How Internal Auditors can enhance their strategic value that executives are looking for.
Is Internal Audit (IA) best described as a “strategic” or “support” function for your organization? According to our survey report, business executives clearly want Internal Auditors to play a more strategic role, and it’s up to IA to rise to the occasion.
Comparing our previous survey in 2015, where we found ‘value gaps’ between what Chief Financial Officers (CFO) and Audit Committee chairmen (ACC) identify as priorities and what they are receiving from their IA functions. Our recent survey suggests that CFOs and ACCs envisage a more strategic role for Internal Auditors than the auditors see for themselves, and it is up to the auditors to take the initiative and broaden their responsibilities.
When respondents were asked whether IA is a strategic or a support function, 99 percent of executive stakeholders say it is strategic, compared with only 60 percent of auditors – which suggests that a strategic role is more aspirational than actual.
In almost all cases, Internal Auditors and executive stakeholders do not agree on the most important attributes of IA. Internal Auditors believe an insightful and valuable internal audit examines efficiency and effectiveness; meanwhile, 82 percent of executives view ‘value’ in a more tangible term, that a valuable audit is one that finds potential revenue enhancement, cost savings and/or smarter capital expenditures.
For Internal Auditors to meet (or exceed) executives’ raised expectations, three important things need to happen:
This transformation is a chance for both IA and the organization it serves to achieve a higher level of performance.
Download our report for more findings and contact us to discuss how we can assist you in adding value to your Internal Audit.