LETTERS

AN UNTENABLE APPROACH

In his letter to the editor ("Mandatory Certification," "Letters," June 2005), Donald Robitaille points out that certification is merely optional in internal auditing. This is a key point in evaluating the import of the ideas and recommendations posited by Bruce Adamec

The authors introduce the many responsibilities of management in the areas of risk management and internal control, the answer to which in every ; instance was the indomitable resources of the chief audit executive (CAE) and the internal audit department.

There are several issues that make that approach untenable. First, for internal auditing to review the work - or take part in the selection - of the external auditors could be considered a conflict of interest. In doing their audit, external auditors must comment on the effectiveness of internal auditing and control. Any work done by the internal audit department is reviewed by the external auditors in determining the level of control risk, and consequently the audit fee. Any work done by the internal audit department in the course of the annual audit must be supervised and sanctioned by the external auditors. It seems incongruous, therefore, to assume that the internal auditor could be considered independent and objective enough to give an evaluation to the board/management on the sufficiency of the external auditors' work.