View from the top: Success drivers – the factors that enable internal audit impact
In July 2022, the internal audit team at Homes England was awarded the Outstanding Team – Public Sector Award at the Chartered IIA’s Audit & Risk Awards. Working in a continually changing environment, the team had come together, demonstrated commitment and shown continuous ambition to innovate, improve, anticipate and respond to the assurance needs of our organisation.
This was the first time we had considered nominating and so we were absolutely delighted to be successful – especially given the high quality of our fellow nominees. I had put the team forward because I wanted to recognise and celebrate the collective quality and dedication of both the internal audit team and the organisation within which we work.
Generally, the work of internal audit can often be overlooked. Some see it as a function that works quietly in the background, providing assurance to board and stakeholders. However, our experience has been that internal audit can have a profound impact on organisations, facilitating positive change and supporting future success when the following key factors coalesce.
Methodology and practices that adhere to our professional Standards and guidance go without saying. These are the foundations of any internal audit service and they ensure, and sustain, quality.
Our recent external quality assessment (EQA) report confirmed this and highlighted: “The function maintains a high quality of work which is centred on the business’s priorities”, and “Internal audit is a well-respected function whose work is making a significant impact on the organisation’s risk, control and governance arrangement through the provision of robust assurance and consultancy service.”
In my experience, however, maximising internal audit impact depends on a much broader set of organisational and cultural factors.
Stakeholder support is fundamental. It ensures a healthy operating environment within which we can work efficiently and effectively. It also enables a continual focus on, and alignment with, the most important areas of business activity, so our work results in sustained improvements in the management of risk.
Team foundations – each member of the team needs to be willing to work and support the others, and to have a hunger for continual improvement. This means that the team can, and will, overcome any challenge.
Shared goals – having a single team vision for the delivery of a service is a powerful driver. It is essential to align this with organisational goals. Internal audit, although independent, should have the achievement of organisational goals at its core. We have a specific role to play to help the business achieve these.
Communication. This sounds easy, but it can be difficult to achieve. It has been particularly challenging in recent years. The pandemic has helped us to embrace new ways of working along with technology that aids communication and it is important to maximise these benefits. However, we should also acknowledge the potential negative impacts. Changes in the post-pandemic world can corrode previously positive and constructive relationships within teams and the business and we should prioritise ways to combat this.
The process of submitting a nomination for the Audit & Risk awards was both reflective and humbling. Even if the team had not been successful, the process recognised its achievements and we found it a rewarding experience. Winning the award led to benefits not only for the team, but also for the wider organisation.
• It provided recognition by the Chartered IIA, which, together with our formal EQA report, gave us external validation of our service that we could give to our organisation’s board and audit and risk committee. This strengthened our relations with, and the trust of, our executive and non-executive directors. The value they perceive in internal audit has never been higher.
• Together, these developments improved morale and self-worth within the team. Team members’ confidence improved, as did our relations within the wider business.
• Our success appears to have encouraged others in the organisation. For example, our compliance team won this year’s Small Compliance Team of the Year – Non-Financial Services award from the International Compliance Association.
However, even success comes with risks that must be managed. Confidence is an essential auditor attribute; over-confidence could lead to the perception of arrogance. Improved standing and value brings greater responsibility and care should be taken to ensure that this is not taken for granted or, worse, abused. Furthermore, recognition may result in complacency or lethargy, which are contrary to the drivers that led to our nomination in the first place!
The team continues to strive to provide the best possible service for our organisation and to be exemplars of best practice in the profession. I recognise the value that the Chartered IIA continues to play in my own development journey and I have had a rich and rewarding career as a Chartered IIA volunteer on committees and task forces at district, national and global levels.
Education, certification and continuing professional development are very important to me and I have completed two terms on the global Professional Certifications Board (PCB) and one year on the Exam Development Committee (EDC). I am honoured and excited to have been invited to serve as Chair of the PCB with effect from this month.
This article was published in July 2023.