| Internal auditors believe they are gaining influence and visibility with senior corporate managements, a broad-based international survey suggests. The sector "is predicted to expand its role in organizational governance and risk management," according to the Institute of Internal Auditors, which released the survey last week. (Please see our correction below.)
More than 9,000 internal auditors from 91 countries participated in the survey, which was commissioned by the IIA Research Foundation. Sixty three percent of respondents said they expect internal auditors to work more in corporate governance in the future, while 80 percent expect to be more involved in risk management. Respondents also endorsed the idea that internal audit activities are perceived as effective and adding value to organizations.
The survey identified "risk analysis and business skills, confidentiality, objectivity, and ethics," as attributes critical to internal auditors.
Unlike public accountants, internal auditors are unregulated. That magnifies the importance of self-regulation - a role the IIA aims to fill by promulgating detailed International Standards for the Professional Practice of Internal Auditing and eventually compiling a "common body of knowledge" that will be updated through a new survey every three years.
The IIA trumpeted the fact that 82 percent of respondents said they follow the organization's published standards of practice "at least partly, if not entirely." However, the results also indicate that one key standard is largely ignored.
Only about one-third of respondents said they complied with Standard 1300, Quality Assurance and Improvement Program, which calls for audit teams to monitor the quality and effectiveness of their own activities through various formal measures such as "periodic internal and external quality assessments and ongoing internal monitoring."
The IIA report called Standard 1300 "a barrier to full compliance for many organizations worldwide." It recommends that the institute guide companies toward "less costly" alternative methods for gauging the effectiveness of internal audits.
The IIA expects to publish its complete report on the present survey in October. The institute has 140,000 members from 165 countries.
Editor's Note: Our original coverage of the IIA's survey was published in the form of a summary from another publication and, because of an editing error, included some conclusions that the IIA contended were inaccurate. Our review of the original report leads us to believe the IIA is correct. We regret the error.
RECOMMEND THIS ARTICLE
You must be logged in
to recommend articles
|
Share Article
