The Worst Seems to Be Behind Us

Posted on Oct 16, 2009

As I have commented often in recent months, the current economic crisis has not been kind to internal auditing. Granted, we have not seen the level of layoffs or staff reductions that we may have seen in other professions, but there is plenty of evidence that our Sarbanes-Oxley era of prosperity has come to an abrupt halt. Following years of healthy growth, many internal audit activities reported budget and staffing reductions in 2008. This pain was nothing compared to what 2009 would bring. A recent Knowledge Alert (PDF) from The IIA’s Audit Executive Center reports on the results of a North American survey about the impacts of the economy on internal audit activities. The Knowledge Alert notes that 23 percent of all responding organizations — as well as 34 percent of survey respondents working for Fortune 500 companies — report that their internal audit staff levels had been reduced in 2009. This is a far cry from the year-over-year, double-digit increases that were being posted in 2004 and 2005.

continue reading...