• Register
Return to: Home > News > Big Four > Stakeholders internal audit expectations are at their lowest in 5 years

Stakeholders internal audit expectations are at their lowest in 5 years

Internal audit functions are failing to keep up with stakeholder expectations of internal audit value, according to PwC USA’s 13th annual State of the Internal Audit Profession study.

The study revealed that 44% of stakeholders held the view that internal audit is contributing significant value, its lowest level in five years, and on a decline compared to 54% in 2016. The respondents were made up of internal audit executives and stakeholders, including audit committee members and chairs, board members, CFOs, CEOs, CCOs and CROs.

Of the 1,800 respondents, only 18% reported that their internal audit functions play a valuable role in helping their companies anticipate and respond to business disruption, noted as Agile Internal Audit (IA) Functions. Few (7%) considered internal auditors to be a trusted advisor, nearly half of respondents (48%) wanted internal audit to take on a more integral role, to be a trusted advisor to business within the next five years.

“Organisations are facing rising complexity of risks and new disruptive sources, impacting them at increasing speed. Stakeholders expect internal audit functions to help them navigate this changing landscape or face a shrinking perception of the value internal audit provides,” said Jason Pett, PwC USA’s internal audit, compliance and risk management solutions leader. “In a world of constant disruption, internal audit leaders must be well-equipped to mitigate risk in several disruptive areas most likely to impact businesses over the next three years including regulatory changes, cybersecurity and changes to customer preferences.”

The survey was used to explore the disruptive environment and to discuss two key traits that enable Agile IA functions to effectively lead in disruptive environments, to identify them and the business needs. Of Agile IA Functions 84% were mindful of disruption and included the possibility as part of the audit plan development, compared to 50% of less agile peers. Flexibility is also important, to be transformative across development, planning, fieldwork and reporting and to use innovation or reorganise resources according to disruption. Additionally, 73% of Agile IA Functions change course and evaluate risk at the speed required by the business.

Mark Kristall, partner in PwC USA’s Internal Audit, Compliance & Risk Management Solutions practice said: “With an innovative vision of what internal audit can be, the function can deliver the greater value that stakeholders expect and need.”

The report can be found here:

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.