Lord Smith of Kelvin is quite correct.

I also think non-executive directors need to understand the culture within companies. For example, whether admissions of failure or owning up to problems, which must and do happen from time to time in any organisation, whether these are supported or kept under wraps.

I am told, for example, that the culture at Standard Chartered Bank is/was quite different in this respect from certain other banks in recent times, from which one could draw some tentative conclusions.

Overdominant CEOs are the visible top line, but internal auditors and others need to look lower down as well.

Expectations from regulation are oversold and misplaced, in my view.

Robert's comments logically lead on to the role and workings of the Audit Committee itself (on which he has spoken previously) - and re-emphasise the need for that Committee to work in a way which encourages the Internal Auditor to share concerns.

They also point up the need for an Internal Audit team which does its work in a way which ensures that it can be incisive while maintaining relationships in a manner which allows the "vibes" to be picked up within the organisation.

Not always an easy task but one which should be carefully taken account of when the Internal Audit manager is appointed.

Thanks for the plug, Robert!