Clear operating model
High performance internal audit team’s operating models achieve four goals:
Business alignment
However the business organizes itself, it makes sense for the audit function to replicate this as much as its size will allow. This may be along geographical lines if you are a multinational business, along product lines if you have many product streams, or along operational lines with manufacturing and sales functions all being separate. Mirroring how the business organizes itself provides clarity both to the team and the business on how you are looking to bring value.
Accountability
The boundary of the operating model should not stop at the internal audit team’s door. Successful risk management and control comes when everyone in the organization is clear about their accountability for risk and control. In short, everyone understands the role they play and the significant decisions they can take in effectively managing risks and determining and operating controls. One high performing organization identified that this lack of clarity was a major issue. The organization did not just raise this as an audit issue but stepped forward to work with business colleagues to…
