Literature Review on Internal Audit

Survey finds internal audit risk assessments inconsistent Year: August, 2007 The report suggests that internal auditing needs to identify areas of high and moderate risk that are part of the internal audit plan but have been deferred or cancelled because of the organization's focus on Sarbanes-Oxley Section 404. It recommends that chief audit executives (CAEs) revisit the budgets, skills, and capabilities needed to achieve a comprehensive, balanced, and risk-based approach to auditing, as well as develop a process to advise the audit committee and senior management about emerging risks. In other findings, internal audit leaders say their greatest challenge is finding enough qualified talent to address the growing and increasingly complex needs of their stakeholders. To help address this problem, rotational staffing has become a key source of talent for more than 80 percent of respondents from Fortune 500 companies. Additionally, the report notes that audit departments are using report ratings, such as satisfaction or number scales, with mixed results. Although many CAEs say ratings allow them to communicate the potential level of exposure and risk associated with audit findings, 56 percent say ratings often create friction at their organizations and slow down the audit process. Finally, 43 percent of respondents use some form of continuous auditing or monitoring in their audit operations. The PwC report is available from the company's Web site, www.pwc.com/internalaudit. Reference: http://findarticles.com/p/articles/mi_m4153/is_4_64/ai_n27348378/ PwC Study: Internal Audits Lack Strategy for Risk Assessment Year: May 21, 2007 There continues to be a lack of consistency around the assessment of risk by internal auditors, according to the third annual study of current issues for the internal audit profession conducted by PricewaterhouseCoopers. A number of divergent and conflicting trends related to risk assessment are a concern among