The State of Internal Audit

Posted on Jun 28, 2014

We have some recent surveys and reports on this topic. Thomson Reuters, a software vendor that has provided internal auditors with audit management solutions for many years (formerly known as Paisley), has published State of Internal Audit report 2014: Adapting to Complex Challenges. Grant Thornton, a CPA firm, shared the results of their CAE survey, Adding internal audit value: Strategically leveraging compliance activities

continue reading...

Trust May Be the Enemy of the Board

Posted on Jun 21, 2014

I first heard the expression “noses in, fingers out” from Don Sparks many years ago. He was referring to the idea that board members need to ask probing questions and challenge the executive team, but not get so deep into decision-making that it appears they are trying to manage the organization themselves.

continue reading...

Considering the Governance Committee of the Board

Posted on Jun 16, 2014

The Canadian Institute of Chartered Accountants (CICA) has published a number of guides for Directors. One is 20 Questions Directors Should Ask About Governance Committees (published in 2010). 

continue reading...

Reflections on Corporate Culture After the GM and VA News

Posted on Jun 7, 2014

Yesterday (June 6th), I was called by a reporter for the Wall Street Journal to discuss what had been reported about the “old GM” culture. Apparently, defects in that culture led to employees and managers failing to take responsibility for an ignition switch problem that is blamed for the deaths of 13 people over 11 years or more, and failing to inform top management and the board. Eventually, 2.6 million vehicles were recalled, the federal government is conducting an investigation, and 15 employees have been fired following an internal investigation led by Anton Valukas (see the report here). (Note: Anton Valukas was responsible for investigating the events that led to the Lehman Brothers bankruptcy.)

continue reading...