Internal audit & Corporate governance

MANAGEMENT IS counting on internal auditors more than ever to improve governance processes, according to a new report from Crowe Chizek, an assurance, consulting, and risk management provider. Infernal Audit Plays Pivotal Role in Strengthening Corporate Governance focuses on the profession's opportunities to become a strategic player in corporate governance in response to increased government regulation and management directives to strengthen controls and improve risk management.

The report notes that The IIA's International Standards for the Professional Practice of Internal Auditing calls on internal auditors to evaluate and offer recommendations to improve governance processes and affirms their importance in risk management activities. Providing an overview of the governance trends and challenges internal auditors face, the report reminds auditors and management that the board of directors bears the primary responsibility for ensuring effective governance. The report provides examples of steps internal auditors can take to help management and the board with their responsibilities, such as:

1. Assisting the board of directors in its governance self-assessment.
   

1. bringing best practice ideas about internal controls and risk management processes to the audit committee.

1. Looking for opportunities to leverage compliance activities to reduce long-term costs.

1. Reviewing the organization's code of conduct and ethics policies to ensure they are current and are communicated to employees.

1. Conducting annual audits of whistleblower hotline and follow-up processes and reporting the results to the audit committee.

1. Addressing disclosure and transparency objectives in the annual audit plan.