January 2013

January 28, 2013

The U.S. Federal Reserve Sends a Strong Signal on the Value of Internal Auditing

Every now and then, regulatory bodies around the world issue guidance documents that make a profound statement about internal auditing. Last week, the U.S. Federal Reserve issued some new guidance that clearly falls into that category.

The 15-page document, titled Supplemental Policy Statement on the Internal Audit Function and Its Outsourcing, technically applies only to U.S. banks with assets of US $10 billion or more. However, from my perspective, the Fed has made a powerful statement on the importance of a strong and effective internal audit function in financial services institutions in the “post financial crisis” era.

With this statement, the Federal Reserve also comes closer than virtually any other regulator in the industry to endorsing or mandating The IIA’s International Standards for the Professional Practice of Internal Auditing.…

January 18, 2013

Conformance With Internal Audit Standards: Whose Job Is It Anyway?

This year marks the 35th anniversary of The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards). Over the years, the Standards has become recognized as a critical means by which internal auditing’s stakeholders gain assurance on the quality of internal audit’s work. Conforming with the Standards lets our stakeholders know that the internal audit function is a reliable resource because it’s independent; operates with a high degree of professionalism; is staffed with ethical, objective professionals; and adds true value to the organization. As such, The IIA’s Code of Ethics and Certified Internal Auditor designation make conformance with the Standards a requirement for IIA members, IIA certification holders, and candidates.…

January 4, 2013

Five New Year’s Resolutions Every Internal Auditor Should Make for 2013

Over the years, one of the practices I have followed in writing my blog is to open the year by sharing five New Year’s resolutions that every internal auditor should make. As I noted last year, these are not the typical resolutions about losing weight or exercising more — although some of us could certainly benefit from such resolutions as well.

Instead, the resolutions that I propose are designed to enhance the quality of our performance as internal audit professionals. They are simple resolutions that are powerful enough to enhance our value, but so painless that keeping our resolutions changes from a mere possibility to a probability.…