Building an Effective Internal Audit Activity in the Public Sector

The Public Sector differs significantly from profit organizations in terms of its objectives and purpose. Thus, the work and structure of internal audit functions (IAFs) differ fundamentally between these types of organizations as well. To address the special needs of IAFs within the public sector a practice guide by the Institute of Internal Auditors (IIA) […]

Internal Audit in a Post-COVID World, Part 3: Redefining the Resilient Organization

In the last report “Redefining the Resilient Organization” of a three-part series on “Internal Audit in a Post-COVID World” by the Institute of Internal Auditors (IIA), the authors give internal auditors guidance on how to prepare organizations for potentially arising business transformations and disruptions. Part of this guidance is putting the internal auditor’s focus, especially […]

Global Perspectives & Insights: Cybersecurity in 2022, Parts 1-3

The collection on „Global Perspectives & Insights: Cybersecurity in 2022, Parts 1-3”, published by the Institute of Internal Auditors, discusses different issues within the contemporary evolving cybersecurity landscape. While part 1 focuses on the implications of regulatory changes on cyber reporting by the SEC, part 2 deals with the benefits of symbiotic relationships between Heads […]

Embedding ESG and sustainability considerations into the Three Lines Model

The report „Embedding ESG and sustainability considerations into the Three Lines Model“, co-written by the World Business Council for Sustainable Development  (WBCSD) and the Institute of Internal Auditors (IIA), provides suggestions and guidance, on how environmental, social, and governance (ESG)-related matter can be integrated into the key roles of the revised Three Lines Model – […]

Internal Audit in a Post-COVID World, Part 2: Supply Chain

In its second report on “Internal Audit in a Post-COVID World”, the Institute of Internal Auditors (IIA) deals with global supply chains, which were severely hit by pandemic challenges and uncertainties, being only 2% of global supply chains prepared for such an event according to surveys of the US branch of the consulting firm Ernst […]

Internal Audit in a Post-COVID World, Part 1: Talent Management

In its first report on “Internal Audit in a Post-COVID World”, the Institute of Internal Auditors investigates talent management within a post-pandemic setting. In the light of the pandemic-driven demand for flexibility and human-centricity of employees, the findings suggest difficulties of employers to offer the required individual employee’s flexibility while retaining internal audit functions with […]

EFRAG: consultation on the Draft European Sustainability reporting Standards (ESRS) Exposure Drafts

In its reaction to the European Financial Reporting Advisory Group (EFRAG) consultation on the Draft of European Sustainability Reporting Standards (ESRS), the European Confederation of Institutes of Internal Auditing (ECIIA) is strongly advocating that the EFRAG provides necessary clarity on the role of Internal Audit has in light of ESG matters. To be precise, since […]

Internal Audit: A Global View

In their joint global survey „Internal Audit: A Global View“ by the Internal Audit Foundation and the Institute of Internal Auditors (IIA), in which more than 3,600 internal audit professionals from a range of different entities, industries and regions in 159 locations were asked, trends within the development of internal audit functions (IAFs) were examined. […]

Public audit oversight: Streamlining European countries’ oversight regimes

In its report, Accountancy Europe, a professional membership organization uniting 50 professional organizations representing qualified accountants, auditors and advisors across Europe, provides clarity on the structure of public audit oversight following changes within European Union (EU) audit legislation in 2014. In light of one key objective within the changes in EU regulation: harmonization of public […]

Internal Control and the Transformation of Entities

In their joint survey „Internal Control and the Transformation of Entities“ by the Institute of Management Accountants, the Association of Chartered Certified Accountants and the Internal Audit Foundation, in which more than 1,950 professionals from the areas of finance, accounting and internal audit from a range of different entities worldwide were asked, it was examined […]

EBA publishes Guidelines on role and responsibilities of the AML/CFT compliance officer

In its guidelines, the European Banking Authority (EBA) provides further clarity regarding Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (AML/CFT efforts). Specifying the mandatory introduction of an AML/CFT […]

Diversity, Equity, and Inclusion 101: Internal Audit’s Invaluable Role in Creating a Sense of Belonging at Work

