The Audit Committee has many important jobs, but in this Bulletin, we focus on how it works with Internal Audit. It’s a pretty important relationship when you consider that an independent board is supposed to gain confidence that the organisation is working well, based almost entirely on information provided to it by management. Internal Audit provides a rare source of detailed independent insight.
As well as relying on it for information and assurance, the Audit Committee also has to maintain oversight of Internal Audit.
So it must keep under review the effectiveness of Internal Audit within the organisation, and challenge and approve the audit plan. Yet, it is surprising how often we see a weak relationship between the Audit Committee and Internal Audit. Here we take a look at some simple pointers which can help to improve things.