Outside the box: if you ask one question this week, make it this one

Q: If I were to start our internal audit function again from scratch what would it look like?

A: Spring is a time of optimism. Clouds do have silver linings if you can find them and periods of great threat also bring opportunities. Vaccine scientists are not the only people to have achieved phenomenal success in the past 12 months – internal audit teams have swung into action offering help where it was most needed, winning new friends, influencing people and transforming the ways they conduct audits and offer assurance.

So now it’s time to take stock. Congratulate yourselves, recognise success – but also look at what your achievements mean for your team and your work in the future. Take time to look at what others are doing and to discuss common problems. What resources do you have and what will you need in this new world?

So, what might your “new” internal audit team look like? Would it be staffed with qualified competent internal auditors? Would you have an internal audit charter detailing the remit for the internal audit activity that has been approved by your audit committee? You could then turn to creating plans. First, given the levels of uncertainty, you could aim for a three-month fixed and nine-month indicative operational plan, developed in collaboration with assurance providers, first and second lines and senior stakeholders.

Next, you could consider a strategic plan aligned with the organisation’s strategic goals and objectives and spanning three to five years. One of the key lessons learnt from colleagues over the past year is that stakeholders want short, focused audit engagements with reports issued in days rather than weeks.

Spring is traditionally the time for a deep clean and refresh. Now is the opportunity to create lasting improvements and reset the audit button in your organisation. Think widely and use the creative energy that was so evident last spring to ask the fundamental questions you would tackle if you created your audit function today. 

This article was first published in March 2021.