Internal Auditor

Browse past and current articles from this publication.

Progress and technology.(EDITOR'S NOTE)
PUBLISHING TECHNOLOGY HAS COME A LONG WAY IN THE LAST 20 years or so. Whereas traditional print publishing was hampered by tedious, manual processes and often clunky production tools, today's softwa . . .

Ethical lapses or cultural kudos?(LETTERS)(Letter to the editor)
Thank you for the "Ask The Experts" article, "A Lapse of Ethics" (June 2009). It is an excellent guideline for identifying and addressing many of the challenges associated with ethical issues within . . .

A productive audit culture.(LETTERS)(Letter to the editor)
I applaud Norman Marks' article, "Risk's Role in Governance Failures" ("Governance Perspectives," June 2009), as one that adds positively to the conversation. He points out aspects of risk managemen . . .

Who's to blame?(LETTERS)(Letter to the editor)
I'd like to share two observations about internal auditing from inside the mortgage crisis after reading Tom Palczewski's article, "A Collective Failure" ("In My Opinion," June 2009). I was an inter . . .

IFRS discrepancies vary by country, company.(UPDATE)
Stimulus Spending May Motivate Corruption Tech Companies Realize Compliance Gains Ethics Aren't Considered in Executive Pay Sustainability Saves More Than Environment THERE ARE CONSIDERABLE . . .

Spending may stimulate corruption.(UPDATE)
THE US $5 TRILLION IN STIMULUS SPENDING BY GOVERNments worldwide may spur a "new wave" of fraud and corruption, U.S. Federal Bureau of Investigations Director Robert Mueller warns. According to esti . . .

Compliance costs falling for tech firms.(UPDATE)
MORE THAN 80 PERCENT OF FIRMS IN THE TECHNOLOGY industry decreased their total cost of U.S. Sarbanes-Oxley Act of 2002 Section 404 compliance during the last year, according to KPMG's Internal Contr . . .

Weak link between business ethics and executive compensation.(UPDATE)
AT A TIME WHEN THE OBAMA ADMINISTRATION, GOVernment leaders, and the public are calling for reforms in executive compensation and employee bonuses, it appears that there is relatively little connect . . .

Go green, save green.(UPDATE)
COMPANIES LOOKING FOR WAYS TO CUT EVEN MORE costs from their bottom line should take a closer look at their sustainability initiatives. Organizations with the strongest sustainability programs have . . .

Delivering audit value: internal auditors play an important role in evaluating, and contributing to, the organization's well-bei
IN THE PAST, INTERNAL AUDITORS DID not need to consider the importance of adding value when performing their work assignments. Instead, engagements typically consisted of verifying compliance with p . . .

Security in a cloud; Auditors must review risks across three distinct domains when organizations outsource IT security administr
MANY ORGANIZATIONS ARE INVESTING in identity and access management (IAM) solutions to automate security administration functions and help reduce the number of resources required to perform manual se . . .

The search for the ideal: to fulfill their role, internal auditors must provide professional assessment of governance, risk mana
IT IS NO SECRET THAT CHALLENGING times are also times of great opportunity. Characteristics of strength are never more evident than in the presence of stress. Stress exposes weaknesses, bringing the . . .

The search for meaningful data.
tHE BIRD PERCHED HIGH ON A TREE LIMB SURVEYS the surrounding landscape. Below the bird are all the resources she needs to live--food, raw materials to build a nest--although the most crucial items a . . .

Software trend spotting; Recent IIA survey results show many auditors use software to automate key tasks, though a surprising nu
iN THIS TOUGH ECONOMIC CLIMATE, INTERNAL AUDIT shops around the world are under pressure to be as efficient as possible. How to do more with less is a question on everyone's mind. One answer could b . . .

Leveraging data analysis software; Today's data analysis technologies go far beyond yesterday's audit tools to help internal aud
dOING MORE WITH LESS IS EASY TO SAY, BUT NOT to do. Chief audit executives (CAEs) are being pressed to extend their audit plan from a traditional focus on controls to include assessments of risk man . . .

Accounting for words; Text analytics technology may help internal auditors uncover hidden risks and gain greater insight on busi
tHE ROLE OF INTERNAL AUDITORS TRADITIONALLY has been dominated by financial reporting, special projects, and compliance-related efforts. But auditors now are constantly challenged to contribute to o . . .

Ponzis and pyramids: internal auditors can play a role in minimizing the risk companies face in too-good-to-be true investment s
BERNARD MADOFF. ALLEN STANFORD. PATRICK BENNETT. NABIL AL-BOUSHI. JOHN MCNAMARA. Some of these names are recognizable by many; others will be remembered only by their victims. Carlo Ponzi (1882-1949 . . .