In their joint report „Diversity, Equity, and Inclusion (DEI) 101: Internal Audit’s Invaluable Role in Creating a Sense of Belonging at Work,“ the Institute of Internal Auditors, Deloitte and the Internal Audit Foundation discuss how internal audit functions (IAFs), based on their role as an assurance providers, trusted advisors and agents of change, could have […]

ecoDa: European Commission Corporate Sustainability Due Diligence proposal risks being counterproductive

The European Confederation of Directors Associations (ecoDa), which represents the interests of approximately 55,000 board members within the EU, has published a position paper on the European Commission’s proposal for a Directive on Corporate Sustainability Due Diligence. The aim of this new Directive would be to foster sustainable and responsible corporate behavior along the entire […]

Esfera Consejeros – Cyber security, a systemic risk to watch over

Increasingly common risks in the cybersecurity perimeter are considered particularly dangerous for businesses. Therefore, this report by the Institute of Internal Auditors of Spain is aimed at audit committee members to raise awareness for such risks, and to point out ways to monitor these. For this purpose, key questions are introduced to help explain the […]

EFRAG: consultation on the Draft European Sustainability reporting Standards (ESRS) Exposure Drafts

The European Commission’s proposal for a Corporate Sustainability Reporting Directive (CSRD) provides for the adoption of EU Sustainability Reporting Standards (ESRS). EFRAG was invited in a letter from Commissioner McGuinness to provide technical advice and assistance to the European Commission in the form of fully developed draft standards and/or draft amendments to the sustainability reporting […]

European Commission: Sustainability-related disclosures in the financial service sector

The European Commission has adopted technical rules to be used by financial market participants when disclosing sustainability-related information under the Sustainable Finance Disclosures Regulation. Under these standards, financial market participants will provide information about how they reduce possible negative impacts that their investments may have on the environment and society in general. The rules are […]

INTERNAL AUDIT IN BANKS: CHALLENGES FROM THE RUSSIAN/UKRAINIAN CRISIS

The current crisis is posing difficult challenges to the Banking System, which is requested to rapidly adapt and cope and market developments with fast-moving regulations. A Banking risk profile can potentially be impacted by a wide range of drivers: business, credit, country, regulatory, liquidity and financial risk, operational/continuity (among which IT and cybersecurity, physical safety), […]

What implications the new SEC proposals have for cybersecurity reporting, and how this affects internal audit

The IIA’s Global Knowledge Brief series on cybersecurity presents an overview of the new SEC proposals, including the implications they have for cybersecurity reporting regulation in the U.S. as well as abroad. It also explores how internal auditors can play an essentiel role in helping their organizations manage an altered compliance plan that new regulations […]

Engaging Third Parties for Internal Audit Activities: Strategies for Successful Relationships

One of the biggest challenges CAEs face is having enough personell obtaining the right abilities to complete their audit plans. To meet this challenge, many CAEs engage third parties for some of their internal audit activities. This report will help internal audit practitioners, managers and audit committees to more effectively manage these chalenges.

Human capital, diversity and talent management

The world may have gone digital, but it comes to a standstill when people are missing. We saw that last year, for example, when it caused international delivery delays and rising prices occurred. With the easing of Covid restrictions, companies around the world are realising that people are necessary for the growth and development of […]

European Commission: Directive on corporate sustainability due diligence

The European Commission has introduced a proposal for a directive on corporate due diligence in the field of sustainability. First, it has completed an impact assessment. The proposed directive will require companies to integrate due diligence into their policies and decision-making identify, prevent, mitigate and minimise actual or potential adverse impacts on human rights and […]

Looking for Compliance Risks in Oceans of Data

Since email revolutionised the way we work, especially the way professionals communicate, the proliferation of faster digital communication tools to support businesses has grown rapidly. It is well known that businesses are faced with a large amount of data volume and complexity that they generate through digital collaboration platforms. Read more about the Compliance Risks […]

Global Perspectives and Insights: Interne Revision und Compliance – Klarheit und Zusammenarbeit für eine bessere Governance

