Tone at the top: Critical responsibility for the Chief Internal Auditor (CIA)

Resetting the tone at the top is a critical responsibility for the Chief Internal Auditor (CIA), as the leadership's attitude and approach significantly influence the organizational culture, ethical behavior, and commitment to governance. The CIA needs a combination of leadership, integrity, and interpersonal skills to influence the Board, senior management, and the wider organization effectively. Below are key qualities a CIA should possess to reset the tone at the top:

1. Integrity and Ethical Leadership
2. Lead by Example: Embody the highest standards of integrity, transparency, and accountability.
3. Commitment to Objectivity: Be firm and objective, regardless of the pressure or influence from the top management.
4. Strong Communication and Influence
5. Clear and Candid Communication: Communicate audit findings and concerns directly, yet diplomatically, with the Board and senior management.
6. Persuasiveness: Aligning audit recommendations with the company’s long-term strategic goals.
7. Ability to Address Sensitive Issues: Have the ability to tackle delicate or uncomfortable subjects, such as ethical lapses, governance failures, or compliance issues.
8. Emotional Intelligence (EQ)
9. Understanding Motivations and Concerns of the Board and senior management.
10. Empathy and Listening Skills: Interacting with leadership. Demonstrate genuine concern for their perspectives
11. Managing Resistance to Change: Recognize that there may be emotional resistance to acknowledging the need for cultural or governance changes.
12. Visionary Leadership and Strategic Thinking
13. Long-Term Perspective: It is about instilling a long-term vision of governance, risk management, and internal controls. Think strategically and guide the Board and Senior Management toward future-oriented solutions that strengthen the company’s position.
14. Understanding Business Objectives: Connect internal audit findings with the company’s business goals and ensures that the internal audit function is seen as a valuable contributor to achieving corporate objectives.
15. Confidence and Courage
16. Standing Firm on Principles: Demonstrate confidence and resilience, particularly when facing pushback from senior management.
17. Delivering Uncomfortable Truths: Have the courage to deliver the truths clearly and professionally, focusing on the long-term benefits of doing so.
18. Challenging the Status Quo: Especially when they are detrimental to the company’s risk management or governance.
19. Collaboration and Relationship Building
20. Building Alliances: Foster strong relationships not only with the Board and senior management but also with key department heads and business unit leaders.
21. Cross-Functional Collaboration: By working closely with various departments (e.g., compliance, legal, finance, HR), try to build a holistic view of the organization's risks and ensure that governance practices are integrated across the entire organization.
22. Team Leadership: Empower and guide the internal audit team. Create a strong, independent audit culture within the team, where audit professionals feel confident in their roles and in speaking truth to power.
23. Accountability and Responsibility
24. Setting Accountability Standards: Ensure that there are clear expectations for governance, transparency, and ethical behavior, and that these expectations are consistently enforced across all levels of management.
25. Promoting Accountability Across the Organization: Help instill a broader culture of accountability across the entire organization, aligning with the company’s values and goals.
26. Resilience and Adaptability
27. Adapting to Change: Be adaptable and responsive to changing circumstances, adjusting audit strategies and approaches as needed to continue driving improvements in governance.
28. Managing Crises Effectively: In times of crisis or corporate challenges (e.g., financial misreporting, scandal, regulatory scrutiny), you must be resilient in leading the internal audit function, ensuring that governance and risk management frameworks remain strong even under pressure.
29. Credibility and Professionalism
30. Professional Certification and Experience: You should have recognized certifications, along with significant experience. This professional standing lends credibility to the internal audit function and instills confidence in senior management.
31. Objectivity and Independence: Consistently assert your role as an independent party, providing unbiased and objective assessments, even when findings may not align with their preferences.
32. Commitment to Continuous Improvement
33. Championing Best Practices: Keep learning, staying updated on industry trends, best practices in governance, and changes in regulatory requirements..
34. Promoting a Culture of Learning: Advocate for an organization that strives for constant enhancement of its governance, risk management, and internal controls.

The CIA’s ability to reset the tone at the top depends on a mix of personal integrity, strategic vision, emotional intelligence, leadership skills, and communication abilities. By demonstrating these qualities, he/she can drive cultural change within the organization, ensuring that governance, accountability, and risk management are firmly embedded at all levels of leadership.