Governing the Internal Audit Function
Mahmoud Elbagoury, MBA, CIA, CFE, CISA, CCGP, GRCA, CRISC, CertDir
Chief Audit Executive | Board Director | Committee Member | Keynote Speaker | KPMG Alumni | IFC Nomination | McKinsey Champion | IIA Ambassador | ACFE Mentor
Effective governance is crucial for the internal audit function's success. It details the essential collaboration between the Chief Audit Executive (CAE) and the board to establish and maintain an independent and high-performing internal audit function.
Furthermore, it highlights the significant role of senior management in supporting the board's efforts and fostering robust governance of the internal audit function.
The CAE bears the primary responsibility for the stipulations in this domain. However, the actions of the board and senior management are not just supplementary but pivotal.
They create the 'essential conditions' for the internal audit function to achieve its purpose, as outlined in each standard. Let's consider a hypothetical scenario: a new CAE is appointed in an organization. To be effective, the CAE needs to establish a direct line of communication with the board and engage in transparent, strategic dialogues.
Simultaneously, senior management's involvement ensures that the internal audit function has the necessary resources and organizational support. This collaboration is vital for an ongoing, effective dialogue among the board, senior management, and the CAE.
By understanding their distinct yet interconnected roles, they can collectively ensure the internal audit function not only meets its objectives but also adds significant value to the organization.
Governance, Risk & Compliance | Chief Internal Auditor | ESG | Chartered Accountant
10 个月Rightly pointed out but I always feel the urge and the push has to come from the Board/BAC. They should be the ones who should be forthcoming in first of all opening and then maintaining this communication channel. Also important for CAE to appreciate that he needs to update on only on material issues and not on everything. At times CAE get carried away when communication channel opens. Having said this striking the right balance is vital as some Board/BAC tends to get to much involved in audit function. Hope this helps.
Internal Audit Specialist | Managing Financial & Operational Audits @ Oil and Gas Entity | Governance, Risk Management & Control.
10 个月Mahmoud Elbagoury Spot on! The collaboration between the CAE, board, and senior management creates a strong foundation for effective internal audit governance. It's not just about roles but the ongoing dialogue that ensures alignment and support. Kudos to highlighting the pivotal nature of this collaboration
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10 个月I absolutely agree Mahmoud Elbagoury. The collaboration between the CAE, the board, and senior management is essential for a successful internal audit. Together, they create a supportive environment that allows the internal audit to thrive and add value to the organization. Clear communication and resource support from senior management, coupled with strategic guidance from the board, empower the CAE to lead an effective and independent audit function. This partnership is key to achieving the audit's objectives and enhancing the organization's overall governance.