Der Bericht „Interne Revision und Compliance: Klarheit und Zusammenarbeit für eine bessere Governance“ in der Reihe Global Perspectives & Insights des IIA erläutert, wieso ein einheitliches Rollenverständnis für eine wirksame Compliance und eine unabhängige Prüfung bedeutend sind. Die Publikation enthält Analysen zur Anwendung der sechs Grundsätze des Drei-Linien-Modells und Beispiele aus der Praxis. Hier können […]

The Internal Audit Ambition Model

The IIA Netherlands presented the Internal Audit Ambition Model in October 2018. The approach has convinced the representatives of internal audit. With the help of the model, they can define the audit functions, check whether they comply with the standards of the IPPF. In addition, the model supports communication with the audit committee by providing […]

Prioritizing Environmental, Social and Governance Issues

Environmental, social and governance (ESG) issues are a hotly debated topic globally and across all industries and organizations. The pressure on organizations to address ESG issues continues to grow, making it paramount. Internal audit functions are invaluable to companies and should be more involved in their organization’s ESG efforts. The new report „Prioritizing ESG: Exploring […]

25. PwC Global CEO Survey

The 25th PwC Global CEO Survey surveyed 4446 CEOs from 89 countries.It shows that CEOs remain confident. Around 77 percent of CEOs believe that global economic growth will improve in the coming twelve months (previous year: 76 percent). Nevertheless, there are many threats, uncertainties and tensions. CEOs are most concerned about cyber risks, followed by health risks […]

Where Bribery still reigns

The 2021 Corruption Perceptions Index (CPI), released this week by Transparency International, shows that corruption around the world is treading water. 86 percent of countries have made little or no progress over the past decade. The CPI ranks 180 countries and territories on perceived levels of public sector corruption on a scale of zero (very […]

Future of Digital Trust

Volatility, uncertainty, complexity and ambiguity characterize the digital transformation. In this context, digital trust is highly important. As a result, players must address the factors that influence and shape the future of digital trust. Deloitte presents a future foresight approach to this as part of the study „Future of Digital Trust: Driving forces, trends and […]

Compliance: From rules to values

Anyone following discussions about the growing importance of compliance as a rule-based management tool may get the impression that integrity and trust have become fundamentally dispensable and that the principles of the honorable businessman are no longer in keeping with the times. But on closer inspection, the opposite is true. In practice, compliance is mainly […]

Compliance Priorities for 2022 in the Financial Services Industry

In terms of the compliance challenges that will be central to financial institution compliance officers in 2022, evidence shows that they will play a key role in addressing risk. A new report, „Compliance Priorities for 2022 in the Financial Services Industry,“ from Protiviti identified several compliance priorities. These fall into three categories: the broader risk […]

How does digitalization change the role and way of working of internal audit: an exploratory overview

The current crisis has shown that we live in a digital environment, and this trend will intensify in the future. Working in a digital environment will be a normal state in the future. IIA Netherlands, in cooperation with EY, conducted a study on how Internal Audit (IAF) is using digitalization technologies such as Robotic Process […]

CxO Sustainability Survey 2022

The concern of executives about the state of the world’s climate has increased in recent months. But optimism that immediate action can make a difference has also increased. This is shown by Deloitte’s new CxO Sustainability Survey 2022. The survey polled a total of more than 2,000 C-level executives in 21 countries. The focus of the […]

Using Evolving Technologies to Improve Collaboration

To remain relevant in the current business environment, internal audit must maintain an innovative mindset, challenge and update existing audit methodologies, and leverage emerging technologies such as governance, risk, and control (GRC) to improve business collaboration. The report „Using Evolving Technologies to Improve Collaboration: How GRC Software Can Support Risk Management and Internal Audit“ by […]

Top Risks for 2022

Through a recent survey of C-level executives and directors worldwide, Protiviti identified 10 top risks for 2022. The top three are presented below. The risk in third place relates to pandemic-influenced market conditions. Especially due to new variants there is uncertainty at this point. Rank two of the major risks relates to the succession problem […]

