As The Institute of Internal Auditors (The IIA) is currently revamping the Three Lines of Defense model, this is a perfect time for us to revisit our interactions with the Audit Committee. Audit departments are soon going to find themselves in more advanced risk management discussions with senior management and the audit committee. A good internal audit department is one that can effectively work with the audit committee as a partner in enterprise governance. A world-class internal audit department goes much further.

When we talk about data analytics and data mining, many people immediately get overwhelmed. In the real world, most data analytics can be pretty simple, and most of us start out in Excel. Just think about the words we are using. “Data analytics” is just systematic review of information, which is a fancy way to say you performed a test.

It’s frustrating to watch an audit department fall apart. I’ve seen it happen several times in my career. I suggest a two step process to proactively prevent this disaster from happening to you. First, take a hard look at the feedback style perpetuated in your department. Then, perform a skills assessment for the department to determine where improvements need to be made.

You can find a news article about fraud literally every day. If fraud is so rampant, shouldn’t auditors actually find fraudulent activity more often? The answer is a resounding YES, we should!  

When it takes so much effort to complete the assessment that it takes away from the actual audits that we could be working on, is it time to admit that our risk assessment process is just too complicated?

Have you considered the ethical complexity you face with every report you write? This blog examines several key considerations every auditor should keep in mind.