New UK Government - New Opportunities for Internal Audit

As the new UK government sets forth an ambitious growth agenda focused on revitalizing the economy through strategic investments and regulatory reforms, the internal audit profession faces a pivotal moment. Whilst we need to align our work to the strategic objectives of the organisations that employ us, we also need to be mindful of the broader climate in which we operate. (We may even want to opine on political risk!) Whilst we certainly don’t want to be? perceived as a generator of red tape, internal audit must now demonstrate its value as a strategic partner in helping our organisations embrace this new national climate. By aligning its practices with the government's priorities, embracing innovation, and streamlining processes, the profession? can play a crucial role in supporting sustainable growth while ensuring robust governance and risk management. This article explores how the internal audit profession can adapt to effectively support the government's vision for a prosperous and resilient economy.

Without growth our country will not be able to afford to fund essential services let alone anything beyond.

For our profession we need to be mindful of the new political realities of the day!

To effectively support this growth-oriented agenda, the profession must first gain a comprehensive understanding of the government's strategic objectives and policy priorities. This includes recognizing key areas of focus such as infrastructure development, green energy initiatives, healthcare improvements, and educational advancements. Additionally, we should stay informed about potential regulatory changes designed to stimulate economic growth and reduce bureaucratic hurdles. By understanding these goals, internal auditors can better align their activities to provide relevant and timely assurance, ensuring that organizational efforts are both compliant with new policies and contributing to broader economic objectives.

A significant component of the new government’s growth agenda is its commitment to sustainability and ESG (Environmental, Social, Governance) initiatives. We must prioritize these areas, providing assurance that the organization's objectives with governmental green policies and sustainability goals. This involves evaluating compliance with environmental regulations, assessing the effectiveness of social responsibility programs, and ensuring strong governance practices. By integrating ESG considerations into audit processes, internal auditors can help organizations mitigate risks, enhance reputation, and achieve long-term sustainability objectives, ultimately supporting the government’s vision of a more resilient and equitable economy.

We must address the perception that we create unnecessary red tape. Internal auditors should focus on streamlining their processes, adopting agile auditing methodologies, and leveraging technology to minimize disruption and add value. By emphasizing efficiency and relevance, auditors can shift from being seen as a bureaucratic burden to becoming enablers of growth. This means prioritizing high-impact areas, reducing the complexity of audit procedures, and delivering clear, actionable insights that help organizations navigate regulatory changes and achieve strategic objectives without being bogged down by excessive compliance demands.

To meet the challenges posed by this new reality, the internal audit profession must undergo significant mindset and competency changes. Auditors need to adopt a proactive, forward-thinking approach that goes beyond traditional compliance checks to actively support strategic initiatives. This requires developing new skills in emerging technologies, such as data analytics and artificial intelligence, to provide deeper insights and more predictive risk assessments. Additionally, auditors must enhance their understanding of ESG principles, regulatory landscapes, and industry-specific growth drivers. Continuous professional development, agility in audit methodologies, and a focus on adding value will be crucial for internal auditors to effectively contribute to the organization’s success in this dynamic environment.

In conclusion, being mindful of political agendas is crucial for our profession. By aligning their efforts with these broader economic objectives, internal auditors can not only enhance their relevance and impact but also contribute to the overall success and sustainability of the organizations they serve. This requires a shift in mindset, continuous upskilling, and a focus on efficiency and value creation. Embracing these changes will enable internal auditors to move beyond the perception of being a source of red tape and become trusted advisors who facilitate growth, innovation, and robust governance in a rapidly evolving landscape.

Finally, from an advocacy perspective, the Chartered Institute of Internal Auditors has already made contact with the Chancellor, Business Secretary and the Prime Minister. We remain hopeful that audit reform will lead to greater relevance for our profession.

To be relevant we need to pay attention to this significant new stakeholder’s policies and desired outcomes.