（2007）Risk and Control Developments in Corporate Governance：changing the role of the external auditor？.pdfVIP

322 CORPORATE GOVERNANCE Blackwell Publishing LtdOxford, UK CORGCorporate Governance: An International Review0964-8410© 2007 The Author; Journal compilation © 2007 Blackwell Publishing Ltd March 2007152322333ORIGINAL ARTICLESRISK AND CONTROL DEVELOPMENTS IN CORPORATE GOVERNANCECOPRORATE GOVERNANCE Risk and Control Developments in Corporate Governance: changing the role of the external auditor? Claus Holm* and Peter Birkholm Laursen Are the risk and control developments in corporate governance changing the role of the external auditor? This paper examines how the concepts of risk and control are incorporated in current corporate governance promulgations and analyses the implications for the role of the external auditor. It is suggested that up till now the corporate governance debate has strengthened the position or role of the internal auditor in the advantage of the role of the external auditor. The promulgations have influenced the internal control mechanisms, and the control responsibilities have become more explicit. Dominant determinants for the future role of the external auditor seem to be in conflict, namely the value adding function of the audit with an alignment of risk oriented efforts by the auditor and the company versus the notion of “back to basics”. The ext