During a recent visit with U.S. Congressional leaders, I explored support for making disclosure of whether a company has an internal audit function a requirement for being publicly traded. I was heartened that most legislators I spoke with said they would consider such a step.
While this would seem to be a minor added condition for allowing a company to be listed on an exchange, in practice it would be a significant step in pulling back the curtain to reveal an organization’s commitment to good corporate governance — particularly risk management and internal controls.
Such a disclosure requirement would stop short of compelling companies to have an internal audit function, but it would deliver important information to prospective investors by providing a glimpse into the culture of the organization.…