Internal Audit Changing Expectations
Author:
Liviu MIHÄ‚ILEANU, PwC
JEL:
DOI:
Keywords:
internal audit, Sarbanes-Oxley Act, risk management, internal controls
Abstract:
Rapid change is quickly transforming the practice of internal audit raising significant issues for audit leaders and their chief stakeholders. As this study indicates, there is a clear gap between the current focus of many internal audit functions and where they need to set their sights in order to deliver greater value to their stakeholders. \r\n\r\nThe author shows that, since the passage of the Sarbanes-Oxley Act (2002), internal audit groups have been concentrating on financial and compliance risks, traditional areas of focus where their confidence levels are typically high. Consequently, to address the rising expectations of their chief stakeholders, internal audit groups tend to sharpen their focus on strategic, operational, and business risks. The author also makes remarks of the Romanian internal audit environment and crisis impact over the internal audit function.\r\n\r\nThroughout the next years, the value of controls-focused approach is expected to diminish as internal audit tends to adopt a risk-centric mindset. Study results indicate that five identifiable trends - globalization, changes in risk management, advances in technology, talent and organizational issues and changing internal audit roles - will have the greatest impact on internal audit in the coming years.