PwC Survey Finds Need to Improve Internal Audit Capabilities

As companies have come to accept that market volatility, complexity, political and regulatory changes are here to stay, internal audit functions have more opportunities to contribute to businesses in a truly meaningful way, according to the PwC US Internal Audit State of the Profession 2013 survey.

However, according to survey respondents, internal audit must also significantly improve its performance or risk losing relevance as other internal risk functions become more vital contributors in the risk management area.

Representing 18 industries and 60 countries, nearly 1,100 chief audit executives and more than 630 others answered questions on today’s critical risks, the role they expect internal audit to play in addressing them and the performance of their enterprises’ internal audit function.

“Our survey shows that 80 percent of respondents believe threats are increasing, yet only 12 percent think their own organization manages risk extremely well,” said Dean Simone, Leader of PwC’s U.S. Risk Assurance practice. “As risks increase, internal audit’s coverage of risk and performance in emerging areas is critical, which provides internal audit with an ideal opportunity to demonstrate the value of the evolving profession. Internal audit must then aggressively increase its capabilities and add true value in risk areas most critical to the organization.”

Download the report at www.pwc.com/us/2013internalauditstudy.