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With increasing number of Indian corporate houses going global through mergers and acquisitions or setting up new ventures and few others partnering companies in new markets, the internal audit (IA) functions are undergoing major changes.
These changes need new breed of talented professionals adept at global best practices while playing the role of internal consultants advising the company on these issues while managing risk, according to Mr Neville M. Dumasia, Executive Director and Head of Governance, Risk and Corporate Services, KPMG in India.
Mr Neville said, "IA reporting has changed due to new expectations from the 'Board Room' in the wake of global financial crisis and its fallout. They feel the need for effectiveness of risk and assurance functions as part of the IA work." Companies' views Quoting a broad-based survey conducted by KPMG and BSE, where over 225 senior executives were interviewed on the expectations from the board room, Mr Neville said most agree on need for process improvement that is simple, standardised and yet sustainable to reduce potential errors.
Speaking to representatives of business houses, Mr Neville said after some frauds, boards have an explicit expectation that the IA functions should play a pivotal role in oversight of internal controls, financial reporting compliance and take lead in combating fraud.
The Associate Director, Governance, Risk and Compliance Services, KPMG India, Mr Neeraj Bansal, told Business Line the focus is on collaborative work and building new IA capabilities. Apart from MNCs, it is good to see companies in the pharmaceutical and construction industry, to bring about new approaches in managing IA functions.
These changes need new breed of talented professionals adept at global best practices while playing the role of internal consultants advising the company on these issues while managing risk, according to Mr Neville M. Dumasia, Executive Director and Head of Governance, Risk and Corporate Services, KPMG in India.
Mr Neville said, "IA reporting has changed due to new expectations from the 'Board Room' in the wake of global financial crisis and its fallout. They feel the need for effectiveness of risk and assurance functions as part of the IA work." Companies' views Quoting a broad-based survey conducted by KPMG and BSE, where over 225 senior executives were interviewed on the expectations from the board room, Mr Neville said most agree on need for process improvement that is simple, standardised and yet sustainable to reduce potential errors.
Speaking to representatives of business houses, Mr Neville said after some frauds, boards have an explicit expectation that the IA functions should play a pivotal role in oversight of internal controls, financial reporting compliance and take lead in combating fraud.
The Associate Director, Governance, Risk and Compliance Services, KPMG India, Mr Neeraj Bansal, told Business Line the focus is on collaborative work and building new IA capabilities. Apart from MNCs, it is good to see companies in the pharmaceutical and construction industry, to bring about new approaches in managing IA functions.
