We've seen many examples of internal audit teams continuing to increase buy-in from stakeholders as a provider of valued-added business partnering.
Internal audit has been in a unique position to help businesses as they have responded and adapted to new conditions. The shape of that response will continue to evolve as risks continue to change, and teams need to remain resilient as an audit function moving forward.
Internal audit aligned with strategic outcomes
As we begin to think about the ‘new normal’ and restoring ‘business as usual’, it is vital that internal audit teams continue to deliver their risk and internal control responsibilities, while staying relevant in the next quarter. An internal audit that focuses on outcomes is vital within a forward-looking, solution-based approach. It provides assurance in a way that enables business and facilitates successful audit outcomes, with visibility to all stakeholders.
Early engagement with the audit committee and other stakeholders is a must to help internal audit functions understand their key priorities. Discussions will help teams understand any critical work required, and whether there are any new or elevated risks that need incorporating.
Four steps to show internal audit success
Here are four steps on how internal audit can demonstrate a successful outcome:
1 Confirm your internal audit reporting requirements to the audit committee – think ahead about topics you want to report and start tracking progress
2 Agree on what success will look like – continue the dialogue with the audit committee chair and provide a view of areas for consideration over the next three to six months to meet internal control declaration requirements
3 Capture success stories – emphasise where internal audit teams add value, adapt and support the business to demonstrate what the function can do in the future. Share success stories and positive events to maintain a positive outlook
4 Refine your KPIs to support the demonstration of your effectiveness as the business landscape changes
How to demonstrate audit outcomes
What is a good outcome for internal audit over the next three months? The table below outlines potential outcomes to consider and how to demonstrate them.
As the risk landscape continues to change, it is important for internal audit to reassess processes, to refocus on new opportunities beyond the pandemic and, ultimately, to emphasise what could make the difference between being successful or not.
For more information, contact Eddie Best or Martin Gardner.
