Helps an entity achieve its objectives by taking a systematic and disciplined approach to evaluate and improve the effectiveness of its risk management, control and governance processes.” Agency theory also provides a useful theoretical framework for studying the internal audit function. He proposes that agency theory not only helps explain and predict the existence of internal audit, but also helps explain the role and responsibilities assigned to internal auditors by the organization, and that agency theory predicts how the internal audit function could be affected by organizational change. Concludes that agency theory provides a foundation for rich research that can benefit both the academic community and internal audit