Expanding Internal Audit's mandate
Matching Internal Audit talent to business needs
Stakeholders are demanding more of Internal Audit every day.
- External auditors are increasingly relying on the work of Internal Audit
- Shareholders are demanding greater assurance of financial controls
- Regulators are scrutinizing companies around an ever changing environment
Providing assurance and steadfastly adhering to regulatory compliance requirements remain core elements of the Internal Audit mandate. However, IA will also need to add a number of other competencies to its arsenal to keep pace with expectations.
This will include shifting the balance between assurance and advisory audits to achieve greater business insights.
Internal Audit needs to move beyond the standard compliance focus and to continue to drive business and strategic insights.
In our survey, 96% of respondents say that advisory comprises some portion of their audit plan, an increase of 6% from last year’s survey. For 52% of respondents, advisory reviews comprise 25% or more of the audit.
Finding the right balance is unique to each organization and its strategic objectives. It is also important to note that this balance will teeter between assurance and advisory audits as the organization’s risk tolerance or strategic goals change.
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