One of the features that makes internal auditing so valuable to modern enterprises is that we serve multiple stakeholders, including the board, various levels of management, and even external auditors and regulators. One of the challenges is that these stakeholder groups often have very different expectations of us, and very different perspectives on how we add value.
Differences of opinions among internal audit stakeholders are not uncommon, but it can become particularly problematic if the disagreement is between the audit committee and management. In such cases, the chief audit executive (CAE) can feel caught between two very powerful forces.
I have heard CAEs taking sides in these debates, based not on the particular issue at hand but on whose opinion should take precedence.…