Article: Audit committees and internal auditors.

Do audit committee/internal audit relationships really embody the recommendations of Treadway and SIAS No. 7?

IN 1987, THE TREADWAY COMMISSION(1) highlighted the role of audit committees in the areas of financial reporting and internal control. Specifically, the Treadway Commission recommended that the chief internal auditor should have direct, unrestricted access to the audit committee.

In 1989, the Professional Standards Committee's Statement on Internal Auditing Standards No. 7 (SIAS No. 7)(2) reiterated the importance of this relationship. The Statement provides guidance to internal auditors in reporting to, and communicating with, audit committees. Most ...

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