logo-newlogo-newlogo-newlogo-new
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books
✕
  • Home
  • Chambers on Internal Audit
  • Uncategorized
  • Are You Auditing Up the Wrong Tree?

Are You Auditing Up the Wrong Tree?

Risk Management in Government: An Oxymoron?
July 11, 2013
Yes, CPAs and CAs Can Be Internal Auditors, Too!
July 29, 2013
July 22, 2013

One of the most important things internal auditors can do to meet stakeholder expectations is to ensure internal audit priorities align with those of the board and executive management. Risks that “keep our stakeholders up at night” also should be of concern to us.

If that sounds like common sense, consider that Thomson Reuters’ survey of internal auditors, The State of Internal Audit 2013 (PDF), found that while internal auditors are focusing on assurance of internal processes and IT risk, boards are more interested in governance, strategy, and strategic-level risk management.

If your internal audit function is stuck in the past, you risk becoming irrelevant or missing the real risks to your organization. Where I come from we call that “barking up the wrong tree.”

Misalignment is natural during times of rapid change. As the environment around us is changing, the internal audit function is undergoing one of the most dramatic periods of change in the history of the profession. Internal auditors are being asked to address more complex risks with fewer resources and under more intense scrutiny.

To survive and thrive in this environment, we need to step out of our comfort zones and into the more qualitative world of culture and governance. A robust dialogue with your stakeholders will not only allow you to zero in on their priorities, but it will also solidify stakeholder relations and help you avoid some of the pitfalls I discussed in my recent blog, Five Red Flags That Your Internal Audit Department May Be Losing Stakeholder Support.

So are you aligned? Ask yourself:

  • Have I asked the stakeholders about their priorities? Two-way communication with the chief executive and audit committee is critical.
  • Do we have the right skill set to meet those needs? Continuing education is key.
  • Do we have sufficient resources? Once you know what you need to focus on and are sure you have the skills to provide assurance, you still need to have the resources to make sure you aren’t being pulled in too many directions.

Assurance of internal controls will always be at the core of the internal audit function. But we need to expand our horizons and make sure our goals, skills, and resources are aligned with the growing demands on executive management and audit committees.

The recently updated Internal Control–Integrated Framework (PDF), published in May by The Committee of Sponsoring Organizations of the Treadway Commission (COSO), is a good starting point. It expands on the original 1992 COSO framework to provide additional insights into governance, globalization, regulatory oversight, and other board-level concerns.

The IIA’s new Certification in Risk Management Assurance curriculum is another good resource. In addition, The IIA Research Foundation recently added an entire volume on governance, risk management, and compliance to the 6th edition of Sawyer’s Guide for Internal Auditors.

These resources should go a long way toward helping you with the “how” of aligning audit priorities. For the “what,” I’d say the best source is going to be your audit committee and executive management — they know what keeps them up at night.

Are you auditing up the wrong tree? There’s no way to know without asking.

That’s my perspective. I’m sure most of you are dealing with this right now. I’d love to hear from you about ways you’ve achieved alignment. 

Share

Related posts

March 13, 2023

New IIA Report Is a Timely Benchmarking Resource for Internal Auditors


Read more
May 16, 2022

THE STAGGERING TOLL OF COVID RELIEF FRAUD: WHERE WERE THE THREE LINES?


Read more
February 3, 2022

To Live a Life in Color, You May Have to Change Channels


Read more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What’s Trending

03-20-23

New Report Reveals Surprising Insights from Internal Audit Executives


03-13-23

New IIA Report Is a Timely Benchmarking Resource for Internal Auditors


03-02-23

6 Things Audit Committee Members Often Won’t Say to Internal Audit


Read More

Archive

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009

Contact Us

PO Box 1441
New Smyrna Beach, FL 32170

+1-407-463-9389
rchambers@richardchambers.com

About AuditBeacon.com

AuditBeacon.com is a resource center for internal auditors and risk professionals from around the world. In addition to more than 500 blogs authored by Richard Chambers, the site includes links to news and insights on internal audit and other information that illuminates the value of this important profession. AuditBeacon.com is provided as a service by Richard F. Chambers and Associates, LLC.

Copyright © 2023 Richard F. Chambers & Associates. All Rights Reserved.
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books