What is Assurance?
Internal Audit’s (i.e., assurance) primary objective is to provide governance with some comfort that management is deploying the right resources to do the right processes to get the right results. And, if those controls and processes stopped working, management and/or governance would know about it. Internal Audit is NOT responsible for the company’s controls.
Focus On Risk Enterprises believes that Internal Audit teams can improve their value and productivity while building more effective working relationships with senior executives. To start, how would you answer the following questions?
Does Internal Audit understand your company’s objectives and strategies?
The company’s objectives and strategies are critical to understanding key risks. Any internal control system designed without understanding objectives is meaningless.
Is your Internal Audit team perceived as a valued business partner by the business?
Audit Value is determined by the Audit Customer, not Audit. If the customer believes Internal Audit adds no value, then Internal Audit adds no value. To add value, design an audit program that is based on here and now risks, not standard work programs or one that is based on what happened in prior years.
Our Risk Based Integrated AuditingTM (RBIA) is a business risk based audit approach designed specifically to enhance the value and productivity of internal audit departments.