Maximize internal audit’s impact | Norman Marks on Governance, Risk Management, and Audit

There’s an interesting article published by the International Federation of Accountants (IFAC), We need to Maximize Internal Audit’s Impact.

It is based on the results of a survey by the UK’s Chartered Institute of Public Finance and Accountancy (CIPFA) of internal auditors in the public sector. While it might appear that the results would only apply to public sector functions, I believe they have wider relevance.

The report said (with my emphasis and comments):

• Increasing the impact of internal audit on an organisation is essential if it is allowed to become more effective. But what do we mean by ‘impact’? We define it as ‘internal audit’s ability to support the organisation in achieving its strategic objectives and goals.’ Some of the main areas to assess whether internal audit is having an impact include good engagement with senior managers, whether internal audit’s priorities are clearly aligned with organisational ones, providing timely and meaningful assurance, the ability to challenge constructively and the freedom to be dynamic and change focus.
  • Comment: I like the emphasis on helping the organization be successful – which is far more than managing risks that have a negative…