Spring 2007 issue of Horizons

knowledge. commitment. value. CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS

Themost appropriateorganizational reporting relationship has internal audit reporting directly to the audit committee, both for oversight and to provide internal audit with the appropriate level of independence and authority to meet their objectives. For day-to-day administration, the internal audit department reports to the CEO or CFO. The audit committee has the responsibility to ensure internal audit is properly staffed, independent and placed high enough in the organization to leverage their knowledge and efforts. The audit committee should share the company’s strategic direction and provide input into the risk assessment performed by the internal auditors. Internal audit shouldpresent a summary of findings from its internal audits and communicate management’s actions to remediate any identified issues. This commitment to ongoing communication between the audit committee and internal audit will lead to more effective corporate governance within any organization.

Questions? Contact:

Cathy Behnen, CPA, CIA Partner Internal Audit Services Group 314.290.3204 cathy.behnen@rubinbrown.com or Mike Ramirez, CPA Manager Internal Audit Services Group 314.290.3455 mike.ramirez@rubinbrown.com

12 u summer 2007 issue