PWC's 10 imperatives for Internal audit transformation.

• Author: Heffes, Ellen M.
• Position: Domestic - PricewaterhouseCoopers LLP - Brief Article

Corporate governance and control environments have changed forever in the wake of Enron Corp.'s collapse, and attention to control issues has heightened. Recipes for avoiding future Enrons by revamping current processes are being developed from a variety of sources. PricewaterhouseCoopers LLP Internal Audit Services practice's, "Transforming the Focus For a Changing Environment," contains 10 imperitives that it says can "help you succeed in a post-Enron world:"

1. Sharpen dialogue with top management and directors. The need for close and constant communications has never been greater.

2. Realign to meet key stakeholder expectations. Many directors have changed their personal views and expectations of internal audit.

3. Think and act strategically. Internal audit must adopt a strategic orientation and position if it is going to fulfill its mandate.

4. Expand audit coverage to include "tone at the top." Boards are seeking to answer the question, "Could Enron happen here?" and they want assistance and assurance from internal audit as part of the answer.

5. Assess and strengthen expertise for complex business auditing - such as off-balance-sheet risks and special-purpose entities.

6. Leverage technology in high-risk areas. In a highly complex business world, you need a level of technology sophisticated enough to match the level of risk you're trying to manage.

7. Focus on enterprise risk management capabilities. Hundreds of companies...