Internal Audit after Maxwell and BCCI: Public Responsibility versus Loyalty to the Organization

Discusses the BCCI scandal, with particular reference to the part played by auditors Price Waterhouse. Declares the IIA Position Paper on Whistleblowing to be inadequate and urges reform of corporate governance: the selection and training of non‐executive directors must be improved and their role enhanced; an audit committee should be compulsory in areas of public exposure and concern; external audit should include in its remit the adequacy of internal audit and both should be mandated to report irregularities to the appropriate regulatory bodies.