What is the most significant internal audit event in the last 30 years?

7 Oct

See discussion in Chief Audit Executives Group @ LinkedIn (Tom McLeod)

There are excellent proposals, including the Cadbury report in the UK, Cynthia Cooper as Vice President of Internal Audit at WorldCom, or the integration of Risk Assessment /Management into the internal auditing function and so forth.

Here is my suggestion:

I can imagine that COMBINED ASSURANCE could become a watershed event, a true game changer. That concept has come on the agenda via the King code on corporate governance for South Africa (also known as King III). Combined Assurance is still pretty fresh and hardly implemented, yet, certainly outside of South Africa. However, I see much value and potential in that concept, possibly upgrading Internal Audit (IA) into INTEGRATED ASSURANCE (IA), eventually: that is, speaking with one solidified voice, providing an holistic perspective on residual risk and so forth. IA would then render potentially much more (perceived) value to the board and senior management, once silos and the 3+ lines of defense have become more integrated. This forthcoming trend – as I see it – may help the IA profession, provided internal auditors can step up to the plate and lead that change. That, however, remains to be seen. Who will drive that change? Change possibly towards establishing a “Corporate Governance Officer” or so someday. Who will be taking that seat at the table? There is competition … IA may come out stronger or IA may be further marginalized. Action is needed.

Views welcome.

SARENS, DECAUX & LENZ (2012), COMBINED ASSURANCE

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