Read Richard Chambers' Latest Blog
No Internal Audit Function? Investors Beware!
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:
As more investors seek to benefit from a growing marketplace, they should be cautious when deciding which companies are worthy of their hard-earned dollars. Not only should they understand an organization's business model and the risks facing the economy, industry, and company, but they should also understand how well a company is managed. But in doing so, the tendency is for investors to look mostly at the quality of the board of directors, as well as the track record of the CEO and management team.
That can prove deceiving. After all, even Enron had a great track record until it didn't. The lesson from Enron — and other companies that suffered similar albeit less spectacularly tragic fates — is that investors shouldn't overlook a company's tone at the top while they are looking at financial performance. How effectively are risks managed? How ethical is the culture? How strong is the control environment?
Read the full InternalAuditor.org blog post from IIA President and CEO Richard Chambers.