Reviewed by Frank E. Ryerson III University of Montevallo
This book is a history of the Institute of Internal Auditors and serves to commemorate the fiftieth anniversary of the Institute’s founding in 1941. The author, Dale Flesher, does an admirable job of describing the individuals, events and activities that were instrumental in fostering the growth of the Institute of Internal Auditors (IIA) from an initial group of 24 businessmen to an international organization with over 42,000 members.
The book consists of ten chapters, each of which provides a chronological discussion of a major IIA-related topic area. These self-contained histories provide for easy reference to specific topics and allow for continuity of exposition within each area. Also, in order to provide an overall perspective on the development of the IIA, the book concludes with a chronological time line which integrates the major events and activities recounted in previous chapters.
The Introduction chapter describes how a number of major changes in the internal auditing environment has both expanded and enhanced the role of the internal auditor over time. The history of the IIA is incorporated into this broader discussion of the profession’s development and is attributed a major role in its evolution. In fact, Flesher states that “… for the past 50 years the history of internal auditing has been synonymous with the history of the IIA” [p. 15]. Support for this assertion is provided in the remaining chapters of the book.
Chapters Two and Three discuss the leading role the IIA has played in promoting the emerging professionalism of the internal auditor. This historical review includes descriptions of such Institute pronouncements as the “Statement of Responsibilities of Internal Auditing”, “Code of Ethics”, and “Standards of the Professional Practice of Internal Auditing” as well as discus-sions of the IIA’s Quality Assurance Review Service and its professional certification efforts. With respect to the history of the Certified Internal Auditor (CIA) examination, Flesher relates an interesting anecdote regarding the IIA’s deliberations on changing the CIA acronym. Debate over the acronym occurred during the mid-1980s and arose because international travelers and certificate holders were in danger of being mistaken by terrorists for members of the U.S. Central Intelligence Agency.
The material in Chapters Four through Six discusses the development of the IIA as a professional association and reviews the various types of professional service contributions the Institute has made to the practice of internal auditing. Chapter Four traces the growth of the IIA in terms of membership, chapters and member services. Chapter Five reviews the history of the periodicals published by the IIA, with specific emphasis on the Institute’s journal, Internal Auditor, while Chapter Six details IIA activities related to colleges and universities.
The Institute’s professional development activities are the subject of Chapters Seven and Eight. The history of Institute sponsored conferences, seminars and other continuing educa-tion meetings is presented in Chapter Seven. Chapter Eight con-tinues the theme of professional development by examining the numerous IIA related research projects and publications.
Chapter Nine is devoted to the individuals who have shaped the IIA over its first fifty years and is divided into three sections: (1) international volunteer chairmen; (2) key staff members at the international headquarters; and (3) recipients of major IIA awards.
The last chapter comments on the success the IIA has had in adapting to its changing environment and in gaining recogni-tion for itself from other professional associations and various governments. The discussion then concludes with a brief look to the future, which includes twelve strategic actions the Institute’s 1990-91 Chairman, A. J. Hans Spoel, has recommended for use as a guide for the next decade.
The only criticism this reviewer has of the book is the pres-ence of several inconsistencies between the text and several ex-hibits it makes reference to. However, because these inconsis-tencies are limited in number, they do little to disrupt the flow of the material, nor do they diminish the overall contribution this book makes to our understanding of the development of the DA and its associated impact on the professional practice of internal auditing. Flesher has provided an extensive summary of the who, what, when, where and why of the DA. As such, the book fulfills the dual functions of, first, providing a concise history of the DA and, second, serving as a reference source for those interested in exploring the Institute in more depth. The book also makes a contribution to the accounting literature by filling the gap in published DA history which has existed since the publication of the last history of the Institute in 1977.
