Purpose-Driven Internal Audit
Dr Ahmed Shawky Mohamed
CEO LevelUp ESG?: AI-driven Sustainability ERP| Sustainability Risk & Assurance Expert| Board & Audit Commitee Member| CPA, CIA| IROs (Impacts, Risks, and Opportunities) Assessment Expert
Purpose. It's a word we hear often when it comes to reflection of life and impactful businesses. Companies frequently talk about their driving purpose, their reason for existing beyond profits. But we don't hear it as much when it comes to internal audit and assurance work.
?What if internal audit took a purpose-driven approach? What could that look like and how might it benefit businesses??
I'm curious to get your perspectives on what this term means to you and your organisation.
Here are some questions for us to consider:
I'm excited for a dynamic discussion on rethinking internal audit through a purposeful lens. There are no right or wrong answers here - I'm genuinely interested in all of your perspectives, whether you find this topic intriguing or not.
What does purpose-driven internal audit mean to you?
Board Director | Former University President | Author | AI Evangelist | Championing Governance, Sustainability, Higher Education and Training
1 年Well said Dr Ahmed Shawky Mohammed
Strategy/Objective-Centric Risk and Uncertainty Management (#OCRUM) Entrepreneur/Pioneer/Coach/Trainer/Board Advisor
1 年Dr Ahmed Shawky Mohammed thanks for your post. I have been promoting the need for internal audit to have clear PURPOSE for many years. I voiced my objections to the draft IA PURPOSE in the March 2023 standards exposure draft directly to the board responsible for IIA Standards update and in multiple LI posts. see https://bit.ly/3qWq7uE for one example. Providing independent assurance and advice is not an end result PURPOSE. What I have promoted is an urgent need for boards to clarify Board PURPOSE. Without clarity on board PURPOSE, risk groups and internal audit must largely guess what it is boards need. My 2021 article CLARITY ON BOARD https://bit.ly/40YEfVB describes the need for clear board PURPOSE and then, by extension, what I think the PURPOSE of internal audit and risk groups should share jointly. My proposed IA PURPOSE reads: Proposed draft statement of PURPOSE of risk functions and internal audit: Ensure the CEO and board receive materially reliable and timely information on the current risk/certainty that the company’s top strategic/value creation objectives and value preservation objectives are achieved, while operating with a level of risk/certainty acceptable to the CEO/board
Director of Finance | Author of the book: Ethical decision making in management (New York: Routledge) | Internal Audit Enthusiast
1 年It is a timely question and important one. For me it is about tackling the leading and not lagging risks. Dr. Rainer Lenz I would really appreciate your thoughts on this. Thanks
Governance & Risk Optimization Champion | Founder | Perplexity AI Business Fellow
1 年Thank you Ahmed for your thoughtful article. Our purpose is our compass, as you rightly pointed out. As all things, we should embrace purpose in our work. My purpose is providing tangible value - albeit strategical, technical, tactical insight, advice and recommendations. I particularly enjoy igniting enhanced engagement / cooperation, breaking down silos and collaborating with clients to develop thoughtful solution. Lastly, changing mindsets and behaviors when it comes to what good governance looks like. Having a purpose driven approach encourages inspires engagement, usually extending oneself to understanding client business, conducting thoughtful assessments, meaningful observations and solutions.