Greetings from San Diego, where The IIA’s aptly titled conference, “Internal Audit Solutions for Tough Times,” is wrapping up. It has been a great event with some very thought-provoking discussions on how the global economic crisis is impacting our profession. In a pre-conference survey of U.S. internal audit practitioners, we learned:
74 percent of internal audit functions experienced flat or declining budgets in 2009.
Almost one-third experienced outright reductions over the past 12 months.
The outlook for 2010 does not look much better with 80 percent anticipating flat or declining budgets.
57 percent have increased coverage of operational risks in the past year.
49 percent have increased coverage of cost/expense reduction or containment for their companies.
51 percent have increased coverage of company exposure to third parties in financial distress.
In 2010, respondents expect to dramatically increase coverage of operational risks, financial risks, compliance risks, and the overall effectiveness of risk management.
With their operating environments evolving rapidly, internal auditors face a number of key challenges in 2010. In a keynote address on August 25, I outlined the 10 most significant challenges that I think internal auditors will face during the coming year:
Richard Chambers, CIA, CFE, CGFM, QIAL, CRMA, CGAP, is the founder and Chief Executive of Richard F. Chambers and Associates, LLC. From 2009-2021 he served as the president and CEO of The Institute of Internal Auditors (IIA), the global professional association and standard-setting body for internal auditors. Chambers has more than four decades of experience serving in and on behalf of the internal audit profession.