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New internal audit research report published

Sep 07, 2018
The Internal Audit Foundation has released a new research report entitled Aligning Internal Audit Activities and Scope to Organisational Strategy – How the Business Environment and Organisational Strategy Impact Internal Audit.

The project focused on determining how internal audit can effectively align its activities to organisational strategy. Efforts centered on investigating the impact of strategy on internal audit function activities and understanding which skills internal auditors utilise in aligning their activities to organisational strategy. The findings are of particular importance in the current context of an increasingly changing, responsive, and robust business environment.

At its core is one major organisational factor - strategy. Interviews with CAEs, CEOs and other members of management committees from diverse industries were conducted to more fully understand how organisational strategy can impact internal audit activities. Internal auditors then responded to a survey submitted by IIA North America to investigate these impacts globally.

The main conclusions drawn through analysis of the interviews and surveys show:
 
  • The business environment is increasingly moving toward digital;
  • To stay aligned with the environment and its changes, the internal audit plan has to be dynamic;
  • Different strategic profiles have an impact on the activities performed by internal audit departments - especially the case with mergers, acquisitions, vertical integration, and unrelated diversification; and
  • A list of practical implications is offered at the end of each section, providing advice for practitioners.