Relationships between audit committees and chief audit executives (CAEs) have become increasingly more complex as the risks facing organizations have become more diverse and dynamic. Indeed, surveys of audit committees suggest they are turning to internal audit more often for an expanding scope of assurance and advisory services.
But the relationship between the audit committee and the CAE is often complicated by personal dynamics and the awkwardness that comes with “constructive feedback.” As a result, I often find that audit committees are uncomfortable pointing out to the CAE what internal audit could do better. Instead, they leave it to management to deliver the news, and the translation isn’t always pure.…