Three lines of defence model and the role of internal audit activities as the response to the global economic crisis

Abstract

The existing framework of corporate governance has shown a number of weaknesses, and the result was a new economic crisis at the global level. The main problems were identified as: increased risk of investors, non-transparency of information, conflict of interest between corporation subjects. European Institute of Internal Auditors in response to the strengthening the trust in information, shareholders activism, better communication, which all will lead to the reduction of risks and restore investors confidence, proposed the Model Three Lines of Defence, where the key role has internal audit.