4. Internal Audit in Times of Crisis: The Case of COVID-19

COVID-19, which was declared a global epidemic by the World Health Organization (WHO) as of March 11, 2020, affected all the countries in the world in a short time. This epidemic, which is called the global crisis, poses a serious threat at every scale, from a large-scale structure such as the state to small organisations. In such a crisis, the institutions’ ability to protect their assets and ensure their continuity depends on the timing and effective implementation of the measures to be taken against the crisis. Crisis management, which is the mechanism that ensures the pre-planning of the measures to be taken against the crisis and their implementation when necessary, is also included in the scope of internal control as a measure to be taken by institutions in case of extraordinary situations. Internal audit is a mechanism that adds value to the activities of the institution by measuring the effectiveness of the risk management, internal control and corporate governance processes of the institution. An evaluation of the design and implementation effectiveness of the controls planned within the scope of crisis management will also be needed during the crisis, which can be provided by the internal audit activity. This study aims to determine the role of internal audit activity in the crisis process before, during and after the crisis. Within the scope of the tasks determined in the study and evaluated to be carried out in the stages of the crisis, it will be of vital importance to direct the internal audit in a way that adds value to the activities of the institution. As a result, institutions that can use their internal auditors effectively in different phases of the crisis will be able to make more successful managerial decisions than other institutions, overcome threats to their sustainability more easily and with the least damage, and even turn the crisis into an opportunity.