In light of the economic crisis, internal auditors are under pressure like never before to help protect the mothership from fraud. They might find some new guidance from the Institute of Internal Auditors useful in meeting the new demands.   The IIA has published a new guide, “Internal Auditing and Fraud,” that gives auditors some general guidance to help internal auditors comply with professional standards. Lily Bi, IIA’s director of technology practices, said the economic conditions are ideal for fraud to flourish, making the guidance essential reading for internal auditors, management, and directors alike. “This is a very hot topic,” she said.

Few corporate departments have been spared layoffs in recent months, and internal audit and compliance are no exceptions. According to a new poll by Deloitte Financial Advisory Services, 27% of executives reported reductions in these areas at their companies in the past 18 months, despite the fact that compliance experts and internal auditors were heavily recruited just a few years ago, in the wake of the Sarbanes-Oxley Act. The implications for companies are worrisome. "We know that in a recess