February 2014
Earlier this week, I came across an article that discussed an ongoing dispute in Delaware over funding of the State Auditor’s office. Partisan politics appear to be at the root of a debate over more than US $2.5 million sought by the State Auditor to make his auditors’ pay scale more competitive. The title of the article, “Delaware Auditor: Low Pay Could Muzzle ‘Watchdogs’,” might be a bit sensational, but don’t underestimate the effectiveness of purse strings toward containing internal audit functions in government or the corporate sector.
First, let me say that a vast number of corporate executives and government officials demonstrate appreciation for a strong and effective internal audit function and the oversight it can bring.…
This week marks the fifth anniversary of this blog, which I launched only days after joining The IIA’s Global Headquarters as president and CEO. It was a time of huge challenges amid the worst economic crisis since the Great Depression. The IIA, subject to the same pressures as our members, was exploring how to navigate the financial challenges we faced. And, while I acknowledged the obstacles ahead in that first blog, even then I could see potential and opportunity — for our members, for our global association, and for the internal audit profession as a whole.
The storm clouds were merely a passing front.…
Internal auditors are right to be concerned about third-party risks. The days of a company’s suppliers or partners being well-known and trusted businesses on the same street or town are a distant memory.
In the interconnected, global economy of the 21st century, you are apt to be purchasing raw materials, components, or services from business entities halfway around the world. In turn, these unfamiliar partners may be acquiring subcomponents from other businesses whose very existence may be unknown to us. Third parties can create extraordinary risks for an enterprise, as we have seen played out repeatedly on the global stage.
Hiring practices, working conditions, conflict minerals, carbon footprint, political conflict, data security, financial stability, intellectual property — the list goes on.…