Internal audit is often not allowed to utilize its full potential according to a recent piece of research undertaken by CIPFA. To find out how to maximize its potential, a survey was done on 800 auditors and management professionals across the UK and internationally.
The research findings included:
- In order for internal audit to be effective, management and governance must also be robust and effective.
- Internal audit often faces constraints on showing its full potential. Clients should fully understand and acknowledge the significance of internal audit. The duty of achieving this lies on the heads of internal audit.
- To acquire the maximum impact of the internal audit in an organisation, it needs to be kept independent.
- With ever changing assurance requirements, internal audit should have the capability to employ new technology to keep up with the pace.
- There should be a great amount of consistency in necessary assurance requirements to accommodate the varying needs of internal audit across different organisations.
More details are available via the web links below.
(Briefing note compiled from source material)
Audit Committees and Boards / Governing Bodies are advised to note the report.