Economy on the Global Internal Audit Profession
Auditors react to new risks, respond to financial crisis
ALTAMONTE SPRINGS, Fla., U.S.A. — The results of a new survey have revealed perspectives on the cause and effects of the financial meltdown, as well as the views of internal auditors regarding how they are responding to the new economic and business environment. Speaking to a gathering of more than 2,000 internal auditors from around the world at The Institute of Internal Auditors’ (IIA’s) international conference held in mid-May in Johannesburg, South Africa, IIA President Richard Chambers, CIA, shared key results from the survey which reflected responses from 1,665 internal auditors in 57 countries.
“This survey data gives us a global snapshot of how internal auditors view what has happened and how they are dealing with it,” said Chambers. “It also tells The IIA what we should look at closer for more in-depth analysis and development of new guidance.”
Three major areas of realization emerged from the survey results.
• Internal auditors’ views are split on whether risk management could have played a mitigating role in the financial crisis, and a majority felt there were more things internal audit activities could have done soften its impact.
• Organizations are redirecting their internal audit resources to cover recession-related risks. And within organizations receiving stimulus or rescue funds, more than a third of internal audit activities have not addressed risks related to the funding.
• The recession has had a trickle-down effect that has impacted the resources of internal audit functions.
Views on the Crisis’ Prevention
Some of the views on how the financial crisis might have been prevented are somewhat evenly split. A slightly higher number of respondents disagreed (36 percent) than agreed (34 percent) that their organization’s current financial situation could have been prevented with better risk... [continues]
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