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Think beyond your annual audit plan - Whats the fix - EY - Global

Think beyond your annual audit plan

What’s the fix?

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There are four steps CAEs can take to build a long-term internal audit strategy that will keep the function relevant to the organization’s strategic planning.

Questions CAEs should consider:

1. Define or redefine internal audit’s strategic vision

  • What does internal audit want to accomplish in the next three to five years (or other time horizon that corresponds with the business)?
  • What are internal audit’s roles and responsibilities? What are the specific needs of its key stakeholders?
  • What is the function’s mandate?
  • Looking forward, what strategic business priorities can internal audit focus on to be more relevant?
  • Where are the enablement and competency gaps?

2. Identify and prioritize key internal initiatives

  • Is the internal audit strategy aligned to the business risks, organizational priorities, and key financial and operational initiatives?
  • Are processes, methodologies and tools up to date?
  • Is the function prioritizing effectively?
  • Does internal audit have the industry and functional insight it needs?
  • Are internal audit’s staffing models flexible enough?
  • Does internal audit have the right skills to anticipate change and attack emerging issues?

3. Design the appropriate internal audit KPIs

  • How is internal audit measuring its success?
  • How do key stakeholders define success for internal audit?
  • Does internal audit track productivity and value-driven measures?

4. Develop the internal audit operating strategy

  • What are the detailed activities the function needs to undertake to get from where it is now to where it needs to be?
  • What are the key milestones?
  • How is the function communicating its progress to all stakeholders involved?
  • What steps are in place to enable the function to adapt to changing priorities and remain relevant to the business?
  • How can internal audit get out in front of emerging issues and risks?

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