Internal Auditors – Playing a Strategic Role

"We believe Internal Auditors can play a more strategic role; whether they do in their specific organization is up to the Audit Committee, Executive Management, and the Internal Audit Department. We have released a report that will provide a starting point for a conversation between the three groups." - Vonya Global

Vonya Global announced today that the Final Report on the Strategic Role of Internal Audit has been released. In compiling information for the study, Vonya Global surveyed a cross-section of Executives and Internal Auditors from both public and private organizations in a variety of industries to evaluate their opinions regarding the strategic role of Internal Audit. The study set out to determine whether it is Internal Audit’s role to evaluate strategic risks and if Internal Audit is equipped to do so effectively. The primary goal was to provide a benchmark for Internal Auditors and Executives on the strategic role of Internal Audit.

The 2010 study is a follow up to a similar study conducted in 2008 and was designed to compare opinions in 4 areas:

1. Vision, Goals, and Objectives of Internal Audit
2. Mission and Value Relative to Strategic Risks
3. Process, Skills, Time, and Budget
4. Compliance Requirements

In 2008 it was revealed that a gap exists between Executive Management and Internal Auditors on the function of Internal Audit. The 2010 study set out to explore whether this gap still exists or if it has been closed. In addition, the new study provides a more detailed comparison between Executive Management and Internal Auditors.

While the 2010 Report on the Strategic Role of Internal Audit reveals that many gaps still exist between Executives and Internal Auditors, there are encouraging findings as well. One assumption going into the study was that Internal Audit plays a critical role in a company’s ability to meet its strategic objectives and there appears to be general agreement between Executives and Internal Auditors in many categories. The report provides details and quotes from the participants, such as:

"We make understanding the strategic direction and goals a priority in our risk assessment process so that we can link our audit plan to the strategies and goals of the company.”

"Internal Audit is at the table for senior management discussions, for input on operational challenges and control risks, for the implementation of new systems and replacement of outdated processes, and for risk management.”

“The only risks that management should fear are the ones that they do not know about - it is Audit's job to provide that information.”

The full report can be downloaded by following the link on the Vonya Global home page.