One of the findings in a new report by Deloitte, their 2018 Global Chief Audit Executive research survey, is that only 33% of CAEs believe their function is seen positively.
This is awful, especially when you consider that this is the assessment by CAEs. I would assume management and maybe the board would not rate IA as highly as those responsible for the function.
The survey also found that while there has been an increase in the percentage of CAEs who believe they and their team have strong organizational impact, the new level (up from 16%) is still is only 40%.
Again, this is the perception by CAEs.
Note that even some who believe they have strong influence do not think they are perceived positively.
Deloitte sees the solution to the problem as the use of new technologies.
I think that’s nonsense.
This is what I believe is behind the problem:
- Internal audit more often than not fails to address the more significant risks to the business as a whole.
Internal auditors and the work they do don’t matter (except to check the box). They are not contributing to the effective management of the risks that could cause the organization to fail to meet its key objectives, such as those relating to market share, revenue growth, margin improvement, and so on.
They are not auditing the risks and issues that are on the…