Recession over, challenges remain for chief audit executives.

• Author: Ladd, Scott
• Position: INTERNAL AUDIT

Even with recession technically over, a recent survey by The Institute of Internal Auditors (IIA) found that the economic climate continues to pose trouble for internal audit functions.

"As is said about the markets--internal auditing has undergone a major 'correction,' " said Richard Chambers, IIA's president and CEO. "Given the cautious economic outlook for the coming years, it is unlikely that internal audit resources will be restored at a rate faster than the overall economic recovery.

"For that reason alone, it's time for CAEs [chief audit executive] to fundamentally re-examine key elements of their delivery models and how they communicate their value propositions to key stakeholders," Chambers said.

Staffing and spending for IA took a hit during the past three years. Fifty-one percent of Fortune 500 internal audit respondents indicated their budgets were smaller in 2010 than in 2007, while 41 percent overall reported smaller staffing levels.

But survey respondents expressed optimism about the prospects for budget and staffing increases in the year ahead. Thirty-four percent think their budgets will increase in 2011 and nearly one in five said they expect a higher head count.

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