Losing value? More stakeholders are questioning whether internal audit is providing "significant value.".

Author:Steffee, S.

Greater compliance burdens are forcing chief audit executives (CAEs) to make difficult decisions about where to focus their limited internal audit resources, according to Grant Thornton LLP's 2014 CAE Survey of more than 400 audit executives from U.S. organizations. Lack of resources often means compliance takes priority over operational areas, which could translate into significantly fewer value-added governance, strategic, and IT audits.

"The dilemma many CAEs face is how to continue adding strategic value through the internal audit function, given the current compliance-heavy environment," Grant Thornton Partner Warren Stippich says. "The solution is not to leave compliance behind as an unchosen option in the place of focusing on strategic and operational areas--but instead to understand how CAEs can leverage compliance activities to add value."

Another study indicates stakeholder perception of internal audit's value may be taking a hit. According to PricewaterhouseCoopers' 2014 State of the Internal Audit Profession study, 55 percent of senior managers and almost one-third of board members surveyed say internal audit doesn't add significant value to their organization. The survey of more than 1,900 CAEs, internal audit managers, and stakeholders from around the world also found, on average, only 49 percent of senior managers and 64 percent of...

To continue reading