Is Internal Audit Meeting the Challenge? Perhaps Not!
EY has just released an important study on Internal Audit’s Evolving Role. I strongly recommend a careful read, then separate discussions with your top executives and audit committee members.
Before getting into the substance, it is critical to understand who were surveyed. This was not a typical survey of CAEs or audit committee members. The survey (by Forbes Insight) obtained feedback from:
Executives and audit committee members typically have different expectations of internal audit. As the function reports to the latter, I suggest that the report be read carefully and validated with your primary stakeholders before confirming that the conclusions are appropriate and applicable to your organization.
Here are the key findings:
Frankly, the last one does not worry me much. Internal audit should be independent of management, so I am surprised that as many as 37% involve internal audit in making decisions or setting strategy.
Yet, the premise of the EY paper is that internal audit should have a role as “strategic advisor”!
Do you agree? Or do you join me in saying that we should:
Posted on Nov 2, 2010 by Norman Marks
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