IICJ Paper The Role of Internal Audit in Corporate Governance. Case: Fiat Group Mauro Di Gennaro, Chief Audit Executive & Compliance Officer, Fiat, Italy

Recently there has been considerable interest in the Corporate Governance practices of modern corporations. New approaches to doing business have increased the risks connected with the achievement of company's goals. The introduction of new technical devises, for instance, the use of the Internet for carrying out transactions massively took off starting from the 1990s onwards. Subsequently, this increased the risks of intrusive attacks, made the issue of business continuity a more critical one and placed a stronger emphasis on the need for disaster recovery plans. Also, the worldwide spread of business into 'new markets', such as the Asian market, has provided new risks as well as refocusing attention on a system of control, for example the Asian financial crisis in the latter half of the 1990s. Moreover, the high-profile collapses of a number of large U.S. firms such as the Enron Corporation and Worldcom in the early 2000s, as well as lesser corporate debacles, such as Adelphia Communications, AOL, Arthur Andersen, Global Crossing, Tyco, and, more recently, Fannie Mae and Freddie Mac, Parmalat, etc. led to increased shareholder and Governmental interest in Corporate Governance which culminated in the approval of the Sarbanes-Oxley Act of 2002 and in the SOX (Sarbanes-Oxley Compliance Projects). Last but not least, the ever stronger institutionalisation of the markets in which buyers and sellers are largely institutions (e.g., pension funds, insurance companies, mutual funds, hedge funds, investor groups, and banks) also reveals an increasing need for professional diligence to protect the community at large in terms of safety and welfare.
Author
Mauro Di Gennaro
Mr. Di Gennaro joined Price Waterhouse in 1987 as Assistant Auditor and was subsequently promoted to Senior Manager. In 1994, he became Head of Internal Audit at Stet S.p.A. In 1997, he joined Telecom Italia, where he held several positions, including Head of International Operations and Head of International Internal Auditing. In 2002, he was appointed Head of Internal Audit at the RAS Group. On January 1st, 2004 he joined Fiat S.p.A. as Chief Audit Executive and Compliance Officer. He is Vice President of IIA – Italy Chapter and President of European Confederation of Institutes of Internal Auditing. (ECIIA).
Company
Fiat
Fiat Group is known as one of the automobile industry’s founders but, in a century of history, Fiat has also meant more than this. In fact, it has focused its attention on the production of all forms of people and goods mobility: from automobiles to trucks, from agricultural to commercial vehicles, from naval engines to aeronautical and space shuttles. Moreover, the complexity of this Group also arises from the worldwide spread of its offices and Plants located in all continents and entering or gaining “new” and exciting markets like that of the Far East. Such a kind of Group needs a huge number of auditors and a very strong Internal Audit Function. In 1976 Fiat Revi S.c.r.l. was established by Fiat SpA and the leading group companies which selected the Consortium as the appropriate legal status. Fiat Revi’s head office is in Turin, since 1997, it has established branches in certain strategic countries (France, Germany, Poland, Brazil - for Latin American Area - and China for the “Far East”). These entities operate with local personnel who are managed and trained by audit managers under the supervision of the Turin Headquarters. ' Ê +39 011.0062176 * mauro.digennaro@fiatgroup.com
Country
Italy More
Area of Law
Corporate Governance More
Business Sector
Industry More
Month Published
November 2007 More
Edition
Vol. 1, No. 2, Winter 2007 More
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