By Peter Egwuatu
LEADING consulting firm, PricewaterhouseCoopers, PwC, yesterday, raised alarm over increasing risks and cybercrimes that organisations faced in the business environment.
PwC, in its latest report released at its 13th annual State of the Internal Audit Profession study, declared that internal audit functions are losing ground in trying to keep pace with stakeholders’ expectations.
The report shows that the number of stakeholders that view internal audit as “contributing significant value” dropped from 54 per cent in 2016 to only 44 per cent in the 2017 report, reaching its lowest level in five years.
“Despite this drop, the good news is that nearly half of all stakeholders want internal audit to take on a more integral role; this can be achieved through the function’s ability to help stakeholders better manage unplanned or unanticipated events, also known as market disruptions,” the report noted.
Commenting on this development, Femi Osinubi, Partner and Internal Audit Leader at PwC Nigeria, stated: “Organizations are facing rising complexity of risks and new disruptive sources, impacting them at increasing speed. Stakeholders expect internal audit functions to help them navigate this changing landscape or face a shrinking perception of the value internal audit provides.
“In a world of constant disruption, internal audit leaders need to think differently to accomplish more dramatic transformation and demonstrate their vitality. Particularly, they must be well-equipped to mitigate risk in several disruptive areas including regulatory changes, cyber security and changes to customer preferences – the disruptors most likely to impact businesses over the next three years,” she said.