Guidelines on internal governance for investment firms

The European Banking Authority (EBA) published its revised Guidelines on internal governance for investment firms under the Investment Firms Directive (IFD). The guidelines provide details on how the IFD governance provisions should be applied by Class 2 investment firms by setting out the roles, responsibilities, and organization of the management body, as well as the organization […]

Internal audit and compliance

What is the relationship between internal audit and compliance? This is the subject of a new report from the IIA entitled „GLOBAL PERSPECTIVES AND INSIGHTS: Internal audit and compliance: Clarity and collaboration for stronger governance“. To explain the relationship between internal audit and compliance, the report uses the three-line model and is a tool for […]

Which Type of Internal Auditor are you?

Internal audit is an activity, so go swimming! This Internal Audit 360° article identifies different types of internal audit leaders. How effective they are in the current era of COVID-19 and volatility, uncertainty, and complexity depend on whether they are on the sidelines or surfing the waves of the organization’s problems. Author Dr. Rainer Lenz […]

Time for Internal Audit to Focus on Resilience

Internal audit is well positioned to assess resilience risk and embed resilience in organizations. This is demonstrated in the new white paper „Are We Ready? It’s Time for Internal Audit to Focus on Resilience Amid Extreme Change“ from the IIA in collaboration with Protiviti. The paper helps chief audit executives better understand the importance of […]

The Remote Auditor

What will internal auditing look like in the future? As a result of the pandemic, the definition of „normal operations“ for internal auditing has been redefined in almost all companies around the world. Within internal audit, audit plans were changed, site visits became impossible, and new ways of performing daily tasks were found. Many processes […]

The key findings of OnRisk 2022

We wish you a happy new year! A new article in Internal Auditor magazine summarizes the key findings of the OnRisk Report for 2022. The report surveyed 30 board members, 30 C-suite executives and 30 chief audit executives from 90 different North American companies. It shows that this year risks are being prioritized that have […]

A practical guide on sustainability

With societal expectations increasingly permeating corporate governance, companies‘ business models must evolve to deliver sustainable value creation that benefits not only shareholders but also internal and external stakeholders and society at large. In this context, ecoDa and Mazars have jointly published a practical guide to help board members and leadership teams navigate their company’s sustainability […]

New Frontiers for Internal Audit Research

To date, the field of research related to internal auditing is still relatively small. In the new paper „New Frontiers for Internal Audit Research“ by Margaret H. Christ, Marc Eulerich, Ronja Krane and David A. Wood, concrete recommendations for future research are given. This was accomplished through surveys, interviews, and discussions with practitioners. Overall, three […]

The right Length of Audit Reports

How long should an audit report be? Does are most internal audit reports the right length? For many stakeholders of audit reports in the executive suite and boardroom, the answer is probably that they are “too long!” So, is the answer ten or twenty pages? Is it two or three? This article from Internal Audit […]

Talent management in internal auditing

The Covid-19 pandemic resulted in many changes, including for the internal audit profession. However, these changes have not been exclusively negative; topics such as flexible working models, automation through data analytics and audit technology are increasingly the focus of internal audit. This new normal brings with it multifaceted challenges, for example, the basic competencies for […]

FUTURE READY

The Institute of Internal Auditors‘ new Chairman of the Board, Charlie T. Wright, and the Internal Audit Foundation jointly present their white paper „Future Ready: Upskilling Today for the Profession of Tomorrow“. This paper combines findings from research and the Internal Audit Foundation’s global study „Assessing Internal Audit Competency.“ In particular, the white paper addresses […]

AI Risk Management Framework

Essential to business success and strategic decision making is effective risk identification and monitoring. A new article from Protiviti will address perspectives on establishing and maintaining leading practices in the context of identifying, assessing, mitigating, and monitoring risks arising from artificial intelligence (AI). Specific actions that organizations can take to mitigate risks during the AI lifecycle […]

Agile Risk Management

Getting people interested in the concept of risk management is difficult, partly because it is not seen as a core business and therefore does not get the attention it needs. While risk management should be a dynamic activity that can respond quickly to changing circumstances, in practice it rarely is. In its new white paper, […]

