For a company, being listed on the stock exchange is major step that goes well beyond opening its capital to the market. It involves new dimensions in terms of responsibility, transparency, and management complexity, requiring a review of the organisational structure and, in particular, corporate governance.

Corporate governance is often thought of simply relating to board members and their strategic decisions. But, as the Italian stock exchange’s definition stresses, corporate governance represents “the set of tools, rules, and mechanisms designed to best implement a company’s decision-making process in the interests of the different stakeholders involved in the business.” In other words, governance is a complex ecosystem that not only includes the Board of Directors and the executive and audit committees, but also corporate policies, decision-making processes, tools and internal controls and auditing systems. It is how, in practical terms, responsibility is shared, transparency mechanisms are created, and trust is built with all stakeholders: investors, employees, customers, suppliers, and local communities.

For companies making the transition to being listed, this paradigm shift is fundamental. Listing brings with it strict regulatory requirements, from the CONSOB (Italian financial conduct authority) issuer’s regulations to international standards. These however should not only be considered as formal requirements, but rather also as opportunities to establish more robust processes, strengthen corporate culture, and manage change responsibly. Governance requires distinct roles, complementary skills, and a system designed to ensure transparency, solidity, and long-term vision. Together with the Board of Directors, there are supervisory bodies that monitor the correctness of management processes, while other specialised committees deal with auditing, risk management, sustainability, and remuneration policies.

Corporate governance roles, adapted from Dittmeier, “Internal Auditing”, Egea 2011

In this context, the Internal Audit function is an important part of the governance system. Too often perceived as having a mere supervisory role, the Internal Audit function actually plays a strategic role in creating value. It assesses the adequacy, effectiveness, and efficiency of internal auditing and risk management systems, providing assurance services to confirm to both management and external stakeholders that the organisation is operating correctly, ethically, and sustainably. Through advisory services, it also supports the company in identifying improvement opportunities and implementing more efficient auditing systems.

The Internal Audit function’s ability to generate value is demonstrated through some fundamental practices, which are particularly relevant for recently-listed companies. However to be effective it cannot operate in isolation: its strategy needs to be aligned with the overall corporate strategy. This means developing an audit plan based on the highest-priority risks that may hinder the achievement of strategic objectives. Integration with enterprise risk management allows audits to be focused on the areas of greatest strategic importance, making a concrete contribution to protecting and creating business value. The most effective functions are those that coordinate activities with other internal and external assurance providers, providing the Board of Directors with a holistic overview of corporate risks. This integrated approach strengthens the position of the function and increases its perceived effectiveness.

Continuous interaction with the Risk Control Committee, top management and subjects being audited is essential. When Internal Audit responds to the needs of top management, for example by verifying regulatory compliance in sensitive areas, it prevents risks that could otherwise result in fines or reputational damage, thus safeguarding corporate value. At the same time, by involving the audited subjects, for example through interviews, listening to their difficulties and suggestions, it creates a virtuous cycle of collaboration and continuous improvement. In a context where sustainability represents a strategic imperative for organisations, an Internal Audit function that includes checks on environmental, social and governance aspects can provide independent guarantees that the company is operating responsibly, strengthening transparency and generating concrete benefits for the community.

For listed companies, well-structured corporate governance and an effective Internal Audit function are not only regulatory obligations, but also real drivers of competitiveness. An audit culture becomes a competitive advantage, building trust with the market, boosting the company’s reputation and ensuring long-term business continuity. In an increasingly complex and regulated environment, investing in these areas means investing in the sustainability of the company itself.