Pressure_on_Internal_Audit_revealed_in_Irish_Survey
26 August 2005
A new survey from the Institute of Internal Auditors – UK and Ireland (IIA) and KPMG Ireland, shows internal auditors under intense pressure to perform at the highest levels, both by regulators and by their own organisations.
New and revised legislation – including Sarbanes-Oxley, the Mullarkey Report and the Code of Practice for the Governance of Semi State Organisations, have led 88% of heads of internal audit to refocus their internal audit planning processes and in many cases to also change their reporting lines. Around half have employed more staff or used outsourced services.
The survey showed greater accountability and closer relationships with key influencers. The survey found that internal audit departments now report more frequently to their audit committees, compared to a similar survey carried out in 2001. 79% now report quarterly or more often, compared to 30% four years ago and over 63% provide an audit opinion to the audit committee.
Internal audit practices in Ireland have also evolved with a significant majority complying with best practice. Over 89% of heads of internal audit used a risk based methodology when preparing their internal audit annual plans and 72% reported that they performed their work in accordance with the IIA's International Standards for the Professional Practice of Internal Auditing.
Karen Dignan, IIA President commented: "The findings of our survey show just how seriously boards now value the objective assurance provided by internal audit. Heads of internal audit are responding to the challenges by working increasingly closely with their audit committees ensuring they have the "top-table" voice that is needed for their work to be effective."
Declan Keane, Head of Business Advisory Services – KPMG Ireland commented: "The role of internal audit in Ireland has expanded over the past number of years. More is being asked of heads of internal audit and their teams in terms of supporting audit committees in fulfilling their responsibilities for ensuring that organisations are protected by strong controls and good corporate governance."
Irish_Survey_2005
Irish Survey 2005