Risk-based internal audit in participation insurance companies: A case study

Internal audit which has a critical importance for businesses has undergone important changes since it was first applied. Although it first used retroactive information for protection of business assets, it has recently turned its direction to future. Internal audit, which operates with a risk-based approach by taking the risks exposed to its focus today, aims to add value to the businesses by preventing undesirable situations before they happen. In addition, it provides assurance service to the directors about the activities which they perform against the risks. The aim of this research is to theoretically clarify the application stages and benefits of risk-based internal audit and to practically test these theoretically clarified stages and benefits in a business which serves participation insurance. In the research, case study, one of the qualitative research technique, was used. It was performed in a business which serves participation insurance in Turkey. Interview, observation and document analysis methods were used to collect the data. As the result of the analysis, it was found that the internal audit was carried out as risk based and that information technologies were extensively used. In addition, a model was formed for the internal audit process of the company. This model formed serves as a useful source during the design and application of the internal audit process not only the sector of research subject, but also for all businesses. It is thought that the study will also contribute to the participation insurance literature, which was selected as the research area and has a close history of about ten years in Turkey.