@Going Concern “Satyam’s Internal Auditor: All Roar, No Bite”
By Francine • Dec 17th, 2009 • Category: Writing for OthersMy new post is up @Going Concern.
India’s Central Bureau of Investigation (CBI) recently arrested Mahindra Satyam’s internal audit head V S Prabhakar Gupta for his alleged involvement in the Satyam fraud. Gupta, who is Global Head of Internal Audit at Mahindra Satyam, held the same position in Satyam Computer Services Limited…Internal auditors have a tough job. While some companies are very supportive of the function, many look at internal audit as a necessary evil and a cost center. In the end, even with aprofessional code of ethics and a reporting relationship directly with the Audit Committee, internal auditors are still beholden to the company, as an employee or paid vendor. They are human – subject to self-interest and, potentially, coercion in the name of keeping their job/engagement.”
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Francine McKenna (@retheauditors) has more than twenty years of experience in consulting and professional services including tenure at two Big 4 firms, both in the US and abroad. For more info, check the "About" page.
The IIA does not take a strong enough stand with the listing authorities or the SEC on the independance of the Internal Audit function from management. Even when reporting to the board pay and promotion opprotunities are set by management at most companies. Additionally, the IIA will not take a stronger posiition on Internla Audit not reporting to the CFO or proposing to the SEC to require disclosure (8K) on the departure of the Head of Internal Audit at the company.