Internal auditing in Eastern Europe; Understanding the unique business environment and long-held perceptions of the profession i
POST-SOVIET COUNTRIES IN EASTERN EUROPE have faced significant business transformations and challenges as they shifted from a centrally planned Communist economy to a market economy. Although two de . . .

In search of the Holy Grail.(IA HUMOR)
Once upon a time there lived a very wise king named King Clever. One day, King Clever gathered together his loyal knights of the round table. "I must appoint a new head of internal auditing, and I h . . .

The Need for control: inadequate segregation of duties in the IT department prompts a tense meeting between the audit executive
DAVE IS THE CHIEF AUDIT EXECUTIVE (CAE) of Chem-R-Us (CHRU), a leading provider of services to the oil and chemical manufacturing industries. CHRU has annual revenues approaching US $1 billion and i . . .

Unethical deeds or outright fraud? A bank chairman hides his loans from shareholders and regulators to avoid unwanted disclosure
THE LINE BETWEEN LEGAL AND ILLEgal business activity is normally clear, but--especially in a principles-based regulatory environment--a gray area exists between appropriate and inappropriate behavio . . .

An audit of legal services; an audit of the legal department can lead to improved efficiencies and cost savings for the organiza
THERE IS AMPLE OPPORTUNITY FOR auditors to improve the efficiency and effectiveness of both in-house and external counsel. Legal services audits are often overlooked, even though they are relatively . . .

Expanding our assurance.(IN MY OPINION)
IT IS UNLIKELY THAT INTERNAL AUDITORS ARE TO BLAME FOR THE CURrent economic crisis. By all existing definitions, internal audit departments in financial institutions worldwide--those at the heart of . . .

Opportunity in crisis.(EDITOR'S NOTE)(Letter to the editor)
YOU MAY HAVE NOTICED THAT INTERNAL AUDITOR HAS APPEARED to be shrinking over the past few months. It's not your imagination. We're printing fewer pages. Internal Auditor is no more immune to the eco . . .

Time to broaden skills.(LETTERS)(Letter to the editor)
I rarely read an article as well-written as "Making Integrated Audits Reality" (April 2009) by Anita Helpert and John Lazarine. I was a computer audit manager years ago and find that some things cha . . .

A productive audit culture.(LETTERS)(Letter to the editor)
I just read Bruce Adamec, Linda Leinicke, and Joyce Ostrosky's article, "6 Cultural Pillars of Successful Audit Departments" (April 2009), which I really enjoyed. It mentions a checklist often ignor . . .

Excusing inexcusable behavior.(LETTERS)(Letter to the editor)
I was very disappointed to read Russell Jackson's "Keeping Greed at Bay" (February 2009). I vehemently disagree with its premise that we cannot hold individuals to high moral standards. Business pro . . .

Internal auditors identify skill needs: CAEs reconsider risk and audit plans class action filings continue to rise recession mot
THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) transition, Extensible Business Reporting Language (XBRL) for communicating financial data electronically, and IT risk rank among internal audi . . .

Fighting high-tech fraud: auditors must master data analysis and other techniques to help prevent and detect fraud in an automat
FRAUD IS A BUSINESS RISK THAT EXECutives, especially chief audit executives (CAEs), have dealt with for a long time. Headlines about corporate scandals and wrongdoing demonstrate the need for organi . . .

Risk's role in governance failures: in addition to sound executive judgment, good governance requires effective risk management.
IN FEBRUARY, THE ORGANISATION FOR Economic Co-operation and Development (OECD) published Corporate Governance Lessons from the Financial Crisis. In the report, the organization concluded that the cu . . .

Getting in tune: to ensure everyone is singing from the same sheet, the organization's tone at the top and real-world tune in th
THE FORMAL CODE OF CONDUCT AT UNILEVER is the glue that holds the multinational consumer goods company together, says Chief Audit Executive (CAE) Alan Johnson. It sends a clear message from the top . . .

10 Strategic GRC: steps to implementation: a structured, informed approach to governance, risk, and compliance efforts can help
DRIVEN LARGELY BY LEGAL AND REGULATORY requirements, many organizations have made significant investments in their risk and control functions during the past few years. As a consequence, areas such . . .

Keeping your reputation clean: corporate missteps and evolving risks can leave organizations open to negative stakeholder percep
WITH JUST A BIT OF IMAGINATION, IT'S NOT too difficult to hear a chorus of "I told you so's" echoing through C-suites around the globe, as internal auditors listen to frantic senior managers and boa . . .

