The factors that have permanently changed the business environment—globalisation, volatility, economic upheaval, technological advances, political and regulatory change—have also drastically expanded the risk landscape.
And yet, as PwC’s 2013 State of the Internal Audit Profession Study reveals, many internal audit functions are not keeping pace with these changes—which poses a major challenge for companies (and audit committees) seeking to determine their future strategies for, and investment in, internal audit.
The overwhelming consensus—based on over 1,700 online responses and 140 face-to-face interviews with Chief Audit Executives (CAEs), managements and board members participating in our survey— was that internal audit needs to step outside of its traditional comfort zone, and contribute to the organisation in a more meaningful way, or fall into obsolescence as other risk-management functions outpace them.
We have also produced a Russian supplement. The document presents key findings of our Russian respondents against the background their global peers.
Our Study analyses the following critical questions:
The Study outlines a suggested path forward to enhance the value obtained by an organisation for its investment in internal audit. This path involves certain actions to be taken by board members, by management and by CAEs.