This study explores the notion that the recently heightened
regulation over United States public company reporting limits
the amount of professional judgment required by internal
auditors, and in the long run may reduce the overall value and
professionalism of the internal audit group. Our assessment is
based on face-to-face interviews conducted with Chief Audit
Executives (CAEs) from 17 publicly listed companies located in
Northeast Ohio, United States, and is in general agreement
with the extant literature on the topic. We find that despite
several short-term benefits from the Section 404 work for the
individual auditor (e.g., increased pay and job security), the
compliance work may indeed be a threat to the long-term
reputation of the internal audit profession. Based on the
existing literature and the CAEs’ responses, the Section 404
work does appear to be driving the internal audit profession
down a new path.