​The Alternate Reality of REM

In times of the COVID-19 pandemic, the risk of workplace fraud has increased significantly in many companies and industries. For example, lost revenue has caused companies to reduce their operating expenses. The risk of accounting fraud is increasing. One type of accounting fraud is real earnings management (REM). In this process, managers intentionally create an […]

Assessing Internal Audit Competency

The Internal Audit Foundation and Deloitte released a joint Premier Global Research Study, “Assessing Internal Audit Competency: Minding the Gaps to Maximize Insights.” The two organizations collaborated to complement the launch of The IIA’s Internal Audit Competency Framework. The resulting comprehensive report outlines five key findings that help identify areas where there are gaps in […]

The Digital Investment Question

Whereas a decade ago boardrooms were concerned with the question „should we invest in digital transformation?“ today the focus is on „how much should we invest and, more importantly, how quickly should we invest if we are accountable to our shareholders?“ Although the question may not seem that complex at first glance, many other questions […]

Auditing the Data Protection Organization

At the latest since the EU General Data Protection Regulation (GDPR) came into force in May 2018, data protection compliance has been on the risk map for internal auditing. The significant liability/sanction risks as well as the increased accountability requirements have led to the implementation of data protection management systems in companies and in the […]

Emerging Leaders

A new article from Internal Auditor, „Emerging Leaders: Where Are They Now? Internal Auditor follows up with past Emerging Leaders to learn how their careers have progressed – from rising through the ranks to springboarding into other professions“ addresses the career paths of former Emerging Leaders. Many use internal auditing as a springboard for further career […]

Guidance on remote auditing

Supported by ECIIA, Specialists from the Internal Audit Service at the European Commission have described the way to implement remote auditing by using the new Guide on Remote Auditing for the use of Internal Auditors. This guide describes, what a remote audit is, how to assess whether an audit can be conducted remotely, what tools […]

The Future of Compliance 2021

In the new edition of the study „The Future of Compliance“ by Deloitte in cooperation with Compliance Manager Magazin and Quadriga University Berlin, a total of 360 compliance officers were surveyed. They provided insights into their organizations and shared their views on legislative projects, challenges and future trends. Compliance officers are currently dealing, for example, […]

Always up to date

Register now for the new newsletter of the Chair of Internal Auditing at the University of Duisburg-Essen and stay up to date! From now on, the chair will regularly provide you with the latest news of the chair, interesting facts from research and teaching as well as internship and job offers for students and alumni. […]

Risk Management – from stabilization to transformation

A survey of 120 risk executives from around the world conducted by EY shows that risk teams are still struggling to turn risks into opportunities and manage emerging threats. In comparison, CEOs‘ priorities are increasingly shifting from a survival and stabilization mode back to growth and transformation. To support these growth plans in the future, […]

Coronavirus: 15 emerging themes for boards and executive teams

The Covid 19 pandemic is not over yet, and broads and management teams need to address key issues to prepare for the next normality. A new article from McKinsey addresses the issues that managers should be aware of. For example, the first point is, „Boards must strike the right balance between hope for the future […]

Governance Trends 2021

The corporate world faced a number of complex challenges last year, including the COVID-19 crisis, new workplace paradigms, extreme climate change, political and economic economic volatility, and urgent calls for racial justice. Despite the expected continued challenges in the current year, the focus of companies must go beyond risk avoidance and compliance. These will, of […]

Digitalization – Changing the Way Internal Audit Works

Technologies offer enormous potential to change and improve working methods. The topic of automating tasks and processes, for example, is also playing an increasingly important role in auditing. Among other things, the use of Robotic Process Automation (RPA), Predictive Analysis (PA) and Artificial Intelligence (AI) in internal auditing is being discussed. A new study by […]

Webcast – Private Equity’s ESG journey

Companies around the world are adapting environmental, social and governance (ESG) issues and shifting them to the center of strategic concerns. They recognize ESG as a driver of value creation and urgently develop a proactive ESG mindset. PwC’s most recent Global Responsible Investment Survey shows that mutual funds are on this path and, with decades […]

