Mihret, D. G., & Grant, B. (2017). The role of internal auditing in corporate governance: a Foucauldian analysis.

Question 1

How is internal auditing positioned within Enterprise Risk Management (ERM)?

Answer 1

As a risk-management technology that provides both advice (ex ante) and assurance (ex post) to help organizations define goals, assess risk, and take corrective action.

Question 2

How does internal auditing contribute to self-discipline in employees?

Answer 2

By creating the perception of constant visibility (inspired by the panopticon), internal auditing encourages individuals to regulate their own behavior even without direct oversight.

Question 3

How does Mihret & Grant (2017) describe internal auditing within the “regulatory game of freedom and security”

Answer 3

Internal auditing functions by shaping behavior and promoting self-regulation, not just enforcing rules. It operates within Foucault’s “regulatory game of freedom and security”, where employees are given autonomy but are subtly guided to act in line with organizational goals.

Question 4

What is “Governmentality”?

Answer 4

This is Foucault’s concept for how modern societies govern not just through laws, but by shaping how people think, act, and regulate themselves. It blends:

• Government as more than just the state—it’s any kind of regulation.
• Rationality as a way to frame and direct behavior based on knowledge and risk.