Susan Hass

The Americas literature review on internal auditing

Purpose – By conducting the 2006 global Common Body of Knowledge (CBOK) study, The Institute of Internal Auditors (The IIA) attempts to better understand the expanding scope of internal auditing practice throughout the world. The purpose of this review of recent internal auditing literature in The Americas is to document how the internal audit function is changing in response to the shifts in global business practices.Design/methodology/approach – The literature in The Americas is reviewed with a focus on developments that have implications for the expanded scope of internal auditing and the changing skill sets of internal auditors. This focus has implications for CBOK 2006.Findings – The literature indicates a paradigm shift in the activities performed by internal auditors. The increasing complexity of business transactions, a more dynamic regulatory environment in the USA, and significant advances in information technology have resulted in opportunities and challenges for internal auditors. Although in ...

Gender and risk: women, risk taking and risk aversion

– Labeling women as risk‐averse limits the positive benefits both women and organizations can gain from their risk taking. The purpose of this paper is to explore womens risk taking and reasons for stereotype persistence in order to inform human resource practice and womens career development., – The paper draws on literature about gender and organizations to identify reasons for the persisting stereotype of womens risk aversion. Utilizing literature and concepts about risk appetite and decision making, the paper evaluates results of the Simmons Gender and Risk Survey database of 661 female managers., – The paper finds evidence of gender neutrality in risk propensity and decision making in specific managerial contexts other than portfolio allocation., – More in‐depth research is needed to explore the gender‐neutral motivators of risk decision making and to explore risk taking in a more diverse sample population., – The paper explores why womens risk taking remains invisible even as they take risks and offers suggestions on how women and organizations may benefit from their risk‐taking activities., – The paper synthesizes evidence on risk taking and gender, and the evidence of female risk taking is an important antidote to persisting stereotypes. The paper outlines reasons for this stereotype persistence and implications for human resource development.

A review of prior common body of knowledge (CBOK) studies in internal auditing and an overview of the global CBOK 2006

Purpose – The 2006 global common body of knowledge (CBOK) study is part of an ongoing research program that will broaden the understanding of how internal auditing is practised throughout the world. At the core of the 2006 CBOK study are three surveys of internal auditors worldwide regarding their professional activities. This paper reviews past CBOK studies and introduces the 2006 CBOK research project.Design/methodology/approach – The findings of prior CBOK studies are reviewed, and additional topics are identified to develop the topical areas to be covered in CBOK 2006.Findings – Past CBOK studies covered many of the same topical areas. Recent changes in The Institute of Internal Auditors Professional Standards, introduction of new technology, and the expanding complexity of business operations require new knowledge and skills for internal auditors. CBOK 2006 will be designed to address these issues.Originality/value – By presenting an overview of past CBOK studies and discussing the rationale for the ...

Ten steps to enterprise‐wide risk management

Purpose – The purpose of this paper is to discuss the objectives of enterprise‐wide risk management (ERM), the Committee of Sponsoring Organizations (COSO) ERM Framework, and outline a method to implement ERM in organizations.Design/methodology/approach – This paper delineates ten steps organizations can use to develop a viable ERM system for any organization.Findings – It is highly recommended that a high‐level risk officer with visible support from senior and board level executives has a separate function to oversee the development of an ERM department.Practical implications – Although the internal audit department has a large role in evaluation and monitoring the ERM system, it is managements responsibility to develop a strong ERM function that ties corporate strategy, the budget, controls, and the entitys performance measurement systems to risk management.Originality/value – The cost to the entity of implementing and maintaining of an ERM system is grossly out‐weighed by the results and knowledge ga...

A summary of the global Common Body of Knowledge 2006 (CBOK) study in internal auditing

Purpose - The 2006 global Common Body of Knowledge (CBOK) study is part of an ongoing research program designed to document how internal auditing is practiced. The purpose of this paper is to summarize responses to three global surveys of internal auditors. Design/methodology/approach - Based on literature reviews and a pre-scope questionnaire, the researchers develop three questionnaires that are answered by internal auditors world wide. Topics in the questionnaires, which are translated from English into 16 languages, include the attributes of an effective internal audit activity (IAA); compliance with The Institute of Internal Auditor (IIA) Standards; internal auditor skills, competencies, and knowledge; internal audit tools and techniques; and emerging roles of the IAA. Findings - The profession of internal auditing is a rich resource for organizations as the IAA monitors the adequacy and effectiveness of managements internal control framework and contributes to the integrity of corporate governance; risk assessment; and financial, operating, and IT systems. Practical implications - The participation of IIA members from 91 countries and 9,366 usable responses provides information about the evolving role of internal auditing as a value-added activity that helps an organization manage its risks and take advantage of opportunities. The CBOK 2006 database can be used to improve the understanding of the current state of internal auditing practices; anticipate the use of new skills, tools, and technologies; and promote the enhancement of standardization and performance of internal auditing world wide. Originality/value - This paper summarizes information in the most comprehensive database ever to capture a current view of the global state of the internal audit profession.

The use of performance measures as an integral part of an entity's strategic plan

Purpose – The objective of this paper is to gain an understanding of the multiple ways companies are using performance measures throughout the organization in the areas of strategic planning, monitoring operations, and evaluation of employees work and satisfaction with the company and suppliers.Design/methodology/approach – A survey was developed and distributed to internal auditors to gather information on how their companies used performance measures.Findings – The results suggest that most companies tend to have an internal focus when using performance measures and place less value on benchmarking with competitors and suppliers.Originality/value – Based on the results of the survey, performance measures are used throughout the organization for numerous reasons from the determination of whether strategic goals are being met to evaluation of suppliers.

A survey of internal auditors to establish the scope of the common body of knowledge study in 2006

Purpose – To present the results of a survey of internal auditors worldwide to determine the scope of the topics to be included in The IIAs Global Common Body of Knowledge Study (CBOK) 2006.Design/methodology/approach – The researchers developed a prescope questionnaire and surveyed a small sample of experienced internal auditors worldwide. All three CBOK 2006 teams (Americas, Asia Pacific and Europe/Africa) participated in data gathering from internal auditors in their regions. The questionnaire contained topics that were adapted from The IIA Practice Standards, past CBOKs ands other relevant prior research. The questionnaire also provided space for inclusion of “Other” topics by respondents.Findings – The respondents agreed with the inclusion of a majority of the topics listed in the prescope questionnaire in the global CBOK 2006 survey. Many “Other” topical areas were also suggested for inclusion.Originality/value – The survey results are providing invaluable information to the researchers in their ef...