Data reveals that compliance modernization seems to be eluding most companies due to a host of reasons, and internal audit can play an important role in identifying areas of improvement. Here are five signs the compliance function needs fixing.
It's hard to justify recruiting great talent, investing in training, and passing on company knowledge, only to find that those recruits eventually leave for competitors because they didn't feel engaged.
Everyone knows that culture is set at the highest levels of the organization. We may all be tired of hearing about "tone at the top," but it's never been more important. Apart from influencing the culture of the organization as a whole, executives—especially the CEO—have a big role to play in setting the risk culture.
You can have an army of risk managers and all the sophisticated risk-management models and tools you like, but if there is something wrong with the culture of the organization and what we all now call the “tone at the top,” they won’t work.
Social media sites are becoming a bigger part of most companies' plans to connect with customers and other stakeholders. Now internal audit departments are taking a closer look at those risks and the controls companies are instituting to manage them.
The buzz for the last few years now is that social media represents a unique risk that companies must manage, lest they leave their corporate reputations hanging out there for others to tweet all over them.
Jose Tabuena, a former internal auditor and compliance executive at various companies including Orion Health and Texas Health Resources, discusses the role of internal audit in influencing and shaping corporate culture.
How can we tell if the external auditors are doing a good job? Often we can’t. Lots of companies have had large accounting and fraud issues blow up shortly after the external auditors issued a clean audit opinion.