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