| Abstract: |
In addition to a number of quantitative studies in this area, this study wants
firstly to elaborate in a complementary qualitative way how internal auditors
perceive their current role in risk management within the Belgian context
where internal auditing is a relatively young profession. Secondly, we want to
investigate whether, under the influence of recent changes in corporate
governance regulations, a greater financial emphasis in internal auditors’
work can be noticed. Thirdly, we are interested in differences between Belgian
companies and Belgian subsidiaries of US companies with relation to internal
auditors’ role in risk management. In order to get adequate data, we
interviewed 10 Chief Audit Executives and collected relevant documents. The
data reveal that the specific content of internal auditors’ role in risk
management is very time and country specific. For the Belgian companies,
internal auditors’ focus on acute shortcomings in the risk management system
creates opportunities to demonstrate their value in the short run. Internal
auditors are playing a pioneering role in the creation of a higher level of
risk and control awareness and a more formalised, standardised, transparent
and documented risk management system. In the Belgian subsidiaries of US
companies, internal auditors’ objective evaluations and opinions are a
valuable input for the new internal control review and disclosure requirements
mentioned in the Sarbanes Oxley Act. Moreover, an enhanced attention for
financial controls and the quality of financial reporting was noticed within
these companies. |