The new Three Lines Model

Companies face the challenge of positioning and aligning various governance functions. In this context, redundancies should be avoided and coordinated management should take place. In an article by Prof. Dr. Marc Eulerich, Joel Behrend and Benjamin Fligge titled „The New Three Lines Model: Positioning Risk Management“, the Three Lines Model is discussed as well as […]

CEO Outlook 2021 – Plugged-in, people-first, purpose-led

While much uncertainty was the only certainty in the CEO Outlook 2020 due to the COVID 19 crisis, optimism is now back in the boardroom one year later. According to KPMG’s „CEO Outlook 2021 – Plugged-in, people-first, purpose-led“, CEOs are confident about the growth prospects of their company and the general global economy. In particular, […]

Webinar – Remote auditing experience from internal auditors

Auditing evolves like technology. Audits can now be carried out remotely using information communication technology. Due to travel restrictions and the obligation to work from home in the context of the COVID-19 pandemic, remote auditing was no longer an option, but a necessity. Attend this ECIIA webinar on remote auditing, where experts will talk about: […]

Facets of Procurement Fraud

A new article from „Internal Auditor“ addresses the various facets of procurement fraud. Internal auditors who are aware of these signs can help identify vulnerabilities. Procurement is a significant function of business, and internal auditors are responsible for immediately identifying and reporting fraud and ultimately making recommendations to strengthen internal controls. To do this, auditors […]

Risk in Focus 2022 – Hot topics for internal auditors

The world has changed. Internal audit must change too. Organisations and their internal audit functions face a dizzying pace of change and unprecedented uncertainty. The pandemic has destabilised operations and labour, disrupted supply and demand, and undermined previously sound business models to an extent few would have thought possible. Internal audit must understand this change […]

Coso Framework to help implement and scale Artificial Intelligence

Artificial intelligence (AI) changes business strategies, solutions and processes. Not to be neglected at this point are the risks that can come with AI. To create integrated governance for AI, manage risks, and improve performance, applying enterprise risk management (ERM) principles can be purposeful. The COSO ERM Framework provides an overarching and comprehensive framework that […]

Visibility leads to Promotability

It’s not hard work that determines your promotion. It’s making your hard work and yourself visible that determines your promotion. Visibility means connecting the dots from the work you do with the advertisement you are looking for, which means that you are working on getting your hard work and yourself visible to get noticed, recognized […]

Organizational cyber maturity

A major issue for companies worldwide is cybersecurity. In a new study, McKinsey assesses the cybersecurity maturity of more than 100 companies and institutions from various industries. It shows that some companies in banking and healthcare are quite advanced, but most companies still have a high need to protect their data from threats and attacks. The […]

Getting to the bottom of it

Why is root cause analysis so important? When you go to a doctor, do you want him to tell you what is wrong with you so that you can begin treating the disease? Or are you satisfied that the doctor only treats the symptoms and does not diagnose the actual disease? Of course not. Well, […]

Use of Robotic Process Automation for audit tasks

Increasingly popular in accounting are bots for automating tasks and processes using robotic process automation (RPA). Bots can also be used by auditors to automate repetitive tasks. However, they often don’t know which tasks to automate. The new study, „A Framework for Using Robotic Process Automation for Audit Tasks,“ by Marc Eulerich, Justin Pawlowski, Nathan […]

Remote Auditing

The corona pandemic turned the standard model of office work on its head. Companies were put into crisis management mode and employees were increasingly working from home. The rapid outbreak of the pandemic accelerated the trend towards teleworking in internal auditing as well. This is the subject of the latest report of the IIA’s Global […]

Deloitte Cyber Security Report 2021

Cyber security is a key issue in the age of digitalization. For this reason, Deloitte conducted a trend study together with the Allensbach Institute for Public Opinion Research. The aim of the Deloitte Cyber Security Report 2021 is to survey players from politics and business and to compare their positions. One result is, for example, […]

