and independence,compliance level,risk management and internal fraud,culture,and final report objects.Secondly,this paper uses the theory of synergy,stakeholder theory,risk management theory,and resource-based view as the theoretical basis for the cooperation between the two,and illustrates the willingness of the board of supervisors,senior management,and departmental employees at different levels of management.In addition,CITIC Securities,Southwest Securities,JD,LeTV,Huawei,Coolpad,Midea,Aucma and 8 case companies have formed collaborative practices at three levels including external participation of supervisors and internal governance,and senior management risk.Management resource support and department-level employee management ownership,on the whole,enhance the degree of synergy among management levels,which ultimately affects the overall collaboration degreeof the company and the effectiveness of organizational governance,risk,and compliance practices.Finally,this paper supplements the two collaborative control activities and constructs three coordination modes: power orientation,motivation orientation,and behavior orientation.This paper finds that the supervisory board,senior management,and departmental staff have the following differences in the focus of their collaboration:(1)The breadth and depth of external participation of board members can effectively reduce the uncertainty of external information on internal audit and compliance management.Learning motivation-oriented organizations can enhance the external coordination of directors and supervisors;(2)The joint efforts of the audit committee and the board of supervisors/risk management committee can improve the internal coordination of the board of supervisors in the event that the board of supervisors has good internal governance transparency;3)Where top management has more resources to support internal audit and compliance management,the knowledge of CEOs,chief audit executives,and the chief compliance officer can improve management synergy;(4)Internal audit Compliance Management Employees have management ownership and can realize the exchange of relationships between the two departments and other departments.Among them,the emphasis on the level of employee compensation can improve departmental collaboration.