What strategy you would adopt to attract the Board and Senior Management towards internal audit reports to read and act on

1. Align Internal Audit with Organizational Objectives

• Understand the company’s strategy/goals and closely align the internal audit function with it. Regularly engage with senior management and the board to understand their most pressing concerns, challenges, and risk appetite.
• Identify key risks and value drivers i.e. the most critical risks facing the organization, including those that impact the company's financial health, reputation, regulatory compliance, and strategic goals. The Audit Committee needs to know that internal audit is tackling the most important issues.

1. Enhance Report Quality and Relevance

• Make audit reports concise, focused, and actionable and not lengthy or overly technical. Use clear, business-oriented language that conveys the findings in a way that makes it easy for their understanding. Focus on the impact of the issues highlighted and provide actionable recommendations.
• Prioritize high-impact issues and Minimize low-impact details. Highlight the most significant findings first, especially those that could affect the company's financials, compliance standing, or strategic goals.
• Provide a clear narrative. Connect findings to business risks and demonstrate how they affect the company's objectives. Explain the “so what” of each finding and why the issue matters.
• Focus on solutions rather than simply reporting the problems, offer solutions and practical recommendations. This not only helps the committee take action but also positions internal audit as a value-add function rather than a compliance-only role.

1. Present Information That Drives Action

• Risk-based prioritization-Present audit results in the context of risk i.e. what could happen if certain issues are not addressed? How do they impact the company’s risk profile, reputation, or financial health? This will make the findings more compelling.
• Clear action plans and follow-up. Include concrete action plans with assigned responsibilities, timelines, and expected outcomes. Establish follow-up mechanisms to ensure that the Audit Committee can track progress and ensure accountability.
• Provide insights, not just data i.e. highlight trends, root causes, and underlying systemic issues. The Audit Committee will appreciate insights that go beyond surface-level issues.

1. Foster Effective Communication

• Regular interaction with the Audit Committee. Don’t wait for the formal report presentation. Keep open lines of communication with the Audit Committee members, providing them with timely updates on audit progress and emerging risks. This ensures that they are prepared when the report is formally presented.
• Tailor presentations for impact. During meetings, tailor your presentations to what matters most to the Audit Committee. Focus on critical risks and strategic insights rather than a detailed review of every audit. Use visuals, summaries, and infographics where helpful.
• Ensure clarity on audit methodology and independence. Reinforce the independence and objectivity of internal audit to build trust with the Audit Committee. Demonstrate that internal audit operates without bias, focusing solely on helping the company achieve its objectives while managing risks.

1. Build Relationships and Trust with the Board and Audit Committee

• Develop a strong relationship with Audit Committee members. Make the effort to understand their concerns, preferences, and priorities. Regular one-on-one sessions with key Audit Committee members can help to understand their expectations and help shape the audit agenda to better align with their needs.
• Be transparent. If internal audit encounters limitations (e.g., lack of access to certain information, organizational resistance), be transparent about it. The Audit Committee needs to trust that internal audit is providing them with a clear and honest assessment of risks and controls.
• Engage in proactive risk discussions. Bring emerging risks, industry trends, and regulatory changes to the board’s attention before they become pressing issues.

1. Measure and Demonstrate the Value of Internal Audit

• Track the outcomes of audit recommendations. Demonstrating that internal audit recommendations have resulted in measurable improvements, whether in risk management, cost savings, or operational efficiencies, will show the Audit Committee the value added by the internal audit function.
• Benchmark against industry standards, if possible. Provide benchmarking reports that show how the company is performing relative to peers in terms of risk management, compliance, and control effectiveness. This can provide the Audit Committee with an external perspective on areas for improvement.

1. Continuous Improvement and Adaptation

• Solicit feedback regularly from the Audit Committee on internal audit’s performance and effectiveness. This can help ensure that the reports continue to evolve in a way that adds value and meets their expectations.
• Be agile and responsive. Audit committees are often dealing with fast-changing environments, so internal audit should be adaptable and responsive to emerging risks and regulatory changes. The ability to pivot and provide value in real-time can differentiate the internal audit function as a strategic partner.

By focusing on these principles, internal audit reports can be made a vital tool for the Audit Committee to discharge its duties effectively. The reports should not just be a compliance or assurance exercise but a proactive means of identifying risks, driving improvements, and helping the company achieve its goals. When internal audit is positioned as a value-adding, strategic partner, it ensures the Audit Committee engages with the reports, takes action based on the findings, and utilizes internal audit’s work to safeguard the company’s long-term success.