Role of internal audit in corporate governance of ACI Limited

Abstract

Advance Chemical Industries (ACI) Limited is one of the leading conglomerates in Bangladesh, with a multinational image. ACI is a Public Limited Company with a total number of 19,653 shareholders. The company has diversified into four major businesses. The Risk Management and Internal Audit is one of the support department established in ACI Ltd in order to maintain an effective and smooth functioning in the organization .And also to monitor all the activities like from planning to revenue generation each steps of ACI and its subsidiaries. Corporate governance practice in Bangladesh is very less in our country because most of the companies are family oriented. To secure the operations of governance of a strong company, there must be cooperation between the various components of the system of governance, internal auditors, executive management, financial management, board of directors, shareholders and external auditors. To achieve the quality of governance, the company must focus on all cornerstones of corporate governance and in particular the internal audit function. It assesses the commitment to the ethics of the organization and its goals, programs and activities. Internal Audit is the most important part of an organization for keeping the basic corporate governance in any organization. ACI Ltd is one of the largest production based organizations and their business is expanded overall the country therefore it is quite hard for them to conserve an appropriate corporate governance. The objective of internal audit department, in cooperation with ACI, is to support the whole system of all businesses so that any kind of misappropriations can be stopped. And also to ensure the Audit Committee a sound corporate governance by ensuring that IA functions are established in the ACI, that a best practice IA process methodology is applied and that the IA compliance reporting and the IA exception reporting processes are adhered to. The company tries to hold a good corporate governance by maintaining discipline and sincerity all over the organization through its skilled and dedicated employees. The role of internal audit in corporate governance of ACI is enormous .This single factor plays a great role in sustaining the integrity and values of the organization by examining, evaluating different activities of the organization.