The changing role of internal audit
The period 2007-2009 is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It contributed to the failure of key businesses, declines of consumer wealth and a significant drop in economic activity. Today, many companies are still suffering from the financial and economic crisis and consequently, value for money and cost reduction programs have been re-invented
Does this also apply to Corporate Governance? Since the Sarbanes-Oxley Act of 2002, Corporate Governance has received a tremendous increase in importance and media attention. Codes and guidance have been developed, Corporate Governance programs, structures and frameworks have been implemented at companies.
Current circumstances are forcing Internal Audit departments to reflect on their role, focus, contribution and size and how these should evolve in the future. We wondered what the (net) impact on the Internal Audit function is from the economic crisis on the one hand and the increased importance of Corporate Governance on the other hand.
Through an Internal Audit survey we obtained interesting input of three major Internal Audit stakeholders on these matters: Audit Committee members, Executive Management and Internal Auditors. We questioned their opinion on how Internal Audit should evolve over the next 5 years and we present you the results of their reflections in this publication.