CAEs can often lose focus on long-term strategic planning for the internal audit function.
In a CAE roundtable session we recently hosted, we asked participants the following question: “Does your internal audit function have a strategy?”
Almost every CAE answered “yes.”
We then asked whether their internal audit strategy was documented and spanned the same timeframe as the organization’s business strategy and whether it aligned to the organization’s business objectives and key initiatives. For many, the answer was “no.”
Many CAEs new to their role embark on a journey to transform their internal audit function. But when that transformation is complete, CAEs can often lose focus on long-term strategic planning for the internal audit function.
To create value and maximize relevance to the organization, CAEs need to have a solid understanding of the organization’s strategic initiatives and develop an internal audit-specific strategic plan that aligns to the organization’s broader business priorities:
Developing an audit plan based on what has always been done in the past means internal audit may not be auditing the most important and relevant risks. It also means the function can’t proactively ensure that it employs the right competencies and tools to address emerging issues and risks.
<< Previous | Next >>