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Internal auditors must take ownership of their assurance agenda.

 
LONDON, UK – 6th May, 2010. Goodman Masson, the largest Independent Financial Recruitment business, in association with Grant Thornton, hosted an Internal Audit Seminar, backed by a panel of esteemed industry spokespeople leaders.

The issue of outsourcing internal audit to the organisation’s existing external auditors was again under scrutiny today, this time as senior internal auditors debated the topic with a panel of experts representing the internal audit profession, institutional shareholders, corporate governance academics and outsourced internal audit providers.

The debate, hosted by internal audit and finance recruitment firm, Goodman Masson, produced a clear outcome amongst internal auditors: outsourcing internal audit to the incumbent external auditors creates a conflict of interest which should be avoided.

 “The Financial Reporting Council has concluded its consultation on this subject and the outcome is awaited. This debate was designed to examine this issue closely, given the different perspectives on the subject.” Debate panel Chairman, and founder of Goodman Masson, Paul Goodman, says of the subjects covered.

The audience participated in a lively discussion covering topics relating close to their industry including  cost saving, independence of assurance, shareholder expectations and the external audit issue of potential for breaches of ethical standards on the reliance by external auditors on internal audit work.

Most internal auditors in the room, who represented a mix of organisations, including FTSE companies, started the debate from the position of believing that the benefits of outsourcing to the incumbent external audit provider were far outweighed by the disadvantages. This view seemed to have strengthened further by the end of the debate.

At the conclusion of the seminar, Paul summarised “Throughout the debate, two issues were particularly apparent. Firstly, the view that current regulatory principles are adequate and that this issue is a matter for the board and the audit committee rather than the regulator. Secondly, and perhaps more importantly for internal auditors, there was also a view expressed that  internal auditors themselves should be doing much more to influence the decision by ensuring that boards are clear about the role and value internal audit brings”. 

This seminar is from a programme of events that Goodman Masson is running throughout the course of 2010. The next event, titled “The important lessons for Senior Finance Professionals with aspirations to become a Chief Executive” hosted by Ian Tyler ACA, Chief Executive of Balfour Beatty PLC, on 27th May, 2010.  

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For images and further information please contact:
Melissa Meadows, Marketing Communications Manager 
020 7324 0530
melissa.meadows@goodmanmasson.com

 
Notes:

   1. Goodman Masson was established in 1993, our main area of specialism is Finance which includes separate teams operating within Accountancy, Tax, Internal Audit and Treasury disciplines.  In addition we have specialist business areas concentrating on Actuarial, Management Consultancy and Legal.

    2. With revenues in excess of £15m there are currently 87 employees.

   3. For more information visit our website at www.goodmanmasson.com