Internal audit activities as a support to governance processes

Lately, the role of internal audit is viewed with great importance in the context of the supervisory mechanisms of corporate governance, which is a direct result of requests for more effective corporate governance and the need for control. Corporate governance foundation may be considered through the four cornerstones: Audit Committee, Executive Management, Internal Auditors and External Auditors. Internal audit contributes to corporate governance effectiveness through relations and communication with other cornerstones. It is believed that by providing assurance on the effectiveness of risk management, control and governance processes, internal audit is becoming a "key cornerstone" underlying the effective management. This paper analyzes how internal audit contributes to strengthening the governance processes through its relation with the primary beneficiaries, managers and the Audit Committee. The Audit Committee, focused on oversight of financial reporting, controls and risk management, relies on internal audit to assist in carrying out its responsibilities. Also, internal audit provides advice to managers at all levels and information related to the effectiveness of the internal control and risk management processes as well as other important services. It may be concluded that internal audit activities, through its impact on other participants in governance, affect the quality of corporate governance. Internal audit is an important factor in achieving effective governance and is considered as an "integral part of corporate governance mosaic".peer-reviewe

On the use of indirect inference in equivalent circuit parameter estimation of a synchronous machine

Synchronous machines are commonly modelled using d- and q-axis equivalent circuits. Here, we present an approach to the ensuing parameter estimation problem which employs the technique of indirect inference. In indirect inference, an intermediary model is employed which is computed for both the true system and the preferred model, in this case the equivalent circuit model. We have used frequency response data from standard standstill machine tests as the intermediary model. The circuit parameters of the model are optimised, such that the measured difference between the standstill frequency responses of the equivalent circuit model and the true system are minimised