Internal Audit’s Shift to Value Creation

Internal audit’s traditional role focused on preserving assets and ensuring compliance with a growing number of regulations. Over the years, it has evolved from being focused on preservation and compliance to a value-creation trajectory — adding operational and performance audits to its list of responsibilities.

But if internal audit is to be considered one of the organization’s high-impact business partners, it must shift course to focus on activities that contribute to and provide reasonable assurance to stakeholders regarding the achievement of the organization’s objectives.

It needs to transition beyond providing a process-oriented, “tactical” compliance function and align with senior management to incorporate “strategic risk” as an audit priority.

To shift course to value creation, there are six key questions to ask:

1. Is internal audit included in the process of establishing the organization’s strategy?
2. Does internal audit actively participate on planning teams regarding the achievemeShifting Course - Internal Audit's Move to Value Creationnt of the organization’s strategic business initiatives?
3. Does the internal audit risk assessment consider all strategic risks, and are those risks directly linked to the audit plan?
4. Has internal audit taken all necessary steps to ensure strategic risks are being appropriately mitigated?
5. Does internal audit provide assurance regarding the achievement of expected benefits relating to strategic business initiatives?
6. Does internal audit review the information and supporting data used to formulate business decisions?
    

Want more information on shifting course? Give Jefferson Wells a call.
We’ll help you retool for the future and move from a tactical player to a high-impact business partner.