Strategic Roles of Internal Audit – What Are They?

Overview:

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 primary goal.

In other words, to meet the organization’s vision and mission.

The important approach that an internal audit uses to ensure that its activities are added value to the organization is systematic and disciplined.

This approach required internal audit to work very hard to ensure all relevant internal auditing standards, internal policies, and requirements from the regulator and audit committee.

The effectiveness and efficiency of its activities also need to review and assess.

However, these things are not enough to help internal audits in an organization meet the above objective.

Besides operational roles like managing the internal audit team, executing the audit plan, and reporting the result to the board of directors and the audit committee, the chief of audit executive needs to possess and play many strategic roles.

In this article, we will discuss the strategic role that internal audit leaders, including the chief audit executive, head of internal audit, and audit manager, should play to ensure that internal audit functions could add 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 succeed, changing management needs to run correctly. The chief audit executive could play an important role in changing management. Or can be the changing model.

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2) Build Strong Communication:

Internal audit needs to have a good relationship with senior management, the board subcommittee as well as the board of directors in the organization.

3) Review and Respond to the Ethical Climate of the 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 other Regulatory