Weekly Wrap – 13th November 2014

 

Hi I am Tom McLeod, Co-Founder of McLeod Governance.

This is what I would be thinking about this week.

America’s Influence in Internal Audit

Are we witnessing the decline of America’s influence in internal audit?

There are three major events in internal audit over the last seventy years and they are all based in the United States.

Firstly in December 1941 – the establishment of the Institute of Internal Auditors.

Secondly the creation of the COSO framework in 1985.

And thirdly the enactment of Sarbanes Oxley in July 2002.

What Has the United States Done Since 2002?

But in the subsequent twelve years what is it that the United States has given to the profession of internal audit?

It is an interesting question and a question that should be rightly asked.

Need for More Global Approach

For me, I am not yet sure that we are seeing the terminal decline of the United States’ influence, although I would like to see the large accounting firms – and indeed the Institute of Internal Auditors – take a more global approach to the application of internal audit in different cultures and different environments.

Who Is Ready to Stand Up?

But just suggesting that there is a terminal decline in the United States’ influence begs the question as to who is ready to stand up?

There are many countries that have the numbers but not necessarily the interest.

There are those countries that have the interest but not necessarily the numbers.

So my challenge isn’t so much to seek to stop the decline, if indeed that is happening, of America’s influence but rather ask of those other countries what are they doing to step into the void.

At the moment it can be said that they are not doing much.

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