March 2003

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From the President's Study

In January, during the American Accounting Association, Auditing Section's Midyear Meetings in California, I had the pleasure of introducing The IIA Research Foundation's landmark research report - Research Opportunities in Internal Auditing (ROIA). This report represents some of the best thinking from leading academicians on areas that will affect the future of our profession. It also addresses our profession's growing responsibilities as well as the increased recognition that recent corporate governance initiatives have provided.

The report recognizes that a new generation of researchers and students is becoming interested in the internal audit profession. The book was edited to appeal to this audience and to influence the thinking of other academics, practitioners, business leaders, standard-setters, policy makers, regulators, students, and the general public. The Foundation also plans to align its research priorities with those identified in ROIA. You can read ROIA by downloading it free from www.theiia.org. A related article in this RF Report tells you more about ROIA.

The Foundation remains committed to advancing understanding of internal auditing's state-of-the-art practices, trends, and fundamental issues, so that people can make better decisions about our activities.

As we look forward to 2003 and beyond, we face several major challenges. We must find ways to support both basic research and applied research. Are we up to it? We have to be! Both types of research are needed to build the bridges to the next level in our profession. And we need your support to make that happen.

Internal auditing is a global profession and our mission must remain focused on unique (and cost-effective) ways to address global developments in internal auditing.

Last June, The Foundation's Board of Trustees voted to fund a project that will focus on governance issues in Australia and New Zealand. This is the first project that we have funded jointly with an IIA affiliate (IIA-Australia) and a university (RMIT University). This effective partnering allows us to leverage our scarce resources while benefiting from the end result – a quality research report with global appeal. If your organization or affiliate wants to enter into a similar arrangement with The Foundation, we want to hear from you.

Currently, The Foundation is pursuing these commitments to the profession:

1. A major funding initiative that will commit approximately US $1.25 million to internal audit research over the next five years,
2. Development of a comprehensive database describing the practice of internal auditing,
3. Development of a structure that allows us to share research results with IIA affiliates on a global basis, and
4. Continued funding of short-term state-of-the-art research that affects the practice of the profession. Projects in progress and new Research Foundation projects are featured in separate articles.

In spite of the day-to-day pressures of performing our jobs, we need to take the time to think about why things work, why they don’t, and suggest ways to make things better.  That is the ongoing challenge of research.

We are fortunate to have developed rapport with leading practitioners, academics, and researchers who can help us remain committed to the profession. Our Board of Research Advisors and the Board of Trustees comprise dedicated individuals who believe in the importance of timely research. And we are grateful to you, our loyal supporters – individual, corporate, and affiliate contributors; Master Key and Heritage Club members; and IIA staff and volunteers. Please keep your support coming so we can accomplish the initiatives you read about here, and so much more.

I would be remiss in closing without recognizing the outstanding contribution of Basil Pflumm to internal audit research. Basil will retire as executive director of The Foundation in July. He has been the heart and soul of the Research Foundation for many years, and we have benefited from his uncanny ability to understand good research and apply it to benefit the profession. He was a leader in encouraging The Foundation to look at internal audit competencies and insisting that The IIA revise its definition of the profession and approach to providing guidance based on our research. He has always encouraged the profession to move forward and understands the importance of research in helping it move in the right direction. Basil, you will be missed!