Role of Internal Auditing in The Changing Scenario

Having said all good about internal audit, it must also be noted that certain audit reports are not made as required by statute and ethical values set by the audit fraternity. There are instances where Audit reports suppressed certain vital information, deviated from the stipulated formats and report structure, not addressing the critical aspects of financial figures in the Balance sheet and P& L account. In some cases, Internal Audit was directly or indirectly a party to clandestine transactions of certain companies. Who can forget the black and gloomy days of Sathyam Computers, which doomed to burial after having earned lots of reputation and goodwill, the world over, especially in our country? The auditors of this company facilitated in forging and fudging the company's accounts as well as manipulating employee strengths and resorting to billing on ghost customers and ultimately lost reputation and good will. So the position of Auditors including Internal Auditors is valued in esteem by both the organization and the society at large and as such it is the ethical-bound duty of every auditor to discharge his duties in line with the ethics of his profession and to the best interest of the stake holders.