Internal audit

As companies comply with the reporting requirements of Sections 302 and 404 of the US Sarbanes-Oxley Act, internal auditors are coming to grips with their role and involvement in these initiatives. These questions include both short-term issues during the implementation phase, as well as longer-term questions on the role and responsibilities of internal audit in the process. Although the Sarbanes-Oxley Act spells out the various roles of management, the audit committee, and the external auditors, it does not specifically address the role of internal auditors. In a post Sarbanes-Oxley world, the internal audit function needs to walk a fine line between providing assurance and consulting to management without impairing its objectivity and independence.