Tuesday, October 04, 2005
Optimizing Internal Audit In The Post-SOX Era
There’s no doubt that post-Sarbanes-Oxley, the role of internal audit at public companies has changed dramatically. And during the first year of compliance with the onerous Section 404 of the Act, internal auditors played a key role in helping companies meet those requirements.
With internal audit expected to continue to play a critical part in ongoing compliance efforts, companies may need to re-consider how their IA departments function within their organizations. That's according to Deloitte & Touche, which recently published a paper on the subject, "Optimizing the Role of Internal Audit in the Sarbanes-Oxley Era," which offers management and audit committee members some recommendations on structuring internal audit.
During the last three years, "We've seen a pretty substantial transition with IA groups," says Eric Hespenheide, managing partner of global internal audit services at Deloitte & Touche, and a contributor to the paper. "How internal audit groups are positioned within companies, the way they are executing their work, and the expectations companies have of their internal audit function has changed."
posted by Brian Moran @ 9:41 AM