REDUCING ASSURANCE FATIGUE

Abstract

Increasing and stringent regulatory requirements coupled with stakeholders’ expectations of a solid risk and control effort have led to multiple assurance functions in an organization which ultimately results in assurance fatigue. If not addressed, this phenomenon can diminish the true value that internal audit brings in an organization. Companies are quickly realizing that there is an urgent need for a streamlined effort to manage these different assurance providers and the work they do if the true value of each is to be realized. Even though, there is a responsibility for internal audit to streamline its own work with the organization, it cannot solely address and solve assurance fatigue. The solution is to understand and apply some well-researched tips in addressing this problem.

RECOMMENDED READING

1. Clemens, D. “Optimized Integrated Assurance,” Internal Auditor, October 2014.

2. Guillot, C. “Avoiding Burnout,” Internal Auditor, April 2013.

3. Huibers, Sam ca. 2015. Combined Assurance: One Language, One Voice, One View. Lake Mary: Institute of Internal Auditors’ CBOK.

4. Institute of Internal Auditors. 2017. International Professional Practices Framework: Implementation Guide 2050. Lake Mary: IIA. (IPPF) – IIA, 2017

5. Institute of Internal Auditors. 2011. Reliance By Internal Audit on Other Assurance Providers. Lake Mary: Institute of Internal Auditors’ Practice Guide.

6. Wood, David A. 2004. Increasing Value Through Internal and External Coordination. Lake Mary: Institute of Internal Auditors Research Foundation.

7. Institute of Internal Auditors. 2012. Coordinating Risk Management and Assurances. Lake Mary: Institute of Internal Auditors’ Practice Guide.

Additional information

Notes on contributors

Lal Balkaran

Lal Balkaran, MBA, FCPA, FCGA, FCMA, CGMA, CIA is an award-winning Toronto-based independent internal audit consultant with more than thirty years experience in a range of industries including the Big Four. He has authored several reference books on business and over fifty articles published widely across the globe including a dozen times in the Internal Auditor magazine. Lal has also done several presentations, seminars, webinars, and workshops, at regional, national, and international conferences. Mr. Balkaran has been a long-time member of the Institute of Internal Auditors (IIA) and was twice elected President of the IIA-Toronto where he is now an honourary member.

He currently sits on the Internal Auditor magazine and EDPACS Editorial Advisory Boards as well as on the IIA-Canada’s Thought Leadership Committee. A former long-term member of the Committee of Research and Education Advisors of IIA Global, he is the founder of the IIA-Guyana and was a member of the Internal Audit Advisory Committee set up by the Paul Martin Government of Canada to establish an internal audit activity in all government agencies. He is the only recipient of all three of IIA Canada’s Awards and can be reached at [email protected].