Legal on Air

Deloitte interviews in her Legal Podcast Series experts on legal innovations and current topics in the field of German and international business law. In the different episodes the economic relations between Germany and the countries Japan, China, Israel and the Netherlands are discussed. You can listen to the podcast here. Please note: The introduction texts […]

Role of Internal Audit in Business Resilience

The COVID 19 pandemic also confronted internal auditors with major challenges. For example, auditors had to completely abandon or quickly revise well-thought-out plans and familiar checklists and procedures. To ensure the effectiveness of their organization’s risk management, governance, and internal control processes, internal auditors had to reorient themselves. The importance of agility and flexibility increased. […]

Upskilling Today for the Profession of Tomorrow

As various technologies converge and mature over the next few years, internal auditors must ask themselves how disruptive innovations can transform their organizations, stakeholder expectations, and the profession itself. If the work of internal auditing is to really enrich and protect, the function must be ready to adapt to new risks and the new requirements […]

Board Oversight of Disruptive Risks

Boards often focus on known risks that management has already identified. In this context, in an online survey of directors by the National Association of Corporate Directors (NACD), nearly half of respondents said this tendency is a major impediment to the board’s ability to oversee disruptive risks. Disruptive risks include „risks that, whether internally- or […]

Avoiding the blind spot

During the COVID-period, financial resilience and stability are paramount for businesses. Because of the pandemic, many companies have faced difficult decisions about cost savings through budget cuts and layoffs. There were also a number of challenges that internal audit teams faced, such as competing priorities and lack of resources. A report by the Chartered Institute […]

Continuous Auditing

The high speed of economic change, digitalization and automation have an impact on the internal audit function. The internal audit function must plan ahead and at the same time react promptly. There is a shift from static, timeframe-based risk assessment and audit planning to a direct situationally reactive analysis of risks. Continuous auditing plays a […]

Chief Compliance Officers wearing multiple hats

Looking at any list of large company’s chief compliance officers, several can be found who also hold the titles of chief audit executive, head of risk management, and other roles. Is it possible to combine the roles of Chief Audit Executive and Head of Corporate Compliance or other jobs without sacrificing the independence that is […]

Cyber Risk & Internal Audit

An essential topic for companies is cyber security. In this context, companies must take into account that cyber risks are constantly evolving and that the extent of damage can pose an existential threat. This is also of special importance for internal auditors. In the new article „Reining in Cyber Risk: An understanding of technology, third parties, […]

Financial Market Integrity Strengthening Act (FISG)

The German government is responding to the Wirecard fraud scandal with the Financial Market Integrity Strengthening Act (FISG), which came into force on July 1, 2021. For the first time, the legislature now explicitly requires appropriate and effective internal control and risk management systems and creates a direct right of information for the audit committee […]

internal-audit function of the future

The near-term challenge of the IA function will primarily be to continue to provide safe oversight while also adapting to the dynamic risk landscape. The IA function must thus be able to deal with the increasing number of emerging risks. The article „Building the internal-audit function of the future“ by McKinsey addresses the challenges of […]

How to measure and communicate the value of internal audit

Internal audit, like all other departments in a company, is seen as an investment that is expected to generate meaningful returns. But unlike departments where the return on investment (ROI) can easily be calculated and traced back to the bottom line, internal auditing is faced with the challenge of assessing the inherent qualitative benefits of […]

Audit committee chair overlap

The new study named „Audit committee chair overlap, chair expertise, and internal auditing practices: Evidence from Malaysia“ by Wan-Hussin, Fitri, and Salim (2021) adds to the sparse literature on audit committee leadership. It examines internal audit outcomes when AC chairs overlap. They use annual reports from 2014 for a sample of the top 100 nonfinancial […]

Powering Audit Committee Outcomes

An independent audit committee is essential for good corporate governance. However, there is no one-size-fits-all solution of what the perfect audit committee should look like. This is because the exact structure and objectives of audit committees worldwide are influenced by the type of business, the regulatory environment, the ownership structure and legal requirements. In addition, […]

Financial Market Integrity Strengthening Act

On July 1, 2021, the Financial Market Integrity Strengthening Act, or FISG for short, came into force in Germany. Extensive changes were made with a total of 27 articles. The aim of the Act is to permanently strengthen investor confidence in the German capital market. The amendments relate, for example, to Supervisory structures in companies. The […]

Remote audits: a concept for the future?

