Audit committees are failing to use their internal audit functions to get a clear picture of their organisations' risk, according to the UK Institute of Internal Auditors (IIA).
Despite recent corporate financial scandals in the US, fewer than a quarter of internal audit heads are being asked for assurance on accounting controls.
The study claimed that most audit committees are missing out on a valuable source of independent assurance.
IIA Deputy president Richard Nelson said: "All audit committees should be at least reviewing the scope of the assurance they expect to receive from internal audit. Both WorldCom and Enron show that boards and shareholders cannot rely solely on the views of their external auditors."
