Internal Auditors need to be more flexible in adapting their audit plans according to the IIA 2015 Global Pulse of Internal Audit Survey. With unexpected and quick changes in business risks, do internal audit teams react fast enough to address their changing risk profiles?
This article has been taken from the Journal of Accountancy.....
Internal auditors may need to change their approach to audit planning to keep up with unexpected and fast-paced changes in risks, a new global survey shows.
Most internal audit departments are not flexible in adapting their audit plans to handle rapidly changing risks, according to the Institute of Internal Auditors (IIA) 2015 Global Pulse of Internal Audit survey. More than 3,344 chief audit executives (CAEs) participated in the global survey.
Just 16% of CAEs reported that their organization has a highly flexible audit plan that matches the organization’s changing risk profile. Almost one-fourth (24%) of CAEs said their organization has a formal enterprise risk management process with a chief risk officer or equivalent, and almost half (47%) said their risk management processes are informal, developing, or nonexistent.
Many internal auditors encounter barriers to important resources, as just 54% of CAEs said internal audit at their organization has complete and unrestricted access to employee records and property for their work.
The report concludes that:
—Ken Tysiac ( firstname.lastname@example.org ) is a JofA editorial director.