Weekly Wrap – 3rd October 2013


0.22 – Achieving high performance in internal audit

1.10 – One of the most damning reports you will read

1.40 – When did you last survey Audit Committee on information requirements?


Hi I am Tom McLeod, Managing Consultant of McLeod Governance.

This is what I would be thinking about this week.

A couple of weeks ago I came across a very interesting report produced by Protiviti looking at how to achieve high performance in internal audit.

There was a section on audit reporting.  And I need to read this to you directly so that you can fully understand my concerns about the findings from this report.

Audit Committee members challenged Chief Audit Executives to enhance the quality of reporting to Audit Committees.  However, Chief Audit Executives appeared satisfied with the status quo from past years.

One third of respondents still indicate that they are not identifying trends or themes in reports.

Similarly, over one quarter are yet to discuss with the Audit Committee the type of information that they want.

This is one of the most damning reports that I have ever read around our interaction with Audit Committees.

If we do not exist as Heads of Audit, audit advisors or risk advisors to inform and educate the Audit Committee in a manner that they can understand then what is the purpose of us reporting to the Audit Committee in the first instance?

This report is of fundamental importance and we have to sit back – each and everyone of us – and say when was the last time that we surveyed the Audit Committee about the information that they want?

And if we are not producing what the Audit Committee is wanting – we have to ask ourselves why not?

If it is trivial the information that they are asking for – is this the right type of organisation that you should be operating in?

If it is relevant information and you still choose not to produce it, then your days are numbered within that organisation for you will quickly lose the confidence of the Audit Committee and at that point you will have no choice  but equally exit the organisation.


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