Something interesting is happening in Bermuda in terms of internal auditing - and Gerald Cox, the chairman of the Global Institute of Internal Auditors, is impressed by the trail-blazing attitude being adopted by Bermuda's Government.

Mr. Cox is on the Island this week to meet with corporate representatives, internal auditors and Government. He has already met with members of Government, including Premier Dr. Ewart Brown.

What is happening in the corridors of power is significant, according to the profession leader.

"Around the world public sector has trailblazed internal auditing, mostly because of the public interest aspect. (Here in Bermuda) is the first time that I have come across a place where the 'lines of reporting' have been changed," said Mr. Cox.

Normally, the internal audit reporting lines lead up to the head of the financial departments. But Government has decided to have the head of the civil service as the ultimate destination of reporting lines.

"Normally it is the people who hold the purse strings who are told if there's a problem, but that is not ideal. But here it is going direct to the head of the civil service. That is a mighty good thing and quite unusual," said Mr. Cox.

During his visit, the Britain-based Global IIA head has met with a number Government officials, including head of the civil service Kenneth Dill, to discuss new developments within internal audit and how it can be used to make systems within Government more efficient and effective.

Mr. Cox was invited to the Island by the Bermuda chapter of the IIA. Owen Martin, of the local IIA, said it was intended to give internal auditors on the Island, as well as CEOs of businesses here, the opportunity to hear directly from the man at the head of the organisation and learn about new best practices and developments.

Chief executives on Island, mostly from the financial services sector, have been very receptive, Mr. Cox reports.

In recent years the IIA has been increasing its presence in the US, setting up courses and such like to further develop the profession.

"I come and listen and also advocate for the profession and explain to those people who do not know what internal audits can do for a company or organisation," explained Mr. Cox.

"If you do not have the internal audit functions very close to the board of directors and reporting to the CEO then it is hardly worth having an internal audit because you are not going to be able to advise the company. Internal audits are there to protect the interests of the people who run the company and those who are shareholders."

Speaking of his meetings this week, he said: "We had some interesting dialogue with the CEOs. The companies here seemed very amenable to internal auditing - that is something that is not the case in other places."

Another aspect that Mr. Cox has picked up on during his visit is the lack of Bermudians being attracted to the profession. He finds this odd, given that the Island is home to so many financial heavyweights and operations that all need to have internal auditors. Almost all the positions are filled by expat workers out of necessity.

Mr. Cox said: "Companies are having to bring in from the outside because they can't get local students interested in the profession. But once people have worked within internal auditing they realise what a great job it is. There is a lot of variety and people end up loving it."

That was the case for Mr. Cox, who started out as a draughtsman before becoming an accountant and then switching into internal auditing.

Internal auditing has many facets and is used to analyse systems and methods of work and to come up with better, more efficient ways of doing something.

"You work with a company and suggest things, such as 'Why do you do that? Why not do this.' The greatest thing is when you walk away with the people saying thank you because you have made a difference to how they do things in their organisation."

For Bermudians the opportunities available to qualified internal auditors on the Island are almost boundless. But it does not stop there. The skills of internal auditing can be taken anywhere in the world and applied within the corporate world. It is a well paid profession and there are even stories of some of the top head internal auditors earning up to $1 million a year.

The Bermuda chapter of the Institute of Internal Auditors is keen to attract more Bermudians. There are opportunities to sit exams on Island and to secure scholarships to pay for studies. Mr. Martin is president of the local chapter and is vice-president of internal audit at Butterfield Bank.