Actu
IT Risk, IFRS Transition Rank among Internal Auditors’ Biggest Concerns
April 2009 by Marc Jacob
Gaining a better understanding of IT risk, international financial reporting standards (IFRS) and extensible business reporting language (XBRL) top the “to do” list for internal audit executives this year, according to the 2009 Internal Audit Capabilities and Needs Survey conducted by Protiviti, a global business consulting and internal audit firm. The survey report also shows ISO 27000 (information security) rounding out the top five concerns list, but indicates that internal auditors are becoming more comfortable with the data security and privacy measures companies are implementing.
This is Protiviti’s third Internal Audit Capabilities and Needs Survey. The 2009 survey had more than 1,000 participants – chief audit executives, internal audit directors, and managers from publicly traded, private, government, educational and nonprofit organizations – who hailed from virtually every major business sector, including financial services, insurance, real estate, energy, utilities, manufacturing, distribution, healthcare, technology, biotechnology, hospitality, retail and telecommunications. The participants answered 100 questions in three categories: general technical knowledge; audit process knowledge; and personal skills and capabilities.
Additional survey findings include:
– Enterprise Risk Management most pressing for hospitality and life sciences companies was among the top-five “need to improve” areas in the general technical knowledge category.
– For the first time, four fraud-related activities ranked among the key areas that needed the most improvement, with healthcare organizations expressing the most concern.
– When it comes to personal skills, dealing with confrontation an area added to the 2009 survey – ranked the second highest “need to improve” area, following the development of board of directors and audit committee relationships.
Despite changes in the business environment, some feedback has remained stable during the survey’s three-year history – most notably in the personal skills and capabilities section. Developing other board committee relationships has taken the top spot in the category’s “need to improve” section every year of the Protiviti survey, while presenting (public speaking), developing outside contacts/networking, and developing audit committee relationships have held relatively consistent positions among the section’s top five rankings.
The survey was designed to chart internal auditors’ evolving business priorities and their skill sets. This year’s survey, which launched at the 67th Annual Institute of Internal Auditors’ International Conference, was conducted during the summer of 2008 and captured the opinions of industry-leading professionals through in-person and online surveys.
A complimentary copy of Protiviti’s 2009 Internal Audit Capabilities and Needs Survey is available at: www.protiviti.com/go/iacn3.