Audits in the usual form are currently not possible or only possible to a limited extent. Since it is not an option to forego revision audits, remote audits are the alternative: audits of internal processes that are not carried out in the company on site. Finally, the supervisory and management bodies‘ monitoring obligations remain unchanged. […]

Internal audit in payment companies

The Covid 19 crisis has changed the risks associated with payments. Deloitte’s article „The shifting landscape of risk: Perspectives on payments companies, internal audit, and the pandemic“ addresses these risks and outlines how the risks have evolved and how payments companies‘ IA departments can improve their understanding of these changing risks. As customers continue to […]

What does Post-Pandemic Internal Audit look like?

Internal Audit Offices are reopening, but things may never be the same. As the vaccination rate increases and the rate of COVID-19 cases steadily decreases, more and more companies are planning to return their employees to the office. Even so, the work promises to look different than it used to be, before many started working […]

The role of the Supervisory Board in the Covid 19 crisis

Supervisory bodies also have to face new questions and challenges in the context of the Corona pandemic. A whitepaper from Deloitte takes a closer look at the role of the supervisory board in times of Covid-19. It shows that the main work currently is on the executive. The supervisory board should take a supporting internal […]

Build Resilience to Cyber Risks.

According to a global IT risk and compliance survey 2021 conducted by IT provider MetricStream among global security and risk experts, IT security and compliance are the top technology investment priorities this year. When asked about their plans, 38 percent of respondents said they would increase their IT risk management spending this year. However, the […]

INTERNAL AUDIT’S ROLE IN ESG REPORTING

Environmental, social and governance (ESG) issues are becoming increasingly important in organizations. Companies are more and more under pressure to publicly commit to sustainability and to report on their activities. To date, however, there are not many defined rules for ESG reporting or what ESG reporting should retain. As part of effective governance, Internal Audit […]

The Three Lines Model – An Important Tool for the Success of Every Organization

Governance has never been more important as organizations face the turbulence of a global pandemic, technological change, increasing economic disparities, geopolitics, globalization, climate change and much more. The governing bodies and management grapple with questions about disrupted work environments, changing markets and lost revenue. The three-line model of the IIA provides timely answers for organizations […]

COVID-19 and the Role of the Chief Audit Executive

The KPMG article formulates various questions that internal auditors should ask themselves in view of the Covid 19 pandemic. From this, it is deduced that immediate action and realignment by those responsible for internal auditing is required. For example, a key question internal audit should ask is „How can an internal audit team better leverage […]

Auditors warn: Hybrid office working leads to a cultural crisis

According to a new study by the Chartered Institute of Internal Auditors, Hybrid working creates a “cultural crisis” for companies by undermining employee loyalty, making it more difficult to retain talented employees and detecting fraud. Nearly half of lead auditors believe the move to remote working during the pandemic damaged corporate culture. The steep rise […]

Reporting on environmental, social and governance risks and initiatives.

Companies need to face and address environmental, social and governance (ESG) issues. For example, climate change and the reduction of greenhouse gases in business is a major issue in today’s world. Companies have to deal with various risks in this context. Consequently, this also has an impact on the internal audit function. For example, the […]

Next-generation nowcasting

In the face of great economic uncertainty, the ability to gather and interpret information quickly is vital for decision makers, especially when a crisis turns into a recovery or vice versa. Those who are able to quickly and appropriately understand and respond to the developing situation will not only survive but also create a more […]

Which topics are currently occupying the CFOs?

The expectations and assessments of CFOs are taken up in the new study by Deloitte. In a survey, CFOs were asked about macroeconomic, corporate strategy and financial topics. A total of 140 CFOs of large German companies were surveyed in the study It becomes clear, for example, that 43% of the companies surveyed have already […]