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​​From the Epicenter of Corporate Governance, Internal Audit Exposes Weaknesses

In his blog, IIA President and CEO Richard Chambers, CIA, QIAL, CGAP, CCSA, CRMA, shares his personal reflections and insights on the internal audit profession. Here's an excerpt from his latest post:

It is not often when a new report reveals information that is truly startling or exposes a previously unknown wrinkle to an area as well studied as corporate governance. But such was the case last week when The IIA published the American Corporate Governance Index (ACGI), in collaboration with the University of Tennessee's Neel Corporate Governance Center.

The index assigned an unimpressive grade of C+ to corporate governance of publicly traded companies in the United States. At first, the grade may not seem upsetting or even shocking, but that assessment would be wrong. I believe it is indicative of one of the biggest threats to all organizations, not just publicly traded ones: a poor understanding of the value of strong governance.

It is important to understand that the ACGI is an index, not simply a survey report, and one that's scored based on eight Guiding Principles of Corporate Governance. And those principles were designed specifically to make achieving sound corporate governance aspirational. In other words, every organization should strive to meet each of the principles at the highest level (A+).

Read the full InternalAuditor.org blog post from IIA President and CEO Richard Chambers.