An effective relationship between the audit committee and the internal auditors is fundamental to the success of the internal audit function. It has become increasingly important for audit committees to assess whether the internal auditors are monitoring critical controls and identifying and addressing emerging risks. The specific expectations for internal audit functions vary by organization, but should include the following elements:
- Objectively monitor and report on the health of financial, operational, and compliance controls.
- Provide insight into the effectiveness of risk management.
- Offer guidance regarding effective governance.
- Become a catalyst for positive change in processes and controls.
- Deliver value to the audit committee, executives, and management in the areas of controls, risk management, and governance to assist in the audit committee’s assessment of the efficacy of programs and procedures.
- Coordinate activities and share perspectives with the independent auditor.