Internal audit and the CFO: 5 safeguards to independence
In this article, Richard Chambers argues that having internal audit report administratively to the CFO, rather than the CEO, risks overemphasizing financial controls and neglecting non-financial risks, thereby compromising organizational oversight and independence. It proposes five safeguards, such as clear charter language and board oversight, to help maintain internal audit's objectivity in this reporting structure.
In this article, Richard Chambers argues that having internal audit report administratively to the CFO, rather than the CEO, risks overemphasizing financial controls and neglecting non-financial risks, thereby compromising organizational oversight and independence. It proposes five safeguards, such as clear charter language and board oversight, to help maintain internal audit's objectivity in this reporting structure.
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