Chief audit executives (CAEs) could boost management's confidence in internal audit by filling an assurance void in often-overlooked areas, notes the 2017 North American Pulse of Internal Audit report from The IIA's Audit Executive Center.
One of those overlooked areas dovetails with the growing public concern about misinformation. Two-thirds of the 538 North America-based CAEs, internal audit directors, and senior audit managers who responded to the survey say communicating errors and other misinformation about company performance through channels other than financial reports is a high risk to their organization. Yet, just 9 percent say their audit function covers this risk in their audit plan, according to the report.
Another costly risk area is environmental, health, and safety (EHS), the source of more than US$13 billion in federal government fines for U.S. organizations in 2015. Despite such potential costs, only 48 percent of respondents say they include EHS risks in their audit plan. Boards and audit committees are more likely to receive such assurance from the risk management or compliance functions, or from a...