Strengthening the partnership between audit committees and internal audit is key to enhancing governance, risk management, and overall organizational success. Here’s how audit committees can actively support internal audit.
Set the Tone at the Top
– Promote the value of internal audit within the organization.
– Ensure internal audit operates independently and objectively.
– Demonstrate a commitment to internal audit as a strategic function.
Provide Adequate Resources
– Advocate for sufficient budget and resources for internal audit.
– Support continuous professional development for internal auditors.
– Invest in technology and tools that enhance audit capabilities.
Enhance Communication and Collaboration
– Schedule regular meetings with the Chief Audit Executive (CAE).
– Foster an open dialogue for discussing risks, challenges, and opportunities.
– Align internal audit activities with the organization’s risk management strategy.
Align Audit Objectives with Organizational Strategy
– Develop a strategic audit plan that focuses on high-risk areas.
– Ensure audit efforts support the organization’s strategic initiatives.
– Advocate for a risk-based approach to internal auditing.
Support Internal Audit’s Advisory Role
– Involve internal audit in strategic projects like M&As and digital transformation.
– Encourage internal audit to identify opportunities for efficiency gains and cost savings.
– Position internal audit as a key advisor within the organization.
Monitor and Evaluate Internal Audit Performance
– Establish clear performance metrics for internal audit.
– Regularly review audit quality, efficiency, and impact.
– Conduct periodic external assessments to ensure industry standards are met.
Conclusion
By setting the tone at the top, providing resources, enhancing communication, aligning audit objectives, supporting an advisory role, and monitoring performance, audit committees can empower internal audit to deliver greater value. This strategic partnership strengthens governance and positions the organization for long-term success.
Call to Action
Engage with your audit committee and internal audit team today! Ensure you’re maximizing the value and impact of this crucial partnership within your organization.
🎞️ 𝑭𝒐𝒓 𝒎𝒐𝒓𝒆 𝒅𝒆𝒕𝒂𝒊𝒍𝒔 𝒂𝒏𝒅 𝒊𝒏𝒇𝒐𝒓𝒎𝒂𝒕𝒊𝒐𝒏, 𝒇𝒐𝒍𝒍𝒐𝒘 𝒖𝒔 𝒐𝒏 𝒀𝒐𝒖𝑻𝒖𝒃𝒆 𝒂𝒏𝒅 𝒘𝒂𝒕𝒄𝒉 𝒎𝒐𝒓𝒆:
