Many leaders and executives don’t even know what Internal Audit does.
Internal Audit has a unique opportunity and vantage point to drive lasting and meaningful business performance and overall market value creation.
Defining Internal Audit
The Institute of Internal Auditors (IIA) defines Internal Auditing as:
an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
The IIA goes further to state that the mission of Internal Audit is:
to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight.
By interfacing with all areas of the business, Internal Audit has a unique opportunity to add lasting and meaningful value to the organization because it can, and should, identify and influence the implementation of systemic improvement opportunities. The board of directors empowers the Internal Audit function to understand and support those processes, initiatives, and structures that can further enhance achievement of critical business objectives.
In today’s uncertain business climate, Internal Audit should be looking to take a leadership role in helping management, leaders, the board of directors, and those involved in governance to maximize and continuously improve business outcomes. “Testing controls,” should never be the objective of the Internal Audit function.
“I find that I have to explain what Internal Audit does to people in my company — often more than once. They typically think we are just the SOX function, or that we are the independent financial auditor that certifies our financial statements.”