Lind Andersson has investigated the reasons to why Swedish listed companies choose not to have an Internal Audit function. Our study indicates that more than 50 % of Large and Mid Cap companies choose not to have an internal audit function. The reasons for this vary, but among the most common explanations are that the companies have controllers and CFO:s in the organization responsible for monitoring the internal control effectiveness; we find this surprising since they are not an independent monitoring function. Another interesting explanation is that 10 % of the companies do not have an internal audit function since the Board and Management assess the internal control to be effective. Does that mean that the companies with an internal audit function have assessed their internal control environment to be ineffective?

Download the article (in Swedish).

Please contact Mikael Andersson or Henrik Lind to learn more.