The Hindu Business Line : Plea to develop profession of internal auditors

THE Institute of Internal Auditors, the US-based body with a presence in over 100 countries, is urging India to play a greater role in the development of the profession of internal audit.

Internal audit has in recent times emerged as a major profession in more ways than one, complete with its own standards and code of conduct set by the Institute, said Mr William Bishop, President. Internal auditors, who assist managements and help increase stakeholder values, currently cover diverse areas such as risk control and environment audit.

The Institute would like its members in India to create the right conditions for growth even without sacrificing their independence and objectivity. The idea is to meet the needs of industry that are increasingly stemming from corporate governance.

"Serious corporate governance issues have been recently raised in North America," Mr Bishop said, referring to the likes of Enron and Worldcom. However, internal auditors have emerged from the controversy relatively unscathed. The pillars of corporate governance - management, board of directors, internal & external auditors - must be strengthened, he added.

The Florida-headquartered Institute, set up in 1941, currently has around 90,000 members. These include about 2,000 members in India, where a branch was established some 30 years ago. It holds professional examinations for persons wanting to join and provides certification to successful candidates. It has recorded eight-ten per cent growth in the last couple of years.

The Indian chapter meanwhile is set to hold its 28th national conference in Kolkata. It will hold discussions on a range of subjects, including risk management, corporate governance and audit in IT-enabled environment. According to Mr Nirupam Haldar, chairman of the conference committee, the meet will bring together key people from finance, accounts, management and audit sectors.