Making internal audit count

Abstract

In recent years the role of the internal audit function has gained increasing prominence and is now seen as a cornerstone in the overall governance of public sector bodies. This article explores the experience of 127 public sector bodies and illuminates key insights for public sector bodies seeking to realise more meaningful results from the efforts currently directed towards the internal audit function. Among the most significant research findings is the evidence that the function is not viewed by its most key stakeholders as a primary driver of continuous improvement. This finding identifies a disconnect between the real-world practice of internal audit function and the definition of the function across relevant academic literature, public policy and practitioner guidance. The author concludes that an overemphasis on assurance activities can be to the detriment of the other value-add functions which the internal audit function can deliver. While currently widely viewed as a divorced function, the real value of internal audit will only be realised by integrating it within the organisation. Such integration will allow the sharing of enterprise-wide learning, thus enabling the function to become a primary driver of a permanent culture of continuous improvement.