A reserve against loan defaults: setting aside appropriate funds in loan-loss reserve accounts, based on accurate information, i
THE CURRENT FINANCIAL market turmoil and the effects of significantly higher loan defaults will certainly bring about a call for all banks to review their risk management policies. One critical aspe . . .

Achieving our potential: the IIA's new chairman of the board, rod winters, CIA, CPA, shares his strategy for helping internal au
IN THESE DIFFICULT ECONOMIC TIMES, INTERNAL AUDIT PRACTITIONERS, and the organizations they serve, are being challenged as never before. Many businesses are in a continual state of flux, revising th . . .

The rise of the chief risk officer: the financial crisis is drawing greater attention to the CRO's evolving role and its implica
OVER THE PAST DECADE, MORE AND more companies have created a new role within their senior management team dedicated to risk management--the chief risk officer (CRO). Previously, risk management had . . .

A lapse of ethics: whistleblower complaints prompt an audit committee chair to seek guidance from the organization's chief audit
LISA IS THE HARD-WORKING CHIEF audit executive (CAE) for Joyce Musical Instruments (JMI), a privately owned manufacturer and distributor of fine musical instruments and accessories. The firm is head . . .

Bill and hold: a fraud unfolds: a father-son management duo uses an inventory scheme to embezzle US $120,000 from an unsuspectin
EB PARTS INC., A CLOSELY HELD COMpany that sold industrial parts, had 12 employees and average annual sales of US $1.4 million. The owner, Tony Levy, lived in another state and visited the company o . . .

A collective failure.(IN MY OPINION)
THE RECENT U.S. BANK FAILURES REPRESENT THE COUNTRY'S LARGEST financial disaster since the Great Depression, with significant repercussions throughout worldwide markets. A great deal of finger point . . .

In times of adversity.(EDITOR'S NOTE)
THE GLOBAL FINANCIAL CRISIS HAS CLEARLY TAKEN A TOLL ON organizations, forcing many to cut back, downsize, and restructure their operations. Consequently, many businesses now operate under leaner bu . . .

Virtue, vice, and greed.(LETTERS)(Letter to the editor)
I was interested to see Internal Auditor use the language of virtue and vice to explicitly name the root cause of many ethical lapses (Russell A. Jackson's "Keeping Greed at Bay," February 2009). It . . .

The five W's.(LETTERS)(Letter to the editor)
"How Tight Is Your Treasurer's Grip on the Cash?" (February 2009) by Jonathan Marks is an excellent article. It restates what I think is a lost art--using common sense, and treating the corporate fu . . .

Addressing assurance.(LETTERS)(Letter to the editor)
As a CPA with 32 years of internal auditing, external auditing, and consulting experience, I agree with the opinions expressed by Philippe Dangre's "In My Opinion" article, "Rethinking Assurance" (F . . .

Risk management lessons.(LETTERS)(Letter to the editor)
We read with interest comments related to risk in both Mark Beasley's "Risk Watch" article, "Time to Teach ERM," and the Richard Chambers interview, "Rising to the Occasion," in the February 2009 is . . .

The real meaning of adding value.(LETTERS)(Letter to the editor)
While reading Daniel Scheib's "The Value Proposition" ("In My Opinion," December 2008), I noticed that the words adding value are so over-used by auditors and in internal audit literature that they . . .

COSO publishes monitoring guidance: IASB issues fair-value disclosure requirements executives prefer internal investigations for
THE COMMITTEE OF SPONSORING ORGANIZATIONS OF the Treadway Commission (COSO) has published new guidance to help organizations better monitor the effectiveness of their internal control system and tak . . .

IASB amends fair-value requirements.(UPDATE)
THE INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) has amended disclosure requirements about fair-value measurements and announced plans to improve the public accountability of the standard-setting . . .

Executives reluctant to disclose corruption.(UPDATE)
FOUR OUT OF 10 GLOBAL EXECUTIVES ARE RELUCTANT to disclose significant corruption incidents to authorities, according to Fortifying Anti-corruption in Today's Corporation, a Deloitte survey of 329 e . . .

EC seeks accord on inspections.(Regulatory notes)
THE EUROPEAN COMMISSION (EC) is temporarily suspending discussion to allow European Union (EU) member states to cooperate with non-EU securities regulators in audit firm inspections. The plans were . . .

Small audit firms critical of PCAOB inspectors.(Regulatory notes)
SMALL EXTERNAL AUDIT firms are critical of the inspection process performed by the PCAOB, according to a recent survey. The smallest firms consider the amount of time spent inspecting audit engageme . . .