Richard Chambers’ blogpost discusses internal auditors’ role when the boards are in the dark.
”Over the years, I have spoken to countless board members about their roles and expectations for internal auditors. Most are complimentary of the internal auditors in the organizations they oversee. They often refer to the auditors as their “eyes and ears,” and stress how much they depend on the internal audit department.
But there is one expectation by board members that causes me concern: They often emphasize that they look to internal auditors to help them avoid surprises.
I can’t help but cringe when I hear that, especially in an era of risks that seem to emerge out of thin air and catch everyone by surprise. Even when an issue might be foreseeable, it’s important to note that, while internal auditors can audit anything, they cannot audit everything.
Just look to the shocking number of damaging corporate scandals from the past decade: Toshiba’s accounting debacle, Volkswagen’s dieselgate, Wells Fargo’s fake accounts, Carillion’s collapse, Nissan’s CEO salary fiasco.”
Read the full post here.