The internal audit (IA) profession has undergone remarkable growth since 2004, when Protiviti published the first edition of the Guide to Internal Audit. Five years later, companies are far more likely to have in place highly developed IA functions that address not only the NYSE standards, but also the SEC’s interpretive guidance on Section 404 of the Sarbanes-Oxley Act and PCAOB Auditing Standard No. 5 (AS5), both of which were finalized in 2007. These regulatory developments have had a significant impact on internal audit functions. Given these and other changes, as well as the many lessons learned since the enactment of Sarbanes-Oxley in 2002, Protiviti decided the business community would benefit from a second edition of this resource guide of frequently asked questions about the practice of internal auditing.

The 90 questions and answers are organized into eight sections, with new and significantly revised questions noted with an asterisk. Among the new questions are:

1. What types of IT audit skills should be included in an internal audit department?
2. How can internal audit assist in developing and maintaining an effective corporate governance environment?
3. To what degree should the internal audit function coordinate its activities with its external audit firm?
4. How does completing a quality assessment review strengthen the value internal audit brings to the organization?
5. What should the audit committee’s relationship be with an organization’s board of directors, compensation committee, disclosure committee, and nominating and governance committee?

This resource guide will be of interest to public companies as well as private organizations seeking information on how they can benefit from an effective internal audit function.

Download Guide to Internal Audit: Frequently Asked Questions about Developing and Maintaining an Effective Internal Audit Function (PDF, 2 MB)  (requires Acrobat Reader; please disable your pop up blocker)