As integrated reporting <IR> gains traction globally, what role can internal auditors play?
Internal audit professionals’ expertise puts them in a prime position to provide guidance to management on ways to protect and create value. The role of internal auditors is becoming more strategic as they identify key risks and provide assurance over increasingly broad value drivers. Internal auditors are key to effective integrated thinking, already having a sound understanding of the business and close relationships with the key players in the reporting process. The IIA has been a driving force behind <IR>.
However, <IR> is not yet well known enough in the U.S. There are big advocates of <IR> within the U.S. — General Electric, PepsiCo, JLL, and Prudential Financial are among the 25 organizations producing integrated reports. The largest U.S. public pension fund, CalPERS, has called on boards to provide an integrated report, and Black Rock CEO Larry Fink has called on businesses to set out a strategic framework for long-term value creation.