Speaking at the 2007 Conference of Internal Auditors Bob Semple, Partner, PricewaterhouseCoopers said:
“Companies are exposed to risks as never before - and internal Audit has a vital role to play in helping management address them. The best way for Internal Audit to endear itself to management, to the Audit Committee and to the Board is to put itself in their shoes - and bring practical solutions to the problems they face. While Internal Audit's traditional role has been to provide assurance they must increasingly focus on providing real added-value to the organisation. Otherwise they cannot expect to get the support they so badly need.
Another key area for Internal Audit is the help they can provide to the Audit Committee. The responsibilities on members of the Audit Committee have never been so demanding. Internal Audit can support members of the Audit Committee by providing special briefings, so that all members of the Audit Committee fully understand their responsibilities and how best to respond to topical issues".
Recent global benchmarking by PwC measuring the effectiveness of the internal audit department suggests average costs of Internal Audit are hovering just above a quarter of one percent (0.28%) of total revenue. Semple commented "In the Irish context, a lot of judgement is needed to assess the optimal size of Internal Audit for any organisation. Given the increasing demands from regulation, legislation and other stakeholders, I am confident that we will see management committing much more resources to Internal Audit in the coming years".
Bob Semple concluded:
"For Internal Audit to work effectively it must be given the required autonomy in the strategic decision making process. Internal Audit will only add value if it is properly structured and its remit is fully aligned with the organisation’s strategic plan. Only then can it work as a proper risk management tool and as a gatekeeper to prevent the misappropriation of a company’s assets”.
ENDS
