Enron, Worldcom, FIFA, General Motors, Volkswagen, and Wells Fargo are just a few examples of scandals caused by organizational cultures that encouraged inappropriate behavior. The reputation risk cries out for audit coverage, yet only 42 percent of internal audit functions are auditing their organization’s culture, according to The IIA’s 2016 North American Pulse of Internal Audit study.
Auditing an organization’s culture can be challenging because of its complexity, its subjectivity, and the potential resistance of key players. However, approaches and techniques pioneered by some internal audit functions can help auditors successfully enhance coverage of culture.
James Roth, president of Audit Trends LLC, explores the difficulties and potential rewards of auditing organizational culture. He also highlights some of the possible methods and techniques that can be used to measure a topic that is notoriously hard to pin down, and even harder to influence with audit recommendations. Read more here.