Read Richard Chambers' Latest Blog
Ratings in Audit Reports: Lights or Lightning Rods?
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:
Ratings are often assigned based on the overall results of the audit, and they can take on adjectival forms, such as "satisfactory," "needs improvement," or "unsatisfactory." More creative approaches include assignment of ratings to individual findings, or using color-coded indicators, such as green, yellow, red. Regardless of the methodology, the objective for assigning ratings is typically the same: It is a powerful way to draw management and the board's attention to the bottom line of an internal audit.
From my experience, executive management and the audit committee tend to have the greatest appreciation for ratings. They enable them to quickly focus on what's important in the internal audit report. A CEO once told me that, when he received an internal audit report, he looked first at the overall rating. If it was "satisfactory," he said, he "threw it in the trash can." If the rating was "needs improvement," he placed it in his in-box for review the next day. And, if the result was "unsatisfactory," he stuck the report in his briefcase to read on the train home that evening.
Read the full InternalAuditor.org blog post from IIA President and CEO Richard Chambers.