Contributors of Value.

Author:Dua, Lalit
Position::Reader Forum - Letter to the editor
 
FREE EXCERPT

In my experience working for big corporations or as a consultant, internal audit has never demonstrated its capability and competency adequately enough to gain audit committee confidence. Statutory auditors certify financial numbers, on which all stakeholders rely to an extent on internal audit observations on the robustness of systems and controls. For the audit committee, the role of statutory auditor is always bigger than internal audit.

Because internal audit's scope ranges from operations and finance reviews to verifying statutory compliance and even the robustness of enterprise risk management, the key concerns highlighted by internal audit appear to be too lengthy for the audit committee. If internal audit is not giving adequate coverage to all these areas, the first question stakeholders will ask is, "What was internal audit doing?"

Business managers earn profits and expand business for stakeholders, so they easily get away with excuses about working outside the rule book to ensure continuity of...

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