August 2013

August 19, 2013

The Inevitable Challenge of Mending Broken Fences

Anyone who has spent much time as an internal auditor has inevitably generated audit results that created friction or tension with those whose areas of responsibility were audited. Sometimes, even the most professionally executed internal audit with the most constructively written report can land with a huge thud. The results of our reports often are used as the basis for evaluating management performance. Unfavorable results have been known to cost executives a bonus, a promotion, or even their job. Adverse audits can damage relationships. Call it a “broken fence.”

It is practically impossible to avoid occasionally breaking fences in our line of work.…

August 5, 2013

Past Performance or Future Potential: Why Is Internal Audit on Regulators’ Radar?

With attention comes attention. Internal audit has been looking to elevate its “seat at the table” for as long as I can recall. And, in 2013, internal audit is being given that seat more and more as a result of regulatory intervention. Internal audit is getting attention.

As you have likely noticed, internal audit is increasingly finding itself on the radar of regulators around the world, particularly those overseeing financial services. We saw this in the U.S. Federal Reserve Guidance that came out earlier this year. And, in response to concerns being raised by financial services regulators in The U.K., The Chartered Institute of Internal Auditors published Effective Internal Audit in the Financial Services Sector: Recommendations From the Committee on Internal Audit Guidance for Financial Services.…