Our Vision
Our vision is to unleash the value that Internal Audit functions could and should deliver systematically to stakeholders and the board. Internal Audit is uniquely positioned to play an integral role in shaping how company leadership thinks about the business and what it is doing to be successful. Ultimately, Internal Audit needs to remain relentlessly focused on helping gain the critical insight it needs to hold corporate leaders accountable.
“… the board must create or approve a reasoned approach to maintaining a reasonable system for causing information to be transmitted to the board concerning material issues for the business of the company and significant risks to that business. If such a reasonable system is created in good faith, and monitored in good faith, under Delaware law, the board will be protected from claims of lack of oversight.”
- A Director’s Duty of Oversight after Marchand in “Caremark” Case, Markel, Morduchowitz, & Catalano
Adding Value
In 2019 a group of Internal Audit leaders got together and started talking about the role of Internal Audit and the disconnect between what that role entails and how it is often implemented within organizations. For the last two decades, too many Internal Audit functions have been forced to adopt a narrow focus (generally on financial reporting due to SOX), while the world, economies, and businesses have changed radically. Lawrence Sawyer, widely recognized — as the father of the modern Internal Audit function — that Internal Audit should play the role of trusted advisor to company leaders. Too often, Internal Audit teams perform what they can, and not what they should.
The definition of Internal Audit, as defined by the Institute of Internal Auditors is:
an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.
Investment and participation by the Board of Directors is essential for Internal Audit to be effective in fulfilling its core mission.
“The thing is, continuity of strategic direction and continuous improvement in how you do things are absolutely consistent with each other. In fact, they’re mutually reinforcing.”
We believe that an Internal Audit activity has the obligation to add value to the organization. However, that value can vary importantly in perception between which stakeholders you are referring to. Here are a few fundamental elements that should underpin the value provided by Internal Audit:
Focus on what matters most: Internal Audit has limited resources, and by driving its own focus should enable the company to also align on what is the most important to its success.
Enterprise level insights: Internal Auditors should take a “company first” lens to everything they do, and use their unique organizational position to provide an unvarnished perspective on the true state of enterprise level operations.
Trust from objective and disciplined delivery of assurance: confidence in operational effectiveness builds trust. Trust enables speed, at scale. Internal Audit, through the execution of a disciplined and high quality assessment process provides that confidence.
Enable shaping the future: through holding accountability for performance as well as a deep rooted partnership with the business, Internal Audit is core to continuous improvement and helps organizations transform to reach their full potential.