Value of internal audit profession praised at rare SEC roundtable)

Esteem of internal auditing reached new heights at an uncommon Securities and Exchange Commission hearing on April 13 that welcomed critique of Section 404 of the U.S. Sarbanes-Oxley Act of 2002. Representing The IIA, Kimberly Gavaletz, vice president of corporate internal audit at Lockheed Martin in Washington, participated in the roundtable.

The invitation was a direct result of The Institute's survey of nearly 2,000 chief audit executives and the unified response sent to the SEC regarding implementation of 404. Gavaletz, along with panelist and IIA member Lisa Flavin, vice president of audit at Emerson Electric in St. Louis, detailed internal auditing's essential role in control documentation and testing, while corporate leaders recommended that external auditors rely more on internal auditors to avoid duplication of work and help reduce costs.

Meanwhile, the National Association of Corporate Directors lauds internal auditors in its most recent newsletter, directing boards to take action now. "These are the people doing the most important work without any direct financial gain (unlike external auditors, who can bill by the hour)," the article says.