By now, most internal audit shops have at least dipped a toe in the waters of data analytics. They are using data analysis techniques to find outliers in expense reports, to look for suppliers that have suspicious attributes or are at high risk for bribery, and for testing controls and Read More
F or many internal auditors, 2019 was a transitional and eventful year. Most internal audit shops are still coming to grips with some big underlying shifts in internal audit. The biggest trends continue to stem from the acceleration in the use of technology to fulfill internal audit’s objectives. Some other Read More
Where, exactly, does responsibility lie in a modern corporation for ensuring that risks are being identified and managed? It may seem like a simple question, but the answer is far more complex. In fact, a long-used model to define such responsibilities, the “Three Lines of Defense” model, is in the Read More
Ever since Congress passed the Sarbanes-Oxley Act in 2002—a response to major accounting scandals at such companies as Enron, WorldCom, Adelphia, Tyco, and others—internal auditors have been wringing their hands over their role in assuring compliance with the complex law. SOX, as it has come to be known, created radical Read More
Many internal audit shops include a rating or grade at the end of an audit report intended to summarize the findings and bring attention to the most important conclusions of the report. Ratings may be scored with a number—from one to five, for example; a color—often red, yellow, and green; Read More
It is difficult today to avoid news about allegations and subsequent investigations. First, it was a slew of high profile allegations about sexual misconduct—which continues. More recently, it’s about abuse of power in the government. And rarely a day goes by without some news of a financial fraud, bribery, or Read More
Companies are struggling to keep their networks secure, particularly when they involve cloud computing, but an emerging technology—machine learning—could provide some help to eliminate unauthorized communication in your cloud. One of the biggest challenges of managing network security is understanding the environment: What assets are present? How are they communicating? Read More
Ever wonder why incidents of fraud, wrongdoing, and other calamities in various forms continue at organizations year after year, decade after decade, and even seem to be increasing in frequency? Inevitably, after such crises someone asks, “Where were the auditors?” As much as I hate to admit it, the answer Read More
Businesses today cannot be separated from their digital assets. Data drives every aspect of business, from strategic decisions to tactical operations, and all that data is stored in, accessed by, and transmitted across networked systems. Keeping cyber risks under control is a critical issue for any company. Even small, non-tech-oriented Read More
Alexandra was a young manager in a small audit department of a manufacturing company. Her department was facing time-management issues, as the audit engagements could not adhere to the timeframes included in the annual audit plan, which had been developed in line with the Institute of Internal Auditor’s International Professional Read More
