Auditors more involved in risk management

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Internal auditing is becoming more standardised throughout the world and is set to expand its role in organisational governance and risk management, according to findings from a new study.

The Institute of Internal Auditors Research Foundation’s (IIARF) Common Body of Knowledge found that 80% of internal auditors expect to work more in the areas of risk management, and 63% claim they will be more involved in governance issues in the near future.

Additionally, 82% of internal auditors are following the International Standards for the Professional Practice of Internal Auditing either entirely or to some degree.

The findings are among the preliminary results that have been released from the Common Body of Knowledge, a project that the IIARF claims is the most comprehensive global study yet conducted into the internal audit profession. The report was compiled by 15 researchers from around the world with the participation of more than 9,300 internal auditors in 91 countries.

“Because the internal audit activity usually is directed by an oversight body such as the board of directors’ audit committee, this high percentage of adherence to the stabdards points towards the business world’s growing recognition of internal auditing’s value to good governance,” said Roderick Winters, president of the IIARF and general auditor for Microsoft Corporation.

“We now have an accurate view of the profession within various cultures and as a whole, which will serve as a baseline for understanding how the internal audit profession will evolve in the future, further [affecting] organisations and their stakeholders,” Winters added.

A comprehensive report on the complete findings will be published in October, further analysing the data on various cultures throughout the world. The process is intended to be repeated every three years, to provide the internal auditing profession with up-to-date and relevant guidance on an ongoing basis.