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This means ensuring direct reporting lines to the internal audit from a perceived hindrance to a
board, providing adequate resources, and creating valuable business partner. Boards that encourage
an environment where auditors can deliver management to engage audit early in strategic
difficult messages without fear of repercussion. initiatives often see improved project outcomes
Boards that champion audit independence receive and more efficient use of resources.
more candid assessments and insights than those
that allow management to filter or influence audit • The Communication Bridge
communications.
Internal auditors hold a distinctive organizational
• Resource Reality Check position with cross-departmental visibility. This
unique vantage point allows them to effectively
Internal audit teams often struggle with limited connect operational realities with board
resources while their responsibilities grow. governance. They frequently identify frontline
Auditors want board members to understand that issues that traditional reporting structures might
these constraints directly affect what they can not elevate to leadership.
examine and how thoroughly. When boards expect
complete assurance without allocating sufficient Boards establishing casual dialogue channels with
resources, they create unrealistic expectations that internal audit—complementing formal committee
weaken governance interactions—gain access to candid insights
that expose governance oversight gaps. These
Progressive boards regularly evaluate whether perspectives often help identify emerging problems
internal audit has adequate resources—including before they develop into significant challenges.
technology, specialized expertise, and staff—to
address key organizational risks. This essential Enhancing Governance through
alignment between resources and risks is a crucial Capability Building – Auditor’s
governance duty that many boards fail to prioritize.
Perspective:
While auditors must evolve their practices
in governance, risk assessment, and control
monitoring, the question is: How effectively are
board members engaging with new technologies
and innovation risks? Despite their expertise, to
what extent are they proactively understanding
and adapting to innovation projects, emerging
technologies, and AI-driven Ways of Working?
This balance between traditional governance and
modern business realities is essential for providing
effective strategic direction.
• Early Involvement Yields Better By implementing below pro-active approach,
Results boards can enhance their oversight capabilities
and ensure they are well-informed about new
innovation products and services supporting the
Internal auditors frequently wish boards organization’s long-term success.
understood the value of involving audit early
in strategic initiatives rather than only for post- • Boards should participate in ongoing education
implementation reviews. When audit participates programs to stay informed about emerging
in the planning stages of major projects, control technologies and industry trends
considerations can be integrated from the outset,
preventing costly remediation efforts later. • Establish dedicated innovation committees
within the board to focus on monitoring and
This “audit by design” approach transforms evaluating new products and services
INTERNAL AUDIT TODAY 28
