July 2016

The recently completed IIA International Conference in New York brought together more than 2,500 internal audit practitioners to share knowledge, network professionally, strengthen old friendships, and create new ones. It also offered the opportunity for the kind of interactions that can draw out insights into the profession.

One discussion I was made aware of involved a longtime chief audit executive (CAE) who was lamenting the growing use of the rotational CAE model in his industry. The number of firms turning to the model, including some of the largest within that industry, is alarming, the executive confided.

I have written in the past about my apprehensions about the rotational CAE model.…

A recent blog I read raised serious questions about the health of a well-known online enterprise. The thrust of the article was that the enterprise had seen significant turnover in its internal audit function twice in little more than two years. The auditor cited speculation that the most recent departure of key internal audit personnel was an ominous sign and that the enterprise was headed for major trouble.

While I’m not one to encourage speculation, especially about something as significant as the overall health of a company, I’ve concluded that sudden or unexplainable turbulence in an internal audit function can serve as the “canary in the coal mine.”…

In a blog last January, I shared​ “5 Resolutions for Every Internal Auditor in 2016.” At the outset of the year, I urged members of the profession to:

• Be attuned to upcoming regulatory changes
• Advocate for mandatory internal audit in publicly traded companies
• Be wary of internal auditing’s expanding scope of work
• Invest in talent management
• Step out of their “comfort zones”​

As we enter the second half of 2016, I still believe these are initiatives worth th​e pursuit of everyone in our profession. However, the events of the first half of the year have also highlighted some ongoing and emerging trends that warrant our continuous focus.…