Internal accountants find they do possess insufficient means to work effectively. Above all, in the period in advance of the credit crisis, they focused on the wrong risks. This can be concluded from a recent research by internal audit and risk management advisory firm Protiviti.
Only fourteen percent of the auditors interviewed think their internal audit department gives their people enough means to fulfill agreements from the audit chart. Two-thirds of interviewed members pointed out that the department possessed too little knowledge and skills to work effectively. Forty percent declared they have focused on the wrong risk prior to the credit crisis.
According Sukhdev Bal, CEO at Protiviti, internal auditors have to keep on schooling themselves in order to be able to follow new developments.
"There needs to be a clear understanding of the evolving role, requirements and expectations of internal audit. Internal auditors must continue to enhance their skills and educate themselves on new technologies and competencies that will be required by their organizations in the months and years to come."
Bal also thinks audit boards, managers and internal accountants should cooperate better to realize a well-functioning internal audit execution.
"Audit committees, Internal Audit leaders and management need to work more closely and collectively to agree the role of audit, objectives, criteria for audit and the overall approach of the internal audit function required to meet current and future evolving needs."