Internal Audit Increasingly Proves Its Value

The internal audit function is increasingly providing significant value, according to a new report by PricewaterhouseCoopers. PwC surveyed more than 1,600 chief audit executives, senior management and board members. Fifty-four percent of the respondents indicated internal audit is contributing significant value, up six points from a similar PwC survey last year. In addition, 62 percent of the respondents said they expect more value from internal audit, with 55 percent anticipating internal audit will be a more proactive trusted advisor within the next five years.

“We’re seeing a close correlation between strong leadership and internal audit’s ability to add value and deliver high performance,” said PwC internal audit solutions leader Jason Pett in a statement. “To continue fostering internal audit functions to become trusted advisors within their organizations, stakeholders should promote strong internal audit leadership, while audit executives work to elevate the performance and perceptions of their respective functions.”

Over 90 percent of very effective internal audit leaders communicate exceptionally well, according to the survey.

“Communication skills are critically important, in part because internal audit has to explain the value it brings to the company to many different stakeholders that may not have the same viewpoint on internal audit’s value,” said Dan Schurr, audit committee chair at CHS Inc.

(Source:  AccountingToday - Daily Edition - March 9, 2016)