It is encouraging to see the public accounting firms recognize the value that an effective internal audit team can provide an organization.
Earlier this year, PwC shared their views in Getting the most out of internal audit: How can the audit committee help maximize the value of internal audit?
They make a number of good points, but miss the most important issues in my opinion.
Let’s first look at a few of their observations:
- Maximizing the value proposition of the internal audit group is an effective way to help audit committees address their risk oversight responsibilities. But getting internal audit’s full value requires focus and attention. It requires the audit committee to reflect on what it needs and to be direct with internal audit.
Comment: Internal audit can help with more than “risk oversight.” For example, at one company where I was CAE, the board was concerned with the leadership of CEO. The board chair asked for my insights on the executive team and whether they were effective as a team. I have also helped the audit committee with their oversight of the external auditors, gathering an assessment of their performance from the global management team.
Comment: I find it frustrating to see surveys of audit committee members where they say they are disappointed in internal audit performance….
