Internal audit performs independence and objectives activities from the organization while its main objective is to play an important role in helping the organization to meet its main goal. In other words, to meet organization vision and mission.
The important approach that internal audit uses to ensure that its activities are added value to the organization is a systematic and disciplined approach.
This approach required internal audit to work very hard to ensure that the all relevant internal auditing standard, internal policies as well as the requirement from regulator and audit committee. The effectiveness and efficiency of its own activities also need to review and assess.
However, all of these things are not enough to help internal audits in an organization meet the above objective.
Besides operational roles like managing internal audit team, execute audit plan, and reporting the result to the board of directors as well as the audit committee, chief of audit executive need to possess and play many strategic roles.
In this article, we will discuss the strategic role that internal audit leaders include chief audit executive, head of internal audit, as well as audit manager, should play in order to make sure that internal audit functions in the organization could really add the value to the organization.
Key Strategic Role of Internal Audit:
1) Be the Changing Leader:
Change is very important in the organization. In most cases, during the transition period, conflict might always happen.
And, to ensure that the change will success, changing management need to run properly. The chief audit executive could play an important role in changing management. Or can be the changing model.
2) Build Strong Communication
Internal audit needs to have a good relationship with both senior management, board subcommittee as well as the board of directors in the organization.
3) Review and Respond to the Ethical Climate of Board and Management
4) Educate Board and Management on Corporate Governance, Risks Management, Control, and Compliance
5) Set and Communicate Internal Audit KPI to Board and Senior Management
6) Be a Key Point of Contact with External Audit and Others Regulatory