Audit Committees need to lift

At the recent annual regional internal audit conference in Melbourne (SOPAC), the Chair of the ASX Corporate Governance Council, Elizabeth Johnstone, observed that internal auditors were not getting the visibility with Boards that was needed.

Elizabeth's comments received significant media attention, in a period where the spotlight on governance and culture is showing a high need for such insights.

In response the IIA has issued a strong statement as a rallying cry for Audit Committees to lift their game and ensure that the work of internal audit is not blocked or diluted and that the Board (or equivalent) receives the assessments that it needs to effectively govern.

We teach that IA is part of the org’s foundations for governance. These foundations include other components, including external audit, the audit committee and other board subcommittees, and the board (or equivalent ultimate governance authority). They are effective when they work in synergy. But if the board and/or the audit committee are not champions of audit, the value chain is broken. Management cannot dilute or avoid the work of IA if the audit committee is effective.As a Chair and Member of many audit committees (11), I take that call very seriously and encourage all audit committees to reflect on the level to which they are realising the potential that audit committees were created for. Read the full story here