Blog: IIA Takes a Principled View of Corporate Governance
In his blog, IIA President and CEO Richard Chambers, CIA, QIAL, CGAP, CCSA, CRMA, shares his personal reflections and insights on the internal audit profession. Here’s an excerpt from his latest post:
For the better part of a decade, corporate scandals have emerged with embarrassing regularity. Whether involving circumventing regulations, financial misstatements, or executive misbehavior, each is a reflection of something gone terribly wrong.
Unfortunately, the natural inclination when such a scandal occurs is to seek out someone to blame. I have written often about my angst at hearing the question, “Where were the internal auditors?” as part of the blame game. I addressed that very question in a 2016 blog post.
The bottom line is that internal audit, no matter how effective, cannot guarantee an organization’s financial success, long-term sustainability, or ethical and cultural health. It must be part of a broad corporate governance mechanism that defines risk appetite, articulates operational strategies, sets ethical boundaries, and supports independent and objective assurance.