World Wide Risk: Is Your Internal Audit Function Equipped to Evaluate the World?

There are major changes affecting the business world today.  Business is being conducted around the globe and there are no longer restrictions by boundaries or time zones. 

That’s why we as internal auditors need to be able to adapt and evolve to the ever-changing atmosphere not only of domestic operations we serve, but also for our international operations.

Because of the ever-changing atmosphere, there are added risks that internal auditors must assess when performing audits of multinational companies, such as understanding the laws/regulations of the country/countries that the company operates in, accounting and tax complexities and cultural differences.  Internal auditors must also ensure that staff members on the engagement are appropriately trained for working in that foreign culture. As companies expand globally, they will need to have more advanced controls and governance processes. Therefore, it is very important that internal audit departments understand these risks and make appropriate risk responses.

Internal auditors responding to these risks should prepare themselves not only for the audit, but also in understanding country-specific risk factors and the cultural differences that may affect the audit process and the outcome. Many organizations complement their core internal audit team with international specialists or subject-matter expertise to obtain the language and in-country specific experience needed.

Schneider Downs is a member of PrimeGlobal, which is a worldwide network of accounting firms located around the globe that perform a wide variety of accounting services.  Through PrimeGlobal, Schneider Downs serves more than 160 international businesses.  For more information regarding international internal audit services provided by Schneider Downs or PrimeGlobal, please contact Jim Yard at jyard@schneiderdowns.com.   

© 2014 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.

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