Are internal audit services strongly positioned in A-Pac?
The situation is not too bright. Our studies show that internal auditors in A-Pac face a number of obstacles due to the cultural norms that tend to inhibit promotion of a dynamic and independent role for internal audit. A number of large organisations in the region either have no internal audit function whatsoever or have an internal audit function that focuses on low-value activities. We found that internal audit functions in A-Pac will often issue reports with watered-down findings and without recommendations for improvement in order to avoid upsetting or embarrassing their auditees. However, things seem to turn bright when A-Pac companies, which are often slow to demand a stronger internal audit function, assume multinational status: they quickly realise the value and benefit of a robust internal audit function that is aligned strongly with the strategic direction of the organisation. To this point, 68 per cent of the A-Pac respondents told PwC that the role of the CAE will increase
