Auditing as a profession has evolved dramatically over the decades and as time has passed audit activities have expanded from carrying out specific assurance activities for management, to assisting and management consultancy in their specific business activities. The Institute of Internal Auditors defines internal auditing as “…an independent and objective assurance and consultancy activity designed to add value and improve the operations of an organisation. It helps an organization achieve its objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of risk management, control and governance processes.' (Institute of Internal Auditors, 2013) Through this definition we can explain why auditors can be seen as “the eyes and ears” of management. Focusing specifically on governance principles, the use of internal audit standards, the current role of internal auditing in SA, examining the current crisis, the importance of internal auditing to management is evident. FUNDAMENTAL PRINCIPLES RELATED TO GOVERNANCE2.1 Corporate Governance in South Africa To understand the role that internal auditors play in improving governance processes, it is necessary to fully understand the meaning of the word governance and also the role that governance plays in South Africa. Smerdon states that corporate governance is "the system by which companies are directed and controlled." (Smerdon, 1998, p.1) Corporate governance is said to have been introduced because of the agency problem, that is, managers of companies used their control or position to their own advantage and to the company's disadvantage. Corporate governance was initiated to ensure that company owners' agents acted as best they could regarding these issues. The development of corporate governance has been one of the most significant factors contributing to the growth of internal control in recent years. Governance frameworks and models vary depending on the type of organization. Corporate governance is that South Africa is developing at a rapid pace and for this reason; the role of governance must be constantly updated. The internal audit profession is new to South Africa and through compliance with these standards, structure and support is provided to these developing internal auditors. Therefore, it is evident that managers and internal auditors have common objective points and this would mean achieving the proposed objectives. In this way auditors can be seen as the eyes and ears of management, providing independent assurance and consultancy to achieve common objectives.