Saturday, April 12, 2014

Can Internal Auditors Rely on the Work of External Auditors ?

My LinkedIn connection and a member of my group " Internal Audit & Risk Management Consultants ", Mostapha Osman has written an article in the Banker Middle East magazine (page 36 of the March 2014 issue) raising an interesting issue : "Internal Audit Reliance on External Audit in the Middle East " The article discusses whether internal auditors can rely on the work of external auditors and use it as part of their internal audit work. The issue here ,obviously, relates to the work  external auditors perform in the course of their normal external audit procedures and does not refer to any internal audit outsourcing /co - sourcing activities. he concluded the article by saying :

 "We truly believe that Internal Audit function should not rely on external auditors "

I encourage you to read the article ( to which I have provided  link above) to get an understanding on  how he  has arrived at this conclusion. Please share your experience and thoughts .

P.S : I had the pleasure of meeting with Mostapha face to face ,and had a fruitful discussion about our profession ! 

Wednesday, April 2, 2014

Are Internal Auditors Still lagging Behind ?

I was saddened ,not surprised though , with some of the PwC's 2014 State of the Internal Audit Profession Study findings  :

  • On average only 49% of senior management and 64% of board members believe internal audit is performing well at delivering expectations .
  • More than half (55%) of  senior management do not believe internal audit adds significant value.
  • Significant differences of opinion  exist between stakeholders and CAEs on the nature of what is expected of internal audit. 

Although the above percentages show slight  improvement from the year before, it is, in my opinion, disappointing !
In your opinion ,as an internal auditor ,do you think that:
  • The results of this study reflect what is happening at your organization?
  • Internal auditors are not doing enough, yet, to prove themselves and gain a seat at the table .
  • Internal auditors are not doing a good job "marketing" themselves and communicating with management.
  • There is still a lack of awareness among senior management of the importance of internal audit.
  • Internal audit expectations are vague and unrealistic .
  • No body likes to be audited !
Please share your experience and thoughts ! I think the issue at hand is a result of all of the above !
P.S: You are invited to join my LinkedIn Group : "Internal Audit & Risk Management Consultants "



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